Altering a Deed of Variation in an intestacy case

Altering a Deed of Variation in an intestacy case

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 A deed of variation was created within 2 years of death in order to direct the entirety of a residuary estate left by a spouse who died intestate to the surviving spouse rather than to the daughter in order to preserve the £650,000 IHT exclusion.  The surviving spouse and daughter now wish to alter the deed of variation so that an unlisted shareholding may be transferred to the daughter rather than to the spouse.  The unlisted shareholding is exempt from IHT under current legislation but would incur a £25,000 liability if transferred as a gift today.  Is it possible to alter a deed of variation?  HMRC's Instrument of Variation checklist suggests not - http://www.hmrc.gov.uk/cto/iov.pdf

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By King_Maker
30th Dec 2013 12:51

You can have more than one IoV (Instrument of Variation, as a Deed is not necessary), if different asset(s) are involved.

Unfortunately, that does not seem to be the case here.

However, Holdover Relief might be an option?

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