(This is a guest article very kindly provided by Sarah Ip from Noble Wills, one of the will writing service companies we work with in Hong Kong).
If you’re a UK citizen and have assets abroad, then you should be sure to take them into account as part of your estate planning process.
As we have become more internationally mobile and can more easily live abroad, owning foreign property and setting up offshore investment accounts has become more common.
So, in this article you can find out some of the most common questions we are asked regarding wills and overseas assets. You can also read about the importance of having separate arrangements for each jurisdiction where you have assets.
Why do I need separate wills for my overseas assets?
How your will is written can affect how much Inheritance Tax (IHT) is payable on the value of your estate.
So, it is sometimes ideal to make certain distributions or make different appointments to minimise IHT in a particular jurisdiction. You can do this by writing a separate will specifically for that country.
Having separate wills for different jurisdictions can also help speed up the court process.
The courts are notoriously slow, and it can take months, if not years, for a probate process to be completed. This is a necessary step to verify and give recognition to your will before any distributions can be made.
If you have separate wills in place, then the court processes for all the different jurisdictions can begin at the same time. This will ensure that your family can receive your estate efficiently and at a reduced cost.
There is also a possibility that your assets could be frozen even after the court process is complete, as the other jurisdictions may want to make sure that IHT is paid off before releasing the funds to the beneficiaries.
Each country has its own set of succession laws, so a will written in one country may not be accepted by another authority. Even if they are accepted, the court process could be delayed as they would need to familiarise themselves with a will written for another jurisdiction.
Can I have one will to cover my international assets?
If you have only one will, then your family will need to go through the court process in one jurisdiction first. Then after finalising that process, they will need to retrieve the original will and bring it to the next country – and so on.
This process can take many years if your assets are spread across several countries. If your family relies on you to take care of them financially, then the urgency to speed up the probate process is even greater.
Separate wills can help ensure that your family is taken care of in terms of daily expenses, school tuition fees, mortgages for the home, medication for disabled family members, and so on.
If I have no will in place, what will happen to my assets abroad when I die?
If you have no will, then your family will have to go through not only the grief of the loss of a family member, but also the tremendous burden of figuring out what assets you own, which country they are located in, and how to collect them.
How do overseas assets affect my current situation?
There are many potential issues relating to your ownership of overseas assets. These could include:
- Questions on your domicile
- Whether IHT will be payable
- Whether forced heirship applies to your assets.
Because of this, we would always strongly recommend that you get advice from an experienced cross-border estate planning expert to help you analyse your situation and plan your estate appropriately.
Get in touch
We work closely with Sarah, and the other will specialists at Noble Wills.
If you’d like to discuss your will requirements, please contact us by email or, if you prefer to speak to us, you can reach us in the UK on +44 (0) 208 0044900 or in Hong Kong on +852 39039004.
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