Navigating foreign assets and estate planning: 5 key considerations
Tom Bridge, Associate in our Wills, Trusts & Estates Team, takes you through the 5 key matters you should consider if you have assets in other countries:
1. Which law applies to your assets
Some jurisdictions have forced heirship rules, meaning certain family members must benefit from your estate regardless of your wishes. It’s important to know if these rules apply to assets held abroad.
2. Consider property ownership
Property owned jointly may pass automatically by virtue of how it is owned and not be caught by your Will. This will be determined by the rules of the country where the assets are held.
3. Draft a Will or Wills
It is important to draft a Will and consider making a choice of law.
Under the EU Succession Regulation (Brussels IV), you may be able to elect for the succession of European assets to be governed by the law of your nationality. Whether or not this is appropriate will depend on the circumstances.
It may also be advantageous to have a Will in the jurisdiction where you own foreign assets. However, if multiple Wills are signed, it is important they do not contradict each other.
4. The use of Trusts
Some jurisdictions do not recognise Trusts (i.e there is no difference between legal and beneficial ownership). Any planning should take this into account.
5. Inheritance Tax
Understand the extent to which UK Inheritance Tax will apply to your assets, whether it will just apply to your assets in the UK or also to your worldwide assets.
There could be a double charge to tax if Inheritance Tax or similar wealth taxes are also payable in the country where the assets are situated. It may be possible to take steps to mitigate this issue.
How we can help
Hay & Kilner work with legal professionals in multiple jurisdictions to resolve cross-border planning issues and ensure your estate planning is fit for purpose. Contact us today to discuss your needs.
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