Benefits Of Making A Will
There are many benefits of making a will. Most people do not like to think about drafting a will. A will can ensure that your estate is properly distributed while also avoiding unnecessary taxation. Drafting a will does not take a long time, but can provide peace of mind. Knowing that your loved ones will be cared for, and wishes are respected.
There are huge benefits that can be made in tax planning by making a will. Minimizing the potential tax your beneficiaries would pay. In 2008 the threshold on the rate of inheritance tax was €521,208 from parent to child and any funds a beneficiary received over this figure was taxed at 20%. Threshold to other blood relatives such as uncles or cousins stood at €52,121 and inheritance to any non relative amounted to €26,060.
Fast forward to 2014 and the recession has brought many alarming changes to taxation in this area. The threshold for inheritance from parent to child stands at €225,000. More distant relatives at €30,150 and non relatives at €15,075. All funds received above these thresholds are taxed at 33%. Therefore careful tax planning must be undertaken when deciding to write a will.
It is also important when deciding to write a will to make sure it is done correctly. An incorrectly worded will can lead to certain elements of the will being left out and handled by partial intestacy, meaning that this part of the estate will pass to the legally dictated beneficiary, and not according to the wishes of the deceased. Making sure your will is worded correctly will minimise the chance of a dispute or a mistake being made.
If you require further advice on the administration of the estate of a deceased person, feel free to call us on 01-454 0068, request a call back above, or email email@example.com.