Many parents would like the estate to remain undivided after the death of their spouse and to be administered by the widow or widower throughout her or his lifetime.
However, the law still gives the heirs of the deceased the right to claim. his/her law firm. A will can limit this requirement for the heir. It is therefore worth making a mutual testament.
Breast heirloom are always entitled to receive at least their legal share of their parents' inheritance. The legal share is half of the inheritance due to him or her.
What is a mutual will?
A joint will is a will made by spouses for the benefit of each other. The purpose of a joint will is to ensure the rights of the widow or widower in the distribution of the estate.
Mutual wills are drawn up in accordance with the formalities laid down by law. The provisions are the same as for a normal will, i.e. a mutual will must be made:
- By writing to
- To be signed by both authors in the presence of two witnesses.
Witnesses must also witness the will with their signatures. They should know that the document in question is a will, but they do not need to be presented with the contents of the will.
Ownership or control by will
A mutual will can be either a will of tenure or a will of ownership. In addition, a property will can also be made as a full or limited property will. The will may contain provisions relating to both the management and ownership of the property.
With regard to management and property rights, you can also include a clause in the will that allows you to make decisions on the distribution of rights even during the distribution of the estate. This allows for tax planning even at a later stage.
Mutual wills and succession
Mutual wills cannot infringe the right of the heirs at law to their legal share of the inheritance. The heirs by blood are the children and grandchildren of the deceased. If a mutual will is made in favour of a widow, the widower, as legatee, may ask the heirs at law not to claim their share of the estate before the widow's death. However, such a request is not binding under the law, but the heirs at law have the right to claim their share in the distribution of the estate.
It is worth mentioning in the will that the widow can pay the heirs the legal share in cash and the heir cannot claim it, for example, as a share of the property belonging to the deceased.
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The purpose of a mutual will
A mutual will is a useful document to ensure the survival of a widow or widower. The rights of the widow or widower are protected by law in the distribution of the estate, but a mutual will can further strengthen these rights.
Mutual will between spouses
In particular, a mutual will between unmarried couples is important, as unmarried couples have no legal rights to each other's estates without a will. An example of the advantages of a mutual will is that, unlike a married widow or widower, an unmarried partner does not inherit from the first spouse to die without a will. Nor can a cohabiting widow or widower remain in the home shared by both spouses without a provision in the will.
Mutual testament of property rights
In a mutual testament of ownership, the spouses decide on the ownership of their property in the distribution of the estate. A full title will gives the testator unlimited control over the property subject to the will. The testator is then entitled to dispose of and use the property as he wishes and is considered the owner of the property. When the testator himself dies, the property is passed on to his heirs at law or to those designated by his will.
Limited testament of title
You can include a subsidiarity clause in your will. A subordination order is a provision that first assigns property to the widow. When the widow dies, the testamentary property passes to the secondary beneficiaries, i.e. the persons designated in the will. The primary beneficiary of the will has the right to dispose of the property during his or her lifetime, but cannot dispose of this property by will and this property does not pass to his or her heirs.
The advantage of a limited will is that it allows the testator to ensure that the property remains with his or her designated heirs even after the death of the widow or widower. However, the surviving spouse retains the right to use the property during his or her lifetime, thus ensuring his or her livelihood.
Mutual testament of tenure
A testament of administration allows the spouses to decide on the administration of the property of the deceased. This usually means that the ownership of the property of the first spouse to die passes directly to the children, but the surviving spouse has the right to use or control the property for the rest of his or her life.
A testament of rights of administration can safeguard the position of the widow and at the same time ensure that the property goes to her heirs. There are tax benefits associated with a testamentary testament.
Mutual wills and taxation
A widow inherits assets worth less than €110 000 tax-free, which means that receiving assets such as cash and property increases the widow's security and freedom of action. This is called the spousal deduction. For the excess of the spousal deduction, the widow pays inheritance tax in the normal way.
The downside of a will is that when the widow dies and her heirs inherit the property, they too will have to pay inheritance tax. In practice, therefore, the deceased spouse's estate may be subject to inheritance tax twice: first on the widowed spouse and then on the heirs of the deceased spouse, for example by means of a subsidiary disposition.
From an inheritance tax point of view, a mutual testament of tenure is the most advantageous and preferable option. Under a testamentary succession, ownership of the property of the first spouse to die passes directly to the heirs, but the widow has a right of use for life.
As the ownership does not pass to the widow at any point, she does not have to pay any inheritance tax on the value of the tenure. In addition, the widow's tenure reduces the amount of inheritance tax payable to her heirs, as the value of the widow's tenure is deducted from her inheritance. In other words, the heirs do not have to pay inheritance tax on the part of the property whose ownership has been transferred to the widow by will.
The article was written by a specialist in inheritance law Tuula Rainto, Attorney at Law, Amos Attorneys at Law.
You can always call Amos for a free consultation, tel, 010 229 5090
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[avatar user=”amoslaki” size=”352″ align=”left” link=”https://amoslaki.fi/ajanvarauskalenteri/” target=”_blank” ]Attorney Tuula Rainto, Amos Attorneys at Law. You can always call her free of charge, tel.010 299 5090[/avatar]