Planning Ahead: Foreign Assets

Friday 31 May 2019

Many of us have assets in other countries, for example a holiday home in the sun or a bank account abroad.

However if you do have assets abroad, it is important that you consider these when you are planning your Estate.

Making a Will

Planning ahead by making a Will, gives you the opportunity to set out exactly what you wish to happen to your assets upon death.

If you don’t have a Will, the law will set out what should happen to your Estate. However dying without leaving a Will can mean that the people who you would like to inherit don’t; which can often lead to disputes arising.

Differing International Laws

Having assets in a foreign country may mean that a Will here isn’t sufficient enough to protect your intentions because the country in which your assets are based may have their own laws (which are very different to the ones which govern your Will here).

For example, some countries have the notion of “forced heirship” whereby the assets must be left to family in a specific order, and in other countries religious laws govern what happens to your assets.

Due to the intricate nature of differing international laws, it is important to tell your solicitor about your assets abroad so that they can advise you whether one Will is enough to protect your wishes.

Often, you will be advised to have a separate Will prepared by a lawyer in the relevant foreign country.

This will mean that your representatives are able to administer your Estate without encountering difficulties as to whether your English/Welsh Will applies to the foreign asset or not, which in turn will help to ensure that the administration of your Estate is as smooth as possible during an already difficult time.

Wills Working Together

If after obtaining advice you choose to have separate Wills prepared, it is important that the Wills don’t accidently revoke each other.

Most Wills in England and Wales contain a clause which revokes any other Will to ensure that the Will here is the only valid one.

You should therefore inform your solicitors in each country about the Wills you are making. That way, they can ensure that the Wills work together and don’t conflict.

It’s important that your assets abroad don’t get forgotten about when you are preparing your Will and therefore if in doubt, tell your solicitor about the full extent of your assets abroad.

 

If you would like to discuss your Will, or the best way to protect your foreign assets, please get in touch with a member of our team today.