Wills and inheritance
What happens to your money, property and debts when you die?
Planning what happens to your money and property after you pass away isn’t easy, but it’s important. Making arrangements in advance can reduce uncertainty and make things much easier for your family later on. If you have a valid will, your estate is dealt with according to your wishes after debts and legal rights are taken care of. If you do not have a will, the law decides who inherits under the Succession Act 1965.
In most cases, probate is needed before your money and property can be accessed. Spouses and civil partners have legal entitlements, and debts must be paid before anything else is shared. Bank accounts, Credit Union accounts, pensions and household bills are handled under specific rules, and inheritance tax may apply above certain thresholds, depending on the relationship. Putting plans in place now can help avoid delays, confusion and added stress for those you leave behind.
What is a will?
A will is a witnessed legal document that sets out your wishes for everything you own (your estate) after you die. You can find the legal rules for a will at Citizens Information.
A will helps you to:
- Make sure your wishes are carried out
- Look after your spouse/partner and family
- Avoid long delays passing on your belongings
- Cover funeral costs
- Prevent arguments among your family members
It’s also a good idea to keep an up-to-date list of everything you own, like property, bank accounts and insurance policies. Citizens Information provides a checklist to help you record where your possessions and important documents are kept.
Having a will and your affairs in order when you pass away
If you die having made a valid will, you are said to have died testate. Your estate will be shared out as you instructed.
The person you name in your will (the executor) is responsible for carrying out your wishes. They must apply to the Probate Office or District Probate Registry for legal permission (Grant of Representation) to manage your estate. If no executor is named or available, Letters of Administration are issued instead.
Key things to know:
- Debts are paid first
- Your spouse/civil partner and children have legal rights that must be met before any other gifts in your will
- You can leave your estate to anyone, but the law protects your spouses/civil partners and children
Legal right share:
- If there are no children, the spouse/civil partner is entitled to half of the estate
- If there are children, the spouse/civil partner is entitled to one-third
- Children are not automatically entitled to the remainder
If you're living together (a cohabiting relationship) and die without a will, your partner will have no automatic right to your belongings – except for jointly held property. To provide for them, you must name them in the will.
Having no will in place before you pass away
If you pass away without a will in place, you are said to have died intestate. An administrator is appointed to distribute your estate. Their duties are similar to an executor’s. Next-of-kin or a solicitor may apply. If there’s a dispute, the Probate Registrar decides.
Administrators must provide an administration bond – a guarantee they’ll carry out their duties properly. They then apply for a letter of administration to manage the estate. The estate must be distributed according to the Succession Act, 1965.
What happens to money, debts, and pensions?
What happens to bank accounts:
- Joint accounts: Money usually transfers to the surviving partner
- Sole accounts: Access is frozen until probate (legal permission) is granted
- Small balances: Sometimes they may be released to a family member if they sign an indemnity form
What happens to Credit Union accounts:
- If a valid Nomination Form was completed, up to €23,000 goes to the nominated person(s)
- Any remaining balance becomes part of the estate
- Some Credit Union loans may be covered by insurance (e.g. free loan protection)
What happens to debts
Debts must be paid from the estate before anything else.
Priority order:
- Funeral and administration costs
- Secured debts (e.g. mortgages)
- Unsecured debts (e.g. personal loans)
If you’re struggling financially after a bereavement, use our Debt action plan or contact Money Advice and Budgeting Service (MABS) for free, independent advice.
What happens to household bills?
- Bills in the deceased’s name can be transferred
- Contact the bank to adjust standing orders or direct debits
- Cancel debit/credit cards and insurance policies
- You’re only liable for debts you’ve signed for – others should be paid from the estate
What happens to pensions?
Rules differ depending on the type of pension.
- Contact the employer or scheme administrator
- Self-employed pensions may become part of the estate
- Divorced or separated individuals may be entitled to a share if a pension adjustment order was made
Learn more about pensions.
Inheritance tax
If you leave someone an inheritance, Capital Acquisitions Tax may apply.
- Tax is due if the inheritance exceeds a certain amount
- The amount differs depending on the relationship
- Exemptions and reliefs are available
- No tax is due on inheritances from a spouse or civil partner
For more on death and bereavement, visit the Citizens Information website.
