What is a Deed of Variation?

What is a Trust Deed of Variation?

A deed of variation is a legal document that is used to change the details of an existing trust. In most circumstances, in order to properly execute a Deed of Variation, it is important that the Appointor (sometimes referred to as a Principal or Guardian) along with Trustee consents to the proposed change. Before drafting a deed of variation, you must ensure the terms of the deed allow the Trustee to make that particular change. Before making any change to a trust deed it’s very important to consider all tax and duty implications.

What terms can the Deed of Variation change?

If the deed permits the Trustee to vary the deed, it may be able to make the following changes:

Some variations are more complicated and require advice from your accountant or a legal professional as the change may result in duty/tax implications. When significant changes are made to the trust’s basic details there may be implications which could result in a resettlement.

• Change Trust Name
• Change of Appointor or Trustee
• Amend the clauses of the deed
• Exclude named or non-named beneficiaries
• Insert clauses – this may be needed as the result of changes in legislation or at the request of a bank
• Correct spelling errors

Other questions in Deed of Variation