Inheritance laws in Ireland explained

Did you know that two-thirds of people in Ireland do not have a valid will?* This isn’t always an issue, as Irish inheritance law outlines what happens to a person’s assets when they pass away. In this article, we discuss the rights of beneficiaries of a will in Ireland, what happens when someone dies without a will, and how their assets are divided.

A will can make the whole process significantly more manageable after someone passes away. This is a legal document that outlines who gets what and where the deceased person’s assets are located. A solicitor can help someone to create a legally valid will, which is especially helpful for larger estates.

So when someone dies, the first step is to refer to their will, which is managed by their chosen personal representative.

The role of an executor or administrator is to carry out the wishes of the deceased person. This includes managing their estate responsibly, following the law, and prioritising the rights of beneficiaries of a will in Ireland. This whole process of validating a will is known as probate.

In Ireland, an executor is appointed when the deceased has left a valid will, while an administrator is appointed when there is no will (known as “intestacy”), or if the appointed executor cannot fulfil their duties. In either case, their role is to ensure that the estate is handled properly and assets are distributed according to Irish inheritance law and the wishes of the deceased.

Under inheritance law in Ireland, the surviving spouse of someone with a will has a right to a certain share of their spouse’s estate. This is guaranteed, even if it is not specified in the will, provided the spouse does not give up their rights to this share. This is known as the legal right share in Ireland.

If you pass away, the legal right share depends on whether you have children:

• Without children: your spouse or civil partner is entitled to one-half of your estate.
• With children: your spouse or civil partner is entitled to one-third of your estate.

In Ireland, divorce changes how inheritance works between ex-spouses:

• Inheritance rights: Once a divorce is finalised, you no longer automatically inherit from your ex-spouse when they pass away.
• Will provisions: Even if you divorce, your ex-spouse can still choose to include you in their will. If they name you as a beneficiary in a valid will, you would inherit according to their wishes.

In Ireland, the rules for inheritance differ for couples that live together compared to married couples or those in civil partnerships:

1. No automatic rights: If you are in a cohabiting relationship, and you pass away without a will, your partner does not automatically inherit any part of your estate, regardless of how long you’ve been together.
2. Jointly owned items: Items that you jointly own with your partner will automatically pass to them and do not form part of your estate, for example, joint savings accounts. However, capital acquisitions tax may still apply in certain cases. For more information, see our page on gift tax.

This means that cohabiting couples would have to make a will if they want to ensure their partner inherits from their estate, as there are no automatic rights under Irish inheritance law for unmarried partners.

Without a will: Children, whether they are minors or adults, have the right to inherit from their parents under certain conditions:

• If there is no valid will or the will is invalid, and
• If the deceased parent is unmarried or their spouse has passed away.

In these cases, the entire estate is divided equally among the surviving children.

However, if the deceased parent was married and their spouse survives them, the surviving children are entitled to one-third of the estate divided equally among them, under the same conditions of no valid or invalid will.

With a will: A valid will can override default inheritance rules in Ireland. The will specifies how the deceased person’s estate is distributed, which may differ from intestacy rules in Ireland (dying without a will).

Children do not have a legal right share like spouses do. However, they are able to challenge a will if they believe they have been unfairly excluded from an inheritance.

In Ireland, if you pass away without a will, or if your will is considered invalid for various reasons, your estate is said to be “under intestacy”. Under the rules of intestacy in Ireland, your estate will be shared out according to the law of succession. The details of succession rights in Ireland are outlined in the Succession Act, 1965.

The Succession Act, 1965 was introduced to reform how property is inherited when someone dies without a will. Before this law, surviving spouses and family members were often left with inadequate provisions. Succession laws in Ireland are designed to guarantee spouses a fair share of the estate when there is no will.

To sum up the terms of this act: if you have no spouse or civil partner and no children, your estate will be divided equally between your parents, or entirely to one parent if only one survives. If you have other relatives, your estate will be divided equally among the nearest equal relationship.

In Ireland, the Succession Act 1965 outlines how next of kin is decided when there is no will. Here’s how succession rights in Ireland work, and the order of inheritance based on survivors:

• Spouse or civil partner: Inherits the entire estate if there are no children (or grandchildren). Receives two-thirds if there are children (or grandchildren), with the remaining one-third divided equally among children.
• Children (no spouse or civil partner): The estate is divided equally among the children (or their children if they are deceased).
• Parents (no spouse, civil partner, or children): The estate is divided equally among them, or entirely to one parent if only one is alive.
• Brothers and sisters: The estate is shared equally among them, with the children of any deceased sibling inheriting their parent’s share.
• Nieces and nephews: The estate is divided equally among surviving nieces and nephews.
• Other relatives: The estate is divided equally among the nearest equal relatives.
• No surviving relatives: Your estate passes to the State.

Example 1: Probate with a will

Scenario: Fiona, married with two adult children, passes away with a valid will.

Assets: House worth €600,000 and savings of €300,000.

Distribution according to will: Fiona’s will directs her entire estate to be divided equally between her two children.

Legal right share calculation: Under inheritance law in Ireland, if a deceased person has children, their spouse is entitled to one-third of the estate, provided they have not renounced their rights.

Calculation:

• Total estate value: €900,000 (€600,000 + €300,000)
• Legal right share (spouse): One-third of €900,000 = €300,000

Inheritance distribution:

• Spouse inherits: €300,000.
• Each child inherits: €300,000.

This example shows how Irish inheritance law ensures that even with a will in place, a portion of the estate is reserved for the spouse, with the remainder divided equally among the children.

Example 2: Probate without a will (intestacy)

Scenario: Billy, divorced with no children and no living parents or siblings, dies without a will.

Assets: Apartment worth €250,000 and retirement fund worth €150,000

Distribution according to Irish intestacy rules:

Billy’s estate will be divided among his four nieces and nephews, who are his closest surviving relatives.

Inheritance calculation:

Each niece/nephew inherits: €100,000 (total estate value of €400,000 divided by four)

This example shows how an absence of immediate family members can influence the distribution of assets under inheritance laws in Ireland. If Billy had made a will, his assets would have been distributed according to his wishes.

In Ireland, inheritance tax, also known as capital acquisitions tax (CAT), applies to gifts and inheritances. You can receive gifts and inheritances up to a certain value over your lifetime without having to pay CAT.

If any asset (e.g., a property) is inherited and later sold by the beneficiary, capital gains tax (CGT) may apply on the gain made between the inheritance value and the sale value. CGT rates and exemptions apply depending on the asset type and holding period.

After handling urgent financial needs like clearing high-interest debts, you might decide to deposit your inheritance into a high-interest savings account. Raisin Bank offers market-leading rates on fixed term deposits, and your savings are protected up to €100,000 per bank and depositor. Simply sign up for a free Raisin Account, select your preferred savings option, and deposit your funds securely.

*https://www.rte.ie/news/business/2024/0515/1449154-two-thirds-of-people-in-ireland-do-not-have-a-formal-will/