International Will - What to consider
When you start building your wealth, tie the knot, or welcome little ones into the world, thoughts about drafting a will naturally come to mind. But what if you work and live in one country while also holding assets in another? Let’s break it down for you.
So what exactly is an international will?
An international will is a document crafted to be valid in multiple jurisdictions. In Australia, the process of creating a will is governed by state and territory laws.
Now, let’s consider some key principles when it comes to international wills –
Choice of Law – You might get to pick the law governing your will. Specifying this in your will is crucial to avoid conflicts.
Formal Requirements – Different jurisdictions have varying formalities for wills. Ensure your will complies with the necessary formal requirements in each relevant jurisdiction.
Executor – Choose an executor familiar with international laws, as they’re the ones responsible for carrying out your wishes.
Translation – If your will is in a language other than English, provide an official translation for validity in different jurisdictions.
Notarization and Authentication – Check if some countries require notarization or authentication of the will. Ensure your will meets the requirements of all involved jurisdictions for recognition.
Assets in Different Countries – If you own assets in multiple countries, your will must consider the laws and regulations regarding taxation and inheritance in those jurisdictions.
So, let’s dive into the types of wills available to you –
Concurrent Will – Create separate wills for each country where your specific assets are located. You can have more than two Concurrent Wills if you have assets in three or more countries. Coordinating these wills across different jurisdictions can be challenging, potentially leading to inconsistencies but they do provide a faster distribution of the estate. They can also reduce costs and taxes in the long run.
International Will – Streamline the probate process for estates with assets in different countries. Keep in mind that not all countries have adopted the Hague Convention on the recognition of wills, limiting its effectiveness in non-member countries. They’re also very complex and can become a waste of time.
Testamentary Trust – Establish trusts within the will to manage assets across borders, providing flexibility in distribution. The downside is that managing these trusts can be complex and may involve higher legal and administrative costs.
Foreign Will – Craft separate wills for each country, meeting the legal requirements of each jurisdiction. The challenge lies in ensuring compliance with specific legal standards in each country.
Here are some other points for you to consider too –
Every single time you sign a new will, the previous one becomes invalid. Signing a will in one country after another might render the first one null and void.
Each situation is unique and has its own considerations based on individual circumstances and the laws of the countries involved.
Consulting with a professional genuinely ensures a smooth probate process. While it may come with a cost, the benefits often outweigh the cons.
In the intricate landscape of international will writing, navigating the complexities can require expertise in that field to save you from a big headache. Michaela at FRE.DM Wealth understands the nuances of managing assets across borders and the intricacies of international estate planning. She is dedicated to guiding you through the maze of choices, ensuring your will complies with the laws of jurisdictions. Feel free to reach out to us if you need help navigating your will!
