Dealing with foreign assets in a Will
If you own assets in two or more countries, each country will have their own processes when attaining and selling these assets. It is becoming more common today for someone to own an asset in two or more countries, and dealing with this kind of situation may not be as straightforward as you’d think.
Where someone dies owning assets in two different countries, it often requires the application of the law in two jurisdictions, depending on:
- The country in which the assets are held
- The type of asset
- Where the deceased lived (or was domiciled)
- Whether they left a Will (and in which country)
The crossover of the legal systems in each country can be complicated, and there are often different processes to follow to administer the assets and determine the beneficiaries. Foreign property is not always as obvious as someone owning a holiday home abroad. Foreign property can also include shares where the registrar is registered in another country. Even owning assets in England and Jersey will result in the application of two legal systems and may require complex processes to be followed.
The issue of domicile
There is also the issue of domicile, or the legal residence of an individual, which can play a part in the administration of assets where an individual has assets in two or more countries. Domicile can change throughout someone’s life, and is not as simple as determining where that person was living at the time of their death, or their nationality. Various factors must be considered, such as how long they were living in that country, where they were born and where they intended to return, amongst other factors. A person’s domicile can determine if inheritance tax will be payable on their assets. It will also determine their income tax position at death and the ongoing income tax implications of their estate (and if capital gains tax is applicable). It is important to correctly identify an individual’s domicile when dealing with such issues.
There may also be difficulty identifying and locating the paperwork for the assets in each country. Having a Will in one country does not determine the beneficiaries in another country; the Will could be restricted to the country to which it relates, and a Will may not be identified in the other country. Where this happens, the succession laws of that country could determine the destination of those assets but, again, the domicile of the deceased and the type of asset will both have a role to play.
The probate process in England and Wales is to obtain a Grant of Representation, which allows for the administration of assets in England and Wales only. Other countries have their own laws and processes to follow; this will require liaising with legal experts in each jurisdiction to coordinate the administration of the assets. In turn, this will increase the time it takes to administer an estate, with the timeframe for administering an estate England and Wales averaging around twelve to eighteen months.
How we can support you
Each estate is different and there is no universal approach to dealing with them, particularly where assets are held in different countries. If you are a personal representative responsible for administering an estate where there are assets in two or more countries, you should seek legal advice to assist you with this. Acting as a personal representative and administering an estate carries significant responsibility and, if not done correctly, you could be found personally liable.
Attwaters Jameson Hill can assist you dealing with an estate which includes foreign property, so please do get in touch with our experts.
