7 Key Things to help you financially prepare for death

1. Create or update your estate plan

Estate planning ensures your assets (home, savings etc) are distributed according to your wishes, reduces stress for your loved ones, and can save time and money.

• Will: This legal document outlines who receives your property, names guardians for minor children, and appoints an executor. Without a will, Government laws determine who gets what — which may not be in line with your wishes.

• Enduring Power of Attorney- allows you to appoint someone you trust to manage your financial and personal affairs if you lose mental capacity. Without an EPA, your assets may be frozen and your family could face a lengthy Ward of Court process to gain control — during a very difficult time. It only comes into effect if you are medically certified as no longer able to manage your own affairs

2. Organise key documents

Being organized makes things significantly easier for your family during a difficult time. Having your affairs in order is a huge relief to your family and executors.

• Keep these documents in a secure but accessible place (e.g. fireproof safe or with your solicitor):

1. Original will

2. Deeds to property

3. Bank, credit union, and investment account details

4. Pension and life assurance policies

5. Recent tax returns and PPSN

6. Utility bills (for proof of address)

7. Contact list of your solicitor, accountant, and financial advisor

• Consider creating a “when I die” file or legacy folder with instructions and account passwords.

3. Review beneficiaries

Assets such as pensions and life assurance often pass outside your will via nomination forms or policyholder instructions.

• Review beneficiaries after major life events: marriage, divorce, birth of children, or death of a loved one.

Check:

• Occupational pensions or PRSAs – ensure nominated beneficiaries are current.

• Life assurance policies – some older policies may default to the estate or a former partner.

Note: Joint accounts and property held as joint tenants typically pass directly to the surviving co-owner. If you are a couple who are unmarried it’s important to be aware of potential tax implications and to discuss this ahead of time with your financial planner.

4. Review existing or consider life insurance

Life assurance is a key part of estate and family planning and can serve multiple purposes depending on your goals.

• Types:

1. Term Assurance: Provides cover for a set number of years — ideal for income replacement.

2. Whole-of-life policies: Useful for estate planning or covering inheritance tax liabilities.

• Reasons to have it:

1. Cover funeral expenses cost can vary from €3,500 up to €8,500 for a basic funeral.

2. Pay off debts (like a mortgage)

3. Provide income for dependents

4. Help children, especially in blended families or complex situations

• Section 72 Whole of Life Assurance: Specifically designed to cover inheritance tax liabilities without increasing the taxable estate

• A Section 73 Savings Plan is a financial strategy designed to help individuals save specifically to cover Capital Acquisitions Tax (CAT) liabilities that may arise when transferring assets during their lifetime

Note: There are also other financial assistance options that may be available to you for example:

• Credit Union Death Benefit Insurance: Provides a lump sum to cover funeral costs; eligibility and coverage vary by credit union.

• Additional Needs Payment: A means-tested payment from the Department of Social Protection to assist with exceptional costs

5. Review assets (physical and/or monetary) and CAT thresholds

Ireland’s Capital Acquisitions Tax (CAT) applies to gifts and inheritances over certain thresholds.

• Tax-free thresholds (2025):

1. €400,000 for children

2. €40,000 for siblings, nieces, nephews, and grandchildren

▪ Niece or Nephew may apply for Group A for assets of a business you have worked in for 5 years i.e. ‘Favourite Nephew or Niece Relief’

1. €20,000 for all relationships outside of Group A and B

• Rate: 33% on amounts above the threshold

• Strategies to reduce CAT:

1. Lifetime gifting

2. Small gift exemption of €3,000 per person, per year

3. Use Section 72 policies to pre-fund tax liability

4. Transfer assets efficiently (e.g. through trusts or via business relief/ agricultural relief)

6. Communicate with loved ones about your final wishes

Let your family know what you want — it avoids guesswork and potential disputes.

• Letter of wishes: Informal but valuable. Include:

1. Funeral or cremation preferences

2. Organ donation

3. Contacts to be notified

4. Instructions for pets etc

• Prepaid funeral plans: These are available in Ireland through funeral directors, but terms and portability vary — review carefully.

In Ireland, it's common to be private about money — but that can create confusion and disputes after death.

Discuss your plan and let family or trusted friends know:

1. Where the will and key documents are

2. Who is executor or trustee

3. Any major gifts or decisions you’ve made

4. Reduce surprises: If there are unequal distributions or complex arrangements (e.g. business inheritance), it’s wise to explain them in advance.

7. Keep everything updated

Life changes — your estate plan should too.

• Review your will, insurance, and pensions:

1. After marriage or separation

2. Birth of children or grandchildren

3. Buying or selling property

4. Death of a beneficiary

5. Changes to Irish tax law

• Ensure your executors and guardians are still appropriate and willing.