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Will Writing, an Important Part of Expat Financial Planning

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.

Other News

Reforms to pension tax relief may happen soon

TaxThe importance of putting money into a pension cannot be understated, and the British government has a regulation in place – the pension tax relief scheme – to encourage people to save. But many experts are predicting significant changes to the scheme. If you’re planning to retire overseas as an expat and take advantage of international pension transfers, you’ll need to stay updated with these changes.

How does pension tax relief work?

The pension tax relief scheme is an incentive to entice people to put money into their pension pot. To reward people for thinking ahead to their retirement, the government currently tops up their pension contributions based on the rate at which they pay income tax. So, basic rate taxpayers will receive 20 per cent tax relief (meaning they only need to pay £80 into their pot to get £100), while higher rate taxpayers are entitled to 40 per cent relief.

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Food for expat thought: Takeaway anyone?

Fish and ChipsWhat do you miss most as an expat?

Of course, there will be no shortage of new experiences available to you in your expat environment, especially if you are moving overseas to retire, but sometimes, it’s the smallest things that might bring a lump to your throat…or a rumble to your stomach, maybe.

Perhaps this was the case for one group of British expats who chartered a plane to fly in a large delivery from their favourite curry house in Portsmouth.

James Emery, an aviation assessor for trainee pilots in France, piloted the small aircraft which flew 89 meals from Solent Airport all the way to Bordeaux.

“I’m a chilli addict, “he said, “and an aviation geek, so I thought I would combine my two hobbies to get my favourite meal to me in France.”

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