Last updated: 14 October 2026
Can an inherited property be redirected when someone dies without a will?
Yes. If someone dies intestate (without a valid will), their estate passes under the intestacy rules. But the people who inherit can redirect their share to someone else, using a deed of variation within 2 years of the death. If the deed includes the right statements, it’s treated for inheritance tax and capital gains tax as if the person who died had left the property to the new beneficiary. This is often used to pass property to children or grandchildren.
Intestacy rules in England and Wales
| Family left | Who inherits |
| Spouse or civil partner, no children | Spouse inherits everything |
| Spouse and children | Spouse gets personal possessions, first £322,000 and half the rest; children share the other half |
| Children, no spouse | Children share equally |
| No spouse or children | Parents, then siblings, then other relatives |
| No relatives | The Crown |
Unmarried partners don’t inherit under intestacy. Scotland and Northern Ireland have different rules.
Using a deed of variation
- It must be made within 2 years of the death
- Everyone who loses out must sign, and they must be adults with mental capacity
- It must state it’s to apply for IHT and/or CGT purposes
- There must be no payment in return for the variation
- If more IHT becomes payable, the personal representatives must also sign and send a copy to HMRC
Example
Patrick dies without a will in 2026, leaving a house worth £500,000 and savings. His son Joe and daughter Emma inherit equally. Joe owns his own home and doesn’t need his share, so he redirects his half of the house to his two children by a deed of variation. For IHT, the half-share is treated as left by Patrick to his grandchildren, so it isn’t a gift by Joe and doesn’t count against his estate.
Residence nil rate band
The RNRB of up to £175,000 applies when a home passes to direct descendants. A variation in favour of grandchildren still qualifies.
CGT and income tax
For CGT, the beneficiary takes the property at its value at the date of death. For income tax, a parent who redirects property to their minor child is still treated as the settlor, so rental income may be taxed on the parent.
Disclaimers
A beneficiary can also disclaim their inheritance entirely, so it passes as if they’d died before the deceased. This doesn’t let them choose who benefits.
Common mistakes
- Missing the 2-year deadline
- Leaving out the statements needed for the deed to apply for IHT and CGT
- Receiving something in return for the variation, which makes it ineffective
- Not telling the executors, who may need to amend the IHT account
Unmarried partners
Because unmarried partners get nothing under intestacy, a surviving partner may need to claim under the Inheritance (Provision for Family and Dependants) Act 1975, usually within 6 months of the grant of representation. A deed of variation by the family is often a simpler and cheaper way to provide for them.
Frequently asked questions
Can a deed of variation be done after the estate is distributed?
Yes, within 2 years of death.
Can unmarried partners benefit?
Yes, if the beneficiaries vary in their favour.
Do we need a solicitor?
Strongly recommended.
Can it reduce IHT?
Yes, for example by redirecting to a spouse or charity.
Related: money given after a partner’s death, CGT on a deceased person’s shared property and gifting inherited money to children.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with inheritance and estate planning. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
