Deed of variation and limited company

Is it possible to vary a Will so that a beneficiary can leave a property due to pass to him to pass instead to a limited company that he has an interest in?

Claire Carr
Rexton Law LLP

Yes. There is nothing to preclude a company from qualifying under a DoV.

Neither the reservation of benefit provisions (nor the POA rules) would apply assuming reading back for IHT.

Malcolm Finney

On the bald facts, yes. A deed of variation is just a certain type of gift that attracts special tax treatment.

Stuart Maggs
Howes Percival LLP

I can see no reason why s.142 IHTA 1984 cannot apply to enable the dispositions of an estate to be varied to transfer property to a limited company.

I take it there would be no provision in the company’s M&AA that would prevent it accepting such a gift.

Paul Saunders