Global wealth and lifestyles can make managing your assets incredibly complex. It’s always important to consider the international regulations to stay legally compliant across all jurisdictions, whilst also ensuring you don’t pay any more tax than you need to.

When it comes to asset protection, and passing on your wealth, there are a few important questions to ask. Should international assets be included in a UK Will? Will they be subject to further taxes? On a practical level, are foreign assets more appropriately administered by local experts under a separate foreign Will?

If you have assets in more than one country, you’ll benefit from advice about the laws and taxes that apply to them and how to ensure that you’re compliant with tax reporting rules. We’ve considered your options below. 

UK and International Wills

Having Wills and other structures in place to protect your assets can be used to ensure family assets pass to the next generation as smoothly as possible. However, when you have property and investments in other countries, it’s important to seek legal advice to decide if foreign assets can be dealt with in a single worldwide Will, or if separate Wills (made in accordance with the laws of the country in which foreign assets are held) are more appropriate.

Succession laws vary from country to country and can restrict your ability to leave your wealth as you wish. For example, you can come into difficulty a UK Will doesn’t observe the succession laws that apply to that foreign asset.

Keeping your Will(s) under review, making sure that each is periodically updated and amended to take account of big life events is vital for effective estate planning. Failing to keep you Will updated can cause frustration and difficulty further down the line. It’s important to ensure that when you’re updating one Will, that any other international Wills in place are also reviewed and aren't inadvertently revoked by changes to another Will.

IHT and Avoiding Double Taxation

Inheritance tax (IHT) is an important factor to consider when passing on wealth to the next generation in your Will. You’re more likely to have to consider IHT if you’re a high net worth individual, you’ve large portions of your estate held in property, or you’re looking to cash out pensions in your retirement.

When dealing with international estates, there’s also the possibility of being subject to IHT in the UK and in the country in which foreign assets are held. Specialist advice is required to identify if double taxation is applicable and how best this can be handled.

Alternative Ways To Pass On Wealth

So, what can you do to reduce your IHT burden and pass on wealth to your loved ones in the most tax efficient way possible? Our specialist succession and asset protection solicitors can advise on a variety of onshore and offshore structures to reduce the overall IHT bill, including:

• Trusts
• Companies
• Insurance wrappers
• Foundations
• Private trust companies
• Funds.

Summary

Creating a tailored international asset protection plan, gives you the confidence that your plans will be valid across the borders and will avoid any nasty surprises. Our team of international experts are flexible and have a broad network of trusted specialists across the globe. We have a deep appreciation of legal, tax and regulatory landscapes outside the UK and work with experts in foreign jurisdictions who match your own culture and understand what matters most to you and your loved ones.

Contact Us Today

Contact us today for help and advice. You can call us on 0808 291 2252 or contact us online.

Supporting You And Your Family

Future planning is one of the biggest investments you can make – not only for yourself, but for your loved ones as well. Please visit Supporting You And Your Family for more ways you can plan for the future. For tailored support in your jurisdiction visit our international page for more information.