26/08/2019
WHY MAKE A WILL
A will is a testamentary instrument which can be used by someone who wishes his/her assets to be distributed in a certain way on their death.
Clients are often reluctant to make a will and this is generally due to an unfounded belief that when they make a will, they are giving up control of their assets. This is simply not the case as a will does not take effect until the death of the testator (the person making the will). If you make a will today disposing of your assets, you are still free tomorrow, to sell those assets or gift those assets and it simply means that any reference to those assets in your will, becomes redundant.
Another misconception is that once a will is made, it is set in stone. Again, this is not the case as a will can be revoked at any time prior to death. In fact, it is advisable that wills are reviewed from time to time, as life circumstances change for that individual.
Whatever the reason for the reluctance, it is essential that clients understand the importance of making a will and the advantages of doing so.
Any adult of sound disposing mind can make a will and while making a will is something that should be considered by all age groups, it is particularly important for couples with young children to make a will.
So what are the advantages?
1. The main advantage of making a will is that it allows you to have your assets distributed on death, the way you want. If you die not having made a will, the State will determine who benefits in your estate, as per the rules of intestacy set down in the Succession Act 1965.
2. In making a will you can also choose who will handle your affairs by appointing an executor or executors, of your choosing. Where a person dies not having made a will, this choice is taken away as the appointment of an Administrator is determined by law.
This can often result in an unsuitable person taking on the role of Administrator and the estate being administered in a way which is contrary to what the testator would've wanted.
3. By making a will, you can provide for the special needs of family members. A will can also appoint testamentary guardians for young children in the event of the death of their parents.
4. Making a will gives you the opportunity to ensure that your beneficiaries pay the absolute minimum inheritance tax, through effective tax planning. Where no will is made and there has been no tax planning involved, this can result in beneficiaries having to pay huge amounts of Capital Acquisitions Tax.
5. The administration of a testate estate (where there is a will) is less expensive and is often quicker than the administration of an intestate estate (where there is no will).
6. A will also allows you to specify any funeral wishes you may have so that your family members are aware and can carry out said wishes on your death.
The absence of a will essentially amounts to losing control over the distribution of your assets on death.
If you wish to discuss making a will or want to review your will, make an appointment with us today.