Lucy Diggle
Partner
Cayman Islands
Speaking about death can be difficult but planning ahead brings peace of mind and protects loved ones from unnecessary stress. Having a professionally drafted will ensures your wishes are followed and your estate is handled by the people you trust. From naming guardians for minor children to choosing your executor and beneficiaries, we outline the top five reasons why preparing a will is one of the most important steps you can take in planning your financial future.
1. How your estate is distributed is your decision
Here in the Cayman Islands, individuals have complete freedom to dispose of their estates by will; in other words, you get to set out your wishes as to how your estate should be distributed on your death – the 'who, what and when' of your estate, if you like.
It is often assumed that if you are married, on your death, your spouse will inherit all of your property. Another common assumption is that if you are single and have no children, there is no need for a will. This is not necessarily true and are common misconceptions.
If a person dies 'intestate', which is the legal term for when a person dies without leaving a valid will, their property will be divided in accordance with specific intestacy rules. These are hard and fixed rules contained within law, setting out the order as to who benefits from your estate and in what proportions. This may result in individuals, such as distant relatives whom you have no relationship with, to inherit from your estate. Thus, having a will allows you to choose the beneficiaries of your estate, whether that be family members, friends or even charities and provides you with the opportunity to determine how and when that beneficiary should inherit.
2. You get to decide who handles your affairs
In order for a will to be valid, you will need to appoint one or more executors. This is a key decision as the executor will play the most important role in the administration of your estate. The executor is the person charged with the responsibility of collecting in all of your assets, paying your debts and dividing the remainder of your estate in accordance with your wishes. Your directions in your will can be as simple or as complex as necessary to suit your family's circumstances.
Before the executor is able to deal with your estate, they are required to make an application to the Grand Court of the Cayman Islands for a 'grant of probate'. The grant of probate confirms that the will is valid and the executor has the authority to deal with your estate.
Thus, great consideration should be given to who the executor will be – this can be a family member, a trusted friend or advisor; even banks or trust companies are possible candidates. Once you have selected your executor, you should discuss their proposed appointment so that they are fully aware of what the role entails.
3. Minor children
A will allows you to make a knowledgeable decision about who should take care of your minor children. You can appoint a guardian under your will and have a detailed letter of wishes. This document is read in conjunction with your will and can set out exactly how you would like your children to be raised, for example, which educational institutions you prefer, your thoughts as to religious beliefs etc.
4. It is not as difficult (or expensive) as you think
The first step is meeting with a private client attorney. During that initial meeting, the attorney will ask a few questions that will guide your consideration as to what should be included in your will – this will help in preparing an initial draft, which can be discussed and revised as many times as it needs to before executing your will before witnesses within the requirements of the law.
5. Do not worry – you can change your mind
A good reason for having a will is that you can change it at any time while you are alive and have sufficient mental capacity. Life events such as birth of a child, death of a parent or divorce can create situations where changing your will is necessary.
This is particularly important in the event of a marriage: unless a will was made expressly in contemplation of a forthcoming marriage, it will be revoked automatically by the subsequent marriage and the estate will be treated as if it were an intestacy unless a new will is made.
As a rule of thumb, you should review your will every five years.
Let us help you prepare for this eventuality and put your mind at ease. Please feel free to reach out to either of the Walkers team members below and we would be happy to assist.
