How to handle international assets in your Will
It is becoming increasingly common for people to own assets overseas in addition to their Australian assets. This has led to the emergence of how you deal with assets, owned in another international jurisdiction and whether you can make provision for these assets in your Australian Will. Let’s explore how best to make provision for these assets.
International Wills
Depending on which jurisdiction your international assets are held, you may be able to put in place an international Will which allows you to make provision for both your Australian assets and your assets held in an overseas jurisdiction. Australia together with Bosnia-Herzegovina, Belgium, Canada, Cyprus, Ecuador, France, Italy, Libya, Niger, Portugal, Slovenia and the following USA states – Alaska, California, Colorado, Connecticut, Illinois, Minnesota, Montana, New Hampshire, New Mexico, North Dakota, Oregon, Virginia and Washington DC are signatories to the UNIDROIT Convention. Essentially, this means that if you hold assets in any of these countries you may put in place an international Will.
The International Will Process
An international Will is different to an Australian Will and there are processes that need to be adhered to in order for it to be a valid Will. Most importantly, it needs to executed in a manner that complies with both the UNIDROIT Convention and the jurisdiction in which the Will is made. It is important that you seek the appropriate advice from an estate planning lawyer to assist you in putting an international Will in place, that meets all relevant requirements.
Is an International Will right for you?
Although you may own assets in a country that enables you to put an international Will in place you need to carefully consider whether putting an international Will in place is the right option for you. For someone who owns substantial assets in Australia and a bank account in Canada, it may seem a logical option to put in place an international Will in Australia, for both your Australian and Canadian assets. However, if you have substantial personal, business and trust assets in Australia, California and France, you need to carefully consider the viability of an international Will. In this instance, it would be important that you understand the probate and estate administration process in Australia, California and France. In addition, you would need to familarise yourself with the tax implications of the assets of a deceased estate, inclusive of any inheritance tax which may apply in these countries. It is imperative that you obtain the relevant advice of estate planning lawyers, as well as the appropriate tax and accounting advice in Australia, California and France, to enable you to make informed decisions regarding all of your assets held in these jurisdictions, to determine if an international Will is the best option for you. It may be cumbersome to have separate Wills in all three jurisdictions, however Australia, California and France have substantially different legal systems and it may be prudent to have separate Wills in each jurisdiction as opposed to having one international Will in place which encompasses all of your assets.
Holding assets in countries that are not signatories to the UNIDROIT Convention
If you hold assets in a country that is not a signatory to the UNIDROIT Convention you will need to put a Will in place in the country in which your overseas assets are held. Frequently, older family members who have migrated to Australia from their birth country retain assets in their original homeland. Such assets can include bank accounts or property which may be owned with other family members. Often it is not until such family members have passed that their children are aware of these assets and spend conspicuous amounts of time navigating foreign jurisdictions and the probate and administrative process to ascertain how to deal with these assets which can be a timely and costly process. If you have parents who have migrated to Australia, ask them if they still retain assets in their motherland and if they do, actively encourage them to put a Will in place in the country in which they are held. Likewise, if you hold assets in overseas jurisdictions that are not a signatory to the UNIDROIT Convention, make sure that you put a Will in place for these assets, in the country in which they are held.
With more people than ever owning global assets, it is important that you take the time to make provision for these assets, and seek the appropriate estate planning, tax and accounting advice so that you can make adequate provision for all of your assets upon your death. In doing so you will make it easier for those left behind.