Estate Administration & Dealing With Foreign Assets
When dealing with the estate of a friend or loved one, you may discover assets that are located in other countries.
Those assets may be ‘physical’, such as land or property, or, non-physical such as bank accounts, or shareholdings.
Dealing with foreign assets can be complex for a number of reasons, but wherever assets are located around the world, the process of dealing with these is broadly similar to dealing with assets in England and Wales.
If the deceased made a Will (in England and Wales) does this apply to assets worldwide?
Generally speaking, yes. If the Will is intended to only deal with assets in a certain country, it will specify this.
It is good practice to make a Will in the country where assets are located, especially property and land, as these may be subject to ‘forced heirship’, and advice from a local lawyer is strongly recommended to avoid potential estate claims following your death.
For the purposes of this blog, we have assumed that you have obtained a Grant of Representation which deals with assets in England and Wales.
So how do you deal with assets overseas?
You will need a Grant issued by the Court in the country where the asset is located. If the asset is in a Commonwealth country it is generally more straightforward to apply for a foreign Grant, than in the rest of the world.
In Commonwealth countries, the England and Wales Grant can be ‘resealed’. What this means is that no ‘new’ Grant application is required. The foreign Grant can be obtained by presenting to the foreign Court, a Court sealed and certified copy of the Grant of Representation issued by the Probate Registry in England and Wales.
You will then be issued with a Grant of Representation (or local equivalent) to deal with the assets in that country.
The process of applying for a Grant of Representation in other countries (outside of the Commonwealth) will require a fresh Grant application to the Court. You will need to sign/swear an Oath (or similar document).
So how do you apply for a foreign Grant?
You will need to engage a lawyer in the country where you are seeking to either, reseal an England and Wales Grant, or, apply for a foreign Grant.
How do I find a foreign lawyer to help me do this?
The STEP (Society of Trust & Estate Practitioners) Directory would be a good first step to help you find a foreign lawyer.
They will also be able to advise you if there are any Inheritance Tax liabilities and assist you with completing any relevant forms and paying any tax due (if any).
Sometimes you may have to pay Inheritance Tax both in the UK and in the country where the foreign asset is located. However, HMRC allow you to claim a refund of Inheritance Tax through either a double taxation convention or unilateral relief, so that you do not pay tax twice on the same asset.
Jersey, Guernsey and the Isle of Man are not part of the UK legal system, and you will need to apply for a foreign Grant in those countries should you have assets located there. There is no Inheritance Tax in any of these countries.
If you need advice on or assistance with dealing with assets in foreign countries, please contact our Private Client Team who will be happy to assist you – use the form below or call one of the numbers listed underneath.