A Deed of Variation Family Business Trust is a legal document that can be used to vary the terms of a deceased person's will, with the aim of potentially reducing the inheritance tax (IHT) liability of the estate. This type of trust is specifically designed for families who have business assets and want to ensure that these assets are passed down to the next generation in a tax-efficient manner.

A Deed of Variation of Family Business Trust allows the beneficiaries of the estate to vary the distribution of assets left to them in the will, by diverting part or all of their inheritance to a trust established for the benefit of the family business. The trust can be used to protect the business from potential financial risks, as well as to provide financial security for future generations.

The terms of the trust can be tailored to suit the specific needs of the family, including the appointment of trustees, the distribution of income and capital, and the criteria for beneficiaries. The trust can also be structured to take advantage of the Business Property Relief (BPR) and other tax reliefs that may be available to the family business.