Deed of Variation - timing of transfer

Trusts Discussion
1

As long as a Deed of Variation is signed within two years from the date of death, does it matter when the actual transfer of assets is made, does this also have to be completed within the 2 years?

A is wanting to redirect an inheritance from B to her children using a DOV rather than as a gift from her own estate, as As estate is already a taxable estate. If the DOV is signed within 2 years from the date of Bs death does the full amount of the inheritance as detailed within the DOV have to be transferred to the children within the 2 year deadline? A has asked if they could transfer the cash payments over a longer period of time rather than transferring the whole amount to the children at once? So, if some of the money was transferred after the 2 year period, would this have implications?

2

There is no requirement for assets to be transferred within two years of the death of the testator under a DoV.

The effect of a DoV is that the manner of devolution of the property owned by the deceased is changed from what (in the absence of a DoV) it would otherwise have been. It is sufficient for the Deed to be executed within the two year time frame.

It is the gift not the property which is the subject of the variation ie it is the gift not the property which is redirected.

Malcolm Finney