Why make a will? Simply put, in order to declare your intentions (to your executor) on how you wish your property to be disposed of at death. No will; you are deemed to have died intestate and the courts will decide for you. In either case, with the exception of very small estates of personal property $50,000 or less, a more cumbersome process of obtaining a Grant of Probate, or Letters of Administration for no will must proceed. Additionally, if your estate held in your sole name is valued at more than $50,000, it is subject to death duties with only a couple of exceptions: bequests to charity and leaving your estate to your spouse. We shall explore the ramifications of these processes in the next article.

But meanwhile, what would happen if you were able to suitably restructure the titling of all of your estates so that at death there is an automatic transfer to the beneficiaries (or a trust) of your choosing?

Sharing the Load, also means giving up some control

Bermuda dollar bank deposits, securities, and other investments can be held jointly with your spouse, partner or heirs or other parties. They are typically titled as: example, John Doe &/or Jane Doe. With the and/or structure, either party has control over the account and can authorise deposits and withdrawals by signing their name only. Upon the death of Jane, all assets automatically transfer to John.

There is a distinct difference between titling these assets and the following: John Doe and Jane Doe ? here both names have to sign for any changes in the account. Upon John's death, his 50 percent share will not go to Jane, but to his designated heirs.

Life insurance proceeds: You can designate or change a beneficiary while you are alive. This is a legal contract between you and the insurance company. At your death, your beneficiary receives the proceeds.

Pensions:Company pensions structured under the National Pension Scheme and other older private pensions generally work the same way as life insurance. The Government Old Age Pension does not. Your benefit dies with you, although your spouse may receive a similar sum under the widow entitlement.

Real estate property transfers (of Bermuda property) during your lifetime (known as voluntary conveyances) can legally be accomplished in a variety of ways, the most common being transfers into joint tenancy with spouses and others.

Life interests, trust structures, and companies are more complex methods of holding real estate for future beneficiaries. There is a transfer stamp tax cost to these processes for real estate, but generally less than the cost of death duties.

The Bermuda Government's Gift to You. How would you like to save all death duties on your primary personal residence for your beneficiaries right now?

Under the Stamp Duties Act 1976 as amended by the Stamp Duties Amendment Act 2005, you can do just that. By making a formal application to exempt your primary homestead from stamp duty, you can save your heirs (and your home for them) the often punitive cost of stamp duty due on Bermudian property at death.

Here is how it works. As of a few weeks ago, it is estimated that approximately 1,000 Primary Family Homestead Certificates have been issued. Assuming that there are 15,000 primary family dwellings in Bermuda (and while some of those have been conveyed into a trust are not eligible), this is a significant opportunity for property holders in forms of ownership, such as sole owner, joint tenancy, tenancy-in-common.

Who is eligible? Individuals who have Bermudian status and who own or have a legal interest in residential property in Bermuda. This also means that every individual who has an interest in the property may complete a separate application which is marvellous news for old family properties owned by many heirs. Property conveyed in entirety in trust is not eligible.

What type of property is eligible? Only residential property which can be a house, or a condominium or a multi-family apartment. It must used as private dwelling, but the best news of all is that if you are fortunate to own more than one property, you can select the property with the highest value.

There is no fee for the Certificate, but an individual can only obtain one certificate.

How do I do this? Pick up an application at the Office of the Tax Commissioner 40 Church Street 297-7984.

The application must be completed by the individual owner and be accompanied by:

1. A certified copy of a conveyance (your deed), or other documentary proof of ownership

2. Certified copy of a Governnment-issued photo identification such as driver's license, voter's or senior's card

3. A certified copy of a Bermuda passport with a Bermuda status stamp or a Certificate of Bermudian Status.

You must also know your assessment number or numbers

Take the entire package to the Tax Commissioner's office. Approximately four months later you will receive a legal Primary Family Homestead Certificate. This requires a little work, but how could you possibly turn such a terrific opportunity down. Death duties today on a home valued at about 1 Million dollars are estimated at about $95,000.

Final Opportunity Arises even after Death. Even your estate representative may designate a property to obtain this certificate, but guess what? If you again own more than one property, the property that has the lowest value is exempted.

Go ahead, get it done.

@EDITRULE:

This article does not constitute, nor is it intended to be, legal advice, nor is it an all-inclusive estate planning advice. For matters of legal importance regarding your estate, your wishes and beneficiary issues, you should consult an estate planning attorney. If you are so inclined, you may also wish to read 'The Law of Wills & Estates in Bermuda 5th Edition written by Michael J Mello QC, JP, the excellent source of some of this estate information.

Martha Harris Myron CPA/PFS CFP? is a VP and Senior Private Banker, Private Client Services, Bank of Bermuda Member HSBC Group. She specialises in providing Moneywise financial solutions for individuals and their families.

She can be reached at 299-5578 E-mail can be directed to marthamyronnorthrock.bm