7 Key Things to Include in Your Will

November 21st, 2023 | 3 min read

Writing your will is fairly straightforward, but you need to make sure it is clear, specific, and legally correct.

If you die without a will, or you have a will but it is not valid, the rules of intestacy will be applied. Someone will be appointed to distribute your estate in a specified order of priority. If you don’t have any living relatives, your estate will pass to the State. This is not an ideal scenario, especially if your family situation is not straightforward.

Making a will can ensure that your estate is managed by people you trust, and that your assets are distributed according to your wishes. There are a few main points that you need to include so that your will works as intended. 

Key Facts
It may sound obvious, but your will needs to clearly show who it belongs to and when it was written. Your will should include:

  • Your full name
  • Your address
  • The date it was created
  • Your signature
  • A statement confirming that this will revokes all previous wills. This means that if you change your will, there can be no doubt over which one is correct.

Including these key points can help to avoid disputes and confusion later on.

If you have assets overseas, it’s a good idea to write a will in the relevant country, to ensure that your estate plan adheres to local laws.

Executors
Your will also needs to state who you wish to be your executors. These are the people who will be responsible for managing and distributing your estate. They will need to gather valuations of your assets, complete all the paperwork, and pay any inheritance tax due. This process can take up to a year.

You should of course choose someone you trust. But remember, it can be a demanding task, and some people may find it too emotional or too complex. You can choose professional executors if you wish, although charges will apply.

Beneficiaries
Your will also needs to clearly state who should benefit from your estate. This could be one or more individuals, in which case you need to state their names and addresses. You can also leave money to charities or other organizations.

Another option is to select a class of beneficiaries, for example your children and grandchildren. This allows you to include people who have not been born yet. 

If any children are beneficiaries of your will, their share of your estate will normally be held in trust until they reach age eighteen.

When selecting individual beneficiaries, you should also include a plan for what happens if they pre-decease you, for example, should their share pass to their children or someone else?

If you pass your estate fully to your spouse, there are no immediate consequences for inheritance tax purposes on first death. If any part of your estate passes to your children, they can receive an inheritance of €335,000. Amounts above this threshold, incur an inheritance tax (CAT) liability of 33%. 

A Guardian for Your Children
If you have minor children, you can also include details of who you would like to look after them. While you might make an informal agreement with family members, including your wishes in your will can help to avoid legal disputes. 

The person you nominate is not legally required to accept this responsibility, so it’s advisable to get their agreement first. 

Gifts
You can make provision for specific gifts in your will. This might be a stated sum of money, personal possessions, or a family heirloom. Many people choose to make gifts to friends or family members who may not receive a share of their residual estate. You can make gifts to individuals, organisations, or charities. These gifts will normally be distributed first, before your remaining estate is divided up. 

Trusts
You can also use your will to set up a trust. Legacies for children under age 18 can be placed in trust for their future benefit.

You can also set up a discretionary trust through your will. You will need to appoint trustees to manage and distribute the assets. Most people nominate their executors, but you can choose someone else if you wish. You would also normally state a class of beneficiaries, although this can be very wide-ranging. The trustees would have discretion over how and when to distribute capital or income.

Setting up a trust doesn’t have any immediate inheritance tax benefits. However, it avoids the need to distribute your assets on an outright basis. This can help to avoid increasing the estate of the beneficiary, as well as providing some protection against divorce, bankruptcy, or financial mismanagement.

Discretionary trusts can have tax consequences, so it’s a good idea to seek advice. However, these only apply once the trust is active. As the settlor of the trust, there are no immediate tax implications for you unless you make gifts to the trust during your lifetime. 

Residual Estate
Once all gifts and trusts are deal with, you need to decide what will happen to your residual estate. It’s best to keep things simple here, as you don’t know what the value of your estate will be when you die.

A typical will would pass the residual estate to your spouse or children, or a combination of both. If you want to pass your estate to anyone else, you need to state their details and the percentages they should receive. 

It’s a good idea to review your will regularly, particularly if your circumstances change. If you get married or divorced, this can affect the validity of your existing will. Laws and tax rules can also change.

Please don’t hesitate to contact a member of the team to find out more about estate planning.