Also, the regulation provides for the jurisdiction, the recognition and execution of judicial decisions as well as the acceptance and execution of authentic deeds and judicial settlements. France, however, levies taxes on real estate located in France, which means that a holiday home in France could be subject to double taxation. As regards one of the core subjects of the regulation, namely the applicable law, the principle is that the succession law applies of the country where the deceased had his normal place of residence. By Jim Atkins BA (Hons) Expats living in Spain who have not made a will in their new home are at risk of having their estate distributed against their wishes and their loved ones paying more tax than they need. Inheritance in France under European Succession Law. There is thus still plenty of room for improvement. To be able to achieve this objective in all twenty-eight member states at the same time, this European regulation was necessary. The Netherlands applies the residence principle when it comes to inheritance tax: if the deceased lived in the Netherlands, then the heirs (irrespective of where they live) must pay inheritance tax in the Netherlands on the entire estate, also if foreign assets are involved. As a result, it is no longer relevant at which EU court the succession proceedings are filed. Action should be taken now to benefit from the new 2015 European Inheritance Rules. However, it is highly advisable to have either a bilingual Italian Will or an official Italian translation of your UK Will, preferably lodged with an Italian solicitor or notary, which will make things easier, less time-consuming and costly in the long run for the executor of your estate. The 2015 changes to inheritance laws are generally good news for British expats. Interestingly, Brussels IV does not restrict the choice of law to EU nationals so, for example, a US national with property in a participating EU State could elect for US law to apply to the succession of their property; an Australian could nominate Australian law; a Canadian, Canadian law, and so on.For example, if you are a UK citizen with a holiday home in Italy, you can update your UK Will to cover the Italian property with an election for UK law to apply, instead of having a separate Italian Will for your holiday home. A typically German provision is particularly affected: The so-called “Berlin Will,” (Berliner Testament) according to which married couples, reciprocally designate each other as heirs through a joint will and provide that following the death of the surviving spouse, the inheritance should be bequeathed to a third party, frequently the descendants. What does this mean for international estates? Legal changes increasing the inheritance rights of people whose spouses or civil partners die without making a will come into force. Among others, it contains new provisions governing jurisdiction and the respectively applicable law.
The Law Reform Commission has recommended a change in inheritance laws to prevent a husband or wife who has killed their spouse from benefiting in any way. Individuals have a certain degree of freedom in making a choice of law. However, a handwritten comment may be necessary, with which the spouses jointly decree that German inheritance law should be applicable to their estate.On 17 August 2015, the European Succession Regulation (Europäische Erbrechtsverordnung) will become effective.
Previously, should they die while abroad, their assets would be passed on in accordance with their residual country’s inheritance laws. Another (French) example: The Dutch cohabitation agreement is not recognised under French tax law.