Chancellor George Osborne has pledged to review deeds of variation (DOVs) as part of his crackdown on tax avoidance. What would the removal of this tax planning measure mean for you and what can you do to avoid paying inheritance tax (IHT) on an estate you want to pass directly to your children?
Who will be affected?
Deeds of variation (DoV) enable beneficiaries of a will to amend the will as long as everyone agrees and changes are made within two years (if those changes are made for tax reasons). The main reasons include passing an estate to the children of beneficiaries for inheritance tax reasons, providing for someone not included in a will, moving the deceased's assets into a trust or clearing up errors or unfair elements of a will.