How to make sure your foreign assets can be inherited by your British beneficiaries

Countless British nationals plan to retire to a European country. The temperate climates, affordable cost of living and friendly culture in countries such as country such as Spain, Italy, Portugal or Greece make an attractive proposition for many people. The lawyers at Giambrone & Partners have years of experience in assisting our clients to successfully relocate to a range of European countries.

Our experience indicates that there is one consideration that is often overlooked, which is how you would like your estate to be dealt with when the time comes. If you are permanently domiciled in Europe and die intestate the laws of succession in that country will prevail.

The laws governing succession vary significantly across different jurisdictions, reflecting unique cultural and legal traditions in each country. The fundamental difference between inheritance in Europe and the UK is the principle of testamentary freedom in the UK and forced heirship laws of succession in Europe.

Vincenzo Senatore, Senior Partner who heads the London headquarters, commented “If you permanently reside in any European country and you have not made a will your estate will be dealt with under the laws of succession of that country, which usually means that varying proportions of your estate will pass in automatically defined percentages to certain of your family members.” Vincenzo further commented “the concept of forced heirship delivers rigid intestate succession laws. Whereas British nationals are far more familiar with testamentary freedom where a person can leave their estate to any person or organisation that they choose to designate. Giambrone & Partners has inheritance experts in all our European offices that have many years of experience in assisting our clients to manage their worldwide assets in different jurisdictions”

The rationale behind the concept of forced heirship is to protect the economic interests of the family and ensure that certain heirs receive a fair share of the inheritance. Testamentary freedom in the UK permits individuals to have the freedom to dispose of their assets as they see fit in a valid will. This principle becomes more important in the current climate where there are often step-children and unmarried partners to consider. Also friends and charities can be advantaged by the testator.

However, in the event of a person dying intestate in the UK there are laws of succession that allow spouses and civil partners to inherit from the deceased's estate, even if there is no valid will. The Inheritance (Provision for Family and Dependants) Act 1975 allows claims for reasonable financial provision from the estate. Also, a claim can be made by a person who received financial support from the deceased.

In order to enable a British national living abroad to retain testimony freedom is to make an English will under the laws of England and Wales and also a will under the jurisdiction in which you reside stating that you wish your estate to be dealt with under the terms of your English will. It is imperative that the two wills have the same terms to avoid confusion or the opportunity for challenge. Giambrone & Partners inheritance lawyers are qualified in more than one jurisdiction and therefore are completely familiar with the provisions of the inheritance laws and have extensive expertise in drafting wills for more than one jurisdiction ensuring the harmonisation of your particular wishes in relation to your beneficiaries.

Obtaining legal advice that provides an understanding the differences between jurisdictions is crucial for individuals wishing to advantage a beneficiary that has no familial connection or with assets in more than one jurisdiction. Seeking cross-border estate planning and probate services will prevent your beneficiaries from enduring lengthy and complex legal processes and underscores the importance of seeking expert advice to navigate the complexities of succession laws when dealing with international estates.

Vincenzo Senatore is a partner based alternately in both the London and Naples office. He is dually qualified Italian Avvocato (with Higher Rights of Audience) and English Solicitor and also qualified to plead before the International Criminal Court in The Hague.

Vincenzo advises clients in a broad range of matters including national and international businesses, focussing on complex cross-border issues, assisting in contentious commercial issues involving share price disputes, breaches of contract and merger and acquisition disputes. 

Vincenzo is well-regarded for his astute analysis of complex situations and his agile ability to navigate the intricacies involved in cross-border disputes. He recognises that alternative dispute resolution (conciliation, mediation and arbitration) are often more suited to the best interests of the client. Where litigation is undertaken, Vincenzo is focused and rigorous in his pursuit of a successful outcome for our clients.

If you would like more information on any aspect of relocating to a European country or buying a residential property please contact us at clientservices@giambronelaw.com or click here.