Do you have assets in more than one country?
Do you know how your Will will be treated in different jurisdictions?
From forced heirship in Europe to the role of executors in Asia, here’s what you need to know.
Formal Requirements
The format and witnessing requirements for a will can differ.
Some countries require notarization, while others might simply require two disinterested witnesses.
Some jurisdictions recognize handwritten (holographic) wills without witnesses, while others don’t.
Validity of Foreign Wills
Some countries recognize wills made abroad, while others may not or may only recognize them under specific circumstances.
It’s crucial for individuals with assets in multiple countries to understand these rules.
Forced Heirship
In some jurisdictions, particularly in parts of Europe and Asia, one cannot freely dispose of all of their assets upon death due to forced heirship rules.
These rules mandate that certain portions of the deceased’s estate go to specific heirs, such as children or a spouse.
Estate Taxes
The manner and rate at which estates are taxed upon death can differ substantially.
Some countries impose hefty estate or inheritance taxes, while others may have none.
Here is a list of the top rates of inheritance tax in different countries:
Belgium 80% – Ouch!!
Japan 55%
South Korea 50%
Germany 50%
France 45%
United Kingdom 40%
United States 40%
Netherlands 40%
Ecuador 35%
Spain 34%
Ireland 33%
Chile 25%
South Africa 25%
Greece 20%
Taiwan 20%
Finland 19%
Ukraine 18%
Denmark 15%
Iceland 10%
Turkey 10%
Vietnam 10%
Brazil 8%
Poland 7%
Switzerland 7%
Philippines 6%
Croatia 5%
Italy 4%
Australia 0%
Austria 0%
Canada 0%
China 0%
Estonia 0%
Hungary 0%
India 0%
Israel 0%
Luxembourg 0%
Mexico 0%
New Zealand 0%
Norway 0%
Pakistan 0%
Portugal 0%
Russia 0%
Serbia 0%
Singapore 0%
Slovak Republic 0%
Slovenia 0%
Sweden 0%
Joint Property
The treatment of jointly owned property upon the death of one owner varies.
In some jurisdictions, the deceased’s share might pass to the other joint owner(s) by right of survivorship, while in others, it might pass according to the deceased’s will or intestacy laws.
Intestacy Rules
If someone dies without a valid will, the rules that determine how their assets are distributed (intestacy rules) differ widely between countries.
Digital Assets
The handling of digital assets (like online bank accounts, social media accounts, and digital currencies) after death is a relatively new area of law and can vary significantly from one jurisdiction to another.
Spousal Rights
The rights of a surviving spouse can differ.
For instance, in some places, a surviving spouse has a right to a specific share of the deceased’s estate, irrespective of the will’s content.
Role of Executors and Administrators
The duties, powers, and appointment processes for executors (those named in a will to manage the deceased’s estate) and administrators (those appointed by a court when no valid will exists) can vary.
Challenges to Wills
The grounds upon which a will can be contested or challenged, and the processes for doing so, differ among countries.
Conclusion
Given these differences, it’s essential for individuals, especially those with assets or beneficiaries in multiple countries, to seek advice from professionals familiar with the specific estate laws of each relevant jurisdiction.
Further Reading
Expat Finance 101: 10 Reasons You Should Have a Will
How can marriage or divorce affect your Will?
Why Leaving Without A Will Is Like Playing Russian Roulette With Your Legacy
