Making a Will

What is a Will?

A Will is a legal document which dictates what will happen to a person’s assets after their death.

What are the requirements for a valid Will?

In order to make a valid Will you must satisfy the following conditions:

• Be 18 years of age
• Be of sound mind/ have capacity
• The will must be in writing
• The will must be signed
• The signature must be witnessed by 2 witnesses.

Why make a Will?

Having a valid will in place provides comfort that your wishes will be carried out on your death as they relate to your property or other assets, guardianship of children, funeral directions, charitable bequests etc.

If you die without a Will in place, you will be deemed to have died intestate and your assets will be distributed according to the rules of intestacy as set out in the Succession Act 1965. Making a Will ensures that you decide how your assets will be distributed after death and who they will be distributed to.

Making a Will enables you to specify exactly to whom your assets will be given on your death and the manner in which they are given, so that, for example:

• a partner or children from an earlier marriage or relationship may be provided for;
• gifts may be put in trust rather than left to beneficiaries outright. Doing so can protect vulnerable beneficiaries and protect/ grow assets/bequests that are being left to children.
• personal items such as jewellery/art and other valuables may be left to beneficiaries of your choice.

Key considerations when making a Will

Inheritance Tax

An important consideration when deciding if you require a Will is how the persons entitled to inherit your property/assets are likely to be taxed on receipt of their inheritance whether specifically devised/bequeathed under the will, or under the rules of intestacy.

Making a will enables the distribution of your assets to be structured in the most tax efficient way, so as to minimise your estate’s exposure to inheritance tax.

How Capital Acquisition Tax Operates

Capital Acquisitions Tax (“CAT”) is a tax on gifts and inheritances. You may receive gifts and inheritances up to a set value over your lifetime before having to pay CAT. Once due, it is charged at the current rate of 33% on the value of the gift/inheritance over your CAT threshold relationship to the disponer.

• The person who gives the gift or inheritance is called the disponer.
• The person who receives the gift or inheritance is called the beneficiary.

Gifts become inheritances if the disponer dies within two years of giving the gift. Though it is important to note that the value gifts given over your lifetime by a disponer will reduce your CAT threshold for that group accordingly, this also includes residing in property owned by the disponer during their lifetime on a reduced rent / rent fee basis.

You do not pay CAT on a gift or an inheritance if:

• it is given to you by your spouse or civil partner
• the total is below the relevant group threshold amount (when its value is added to previous gifts and inheritances in the same group).

You do not pay CAT on a gift with a value of €3,000 or less from any one person in any one calendar year (this is known as the small gift exemption).

To calculate how much CAT you have to pay, you need to know your correct group threshold and rate of tax. These are determined by the date of the gift or the date of the inheritance. You will also need to know the value of the benefit you received on the valuation date.

You pay tax only on the value of a gift or an inheritance above the tax-free group threshold amount. You may be able to reduce this taxable amount through relevant reliefs, exemptions and credits.

** Please note that Solicitors are not Tax Advisors and as such it is always recommended that you liaise with a qualified Tax Advisor to discuss your estate planning and tax implications arising therefrom. **

Appointing Executors

Your Executors have the important role of administering your estate and making sure that your assets are distributed in accordance with your Will. Making a Will enables you to ensure that the most appropriate people are chosen to carry out these important tasks.

The primary responsibilities of an Executor are set out below and should be considered when deciding who you want to administer your estate:

• Registering the death and obtaining the Grant of Probate (legal authority to act).

• Identifying, locating, and securing all assets, including property, bank accounts, and investments.

• Paying outstanding debts, taxes, and expenses from the estate.

• Distributing the remaining assets to the beneficiaries named in the will.

• Keeping beneficiaries informed throughout the process.

Appointing Guardians for your children

If you have children under 18, it is advisable to appoint Guardians for them should you and/or your spouse or partner die while they are still young. If you do not appoint a Guardian, the court will appoint a Guardian on your behalf. Making a Will allows you to choose the people who will be responsible for your loved ones.
While you can provide a letter of wishes as to how you would like your child to be raised, you should consider the key responsibilities of a Guardian when deciding who you would like to care for your children, these responsibilities include but are not limited to:

• Determining where and with whom the child lives.

• Providing consent for medical, dental, and other health-related treatments.

• Making decisions regarding the child's school, education, and religious or cultural upbringing.

• Ensuring the physical, emotional, and psychological needs of the child are met.

• Applying for passports and consenting to the child leaving the country.

• If appointed as a guardian/trustee for your property, managing your children’s assets for their benefit until they reach the age of majority.

C.G. Gilmartin & Co. Solicitors will work with you to advise on your personal circumstances and assist with drafting your will in accordance with your instructions, liaising with your tax advisors to ensure that your assets are dealt with in the most tax efficient way possible.

We understand how important planning for the future is and at C.G. Gilmartin & Co. Solicitors our primary concern is that your wishes are upheld, and that your voice speaks when you are no longer here to use it.

For further information or to arrange to book a consultation please feel free to contact us by phone on +353 01 914 4359 or use the contact form below.