Post Death Variations

Although primarily when a person dies their estate is distributed according to either the intestacy rules or the provisions of their will, it is possible for alterations to be made to these basic rules of distribution.  Often the distribution of a person's estate under these basic rules will be unsatisfactory in some way e.g. it fails to make provision for or adequate provision for a particular person or the basic distribution results in there being an unsatisfactory tax situation.  In such cases it is possible to alter the basic rules of distribution.  This can be done in basically 4 ways:-

1.         By way of an order under I.P.F.D.A. 

2.         Capitalisation of spouse's life interest under the intestacy rules (See earlier).  This is a fairly minor re-distribution of entitlement, but does increase the capital entitlement of the surviving spouse and alter the entitlement of other beneficiaries to some extent.

3.         By way of a disclaimer

4.         By way of a variation.

Disclaimers

A disclaimer operates as a refusal to accept property to which a beneficiary is entitled either under the intestacy rules or under the terms of a will.

        Can only disclaim before acceptance

        Can only disclaim the whole gift

        Disclaimer of rights under a will does not act as a disclaimer of intestacy rights

        The property then passes as if the gift to the original beneficiary had failed.

Variations

A variation is a direction from a beneficiary to the personal representatives to transfer property to which that beneficiary is entitled, under the terms of a will or the intestacy rules, to another person.

        A variation is possible after acceptance.

        A variation can be…