If a Deed of Variation is made by both the residuary beneficiaries to include a specific gift of the property to one of the original residuary beneficiaries and their spouse and to vary the inheritance of the residue to that same original beneficiary exclusively, should the costs of preparing the Deed of Variation be borne by the two original beneficiaries equally?
Thanks in advance!
The deed is the original beneficiaries’ deed and the liability for costs is a joint liability. I would therefore split the costs equally, unless they have agreed otherwise.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Many thanks for your guidance Paul.
I woudl have said that this is a matter for negotiation between the beneficiaries. No one is obliged to vary their inheritance. So the question is, who wants it more?
Alexander Learmonth KC
Further to Alexander’s comment, nobody should really have to decide this. The solicitor’s fees should ultimately be paid by the clients named as liable to pay on the engagement letter. If the executors, or only one beneficiary, has instructed the advisers, they are primarily liable and it is up to the other parties to decide whether they wish to contribute. I don’t believe it would be a legitimate (ie deductible) estate expense unless the residuary beneficiaries all agreed.
I would be wary of receiving a contribution not made out of the estate.
IHTM 3510:
“IHTA84/S142(1) does not apply to a variation or disclaimer if it is made to any extent for a consideration in money or money’s worth not provided out of the death estate IHTA84/S142(3).”