Dear all,
I am in the process of preparing a Double Death Deed of Variation. I am aware that this is something that can be done and that the IHT Manuel sets out guidance at IHTM35042.
Part of this guidance says that: “The executor of a person who has died may make a variation redirecting that person’s entitlement on an earlier death… Where the variation reduces the entitlement of the beneficiaries of the second deceased then the beneficiaries should also agree to the variation.”
In the matter that I am dealing with, the Will of the second person who has died leaves their entire estate on a discretionary trust. The second estate does not therefore have beneficiaries who are automatically entitled to the assets of the second deceased.
Is it possible in this situation for the double death variation to take place in this situation?
As it happens, the executors / trustees of both estate are the same people and individual who would benefit from the variation is also amongst the class of beneficiaries for the discretionary trust in the second estate. While it would be possible for the assets in question to be appointed from the discretionary trust to the proposed beneficiary, this is less desirable as the assets are APR exempt and it is considered that it would be better to use this exemption from the first estate rather than rely upon it applying in the second estate.
Many thanks for your assistance.
Kind regards,
Michael