International
Inheritance Law An
inheritance will already be international, if
- - a bank account
- - a property
- - a heir
- - or the deceased
is
located in another country.
The
consequences will normally concern the
inheritance law as well as the tax law.
Inheritance
Law
The
rules for the succession, wills or forced heirs
can be partially altered. This can put the
planned succession order at risk, but offers
opportunities at the same time. It can happen for
example in regards of properties in France,
Monaco or the USA.
Some
countries have time consuming and costly
procedures for the administration and liquidation
of the estate. An example is the probate procdure
in the US. Sometimes powers of attorney for bank
accounts cease to exist with the death of the
principal.
Without
estate planning assets can be blocked for a
prolonged period and fall in the hands of
unwanted heirs.
Inheritance
taxes / Estate Taxes
As
more or less always in modern life, tax aspects
have to be considered. Many foreign owners of
real estate in the U.S. for example, are not
aware of the fact, that their heirs can face a
tax bill of up to 60%. France provides
particularly detailed tax rules to ensure wealth
and estate taxes of foreign real estate owners.
Such
international inheritances typically concern the
legal and fiscal systems of more than one state.
This demands coordinated consulting and tax
planning.
Trusts
Often
trusts offer an ideal vehicle for a fexible
estate planning.
In
common law legal systems, a trust is an
arrangement whereby property is managed by one or
more persons or entities (the trustees) for the
benefit of another.
The
person who entrusts some or all of his property
to the trustee of his choice is called the
settlor or sometimes in the US a grantor.
The trustees hold legal title to the trust
property but nevertheless the trust property is a
separate fund and does not form part of the
trustees'
personal property. They are obliged to hold the
property for the benefit of one or more
individuals or organizations (the beneficiaries).
We typically work with professional trustees to
assure a proper administration. Persons close to
the settlor's family, like family members,
friends or lawyers are often nominated as
protectors. The protector's functions may range
from a mere controlling and oversight to a
decisive role in any decisions.
A trust can be established in various on-shore
and off-shore jurisdictions whereby the choice
depends on the individual situation of the
settlor and the beneficiaries. Overall a careful
analysis of the individual legal and tax
implications, of the goals and motives and of the
possible future developments should precede the
establishment of any trust. Only after such an
analysis we can arrive at a tailor made solution.
Existing trusts should be revised from time to as
the legal and tax frame work as well as the
individual situations might change. Our services
include such trust audits.
