Why making a Will should be your top New Year’s resolution

It is that time of year again when we all look optimistically to the coming year, full of aspiration of achieving some personal goals and good intentions.  With this in mind, comes the annual tradition of pledging New Year’s resolutions.  While making a Will might not be considered a traditional New Year’s resolution, there are a number of compelling reasons why it should be top of the list.

Why make a Will

The decision to put a Will in place is a personal one, however, in deciding not to put a Will in place or deciding to postpone the making of a Will, it is important to understand how assets will be distributed on death and the resulting impact this might have on loved ones.

Without a valid Will, assets will pass in accordance with the rules on intestacy, which are set out in the Succession Act, 1965.  Distribution on intestacy will depend on differing degrees of relationships of your nearest next of kin.

What are the Benefits

The benefits of making a Will can vary, depending on individual circumstances, however, the principal benefits are set out and summarised below:

1. The person making the Will i.e. the Testator, decides how assets will be distributed on death, subject to certain statutory rights of a spouse / civil partner. Otherwise, assets will pass in accordance with the order set down by the Succession Act
2. The Testator can nominate the most appropriate person to administer their estate on death i.e. an Executor, otherwise, this is determined in accordance with the Succession Act
3. If there are minor children involved, a Will allows for appointment of a testamentary guardian. The Testator, as parent / guardian of the child / children, can make the sensitive and personal decision as to who should take care of their minor children on death.  The appointment of a testamentary guardian by Will reduces the potential for dispute between surviving family members and thereby reduces potential court costs involved in appointing a guardian.  It also avoids the possibility of leaving it to the court to decide who will fulfil this role
4. By putting a Will in place, the Testator can provide for any special needs of vulnerable family members. This might include appropriate Trust structures.  The Testator can nominate the most appropriate person / persons to act as Trustee/s, who will effectively manage and control the trust fund for the benefit of the ultimate beneficiaries.  The Testator can stipulate the terms of any such Trust structure, for example, in the case of minor children, the Testator can select the age at which a beneficiary or beneficiaries will inherit assets absolutely
5. If done right, a Will can be used for tax planning purposes and allow for assets to pass to beneficiaries in a more tax efficient manner
6. A valid Will can reduce the likelihood of a successful claim being made against an estate
7. A valid Will usually allows for quicker and cheaper administration of an estate on death and depending on assets included, will involve an application for a Grant of Probate as opposed to an application for Letters of Administration Intestate
8. A Will gives the Testator (and loved ones) peace of mind and can prevent unnecessary stress and tensions within a family
9. A Will can protect an unmarried partner. An unmarried partner is not automatically entitled to any interest in a deceased unmarried partner’s estate should they die intestate (i.e. without a Will) and if relevant, an unmarried co-habiting partner may be forced to bring court proceedings against the estate seeking a share of the estate pursuant to Cohabitation legislation

Next Steps

If you have any queries or concerns, or would like to discuss the above in further detail, please feel free to contact Trea McGuinness in the Private Client Department of BHSM on 01 440 8300 / tmcguinness@bhsm.ie.

This article is for general information purposes.  Legal advice must be obtained for individual circumstances.  Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies.