Inheritance Laws in Bermuda (BOT)
Inheritance Laws in Bermuda (BOT) are based on English common law, along with local legislation that has been tailored to the island's legal framework. These laws govern how a deceased person's estate is distributed, either under a will (testate succession) or by law (intestate succession). Bermuda has a distinct legal system that provides for the creation of wills, the administration of estates, and the resolution of inheritance disputes.
Here is an overview of the inheritance laws in Bermuda:
1. Inheritance Under Intestacy (Without a Will)
When a person dies intestate (without a will), their estate is distributed in accordance with the Intestates’ Estates Act 1975. The estate is divided among the spouse and children, or in their absence, other family members.
Order of Priority for Intestate Succession:
Spouse and Children:
- If the deceased has both a spouse and children, the estate is divided between them. The spouse will receive one-third of the estate, and the remaining two-thirds are divided equally among the children.
- If there is only one child, that child will receive the entire two-thirds portion, and the spouse receives the one-third share.
No Spouse or Children:
- If the deceased has no surviving spouse or children, the estate will pass to other relatives, such as parents or siblings. The distribution follows a priority order as outlined in the Intestates' Estates Act:
- Parents: If the deceased's parents are alive, they will share the estate equally.
- Siblings: If there are no surviving parents, the estate will pass to the deceased's siblings. They share the estate equally.
- Other Relatives: If there are no parents or siblings, more distant relatives, such as aunts or uncles, may inherit the estate.
State Inheritance:
- If there are no heirs (i.e., no spouse, children, or relatives can be identified), the estate may pass to the state of Bermuda.
2. Inheritance Under a Will (Testate Succession)
In Bermuda, individuals can create a will to specify how they want their estate to be distributed after death. A will that complies with the legal requirements overrides the rules of intestate succession. Wills in Bermuda are governed by the Wills Act 1988.
Requirements for a Valid Will:
- The testator (person making the will) must be at least 18 years old and of sound mind when making the will.
- The will must be in writing, and the testator must sign the will in the presence of two witnesses who must also sign the will in the presence of the testator. The witnesses cannot be beneficiaries under the will.
- A holographic will (entirely handwritten and signed by the testator) is valid in Bermuda, but it must meet specific requirements, such as being signed and dated by the testator.
- A notarial will (made in front of a notary) is also accepted in Bermuda.
Legal Heirs and Forced Shares:
- Bermuda does not have strict forced heirship laws. This means that the testator can generally leave their estate to whoever they choose, including friends, charities, or others.
- However, spouses and children may still have certain rights to claim maintenance or a share of the estate in certain situations, particularly if they were dependent on the deceased.
3. Spouse’s Rights
The surviving spouse of the deceased has specific rights under Bermuda’s inheritance laws.
- Under Intestacy: If there are children, the surviving spouse will inherit one-third of the estate, with the remaining two-thirds divided equally among the children.
- Under a Will: If the deceased left a valid will, the surviving spouse’s rights depend on the provisions of the will. The spouse may be named as a beneficiary, and may receive property, money, or other assets from the estate.
In the case of jointly owned property (for example, property held under a joint tenancy with the right of survivorship), the surviving spouse will automatically inherit the deceased’s interest in the property, regardless of the will.
4. Children’s Rights
- Under Intestacy: Children of the deceased are entitled to inherit the majority of the estate if the deceased dies without a will. They inherit two-thirds of the estate, with the remaining one-third going to the surviving spouse.
- Under a Will: Children may be specifically named in the will and can inherit property or assets left to them. However, the will cannot completely disinherit minor children, as they may have a right to claim maintenance from the estate if necessary.
5. Probate and Estate Administration
- Probate Process: The probate process is used to validate the will, pay off any debts of the estate, and distribute the remaining assets to the beneficiaries.
- If there is a valid will, the appointed executor will manage the estate.
- If there is no will, or if no executor is named, the court will appoint an administrator to handle the estate.
- The probate process in Bermuda typically involves filing an application with the Supreme Court of Bermuda to obtain letters of administration (if no will exists) or grant of probate (if there is a will).
- Executor’s Role: The executor is responsible for ensuring that the estate is managed properly, including paying any outstanding debts, taxes, and distributing assets to the beneficiaries according to the will or the laws of intestacy. If there is a dispute among the heirs, the executor is responsible for resolving it.
6. Inheritance Tax
Bermuda does not have an inheritance tax or estate tax. This means that heirs do not have to pay taxes on the property or assets they inherit from the deceased. However, certain assets may be subject to property taxes or transfer taxes, particularly if real estate is involved.
7. Inheritance Disputes
Contesting a Will: If an heir believes that the will is invalid or that they have been unfairly excluded or inadequately provided for, they can contest the will in court. Common reasons for contesting a will include:
- Lack of testamentary capacity (the testator was not of sound mind when making the will).
- Undue influence (the testator was coerced into making the will).
- Improper execution (the will does not meet the legal requirements).
Disputes Between Family Members: Disagreements can arise between family members, particularly if they feel that the will does not fairly divide the estate. Mediation or court intervention may be required to resolve such disputes.
8. Foreign Nationals and Inheritance
Foreign nationals who own property or have assets in Bermuda are subject to the same inheritance laws as Bermuda residents. However, it is important for foreign nationals to ensure that their will complies with Bermuda’s legal requirements if they wish to pass on property or assets located in Bermuda.
Conclusion
Inheritance laws in Bermuda are based on English common law and local legislation, with a focus on ensuring that the deceased’s wishes are honored, whether through a will or under intestate laws. The spouse and children are the primary heirs under the laws of intestacy, and individuals are free to distribute their estate as they wish through a valid will.
Bermuda does not have an inheritance tax, making it relatively favorable for estate planning. However, heirs should be aware of the probate process, especially when disputes arise, and ensure that their wills meet Bermuda’s legal requirements to avoid complications after death.
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