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Variations: more trouble?

28 March 2007
Issue: 4101 / Categories: Forum & Feedback
A new scare story seems to be doing the rounds for those entering into deeds of variations of wills and it concerns the following point.

One of the requirements for a valid deed of variation under IHTA 1984 s 142 is that there must not be any consideration in money or money's worth given for the making of the variation. Some have suggested that where the relevant asset is placed into a discretionary trust under which the original beneficiary under the will is to be regarded as the primary beneficiary there is effectively consideration given to that beneficiary by the trustees for the making of the variation. In other words the tacit understanding is that the beneficiary will place the asset in trust with the trustees accepting by implication that the asset will be applied for the benefit of the original beneficiary. In this way it is said the beneficiary receives consideration for entering into the deed of variation.
Readers' views on this possible argument are requested.
Query...

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