What is the 2 year rule for deceased estate?

The 2nd anniversary of a person’s death can be an important administrative milestone for two reasons.

1. It is the cut-off date for any Deed of Variation to be signed in the estate. This is a document that changes the way in which the estate has been divided under the Will or intestacy provisions. There are a number of reasons why beneficiaries may enter into a Deed of Variation, including to resolve inheritance claims without going to court, to reduce the inheritance tax bill, or as part of the beneficiary’s own financial planning. Inheritance legislation allows a variation to be ‘read back’ to the date of death but only if created within 2 years of the death.
2. Often, Wills which do not create an express trust arrangement still have to be registered with HMRC via the Trusts Registration Service. Whilst expressly created trusts must be registered within 90 days, estates which create a bare trust only have to be registered if the estate has not been finalised at the 2nd anniversary.