Inheritance Tax
If you have a sizeable estate this increases the possibility of it incurring significant inheritance tax, potentially across more than one jurisdiction.
If you have only one Will you need to ask your expat financial adviser whether it adequately addresses the tax issues at the heart of each jurisdiction or whether there is another way to mitigate liability in a way that is in the interests of your heirs and other beneficiaries.
Common or civil law?
The UK is a common law country whereas most others in the EU are civil law jurisdictions. This may have some impact on whether your Will is recognised in all the countries in which your assets are held.
EU Succession Regulation
EU Succession Regulation (EU 650/2012) (“the Regulation”), also known as Brussels IV, was introduced to unify succession laws across EU member states. It allows expats residing in the EU to elect the law of their country of origin rather than that of their country of residence.
This is particularly important in countries such as Spain and Portugal which have ‘forced heirship’ rules in place dictating that on death you must hand on your assets in certain ways—i.e. along traditional bloodlines.
This can help create clarity with regard to cross-border inheritances as it standardises succession law across the EU, reducing costs and reducing the potential for delays and contention during the probate process.
Although the UK opted out of the regulation, UK nationals living in the EU can still opt to have UK succession law apply on death.
Advice from Blacktower Financial Management
Are your assets recognised as “movable”, should you have one Will or more and should you use the EU Succession Regulation to nominate your country of nationality for inheritance and probate?
At Blacktower Financial Management our experts can help you negotiate these important questions and more. As a an expat financial services and wealth management specialist with many years of experience in numerous overseas jurisdictions, we can help you protect and grow your wealth while also working to ensure that your wishes are fully recognised and fulfilled on death. Contact us today for more information.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Professionals working in financial management in the Cayman Islands have many regional and jurisdictional advantages that they can bring to the benefits of their clients’ portfolios, whether they are standard retail investors who have built their wealth through pension schemes, diligent individual savers or institutional investors who are looking for a desirable place to do business.
Over the years, the trend for South African nationals to seek out new lives and experiences in Portugal has continued to grow and grow; I myself made the move back in 1988 as a fresh-faced economics graduate from Witswatersrand University in Johannesburg, and I’ve never looked back. It’s easy to see the appeal for South Africans – the year-round sunshine and vast expanses of Atlantic coastline are a familiar part of daily life, just as they are back home – but the secure location and easy access to the rest of Europe is something really special. Being as there’s over 11,000 KM of distance between the two countries, a mere 12 hrs by plane give or take, there are going to be some big differences in the way of life, even if there are those obvious similarities. It’s probably advisable for any emigrant to arrive armed with a willingness to accept how things are done in their new home country rather than try to carry on as before and hope for the best. This is never more true than when dealing with your finances.