What Is the Reserved Share of an Estate?

Testamentary freedom is not unlimited

The reserved share is the portion of an estate protected for statutory heirs and which the deceased cannot remove by will or similar disposition. The balance is the disposable portion.

Statutory disposable portion

Under section 41 of Cap. 195, where the deceased leaves a spouse and children or descendants, or children or descendants without a spouse, the disposable portion may not exceed one third of the net estate. Where there are no children or descendants but a spouse, mother or father survives, the maximum is one half. If none of those relatives survives, the whole estate may be disposed of by will.

Section 42 contains exceptions for certain foreign persons and persons connected with the United Kingdom or Commonwealth. Nationality, birthplace, permanent residence and whether property is movable or immovable therefore require separate examination.

If the limit is exceeded

If total testamentary gifts exceed the disposable portion, section 41(2) provides for proportionate reduction. A special rule applies where a spouse survives but there are no children, descendants, mother or father.

Information needed for the calculation

• Assets and debts at the date of death
• Civil-status records for the spouse and all heirs
• The will and any codicils
• Lifetime gifts or transfers
• True values of immovable property and company shares