So now that you’re thinking about making a new Will, here are our top 10 decisions that you should include in what is arguably the most important document you will ever sign.
Scope of your Will – Where is my Will going to apply?
You may have assets in the UAE and you may also have assets in your home country. In addition, it is no longer uncommon for people to own holiday homes in exotic locations, or invest in foreign businesses. These factors, along with considerations such as dual nationality should be borne in mind when drafting your Will – the traditional position of one Will per person is fast becoming outdated. An individual can put more than one Will in place to cover assets in different jurisdictions, and the Will must be clear in the describing the coverage of the document. Furthermore, if more than one Will is being executed, you must ensure that the earlier Wills are not revoked by the later Wills – attention to drafting the documents is paramount.
Executors – Who is going to do the hard work?
Choosing an executor for your Will is not a decision that should be taken lightly. The role of an executor is to administer your assets in accordance with your wishes stated in the Will after all debts, liabilities and expenses have been settled. For this role, a sensible, responsible and trustworthy individual must be chosen, who would have an awareness of your assets and who can be relied upon to execute your decisions in the best interests of your family and your estate. You can appoint more than one executor to share the burden.
Guardianship – What happens to the kids?
For example to care for the children for an interim period of time; or they can be permanent. Depending on your circumstances, you may need to appoint both types of guardians. Permanent – or testamentary guardians effectively step into your shoes as parents and would be responsible for making all the important decisions that a parent would otherwise make – where the child lives, which school they attend, consent to medical treatment etc. As your child grows up, it is always advisable to consult them as to whom they would be comfortable having as their guardians.
Financial assets – Property, cash, investments, land
Arguably, the primary purpose of making a Will is to name beneficiaries who would receive your financial assets. This includes cash in bank accounts, investments, land / property / buildings and it is advisable not only to name primary beneficiaries to inherit these assets but also substitute beneficiaries to receive the assets in the event the primary beneficiaries predecease you.
Death Tax? – Minimising your exposure
Many jurisdictions impose a tax on the value of the deceased’s estate before the assets can pass to the beneficiaries. Inheritance taxes can be avoided or minimized by putting a valid Will in place and in such cases it is imperative to seek specialist legal advice on the most appropriate and tax-efficient way to draft your Will.
Funeral Wishes – I want to be cremated/buried/donated to science…
You may have strong views on how you wish your body to be disposed of in the event of death – these views may be based on personal, religious, ethical or environmental considerations. Whatever your wishes, you can include a declaration to that effect in your Will.
Minor’s assets – What happens to the kids’ money?
If your child inherits your assets whilst he/she is still a minor, you can name trustees in your Wills to deal with these assets on their behalf. In some jurisdictions the guardians would have this role (such as under UAE inheritance laws), however, in other jurisdictions there is the flexibility to appoint separate individuals, specifically to manage the children’s assets. This may be appropriate for example where the assets are significant or complicated to administer e.g. companies.
Pets – Who is going to take care of Fido / Felix / Pat the Parrot?
You may already have an understanding with friends or family as to who would inherit your pets in the event of your demise, however it is advisable to include a declaration to this effect in your Wills. It may also be appropriate to leave a designated cash amount for the care of your animals to ensure the individual can afford to care for them. It is important to note however, that some jurisdictions do not allow for the mention of pets in your Will (such as in the UAE). A separate letter of wishes can put in place instead.
Corporate assets – Who will manage my company?
It may be appropriate to deal with your corporate assets, e.g. shares in a company, separately to the rest of your estate. You may choose to leave your shares to fellow shareholders in return for a market value being paid to your family. Alternatively, you may leave your company to specific beneficiaries who are equipped to continue to run it in your absence, or who possess the same specialist skills as you. If you do not make a specific gift of your company then the shares would pass to your residuary beneficiaries resulting in your company being inherited by those who may not be best placed to run it.
Specific personal assets – My handbag collection/watch collection/stamp collection
If you have a beloved collection, or a treasured personal possession which you want to leave to a special person, you can include this in your Will. It may even be appropriate to prepare a separate letter of wishes detailing the various items and including photos to ensure your executors and beneficiaries are absolutely certain which items you are referring to.
Ultimately, it is advisable to seek specific legal advice from a licensed legal practitioner to ensure that the Will adequately represents your intentions, protects your assets and most importantly, your loved ones. Contact us for further information.