News
Preparing for the Future: How to Protect Your Children and Your Assets
Preparing for the Future: How to Protect Your Children and Your Assets
There are some things in life that we would rather not think about, but unfortunately, we have to prepare for them. RASK attorneys-at-law Timo Kullerkupp and Kai Villemson explain how to secure your assets, wishes and your children's future even after you're gone. To do this, you need to address the issue now and draft a will that reflects your wishes.
Many people put off making a will because the subject seems complicated or uncomfortable. Questions arise about what to include, whom to name as beneficiaries, how to account for legal rights and which form would be the most secure. However, a well-considered will can prevent future disputes, reduce family tension and give loved ones clarity and peace of mind during difficult times.
The first step is to conduct a thorough review of your assets and obligations. This should cover real estate, bank accounts, investments, securities, company shares, valuable items, loans and other commitments. This applies in both Estonia and abroad, since during the estate inventory, a notary is generally unable to identify or take into account assets located abroad. Having a clear understanding of your financial situation will help you to decide how to distribute your assets and ensure that no important details are overlooked in your will.
Secondly, it is important to consider who your heirs will be. Recently, the media has been discussing the idea of conducting a "relationship inventory". This involves taking an honest and thoughtful look at your close relationships: who is truly important to you, who you are close to, and who you feel responsible for. This helps you to determine whether your wishes align with the inheritance law or if you wish to make different choices. In Estonia, inheritance matters are governed by the Succession Act, which grants a mandatory share to minor children or, in certain circumstances, a spouse. Therefore, it is not always possible to exclude all legal heirs from the estate completely. If a will does not provide for individuals who are entitled to a mandatory portion of the estate, disputes may arise later.
If you have children under the age of 18, it is important to consider who would care for them if you were to pass away. A will enables you to specify your preferred guardian for your children. While the final decision is made by the court, your wishes will be taken into account when a guardian is appointed. This is one of the most responsible decisions that a will enables you to make, as it has a direct impact on the child’s daily life, sense of security and future.
Before making this decision, it is strongly recommended that you discuss it with the person you have in mind, to ensure that they are ready and able to take on such a responsibility emotionally, in terms of time, and practically. You should also consider the child’s current living environment, their relationships with loved ones, and the values you wish to be passed on as they are raised. Carefully selecting a guardian ensures that the child’s best interests will be protected, even in difficult situations.
It is important to distinguish between two key roles: the day-to-day care of the child and managing the child’s financial resources and assets. The person responsible for the child’s upbringing, living arrangements, education and health does not have to be the same person responsible for managing the assets inherited by the child. In some cases, separating these roles can ensure greater transparency and security. For example, one close relative could be appointed as the child’s guardian, while another trusted individual or professional could be appointed to manage the child’s assets.
The law also enables the appointment of a special guardian for a child who has been conceived but not yet born. This may be necessary if inheritance proceedings begin before the child is born, for example if a parent dies, and the child's interests need to be protected. In such cases, the special guardian acts on behalf of the child until their birth and the appointment of a legal representative, thereby ensuring that the unborn child’s rights are taken into account during proceedings. It is also possible to include specific provisions in the will for the court to consider when appointing a guardian.
When it comes to children, it is important to be aware that court approval is required for most significant transactions. This can lead to changes in living arrangements following the departure of one parent, or other practical changes, being delayed, resulting in additional costs.
Wills can be complex, so it is worth doing some preliminary work before visiting a notary, assessing your options with legal guidance, and putting your thoughts on paper.
The form of the will is another important thing to consider. A will can be drafted with the help of a notary or prepared at home.
A notarised will is generally the more reliable option, as the notary verifies its compliance with the law, and its creation is recorded in the succession registry. However, if relatives are not informed about a home-drafted will or its location, or if it is not registered in the national system, it may never be found after the person’s death. In such cases, inheritance proceedings are carried out according to the law, meaning the deceased's actual wishes may remain unfulfilled.
While a homemade will can be perfectly valid, it is only useful if it is found in time and if the legal requirements were followed when it was drafted. It should also be submitted to a notary during inheritance proceedings. There is also a risk with a homemade will that its content may be open to interpretation due to a lack of legal knowledge, which could lead to disputes among heirs. If the wording is imprecise, everyday expressions are used or important details are left unspecified, different parties may interpret the will differently. For example, it may be unclear whether a specific item or the entire estate is being inherited, whether an heir has been designated or a specific item merely assigned, and how the estate should be divided if part of it has been sold or additional assets acquired.
Finally, it is important to remember that a will is not set in stone. A person's circumstances can change significantly over the course of their life, such as through marriage, divorce, the birth of a child, or a significant change in assets. In such cases, the will should be reviewed and updated to reflect the person’s current wishes.
In summary, drafting a will is a thoughtful and responsible act that helps to protect your assets and loved ones. Clarity and advance planning can reduce potential future tensions and provide reassurance that your final wishes will be honoured.
Many people put off making a will because the subject seems complicated or uncomfortable. Questions arise about what to include, whom to name as beneficiaries, how to account for legal rights and which form would be the most secure. However, a well-considered will can prevent future disputes, reduce family tension and give loved ones clarity and peace of mind during difficult times.
What to include in your will?
The first step is to conduct a thorough review of your assets and obligations. This should cover real estate, bank accounts, investments, securities, company shares, valuable items, loans and other commitments. This applies in both Estonia and abroad, since during the estate inventory, a notary is generally unable to identify or take into account assets located abroad. Having a clear understanding of your financial situation will help you to decide how to distribute your assets and ensure that no important details are overlooked in your will.
"Relationship Inventory"
Secondly, it is important to consider who your heirs will be. Recently, the media has been discussing the idea of conducting a "relationship inventory". This involves taking an honest and thoughtful look at your close relationships: who is truly important to you, who you are close to, and who you feel responsible for. This helps you to determine whether your wishes align with the inheritance law or if you wish to make different choices. In Estonia, inheritance matters are governed by the Succession Act, which grants a mandatory share to minor children or, in certain circumstances, a spouse. Therefore, it is not always possible to exclude all legal heirs from the estate completely. If a will does not provide for individuals who are entitled to a mandatory portion of the estate, disputes may arise later.
Appointing a Guardian: One of the Most Important Decisions for Your Child’s Future
If you have children under the age of 18, it is important to consider who would care for them if you were to pass away. A will enables you to specify your preferred guardian for your children. While the final decision is made by the court, your wishes will be taken into account when a guardian is appointed. This is one of the most responsible decisions that a will enables you to make, as it has a direct impact on the child’s daily life, sense of security and future.
Before making this decision, it is strongly recommended that you discuss it with the person you have in mind, to ensure that they are ready and able to take on such a responsibility emotionally, in terms of time, and practically. You should also consider the child’s current living environment, their relationships with loved ones, and the values you wish to be passed on as they are raised. Carefully selecting a guardian ensures that the child’s best interests will be protected, even in difficult situations.
Separating Child Custody and Asset Management
It is important to distinguish between two key roles: the day-to-day care of the child and managing the child’s financial resources and assets. The person responsible for the child’s upbringing, living arrangements, education and health does not have to be the same person responsible for managing the assets inherited by the child. In some cases, separating these roles can ensure greater transparency and security. For example, one close relative could be appointed as the child’s guardian, while another trusted individual or professional could be appointed to manage the child’s assets.
The law also enables the appointment of a special guardian for a child who has been conceived but not yet born. This may be necessary if inheritance proceedings begin before the child is born, for example if a parent dies, and the child's interests need to be protected. In such cases, the special guardian acts on behalf of the child until their birth and the appointment of a legal representative, thereby ensuring that the unborn child’s rights are taken into account during proceedings. It is also possible to include specific provisions in the will for the court to consider when appointing a guardian.
When it comes to children, it is important to be aware that court approval is required for most significant transactions. This can lead to changes in living arrangements following the departure of one parent, or other practical changes, being delayed, resulting in additional costs.
Wills can be complex, so it is worth doing some preliminary work before visiting a notary, assessing your options with legal guidance, and putting your thoughts on paper.
Which Type of Will to Choose?
The form of the will is another important thing to consider. A will can be drafted with the help of a notary or prepared at home.
A notarised will is generally the more reliable option, as the notary verifies its compliance with the law, and its creation is recorded in the succession registry. However, if relatives are not informed about a home-drafted will or its location, or if it is not registered in the national system, it may never be found after the person’s death. In such cases, inheritance proceedings are carried out according to the law, meaning the deceased's actual wishes may remain unfulfilled.
While a homemade will can be perfectly valid, it is only useful if it is found in time and if the legal requirements were followed when it was drafted. It should also be submitted to a notary during inheritance proceedings. There is also a risk with a homemade will that its content may be open to interpretation due to a lack of legal knowledge, which could lead to disputes among heirs. If the wording is imprecise, everyday expressions are used or important details are left unspecified, different parties may interpret the will differently. For example, it may be unclear whether a specific item or the entire estate is being inherited, whether an heir has been designated or a specific item merely assigned, and how the estate should be divided if part of it has been sold or additional assets acquired.
A Will Can Be Changed
Finally, it is important to remember that a will is not set in stone. A person's circumstances can change significantly over the course of their life, such as through marriage, divorce, the birth of a child, or a significant change in assets. In such cases, the will should be reviewed and updated to reflect the person’s current wishes.
In summary, drafting a will is a thoughtful and responsible act that helps to protect your assets and loved ones. Clarity and advance planning can reduce potential future tensions and provide reassurance that your final wishes will be honoured.