EU Succession Laws Must be Addressed in Writing to Protect Family Property
Sam Orgill of ProACT Partnership with Inheritance Tax Saving Tips for Overseas Property Ownership in UK and Cyprus
New EU Succession laws enforce radical change for Expats living and working abroad in the EU, or with assets in these countries. While the UK, Denmark and Ireland have opted out of applying the EU Directive it still affects EU expats with tax residence or domicile in the EU. This means written changes must be made to ensure your wife, partner, children or beneficiaries benefit as intended.
Review and change the way you organise and plan your Family inheritance, business and overseas property investment assets in UK, Cyprus and EU?
Essentially the new EU law favours Roman law of succession to blood relatives. Cyprus Estates pass to potential family blood beneficiaries 4th removed. A Cyprus Will ensures your wife and children will benefit – but many questions arise and need to be reviewed.
A partner or wife can only fully benefit from under Cyprus Laws of Succession if there are no living statutory family beneficiaries.
A codicil be used to choose your home country, say English law, to settle your Will. While this benefits succession, you could make yourself liable to Inheritance tax in your home country: 40% UK inheritance tax.
A review of your Wills needs to consider the balance of family blood relations, marriages, step children, siblings along with your Inheritance Tax liability. The right Will may be the answer, lifetime gifts or Trusts could be an alternative.
Tax Saving Tip - Cyprus Property
The cost of probate is expensive in Cyprus. Gifting to Trust or Family can ensure your intentions are met, and make a 40% inheritance tax saving. Properties gifted to family can avoid Probate and save inheritance tax.
Tax Saving Tip – UK Property Investment
If an Expat wants to be non-dom and own UK property while avoiding UK Inheritance Tax, it is possible also. The UK property should be gifted or owned by an offshore company held in a family trust. For Non-dom expats Inhertiance tax only applied to fixed assets in the UK owned in a personal name.
Free Review – Property Inheritance Tax
ProACT offer a Free Review of your Wills, title deeds, property assets and identify inheritance tax savings. Whether a Cyprus tax resident or not we can ensure your family is protected and makes tax saving on death
Expats must make written changes of your Will if you want to use the succession rules of your home country. But consider the impact on inheritance tax at 40% in the UK or other countries. Consider who you want to benefit in your Will, is this possible with your arrangements?
CONTACT US to book a Free review.
Read more on our website www.proactpartnership.com/blog
Sam Orgill REGISTER FOR UPDATES
Tel +357 26 819 424 CONTACT US