Four questions to consider on financial inheritance law issues

What is the difference between a will and a living will?

A will has no effect until you have died. A living will is intended for situations where you become incapacitated. For example, in the case of dementia or being in a coma. Ideally, in a living will you address the ‘what’ and the ‘who’ questions. What do you want to happen to your assets? What do you want with regard to your care? And what, if any, are your wishes regarding the ending of your life? By the who question, I mean: who should implement your wishes and who should supervise this person? If you do not have a living will, your partner or child will need to request the subdistrict court for access to your bank accounts. Although you are not obliged to do so, I recommend that everyone makes a living will with a civil-law notary. A notarial deed is accepted by almost all banks and other financial institutions.

What do you need to arrange in the event of a divorce?

Divorce is primarily about ‘separating’ you from each other legally. You should start by considering how to divide or set-off your joint assets. An important starting point is whether you married in a community of property or under a prenuptial agreement. Also consider changing the beneficiary of your life insurance policy and your will. There is a great deal involved in a divorce. It pays to be well informed or assisted by a knowledgeable adviser and to remain calm.
This will also avoid a divorce becoming nasty. Try to reach agreement together.

What is a reliable charity to donate to?

First of all, choose a charity that resonates with you. What do you consider important? After all, it’s your money that the charity will use for its good deeds. As for reliability, there has been a CBF seal of approval since 2016. CBF is a regulator that monitors charities on a variety of criteria, such as governance, policy, integrity, reporting, fundraising and accountability. This monitoring differs from and is more extensive than that for ANBI status. All 678 Recognised Charities can be found on the cbf.co.uk website. You can donate to one of these with confidence.

What should you arrange for your children and grandchildren before you die?

Consider some key issues: what do you think is important regarding your funeral? Who should receive what? Do you also want to give your in-laws rights to part of your estate? How can you arrange that your heirs pay less inheritance tax? And: who may or may not settle everything? It is a good idea to stipulate that in your will. If you have already made a will, it is wise to critically review it once every three to four years with the help of an inheritance lawyer or civil-law notary. This is because the law may have changed, your assets may have changed in value or composition and things may have changed in your life, such as the birth of a grandchild or a rift with one of your heirs. On Free Wills Day (Dag van het Testament), such a check is usually free. An update need not be expensive. Moreover, if you arrange things properly, it will save your next of kin a lot of hassle and money.

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