16 September, 2010
Many Britons are choosing to invest in holiday homes abroad. A place in the sun can be the ultimate place to escape to and relax but how many have given much thought to what will happen to their dream holiday home when they have passed away. The recent death of the Prime Ministers father, Ian Cameron, in France highlights the need for individuals to ensure that if they purchase a foreign property they seek legal advice in that country to ensure that the property passes to their chosen beneficiaries . Many countries have different inheritance rules to the UK and foreign property may not automatically pass as you might expect. Many also assume that buying a property abroad means that they will not pay inheritance tax. This is not the case and UK inheritance tax may still be charged on foreign property as well as taxes in that country.
It is usually advisable to make separate Wills in each country where assets are held. However, it is also important when there are Wills in different countries to ensure that the Wills only deal with the assets in the respective country and do not inadvertently revoke any other Wills which are already in place . In this way the Wills can run concurrently.