Making a will is often a cause for concern for expats who may have cash and investments in two or more countries.
The problem with wills is they are only valid in the country where they are written and witnessed and failing to spot this issue can lead to problems for expat families.
The answer is for wealthy expats is to make a will in each country where they have a bank account or investments.
This is often overlooked by property investors who may maintain a home in Britain and have one or more other properties in other countries.
Professional advice
For instance, they might live in France or Spain but let out their former home in Britain.
It’s also important to take estate planning advice from a professional adviser in each country as laws differ widely and few will makers are qualified to give cross-border advice.
The advice is complicated even more by the nature of any investment – for instance funds remaining in a Qualifying Recognised Overseas Pension Schemes (QROPS) when the investor dies are exempt from inheritance tax in the UK, but may not be treated the same in other countries.
Trusts are also structured and tax-treated differently between countries, with the US refusing to recognise many offshore trust arrangements.
Family squabbles
For expats without a will, here are some good reasons for putting pen to paper as quickly as possible:
- A will appoints trusted people to act as executors to wind up your estate and distribute the proceeds
- The will can include a gift to the executors for taking the job, which can often be time-consuming
- Expats can detail how their final wishes for funeral arrangements and to help the family decide whether to donate organs
- Guardians can be appointed for children – and trustees for any funds to invest on their behalf
- Personal possessions and valuables can be given to the people the expat wants to have them
- For unmarried partners in the UK, a will can protect the marital home and other property for the benefit of the family
- A clearly written will can deal with claims against the estate
- Making a will can stop family squabbles over who gets what
The alternative is dying intestate – which is the legal term for having no will. The consequences to an expat’s estate vary from country to country, but each has laws that divide the proceeds between family members according to formulas.
