Wonderful service from start to finish.
On 17th August, the EU Regulation on Succession came into force in an attempt to simplify the law around succession of assets if a person passes away having owned property in more than one country in the European Union. Jane Cox, Private Client Lawyer, here explains exactly what this means for citizens living in the UK, and what steps you need to take with reference to your Will.
“If a person does have assets in numerous countries within the European Union, prior to this implementation it would have been extremely complicated to indicate who those would be left to, as there are different succession laws in different countries,” begins Jane. “In effect, this new regulation means that an EU national can elect to adopt one law from one country, either of their nationality or where they are habitually resident. Where a person has not elected which law they wish to implement, then the laws where they are habitually resident will be applicable to the administration of their estate.”
The UK, Demark and Ireland have opted out of the EU Regulation, due to complicated provisions on lifetime gifting. “This does not mean, however, that a UK National who has property in France for example cannot opt to ensure that UK law takes effect over such property on their death,” continues Jane. “These laws are only applicable to the succession of the assets of an estate, and do not deal with inheritance tax and other tax matters. Therefore a person’s estate will still be subject to the local taxation laws, and also for Inheritance Tax under UK Law, although the rules of Double Taxation will take effect.”
Those domiciled within the UK at the date of their death will also be affected. Jane explains, “The Inheritance (Provision for Family and Dependants) Act 1975 could apply to assets within the EU. This means that should a person domiciled in the UK die without making provision for a dependant, they may not only be able to claim against your assets within the UK, but also within EU Member States.”
Jane concludes, “It is essential that everyone who either lives within an EU Member State, or those with assets in the EU review their Wills. The implications of the Regulation mean that you may have unwittingly opted into a law that you would rather not apply. This is an extremely complex area of law and it is imperative that you obtain the correct advice when reviewing your Wills to ensure that they fall within the EU Regulation”.
If you have assets across the EU and need advice as to your Will, then you can contact Jane or the Private Client team on 01329 222075 or visit their section of the website.
ENDS
This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice. All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.