An interesting article appeared on a regularly received Will and Probate email received last week…
Will leaving the EU affect your Estate?
With the in / out debate continuing for another few weeks, have you considered how, if you own anything abroad, leaving Europe could affect the Inheritance Tax liability placed on your Estate?
According to research undertaken by Sara Janion who works for Worldwide Lawyers, the Inheritance Tax liability for those outside the EU and who inherit property within the EU are likely to pay much more.
For example, if you own a property in Spain, there are ways of mitigating your Inheritance Tax liability. A 2014 judgement made Spain look at the changing the way that property is inherited for members of the EU meaning that anybody who inherits property in Spain is subject to the same law and rules as a resident of Spain.
A recent case highlighted the difference: a brother and sister who inherited in Spain. She was resident in the EU and her tax liability was 1000€, her brother who was resident in the US had a liability of 87000€ – quite a significant difference in any language.
If the country votes to leave the EU in the upcoming Referendum, change will follow – not straight away, but over a period of time.
This won’t only relate to property, but any asset and every country has different laws and requirements.
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