British expats who thought their money and property were beyond the reach of the law if they lived overseas could have their wills challenged if new inheritance rules are voted through Parliament.
MPs are considering a Bill that will open the way for disinherited children, mistresses and unmarried partners to contest the last wishes of expats.
The Bill has already had a third reading as is well on the way to becoming law later this year.
Wills are one of the main sources of family conflicts as surviving friends and relatives argue over what they believed they should have been left.
Figures from the Law Society show only a third of people make a will because they are stressed by family quarrels and would rather not face the antagonism.
Official figures from the Ministry of Justice also show that the number of cases involving contested wills has doubles in the past six years.
Inheritance rules
The current thinking on wills is confusing.
Each country has inheritance rules that are only valid within that country – so an expat with a rental property in Britain, a second home in France but resident in Spain would need to make a will in each country.
Inheritance rules in England are markedly different from those in France and Spain as well.
In England, everyone is free to leave their possessions to whoever they wish.
In France and Spain, enforced heirship is practised, which means some close family are entitled to a specific share of an estate, regardless of the wishes of the owner.
The failsafe in England is the Inheritance (Provision for Family and Dependants) Act, which allows lovers, unmarried partners and children aged 18 and over to challenge a will if they feel their interests have been overlooked.
Court conflict
However, the increasing number of cases in front of the courts arising from these rules is delaying the settlement of estates, and in some cases, leaving beneficiaries of a will in financial hardship.
These challenges are only allowed if the deceased was domiciled in England or Wales, but the new Inheritance and Trustees’ Powers Bill allows specific people to contest a will if the deceased is an expat.
The fears are the new law will increase rather than decrease conflict as most expats are considered wealthy and to have moved overseas to earn more money or for tax reasons, although this is not true in many cases.
If the bill is not well thought out, the costs and time involved in sorting out the financial affairs of a deceased person may increase as UK law and court decisions may not agree with those in other countries.
