Australia is a county of immigrants. In fact, one in four of those of us living in the lucky country were born overseas. It makes sense, then, why it’s so common for people to hold not just Australian assets, but interests overseas as well. A townhouse in London? A villa in Spain? Sounds like a dream! That is, until it comes to your will…
What’s the big problem?
Everyone knows about the importance of having a valid and up-to-date will but not many people realise how difficult this can be if you have a house, valuable items or a bank account overseas.
An estate containing foreign assets can cause the deceased’s family further pain and even nasty surprises if the will isn’t set up to deal with the overseas interests.
The difficulties arise because every country has their own legal system and tax laws. Take my advice: you should never assume anything in finance, and that includes assuming that the succession laws and tax regimes you are familiar with in Australia will apply to any overseas assets you own.
What’s more, if you emigrated to Australia but drew your will up overseas, it might not even be valid in this country at all!
Dying with an invalid will is known as dying intestate. If this happens, your estate assets might be distributed against your wishes and incur unnecessary tax liabilities for your loved ones.
So, what should you do?
Due to the complex nature of estate planning and administration, particularly when you have assets in separate countries, seeking professional advice is never a bad idea. This takes the stress out of something that is often already emotionally trying enough.
At Financial Aspects, we provide education services around estate planning including power of attorney and wills.
If you’d like some more information on emigration, overseas assets and how they might affect your will, we’re here to help. Simply call 03 5227 7777 or email contact@financialaspects.com.au to arrange a consultation.