Managing Foreign Assets in Your Estate Plan

 When people think of foreign assets, they typically imagine real estate abroad. However, foreign assets can be quite diverse, including shares in foreign companies, cars, personal belongings, or even bank accounts in other countries. It’s crucial to address these assets in your estate plan to ensure your wishes are carried out smoothly. 

Why Foreign Assets Matter 

If you own property or other assets abroad, it’s essential to have a will in each jurisdiction where those assets are located. This approach simplifies the probate process and ensures that your assets are handled according to your wishes. 

How to Manage Foreign Assets 

1. Separate Wills for Different Jurisdictions 

The best practice is to have separate wills for each jurisdiction. For example, if you own property in Australia and the UK, you should have one will for your Australian assets and another for your UK assets. Each will should specify that it only covers assets in that particular jurisdiction and revokes any previous wills for those assets. This ensures that each will can be probated efficiently in its respective country. 

2. The Probate Process 

Having a will in the jurisdiction where your foreign assets are located can significantly speed up the probate process. For instance, if you have assets in New Zealand, having a New Zealand will means you won’t need to get your Australian probate resealed in New Zealand, which can add months and extra costs to the estate administration. 

Legal Considerations and Treaties 

While there are international treaties that aim to standardize the requirements for wills, not all countries are signatories, and some have unique inheritance laws. For example, countries like Croatia and Turkey have specific inheritance rules that must be followed. It’s crucial to understand the legal requirements in each jurisdiction to avoid complications. 

Is It Worth It? 

The decision to create a separate will for foreign assets depends on the value of those assets. If the asset is of low value, it might not be worth the cost and effort to create a separate will. For instance, if you own shares worth a small amount, you may choose to deal with them during your lifetime or decide it’s not worth creating a will for them. 

Alternative Arrangements 

In some cases, foreign assets can be managed without a separate will. For example, some share portfolios allow you to nominate a beneficiary directly, bypassing the need for a will in that jurisdiction. It’s essential to explore these options with your solicitor to determine the best course of action. 

Key Points to Consider 

• Value of the Asset: Is the asset valuable enough to warrant a separate will? 

• Legal Requirements: Understand the inheritance laws of the country where the asset is located. 

• Practicality: How easy is it for your beneficiaries to manage the asset after your death? 

• Cost: Weigh the costs of creating and probating a separate will against the value of the asset. 

Foreign assets can complicate your estate plan, but with careful planning, you can ensure that your wishes are respected. If you own foreign assets and haven’t considered how they fit, now is the time to talk with an experienced estate lawyer who will ensure your foreign assets are protected. 

Book a consultation with Vicca Law today to discuss your international estate planning needs. Visit www.viccalaw.com.au or email lidia@viccalaw.com.au to schedule your appointment. Let’s work together to safeguard your assets and provide peace of mind for you and your family.