Deeds of Variation - Are They Justified?

Written by Janine Byrne

Continued from page 1

Perhapsrepparttar above examples have already provided some clues as to why Deeds of Variation still have application in UK law. The example of Michael and Michelle demonstrates that such Deeds can serve an equitable role in correcting/amending what would otherwise appear to be unfair dispositions. 

The unfair dispositions might not be intentional onrepparttar 119179 part ofrepparttar 119180 testator, particularly where they have not updated their Will.

Example -------

In 1998 when Monica made her will, her relationship with her daughter Amy, problematic for years, had eroded torepparttar 119181 point that Monica decided to leave Amy nothing in her will, dividing her estate of £1,000,000 equally between her two other children, Sam and Sadie. Byrepparttar 119182 time of Monica’s death last year she and Amy had reconciled, and Monica often voiced her intention to change her will to leave Amy one third of her estate. Due to infirmity Monica died before making this intended change, but aware of her wish, Sam and Sadie give Amy one third of Monica’s estate via a variation.But Deeds of Variation serve another practical role, and this is withinrepparttar 119183 realm of tax.

Not everyone engages in estate and tax planning let alone makes a Will inrepparttar 119184 first place! Thus a person may have made a Will which upon their death was grossly out of date and an intolerable - and avoidable - amount of tax particularly IHT ensues. Or maybe there was no Will at all, in which case there would have been no IHT mitigation! This is where a Deed of Variation can saverepparttar 119185 day.

Example -------

Malcolm left everything he owned to his wife Maude by survivorship. Transfers to spouses are automatically exempt anyway which means that Malcolm failed to utilise his Nil Rate Band Exemption. The result is that a hefty IHT bill will accrue on Maude's estate upon her death. Michael and Maude have adult children and a Deed of Variation could be agreed whereby Malcolm could leave his NRB legacy to his children thus using his allowance.

Onrepparttar 119186 other hand, if Malcolm's Will left more thanrepparttar 119187 current IHT allowance to his children in error (an outdated Will for example)repparttar 119188 tax would be due immediately. A Deed of Variation could remedy this by changingrepparttar 119189 beneficiary to Maude thus resulting in delayed IHT and allows Maude time to engage in some tax planning and gift giving to reducerepparttar 119190 value of her estate.

Conclusion ===========

It has been argued by many thatrepparttar 119191 very notion of allowing family members to alterrepparttar 119192 wishes ofrepparttar 119193 deceased Will maker flies inrepparttar 119194 face of freedom of choice - freedom to choose who to leave one's own possessions to and who NOT to benefit asrepparttar 119195 case may be.

But I submit thatrepparttar 119196 value of such legal documents far outweighs their 'intrusive' nature. They are able to remedy a range of situations, including persons who have wrongly been ignored reaping some benefit to those who have unintentionally been left out or not given enough. 

Taking into accountrepparttar 119197 fact that approximately 70% of people do not make a Will and withrepparttar 119198 ever increasing value of people's estates beneficiaries can be left with sometimes overwhelming tax bills due to their family member leaving everything to intestacy, and here againrepparttar 119199 Deed of Variation comes torepparttar 119200 rescue. And even those withrepparttar 119201 foresight to make a Will can make mistakes and not plan adequately;repparttar 119202 Deed of Variation can come torepparttar 119203 rescue in minimizingrepparttar 119204 tax that as inadvertently arisen.

The Deed of Variation is by no means a perfect tool and there are no doubt situations which it just cannot present itself as a remedy. But fromrepparttar 119205 tax perspective alone, with an ever increasing tax-hungry Government seeking to minimize tax avoidance schemes where ever possible, one is thankful that this tax saving tool and equitable remedy has been left untouched.

Forrepparttar 119206 meantime that is...

Miss JsByrne holds a Bachelor of Law degree with Honours & a post-graduate diploma in Legal Practice. Also gained qualification in Wills Writing & is the owner/author of and DYW Wills & Estate Planning Newsletter.

Bugging and Tape Recording Conversations in Arizona: Is it Legal?

Written by Trent R. Wilcox, Esq.

Continued from page 1

In summary, bugging/wiretapping is always illegal while tape recording is legal in Arizona as long as one party torepparttar conversation is awarerepparttar 119178 conversation is being recorded. However, don't make assumptions aboutrepparttar 119179 law in other states -consult an attorney to determine what is allowed.

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Disclaimer: Wilcox & Wilcox, P.C. and its principles, agents and/or representatives, make no guarantees or representations as torepparttar 119180 accuracy or currency of any information herein contained. Providing this brochure does not establish an attorney-client relationship. To create such relationship, bothrepparttar 119181 attorney and potential client must sign a written fee agreement. This information is meant only as general information, may not apply to your case specifically and is not meant to be relied upon for purposes of taking legal action. You should contact an attorney in person for further and specific information. Our family law attorneys are licensed in Arizona only.

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Attorney Trent R. Wilcox is the managing partner of Wilcox & Wilcox, P.C. Mr. Wilcox practices in the areas of family law, employment disputes and general civil litigation. Mr. Wilcox is admitted to practice in the Arizona state courts and federal district court and is a member of the Maricopa County, Arizona State and American Bar Associations.

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