Do you own a House Abroad? Make sure your Foreign Assets are properly protected with an Iron-clad Will

UK citizens who own a property in Europe, Italy or Spain, for example, should make sure that, not only do you include your overseas assets in your British will but it is strongly advised that a second mirror will is drawn up under the law in the jurisdiction in which your overseas asset/s resides. This to ensure that it is crystal clear as to who the intended beneficiaries are with regard to the property overseas and the property abroad will be disposed of in accordance with your wishes.  In present times the very common situation of a second marriage and step-children from your spouse’s first marriage who you may wish to advantage on your demise, it is very wise to draft a will or wills that are valid in the jurisdictions in which you have assets that clearly set out your wishes.

The laws of succession in many European countries can be very different to those in England and Wales.  In Spain, France and Italy a defined portion of a testator’s estate must be left to their relatives in accordance with the laws of succession cannot be renounced other than in exceptional circumstances. British citizens buying second homes or retiring to countries where the compulsory succession laws apply should take certain steps to circumvent the possibility that their estate may not apportioned in the way that they wish it to be.  Some countries do not place the surviving spouse and the top of the list with regard to inheritance. 

An Overview of the Laws of Succession in the Countries where the British mainly choose to relocate:

• Spain: Spanish law mandates that children and descendants automatically inherit at least two-thirds (legítima) of any of your Spanish assets. The remaining third is disposable, however you wish. Please note that your descendants will generally take priority over a surviving spouse.
• Italy: Under Italian law, a portion of the estate (quota legittima) is reserved for the spouse, children and in some cases, your ascendants (parents). The exact fraction depends on the number of surviving family members.
• France: Similarly forced heirship dictates how much of your estate your children must receive, preventing you from leaving everything to a spouse. The reserved portion is based on the number of children you have.  One child receives 50%, two children share 66% and three plus children share 75%.

Unlike the UK where an individual of sound mind can leave his or her estate to any person they choose to, including the cleaner or the Cats Home, under Italian inheritance laws, for example, the procedure is very different from the equivalent of laws of other jurisdictions. The laws of succession can be relied on in some circumstances and an individual maybe pleased to do so.  However, it will be a long drawn out process for your benefactors to undergo and may present complications when transferring ownership, even in the most straightforward of inheritance.

Succession is regarded differently in different countries and a British citizen who owns assets in different countries should consider that some countries apply completely different concepts to succession which have a significant impact on the way the assets are dealt with in the absence of a well drafted will relating to the country concerned. For example, France recognises habitual residence, whereas England considers domicile, Italy applies the concept of nationality. If you have several assets in different countries, you should bear in mind that a cross-border estate can be extremely complex to administer if no consideration has been given to the eventual disposal of your assets.

Your benefactors could be placed in the position of having to endure a long drawn out, not mention costly, procedures to demonstrate the provenance of their claim to the assets which almost inevitably involve dealing with documents drafted in foreign languages, different and possibly conflicting jurisdictions, authentications before public notaries and the prospect of tax liabilities from the onset without having access to the asset. 

The costs of having a certified translator alone can be extremely high particularly when there are many documents to deal with.  Also, the very real prospect of an excluded individual who perceives themselves to have a right to your estate may take advantage of both the complexity and the protracted time scale to mount a challenge. Even a spurious challenge can erode the value of the estate.  The simple option of drafting a straightforward will, valid in the country in which your asset is to be found makes good sense as well as being cost effective. 

Giambrone and Partners’ extremely experienced cross-border inheritance lawyers can assist in dealing with multifaceted estates and can give you the peace of mind that you have an iron-clad will that cannot be overturned and your wishes, with regard to your estate, will be observed as you intended them to be and will not be subject to a lengthy legal wrangle that may cause the value of the assets you leave to your benefactors to be eroded.

For further information  please email clientservices@giambronelaw.com or telephone 020 7183 9482.