WILLS / PROBATE - FREQUENTLY ASKED QUESTIONS »

• You can make a Will at any point during your life. In particular, you should ideally make a Will at the following milestones in your life:
• if you get married (all previous Wills are automatically revoked when you get married)
• if your marital status changes for any reason (divorce or separation)
• if you have children
• if you become a “person of substance” (such as buying a house, inheriting money etc.)
• if you are in a long-term relationship but have not married.

Why should I make a Will?

• it simplifies the legal process for your heirs and successors.
• It makes sure that your wishes are known and taken account of, if you die it enables you to make provision for how your children will be brought up, if you are not there it prompts you to make sure that your loved ones and dependants are protected in the event of your death.
• It allows you to plan the tax liabilities that may arise on your death.

If I make a Will, can I change it?

• Yes, you can change your Will at any time.

What happens if I die without making a Will?

• If you don’t have a Will, there are rules, which govern the way in which your Estate will be divided.

  Basically, the division of your Estate will be:

  If you are survived by your spouse and children

  • Two Thirds to your Spouse -One third to your children

  If you are survived by your Spouse only

  • Spouse will inherit your entire Estate

  If you are survived by your children only (not married)

  • Your Estate is divided equally between your children

  If you are survived by none of the Above (single but survived by your parents)

  • Your Estate passes to your parent(s)

  If you are survived by None of the Above

  • Other Rules are applied to determine which of your more distant relatives will inherit your Estate.

  Note that under Irish Law there is no distinction made between children born inside or outside of wedlock. Also, adopted children have the same status as natural born children.

Will my Beneficiaries be liable to Tax?

• Under current tax law, all gifts and inheritances are liable to Capital Acquisitions Tax (CAT) otherwise known as Inheritance Tax. The amount of tax will depend on the relationship between the donor and the beneficiary, the amount of the inheritance and whether the beneficiary had received any previous gifts or inheritances. Tax above the threshold is 20%.

What are the thresholds before my Successors will have to pay Tax?

The threshold limits change from time to time. The thresholds for Inheritances taken in 1998 is:

• Spouse: No CAT is payable on gifts or inheritances between spouses
• Son/Daughter: Can inherit €441,148.00 before paying any Tax (2004)
• Brother/Sister: Can inherit €44,120.00 before paying any Tax (2004)
• Niece/Nephew: Can inherit €44,120.00 before paying any Tax (2004)
• Other than above: “Stranger” Non-Blood relatives pay tax after the first €22,060.00. Note this also applies to non-marital partners.

Note that the tax payable will also depend on whether the beneficiary has received any gifts or inheritances in the past (known as “prior” gifts or inheritances). The above figures are 2004 figures and increase each year.

I want to leave something/everything to my partner. We are not married. What are the tax implications?

This situation presents the greatest difficulties. If you are not legally married to each other, you will be treated as “strangers” in law and the maximum amount of tax will be payable. You can take out what is known as a Section 60 Insurance Policy to cater for the Inheritance Taxes that will be payable. It is best to contact a Solicitor if you are in this position.