Dealing with an international estate

August 01, 2022

International travel has become a little easier recently following the pandemic, however, there remains complications with airlines and airports in some countries. People continue to work overseas and set up homes worldwide, marrying or entering civil partnership arrangements with partners who may or may not share their domicile.

Domicile

Once you start applying the rules to clients’ complicated lives, they can also be just as complicated. Everyone has a domicile, but you cannot have more than one. The domicile of the father determines the domicile at the time of birth of a legitimate child. An illegitimate child or one born after the death of the child’s father takes the domicile of the child’s mother at the time of the child’s birth.

A domicile of choice occurs when someone resides in a country with the intention of remaining there permanently or indefinitely. The need to prove this may require a detailed examination of the client’s actions and statements.  Length of residence is not sufficient.  A domicile of choice can arise the moment someone arrives in a new country, but someone can also live somewhere for many years without that country becoming his or her domicile of choice.

Intentions are critical in working out domicile. No-one can choose where they are domiciled, because it is a factual matter.

Administering an international estate

On death, the legal systems where the assets of the deceased are situated determines who is to inherit the assets. However, this may be decided in one country by applying the rules of another country.

Forced heirship – According to ‘forced heirship’, if the deceased has certain family members (spouse, or children), they are entitled to inherit a certain portion of the assets, and the remainder is allocated according to the will.

Applying foreign law – The rules of private international law vary from country to country.  The result is that many different rules of succession may apply in an estate. The question of who inherits particular assets may affect who can get a grant of probate and what personal representatives must do with the assets. It could also have an impact on Inheritance tax liability.

Excelsior is available to help you with these difficult decisions and we welcome any queries or concerns you may have. Feel free to contact us.

Free advice is available by text or email.

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