Wills & Estate Management

Why make a will?

It is very important to make a will so that you can determine how your assets are to be divided up after your death. If you die not having made a will your assets will be distributed in accordance with the Succession Act 1965 stipulations for intestacy. The prescribed distribution may not be what you want. A Will thus allows you to give legal effect to all our wishes.

We can draft a will that best suits your situation.

If you are married, cohabitating, separated or divorced careful consideration has to be given to drawing up your will and the tax consequences that may arise. If you are single without dependants it is important to have good advice about the inheritance tax that may be payable by your beneficiaries.

If you have children under 18 special provision may have to be made for them, if you have adult children consideration may also be needed to be given to their particular circumstances, for instance if your children have special needs extra consideration may need to be given to them.

Beneficiaries of a Will;

Spouses

By law, even where there is a will with contrary provisions, a spouse has the legal right to half of the estate in question if there are no children. If there are children, then the spouse receives one third of the estate. It is up to the spouse to decide between this “legal right share” or what is set out in the will, if different.

If no will has been made, then the spouse is entitled to all of the estate (if there are no children) or two thirds if there are children.

On Judicial Separation this ‘Legal Right Share’ can possibly be revoked. Furthermore, on divorce, the parties lose their status as a ‘spouse’ of one another and so will not be entitled to a legal right share of their former spouse’s estate should he/she die.

Children

In addition to financial provisions, provision can be made for the care and guardianship of your children. You may wish to see them being cared for by a close relative.

If children (under 18 years of age) are beneficiaries of a will, then Trustees may be appointed to take charge of their inheritance until the child has reached majority (18 years).

While children have no automatic legal entitlement to a share of a parents’ estate, they can apply to the court under section 17 of the Succession Act 1965 for the court to make an order in their favour if they feel ‘proper provision’ was not made for them.

Executors

Executors are responsible for ensuring that the will is acted upon correctly and that all of your assets are distributed according to your instructions. It can be a family member, a close friend or even your solicitor. Your Executor is chosen by you.

Changing your will

There are many reasons why you might decide you want to change your will, for instance you have gotten married, have had a child, gotten divorced or a prospective beneficiary has died. The law allows you to change your will at any time; however, there are special procedures in place for doing so.  You cannot simply write on a will to make changes, in fact this will make the whole will invalid. The simplest way to change your will is by adding a codicil or making a new one.  A codicil should be signed by you and must be witnessed by two people.

Inheritance and Gift Tax

Inheritance and gift tax is the tax which is applicable to people who inherit under a Will or under the rules of intestacy, or receive a gift. Parents/ Children/ Siblings/ Niece/ Nephew / Grandchildren, can receive up to a certain threshold free of tax.

When an inheritance or gift exceeds the relevant tax free threshold, Capital Acquisitions Tax (CAT) at a rate of 20% applies to the balance. You should seek financial advice on the possible tax implications of any gift or inheritance.