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Deed of Variation
I need a Deed of Variation to amend the terms of an existing trust, specifically to change the distribution of assets among beneficiaries. The document should comply with Dutch legal requirements and ensure that all parties involved consent to the changes.
What is a Deed of Variation?
A Deed of Variation lets parties legally change the terms of an existing contract or agreement in the Netherlands. It's commonly used when businesses need to update important arrangements without creating an entirely new contract - think of it as an official amendment that carries the same legal weight as the original document.
Under Dutch civil law, these deeds must be properly executed and notarized to be valid. They're especially useful for modifying inheritance agreements, property transactions, and commercial contracts. The key advantage is that they maintain the original agreement's continuity while clearly documenting what's being changed, when, and why.
When should you use a Deed of Variation?
Consider using a Deed of Variation when you need to modify an existing contract but want to preserve the original agreement's framework. This commonly happens when updating lease terms, adjusting payment schedules, or changing delivery conditions in Dutch commercial contracts. It's particularly valuable for time-sensitive changes where drafting an entirely new agreement would be impractical.
These deeds prove essential when handling inheritance modifications, property transfers, or updating shareholder agreements under Dutch law. They're also perfect for documenting agreed changes to long-term business relationships, especially when both parties want to maintain their established legal foundation while adapting to new circumstances.
What are the different types of Deed of Variation?
- Post-Death Variations: Used to modify inheritance distributions or will terms after someone passes away, requiring notarization and agreement from all beneficiaries
- Commercial Contract Variations: Adapt existing business agreements, often including pricing updates, timeline changes, or service modifications
- Property Deed Variations: Modify real estate agreements, including lease terms, boundary adjustments, or usage rights
- Shareholder Agreement Variations: Update company ownership structures, voting rights, or profit-sharing arrangements
- Trust Deed Variations: Change trust terms, beneficiary arrangements, or trustee responsibilities under Dutch trust law
Who should typically use a Deed of Variation?
- Legal Professionals: Dutch lawyers and notaries draft and validate Deeds of Variation, ensuring compliance with local law and proper execution
- Business Owners: Use these deeds to modify existing commercial agreements, adapting to changing business needs
- Property Owners: Modify existing property arrangements, lease terms, or usage rights through formal variations
- Beneficiaries: Parties who inherit assets or rights under wills or trusts, often involved in post-death variations
- Corporate Officers: Company directors and shareholders who need to update existing business structures or agreements
How do you write a Deed of Variation?
- Original Agreement: Gather the complete original contract and any previous variations to ensure continuity
- Party Details: Collect current legal names, addresses, and authority status of all involved parties
- Proposed Changes: Document specific modifications clearly, including effective dates and practical implications
- Supporting Documents: Compile relevant business records, property details, or financial information that justify the changes
- Legal Requirements: Check Dutch notarial requirements and ensure compliance with local registration rules
- Signatures: Confirm who needs to sign and arrange proper witnessing or notarization
What should be included in a Deed of Variation?
- Identification Section: Full legal names and details of all parties, matching the original agreement
- Original Agreement Reference: Clear citation of the document being modified, including its date and purpose
- Variation Details: Precise description of changes, using clear language that specifies what's being added, removed, or modified
- Effective Date: Explicit statement of when the variations take effect
- Confirmation Clause: Statement that all other terms remain unchanged and in full force
- Execution Requirements: Proper signature blocks, witness provisions, and notarial requirements under Dutch law
- Governing Law: Clear statement of Dutch law application and jurisdiction
What's the difference between a Deed of Variation and a Deed of Rectification?
A Deed of Variation differs significantly from a Deed of Rectification in both purpose and application under Dutch law. While both modify existing documents, they serve distinct legal functions.
- Purpose: A Deed of Variation intentionally changes agreed terms for the future, while a Deed of Rectification corrects errors or omissions in the original document
- Timing Effect: Variations typically work forward from a specified date, whereas rectifications are considered to have been in place from the original document's execution
- Legal Requirements: Variations need all parties' active consent to new terms, while rectifications mainly require proof of the original intended agreement
- Scope: Variations can introduce completely new terms, but rectifications must align with what was originally intended
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