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.
So, you’re wondering – what is ‘robo-advice’? There is a growing market in the UK of online offerings where, instead of going for a consultation with a financial adviser, you use a questionnaire devised by the provider which, depending on your responses, advises you where best to put your cash. Investors are placed in a broad investment strategy that, in theory, suits their objectives and attitude to risk. These strategies largely consist of passive investments which ‘track’ an index.
The pension freedoms of 2014 radically altered the way many expats are now able to access their retirement funds. The changes, which came into force in April 2015, ended the age of annuity-by-default and allowed people to take multiple tax-free sums, have flexible options regarding income drawdown and provided more scope for