Case study - deed of variation following intestacy

Our client’s brother passed away unexpectedly. He was unmarried and had no children with no will, which meant that under the intestacy rules, his estate would pass entirely to his surviving parent, his mother. She was elderly, financially secure, and not keen to manage the administration herself.

Although she had priority to administer the estate, she chose to appoint her two daughters (the deceased’s siblings) as her attorneys to handle the estate administration. This introduced several challenges, including the need for a paper-based probate application, rather than the government’s online portal, which can slow the process.

We guided the siblings through the application for a grant of probate in their names, utilising the mother’s power of attorney. Recognising the potential tax and inheritance planning benefits, we also advised on a deed of variation.

Under the deed of variation, instead of the entire estate passing to the mother, the majority of the estate was redirected to the deceased’s nieces and nephews.

This arrangement:

• Relieved the elderly mother of the administrative burden

• Helped protect the estate from potential future tax implications

• Ensured the younger generation received the inheritance rather than older family members

Despite procedural delays at the probate registry, the grant was secured within approximately one year, and the estate, including the sale of property, was fully administered over about two years. The deed of variation achieved it’s intended purposes without any adverse tax consequences.

Key takeaways

• Elderly beneficiaries may choose to delegate estate administration, which can reduce stress and ensure proper management.

• A deed of variation is a powerful tool for families wishing to redirect inheritance and engage in thoughtful tax planning.

• Understanding probate timelines and planning options helps families make informed decisions while protecting the interests of all parties.

If you or a loved one may be faced with estate administration, consider:

• Whether the intended administrator is best placed to manage the estate

• Options for delegating responsibilities through power of attorney or professional guidance

• The benefits of early planning to manage tax and inheritance considerations

By exploring these options, families can ensure a smoother administration process while protecting the interests of both older and younger generations.