Estate planning is the process of arranging for the management and distribution of your assets upon your death or incapacitation. It involves creating legal documents such as wills, trusts, and powers of attorney to ensure that your wishes are carried out and your loved ones are provided for according to your intentions. Estate planning is crucial for protecting your assets, minimising tax liabilities, and avoiding disputes among beneficiaries.

Inheritance tax, also known as estate tax or death duty, is a tax imposed on the transfer of assets from a deceased person to their heirs. In Ireland, inheritance tax is levied on the value of an estate above a certain threshold, known as the Group Threshold. Depending on the value of your estate and your relationship to the beneficiaries, inheritance tax rates can vary. Proper estate planning can help minimise inheritance tax liabilities and maximise the value of your estate for your beneficiaries.

Regardless of the size of your estate, having a will is essential for ensuring that your wishes are carried out effectively after your passing. A will allows you to specify how you want your assets to be distributed, appoint guardians for minor children, and designate an executor to manage your estate. Without a will, your assets may be distributed according to intestacy laws, which may not align with your wishes.

A will and a trust are both estate planning tools, but they serve different purposes. A will is a legal document that specifies how your assets should be distributed upon your death and appoints an executor to oversee the distribution process. A trust, on the other hand, is a legal arrangement in which a trustee holds assets on behalf of beneficiaries according to the terms specified in the trust document. Trusts can be used to protect assets, minimise tax liabilities, and provide for beneficiaries in specific ways.