Deed of Variation Explained
A deed of variation is a legal document that is sometimes used and implemented in statutes regarding wills, trusts, and inheritance procedures. The deed of variation, also known as a disclaimer of interest, is actually a document that will essentially refuse the acceptance of any inheritance that is provided for in a will or trust.
A disclaimer of interest may be enacted for various reasons, though they may all revolve around the simple fact that the inheritance will create some sort of inconvenience to their would-be heir. An example would if the inheritance were to have an effect on income taxes that would need to be paid as a result of inheriting an asset or property.
The deed of variation would, in such a case, would treat the would-be heir as if they had died before the will or trust would come into effect. The reason for this may be for that person’s own children or relatives to be able to take his/her place, and thus, possibly benefit from the inheritance and no gift tax would be applied.
Disclaimer of interest documents must be made and writing and properly submitted to the appropriate court of law overseeing the administering of the will or trust. However, a deed of variation must be filed within a certain amount of time after the death of the person which has created the will or trust.
Typically speaking, a deed of variation must be filed within nine months after the death of such person in order to legally and properly refuse the inheritance. In the case that the inheritance or trust is created by a person still living, a disclaimer of interest must be filed within twelve months of the creation of the trust.