This is why you should save your family from stress and make a will

Leaving a will helps avoid stress and potential family squabbles, at what is already a difficult time, says Arlene Harris

None of us relish the idea of making a will — the thought of not being around anymore or being able to provide for our families, is just too heartbreaking to contemplate.

But it has to be done because if the worst happens and our lives end prematurely, our loved-ones will have to pick up the pieces.

Best Will Week starts today, with the objective of encouraging people to make the necessary arrangements to ensure their affairs are in order in the event of an untimely demise.

Solicitor Bernadette Parte says everyone should tackle this difficult task which, while might be unnerving initially, will help ease minds once the document has been officiated and filed away for (hopefully) a very long time and can even have several benefits.

“By making your will, you can decide who receives your assets, rather than having them pass under the rules on intestacy set out in the Succession Act, 1965,” she says.

“If you wish to leave anything in your estate to a cohabitant, a good friend or a charity, you need to make a will, otherwise they will not be included when your estate is distributed.

“You can appoint guardians and trustees for minors — people you trust to care for your children — otherwise a judge may have to decide who should raise them — and this might not be who you would have chosen.”

The Dublin-based solicitor says making a will is a good tax planning exercise which will allow you to ensure that assets are left in the most tax efficient way possible.

“For example, say a mother wishes to leave her son and his wife a house worth €310,000. If she leaves the house in her will to her son and daughter-in-law, under the current tax regime (as altered by the budget), assuming that this is the full extent of his inheritance from his mother and father, the son will pay no Capital Acquisitions Tax (CAT) on the value of his inheritance of €155,000 because he can receive up to €310,000 free from CAT from his mother.

“The daughter-in-law, however, is a ‘stranger in blood’ to her mother-in-law and can only receive €16, 250 CAT free and would have a tax liability of €45,787.50 (based on CAT rate of 33%). So if the mother left her son the house in his sole name, no CAT is payable and the son can then transfer the house into the joint names of himself and his wife, achieving the result his mother wanted, but no tax is payable on this transfer. Hence a saving of €45,787.50 is made by this simple example of tax planning in a will.”

It is also less costly to administer an estate where a will was made as probate fees are doubled if there is no will — but Parte says the most crucial factor is minimising stress for family members.

“After losing a loved one, the last thing anyone wants is the additional burden of bureaucracy and haggling with loved ones over who will administer the estate,” she says.

“Having a will in place reduces this stress at what is already a very difficult time and anyone who has children or property, should make a will.”

The average cost of making a will is around €250 plus VAT (@ 23%) — but costs will vary so some people decide to do it alone and buy a ‘Will Pack’ from somewhere like Eason.

But Parte says it is essential to comply with all formalities so that the will is not deemed invalid and it is important to try to ensure there are no contentious issues which could cause a dispute after your death.

“One of the toughest questions parents face when drawing up a will is if they should leave an equal share to each of their children,” she says.

“If estates are not divided equally, feelings can be hurt and when you are gone, it’s too late to explain the reasons behind an unequal distribution if you haven’t given any explanation beforehand.

“Unequal distribution can also give rise to legal challenges so you should get legal advice on how best to protect your estate from a will challenge in those circumstances. Also some people specify in their will what type of burial they would like to have or where their cremated remains should be scattered.

“Very few people like to consider their own mortality, but it helps to remember that having a clear, well-written will is of huge assistance to loved ones at a time of great emotional pain. It can remove uncertainty, give guidance on the funeral and be a final legacy of love.”

While most people will bequeath their earthly goods to family and friends, many also like to leave something to a charity which holds a special place in their heart. My Legacy is an organisation which was established in 2003 to deal with legacies donated to various charities.

Fergal O’Sullivan of the group, which now represents 70 charities, says during Best Will Week, they would encourage people to think about leaving a little something to any charity which has made an impact on their lives.

“Leaving a legacy to a charity close to your heart will ensure that the causes you have supported in life will be able to continue their good work after you’ve gone,” he says.

“A large or small gift can make a big difference.”

Mark Mellett is head of fundraising for the Irish Cancer Society. He says no matter what size the donation, any amount will help the charity of your choice to continue their work into the future.

“Leaving a gift in your will, no matter how big or small, will have a long-lasting impact,” he says.

“A cure for cancer doesn’t happen overnight, but advances are being made all the time and new treatments are being discovered. The gift you leave today will enable us to keep fighting back against cancer long into the future, benefiting many generations to come.”

www.mylegacy.ie

Strange bequests

Shakespeare left his ‘second-best bed’ to his long-suffering wife Anne Hathaway, the best and the rest of his estate was bequeathed to his daughter Susanna.

In 2004, billionaire hotelier Leona Helmsley left instructions for her $4bn fortune to be spent caring for dogs with one canine receiving a princely sum of $12m.

Portuguese aristocrat Luis Carlos de Noronha Cabral da Camara left his considerable fortune to 70 strangers he chose at random from a Lisbon phone directory.

A tanner in Vermont set up a $50,000 trust fund before his death in 1891 to ensure that his mansion was maintained and a full dinner prepared every evening in case he came back to life.

Napoleon Bonaparte died in 1821 and when his will was read it was discovered that he had requested that his head be shaved and his hair distributed amongst his friends.

Robert Louis Stevenson bequeathed his birthday to his friend as she had complained to him that because she was born on Christmas Day she didn’t have a special day to herself — so he left her his own date of November 13th.