What happens to your estate if you don't have children?
Wealth planning isn't just for the very wealthy. We often see that the relevant legislation proves a problem for the preferences of single people or couples. What does the law actually say?
You don't have children
Your siblings (or if they've died, their descendants) will inherit, along with your parents. However, they do not inherit an equal share, as the law stipulates that each living parent inherits a quarter, with the rest inherited by your siblings.
If you have one sister, for example, then each living parent will receive a quarter while your sister receives half. If that sounds good to you, great, because your parents usually pay less in inheritance tax in comparison to your siblings.
That might mean it's a good idea to leave everything to your parents in your will so that they can plan what to do with the inherited assets.
You don't have children or siblings
Your parents will inherit, or if they're no longer around, your grandparents, or if they've also passed, your wider family.
You should know that in this case your estate is split in half, with one half going to the heirs on your father's side of the family, and other going to heirs on the mother's side.
If your mother is still alive along with your father's brother, then your mother doesn't inherit everything when you die, but rather the law states that half of your assets go to her while the other half goes to your uncle.
If you don't have any children or a partner, then in principle you're free to divide up your estate as you wish. You can leave assets to whoever you like, but you will need to take certain steps. This might require a will, or a beneficiary designation in a life insurance policy.
If you don't want to wait until you die, you might want to consider gifting your assets. Do remember, however, that once it's given away, that's it, so think long and hard before you begin.
What if you have a partner but no children?
Then inheritance will work differently depending on your living situation:
You're married
Your partner will inherit unrestricted ownership of joint assets and any undivided assets that you both held exclusively, that is to say independently of anyone else.
Are your parents, siblings or their descendants still alive? Then your partner will only inherit the usufruct of the assets you own. If that's not the case, the surviving partner will inherit unrestricted ownership of the assets you own.
Example: Paul and Annie are married and don't have a marriage contract. In the course of the marriage, Paul inherited his parents' house, which became Paul and Annie's family home. They have accumulated assets of 500 000 euros together.
If Paul dies, Annie will inherit half of Paul's share of their assets with unrestricted ownership whatever happens. Annie will keep her share of the assets regardless. For the family home, it will depend on if Paul still has surviving parents, siblings or their descendants.
If he does, then they will inherit the bare ownership while Annie will only inherit the usufruct. This means she has the right to keep living in the house, or rent it out and collect the rental income, but not to sell it by herself.
If he does not, then Annie will inherit the family home with unrestricted ownership. If Paul wants the family home to go to Annie, he can make a will which states this for Annie's benefit. This is also worthwhile from a tax point of view since the family home is exempt from inheritance tax for Annie as the surviving spouse.
You are legally cohabiting
In principle, your partner only inherits the usufruct on the family home and its contents, regardless of who your other heirs are. It's a good idea to have a will in this scenario.
You are de facto cohabiting
You partner will not inherit anything. This situation is comparable with the death of a single person without children. It's a good idea to have a will in this scenario as well, or you can opt to change your living situation.
In conclusion: inheritance law often diverges from the wishes of the deceased, so it's always worth taking a good look at your own situation.