Bahamas - Why should I make a Will?

A vast majority of the adult population have not yet made a will.  This is for various reasons.  Some reasons for not making a will are that certain people may think that they are too young to need a will or that they do not have any or enough property to require a will or that they do not have anyone to be concerned about when they pass away.

There are many reasons why you should make a will.  It is a mistake to think that it is only necessary if you have a substantial estate.

Estate Administration

The administration of an estate is substantially easier if there is a will.  If there is not a will, the estate is frozen until the deceased person’s relatives go to court to obtain ‘letters of administration’.  Obtaining Letters of Administration can be more complicated and take more time than obtaining a Grant of Probate.

Certainty of Entitlement and Intestacy

If someone dies without making a valid will, they are said to have died intestate. Should this situation arise, the estate and possessions of the deceased person will be divided according to rules set out in the Inheritance Act, 2002 (“the Act”).

It is important that you do not assume that because you are married your spouse will automatically inherit all of your property even if you have not made a will. There are statutory legacies that a surviving spouse is allowed to inherit, depending on the circumstances.  For example, if you die intestate leaving a spouse and children, your spouse will inherit ½ of your estate and other half will be divided equally among your children.

Married With Children

As mentioned above, if you die intestate and leave a spouse and children, your spouse will take one half of the estate and the other half will be divided equally among the children.

Married Without Children

If you die intestate leaving a spouse and no children, your spouse will inherit the entire estate.

If you die leaving no spouse, no children, no grandchildren: Whole estate devolves to the mother and father in equal shares; or whole estate to the survivor of them. If you die leaving no spouse, no children, no grandchildren, mother or father: then, in the estate would be divided in order of priority: 1. Brothers and sisters equally. 2. Nephews and nieces equally. 3. Grandparents equally. 4. Uncles and aunts (brothers or sisters of intestate’s parents) equally. 5. First cousins, etc., equally.

It is important to be aware that the Inheritance Act also makes provision for the recognition of illegitimate children as well as legitimate children of the marriage or dependents who are not children of the marriage.  Accordingly, having a will can eliminate the need to deal with the estate in the potentially contentious manner as would transpire through the rules of intestacy.

Although the rules afford some protection if you are married, it is recommended that both parties to the marriage have a will in order to ensure that your wishes are carried out in the event of your death.  It is important to remember that marriage automatically invalidates any existing will.

If you are not married but have children and die intestate, your children will inherit your entire estate. If any of your children have died leaving children of their own, the children will inherit their parent’s share.

If you are not married and do not have any children, your surviving relatives will inherit in the same order as listed above.

Every year, hundreds of long-term partners find they have no legal entitlement to the assets of their partner’s estate when they die. If an application is made to the court for financial support, this may be contested by family members and will inevitably involve delay and expense.

The essential point is that if you die intestate, your estate must be distributed according to the formula set out by law, no matter what your wishes are. Assets or items with a sentimental value that you wish to pass on to a specific person may well end up in other hands unless there is a will to direct their distribution.

If you fail to make a will and have no surviving relatives, on your death everything will automatically pass to the Crown – i.e. to the Treasury.

Whatever your situation, making a will is an efficient and inexpensive way of ensuring that your wishes are complied with.

 

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.  If you require specific advice you should contact a Bahamian estate-planning attorney.  You can contact a Bahamian estate-planning attorney by clicking here.