The Executors of an estate have approached me to complete a deed of variation to their late mother’s Will which gifts her main residence (by specific gift) to her daughter (A) and her grandchildren (1) and (2) equally. The Deed of Variation is to alter the destination of the property to go the all of the children of the deceased i.e (A), (B), © and (D). The issue however is that where (1) and (2) inherit a share of the property, have they lost their benefit of first-time buyer’s relief to SDLT? The legislation specifically states that if you inherit property then the exemption is no longer available. But, at what stage are you deemed to own the property and would a Deed of Variation change the situation?
From my reading, I believe that (1) and (2) lose their exemption and a DoV will not alter this. However, one hypothesis I have seen is that the house is part of the estate and (1) and (2) are not beneficially entitled until the property is formally transferred to them - in which case a DoV could be successful?