What Happens if You Die without a Valid Will?

Making a Will and preparing for the unexpected, untimely passing of a younger person/couple is very often the last issue we prepare for in Financial Planning. In reality, it ought to be the first to be explored. If you have children, Estate Planning is a non-negotiable in my opinion. If you are living abroad and have assets both abroad and at home AND you have children, make a Will to cover each legal territory where assets are held and appoint Guardians for whom a Financial Pathway to care for your children is in place. Remember, simply assuming “God Parents” will do the job is not enough, they could be two separate individuals living in two completely different locations!

1. Wills and Inheritance Explained

The following diagram illustrates who is involved in preparing a will and what their role might be.

Fig 1. The Matrix of Issues and Participants

The Law – The Irish Succession Act 1965 governs Irish assets and there will be a similar piece of legislation where you reside now. You need a Solicitor to walk you through this

Non-Domiciled in Ireland – Irish Wills only valid in Ireland

Taxation on Passing Assets as Gifts (Gift Tax) or on Death (inheritance Tax) are governed by Capital Acquisitions Tax (CAT), you need a Tax Advisor for this assessment and possibly to work with your solicitor on a feasible plan

Financial Adviser roles:

a) Help your solicitor track down all your Financial Products – this can be a tedious and often drawn-out process that a Financial Adviser will have a solid and proven process in place to deal with this speedily and effectively

b) Provide a Tax Bill Solution. One solution to a tax bill is to plan ahead. A good financial Adviser can help you fund ahead for Gift Tax using a Section 73 Gift Tax Policy and Insure on death against Inheritance Tax using a Section 72 Inheritance Tax Policy

2. What happens if you have NO WILL?

In Ireland – you die Intestate, a recipe for trouble, especially for your children and/or families remaining.

Fig 2. Rules of Intestacy in Ireland

Middle East – this is quite a serious situation and thankfully, most Irish Expats I speak with will have been advised on this very early in their time in this region.

If a person dies intestate, or without a will, this can cause issues. Sharia law will be applied to any assets that are held in the UAE and this causes most complications in the event of a husband's death. This is because his assets are frozen and will only be released upon the advice of the local courts.

Other Locations – take advice locally, it is vital that you understand what will actually happen. You will probably need a will for each jurisdiction.

3. Why make a Will?

Executors and Trustees are key individuals in the aftermath of the passing of a person(s) and the implementation of a Will. I advise consideration of the use of a professional who is objective and independent of the family.

Fig 3. Benefits of a Will

Take Advice

There are pages and pages of information that we could provide here but that is the role of your professional adviser. While you can write a Will yourself, in all honesty, especially if you have children, why take the chance?

IPS Financial Advice has teamed up with a network of solicitors across Ireland to help you. Please get in touch with me if you need to set up a Will. I will gather your information and have it in a format that is very presentable and user friendly for you and your solicitor.

We also use Claritax, owned by Francis McNulty, a fully qualified tax adviser who specialises in the whole area of Estate Planning.

Please feel free to contact me as follows:

Pat Surlis BA, H-Dip Ed, QFA

M: 353 85 856 9066

E: [email protected]

Online Diary: https://calendly.com/pat-ips-financial/expat-meetings