Inheritance, Living Abroad, Your Will and Estate Post Brexit

Posted on July 14, 2016

Following the vote to leave, many are left wondering whether the UK’s exit from the EU could have a knock on effect on estates and the succession plans of those with assets abroad.

Currently, EU based estates being left to EU citizens are subject to different rules to those left to people outside the EU. However those plans have been now thrown into doubt by Brexit.

There is speculation that the leave vote will prove a challenge for administrators, executors and attorneys. With house prices predicted to fall, estates which have paid IHT at the higher rate should look to recover the tax paid at the higher valuation should the property sell at the lower values.

Executors also need to carefully consider their position as they can be liable for losses arising from their mismanagement of the estate. Attorneys and Deputies managing the affairs of patients should also carefully consider their position so as to best protect the patient’s estate.

“Obviously we are entering unchartered water and it is difficult to judge the full impact of ‘Brexit’ until we know more about the UK’s new relationship with the EU, outside of membership” said Private Client Solicitor. “The real consequences can’t be known until the two year leaving process is instigated, so at this point professionals are still only speculating”.

Over the past few years free movement rules have made retiring abroad easier and, as such, inheriting from abroad is quite often the norm for some of our clients. But this could be precarious as non-EU individuals are not always well regarded by EU tax law.

“Currency fluctuations and concerns around the Referendum decision has made it even more important that English nationals with assets abroad consult professionals, and continue to review their positions regularly, as change is implemented”.

If you have concerns about and estate abroad, want information on a Will or indeed just want to chat to one of our team about your affairs please contact enquiries@pearsonlegal.co.uk

Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.