Introduction
This article is one in a set about wills.
This article explains the role tax of on your will and the best strategies of incurring as little as possible whilst complying with the law.
How to make your will tax efficient
Your will is your last testament – however, it can be amended by anyone who successfully applies to have it amended, or your trustees. This may come as a surprise. It is called changing the “disposition of your estate”. There are two methods for doing this – it usually occurs either because a beneficiary believes they have not received the correct benefit, or because your trustees believe your will is no longer tax efficient or suitable for the needs of your family.
First, the trustees can get together and agree to a different distribution of assets. In other words, they can re-write your will. The process is simple but they must comply with time limits and the deed must be properly drawn. The benefit or interest of no person can be changed in the slightest without his consent. The usual way forward is therefore to apportion any financial benefit among the beneficiaries so that all gain from the changes. To avoid this, the best thing to do is to review your will regularly and “get it right”.
Secondly, you can create by your will, a two year discretionary trust. You simply leave all or any part of your estate to your executors with absolute discretion as to what they do with it. Of course, they are still bound as executors to behave in accordance with the law and your wishes, but they must be able to distribute the assets of that trust as they decide.
It is usual for the will maker to write a letter to them, setting out his wishes in as much detail as he likes. If a discretionary trust is set up in this way, and the assets distributed fully within two years of your death, inheritance tax will be payable just as if the distribution set out in the trust deed was set out in your will. | 
