Published on: 7th February 2022

Do you live in England but have Property Abroad?

If you are domiciled in England you have the freedom to create a Will which distributes your Estate exactly as you wish. There are many countries around the world that do not have this testamentary freedom and have certain limitations. 

Whilst the definition of domicile is not held in statute, it has developed through case law over time. Practically, domicile refers to the country in which you have your permanent home. Everyone has a domicile, and your domicile can change, but no one can have more than one. This principle was established in Udny v. Udny [1869].

If a person is domiciled in England but has foreign assets, their English Will can be drafted to include worldwide assets, but the ability of the English Will to deal with those assets will depend on the law of the country where they are located. In the EU, Brussels IV is the succession regulation that applies to member states (except Denmark and Ireland) with the aim of simplifying the rules relating to cross-border succession. Whilst it is not possible for a UK national to apply foreign law to UK assets, a UK national can apply British succession law on assets within the Brussels IV zone.

If you have additional assets in certain foreign jurisdictions such as in the Brussels IV zone, there is the possibility that you can create a multi-jurisdictional Will. Alternatively, you can create separate Wills in each country. There are some significant benefits to the latter option including speeding up the administration of the estate as the Will does not need to go through the process of officially being recognised abroad, potentially lower probate costs, and the certainty that the Wills are valid in their jurisdiction.

Additionally, some counties have forced heirship laws which can have unintended consequences if you live in England. If you are married and pass everything to your surviving spouse in the UK, there is no Inheritance Tax (IHT) to pay due to spousal exemption. If you have property in a foreign country that has forced heirship, however, you may be required by law to pass your assets to your children. Because HMRC values your estate on all worldwide assets, these forced heirship laws can have negative UK IHT consequences when the first of a married couple passes away.

If you are domiciled in England and own property in a foreign country, you may need to seek specialist advice in that country regarding laws of succession. At Casey & Associates, we are able to help you with your English Will and can add specialised phrasing to apply English succession law to assets in the Brussels IV zone. If you are interested in discussing this further, please feel free to book a no-obligation consultation by calling 01732 868190 or by using our online form here.

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If you wish to give instructions or require general information about our Wills, Lasting Powers of Attorney, or Trusts then we will carry out a telephone or Zoom appointment. However, if you wish to give instructions to one of our Consultants and you feel that you can only do this at a Face to Face meeting we are offering, at our Consultant’s discretion, a limited number of Face to Face appointments in most of the areas we normally cover (subject to Government advice). To see the areas we normally cover please click here. To arrange an appointment please telephone 01732 868190 or click here.

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