Inheritance Tax Act 1984 section 142

Alteration of dispositions taking effect on death

Section 142 allows the dispositions of a deceased person's estate (whether made by will, intestacy or otherwise) to be varied or disclaimed within two years of death, so that for inheritance tax purposes the variation or disclaimer is treated as if it had been made by the deceased.

• Beneficiaries may vary or disclaim dispositions of a deceased's estate within two years of death by a written instrument, and the Act will treat the variation as if made by the deceased — provided the instrument includes a statement by all relevant persons that this treatment is intended
• The variation or disclaimer must not be made for consideration in money or money's worth, unless that consideration is itself a qualifying variation or disclaimer of another disposition of the same deceased
• Where a variation redirects property to a charity or registered club (attracting exemption under section 23), it only takes effect for inheritance tax purposes if the charity, club or relevant trustees have been notified of the instrument of variation
• The property that may be varied includes excluded property but does not include property to which the deceased was treated as entitled by virtue of an interest in possession or a gift with reservation under the Finance Act 1986