Securing Your Estate: The Essential Benefits of Drafting a Will

By Des Lynch, Partner and Head of Private Client Department

& Oisin O’Brien, Intern

 

Introduction

Creating a Will is a fundamental aspect of comprehensive estate planning. It is a straightforward yet powerful way to protect your assets and loved ones, as well as to ensure that your wishes are respected. Moreover, it can negate a multitude of unintended and often undesirable consequences for the disposition of your estate and the welfare of those most important to you.

Where the law of Wills in Ireland dates back to the Rules of the Superior Courts and the Succession Act, 1965, certain assumptions made by law may not reflect contemporary needs and societal change; the careful drafting of any Will document is essential in this regard.  In this article, we detail the key benefits of drafting a Will.

 

Key Benefits

Control Over Asset Distribution

Without a valid Will, the distribution of your assets will be according to the rules of intestacy, meaning that your property will be distributed in accordance with sections 77 and 78 of the Rules of the Superior Courts and the Succession Act, 1965. These statutory provisions may not reflect your personal wishes or familial dynamics. By specifying your beneficiaries, you can ensure that your property, financial assets and personal possessions are allocated according to your exact wishes. This, in turn, can serve to expedite the probate process, making it less time-consuming and cumbersome for the executor.

 

Appointment of Guardians

For parents with minor children, a Will provides the critical function of appointing a testamentary legal guardian. A guardian has influence over decisions in the major areas of the child’s life including religion, school, adoption, consent to medical treatment, passports, where the child resides, and other matters affecting the welfare of the child. This can ensure that your wishes will be fulfilled regarding the security of your children’s future in the event of your untimely death, allowing for any surviving guardian, if any, to then act jointly with the new guardian. Moreover, appointing a testamentary guardian in a Will may have persuasive effect in any application for custody.

Provision for Unmarried Partners and Stephildren

Under Irish law, those who are not married or do not have a registered civil partnership, as well as stepchildren, cannot inherit an estate unless the deceased has a valid Will in place. This can create considerable financial hardship for partners and dependent stepchildren. The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 introduced important provisions for cohabitants in this regard, emphasising the need to protect unmarried partners and their children.

Tax Efficiency

Capital Acquisitions Tax (CAT) can significantly diminish the value of your estate; careful drafting of your Will may reduce the amount of inheritance tax payable by your beneficiaries after your death, thereby preserving a larger portion of your estate for those you intend to benefit.  Expert legal advice can be very helpful in this regard by aiding the utilisation of certain reliefs and exemptions under Irish tax law.

Minimisation of Disputes

With a rise in cases in recent years, clearly outlining your wishes in a will can help prevent to prevent conflict arising among your family members and other benefactors; disputes can arise over the distribution of assets, particularly where no clear instructions are provided. A well-drafted Will can serve to reduce ambiguity by providing clear instruction and minimising the potential for dispute by providing a clear framework for the distribution of your estate.

Conclusion

A well-crafted Will is not merely a procedural formality, but a crucial component of responsible estate planning. It offers peace of mind and provides that your property, financial assets and personal possessions are allocated according to your exact wishes. The knowledge that your affairs are in order and that your wishes will be legally upheld affords a sense of security, allowing you to focus on the present with the assurance that your future and that of those most important to you is safeguarded.

Our renowned Private Client Department is ready to advise you on all matters relating to Wills, Trusts, Estate Planning, Administration of Estates and related litigation. We invite you to contact OFX today to schedule a consultation and take the first decisive step towards a process aided by experienced, partner-led guidance.

 

Des Lynch: dl@ofx.ie

021 4277788