Dear Money Mentor,
I am a middle-aged beef farmer and unmarried. I have many nieces and
nephews, but no family of my own. I
know I should make a will but never
seem to get around to it. I am not sure how to go about it so would like your advice.
Thanks
Michael.
Dear Michael,
Thank you for your mail. There are many things to be considered and you are doing the right thing by taking action on your will now.
Making a will
Making a will is something that everyone should do regardless of age to ensure your wishes are carried out. Once you decide who you wish to carry on your farm business or decide on other options (such as farm to be sold, leased out, or transferred to a family member) you should contact your solicitor to discuss the requirements. As a will must be in writing, signed and dated by two witnesses in your presence, it is a good idea to involve a solicitor. The solicitor will draw up the will as per your wishes and ensure all legal requirements are followed making it legally binding. The average cost of executing a will is circa €200 so it is worthwhile to get it done properly. If it is a very complex will, the charge may be higher. You must appoint at least one executor, (preferably two) which will be outlined in your will to carry out your wishes. The will should contain a list of all your assets (items you own) such as land, house, livestock (and their value) and any liabilities (such as debts, monies owning). A list of all bank account details will also need to be included. As you have no direct family you will also need to supply your solicitor with names and addresses of the nieces and nephews if dividing your estate among them. Once a valid will is in place at time of death a grant of probate can be applied for by the executor(s) or a solicitor. The grant of probate gives authority to the executor(s) to deal with the deceased’s estate as per detailed in the will.
What happens if no will is made at time of death?
If someone dies and no will has been made (died intestate), the estate will be distributed in accordance with the law of succession. A person will be appointed to take out letters of administration, usually a family member (next of kin) or a solicitor, which involves applying to the Court to administrate the deceased’s estate. In your case and if no will has been made, and as you mentioned you have nieces and nephews your estate would be divided equally among those surviving. You don’t mention any siblings so I am assuming you have none.
Can a will be changed?
Yes a will can be changed at any time. It’s a good idea to consult your solicitor if altering your will. As circumstances change over time it is prudent to reappraise your will at regular intervals in particular if tax law changes.
Tax advice
It is always a good idea to get tax advice when making a will to ensure the tax element of your wishes is not too onerous or difficult for your beneficiaries and provides the maximum benefit to them. You will need to consider gift tax and capital acquisition tax (CAT) so proper tax advice is essential for good financial planning.
Favourite nephew / niece relief
In certain circumstances a nephew or niece who has worked on a full-time basis on the farm will be deemed to qualify as your ‘child’ for the purposes of CAT. If they qualify, they can avail of the CAT Group A threshold for tax (€335,000). Usually nieces and nephews can only receive gifts or inherit €32,500 from an aunt or uncle tax free, with gifts or inheritances above this level taxable at 33%.
Enduring power of attorney
Power of attorney is a legal device that can be setup by a person (the donor) in good mental health anytime during their life. It authorises another specifically appointed person to take actions on behalf of the donor. In Ireland there are two different powers of attorney.
A power of attorney which gives either a specific or a general power and ceases as soon as the donor becomes incapacitated. An enduring power of attorney which takes effect on the incapacity of the donor. This allows the nominated person to manage your affairs if you become incapacitated through accident or illness or if you developed Alzheimer’s disease or dementia. It only activates if you become incapable of managing your own affairs. What if no direct successor?
If there are no interested successor in the family, there are other options which you could consider, such as a partnership, share farming, leasing or possible sale. These are all available options but you will need to discuss them in detail with your tax adviser, accountant and solicitor to ensure you make the most tax efficient decision for yourself and your family.
Dear Money Mentor,
I am a middle-aged beef farmer and unmarried. I have many nieces and
nephews, but no family of my own. I
know I should make a will but never
seem to get around to it. I am not sure how to go about it so would like your advice.
Thanks
Michael.
Dear Michael,
Thank you for your mail. There are many things to be considered and you are doing the right thing by taking action on your will now.
Making a will
Making a will is something that everyone should do regardless of age to ensure your wishes are carried out. Once you decide who you wish to carry on your farm business or decide on other options (such as farm to be sold, leased out, or transferred to a family member) you should contact your solicitor to discuss the requirements. As a will must be in writing, signed and dated by two witnesses in your presence, it is a good idea to involve a solicitor. The solicitor will draw up the will as per your wishes and ensure all legal requirements are followed making it legally binding. The average cost of executing a will is circa €200 so it is worthwhile to get it done properly. If it is a very complex will, the charge may be higher. You must appoint at least one executor, (preferably two) which will be outlined in your will to carry out your wishes. The will should contain a list of all your assets (items you own) such as land, house, livestock (and their value) and any liabilities (such as debts, monies owning). A list of all bank account details will also need to be included. As you have no direct family you will also need to supply your solicitor with names and addresses of the nieces and nephews if dividing your estate among them. Once a valid will is in place at time of death a grant of probate can be applied for by the executor(s) or a solicitor. The grant of probate gives authority to the executor(s) to deal with the deceased’s estate as per detailed in the will.
What happens if no will is made at time of death?
If someone dies and no will has been made (died intestate), the estate will be distributed in accordance with the law of succession. A person will be appointed to take out letters of administration, usually a family member (next of kin) or a solicitor, which involves applying to the Court to administrate the deceased’s estate. In your case and if no will has been made, and as you mentioned you have nieces and nephews your estate would be divided equally among those surviving. You don’t mention any siblings so I am assuming you have none.
Can a will be changed?
Yes a will can be changed at any time. It’s a good idea to consult your solicitor if altering your will. As circumstances change over time it is prudent to reappraise your will at regular intervals in particular if tax law changes.
Tax advice
It is always a good idea to get tax advice when making a will to ensure the tax element of your wishes is not too onerous or difficult for your beneficiaries and provides the maximum benefit to them. You will need to consider gift tax and capital acquisition tax (CAT) so proper tax advice is essential for good financial planning.
Favourite nephew / niece relief
In certain circumstances a nephew or niece who has worked on a full-time basis on the farm will be deemed to qualify as your ‘child’ for the purposes of CAT. If they qualify, they can avail of the CAT Group A threshold for tax (€335,000). Usually nieces and nephews can only receive gifts or inherit €32,500 from an aunt or uncle tax free, with gifts or inheritances above this level taxable at 33%.
Enduring power of attorney
Power of attorney is a legal device that can be setup by a person (the donor) in good mental health anytime during their life. It authorises another specifically appointed person to take actions on behalf of the donor. In Ireland there are two different powers of attorney.
A power of attorney which gives either a specific or a general power and ceases as soon as the donor becomes incapacitated. An enduring power of attorney which takes effect on the incapacity of the donor. This allows the nominated person to manage your affairs if you become incapacitated through accident or illness or if you developed Alzheimer’s disease or dementia. It only activates if you become incapable of managing your own affairs. What if no direct successor?
If there are no interested successor in the family, there are other options which you could consider, such as a partnership, share farming, leasing or possible sale. These are all available options but you will need to discuss them in detail with your tax adviser, accountant and solicitor to ensure you make the most tax efficient decision for yourself and your family.
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