Thursday 11 July 2019
Can I have one Will dealing with assets in different countries?
When taking instructions from clients, I normally ask my clients to give me a list of their assets.
It is becoming more common for clients to have assets in more than one country. Unless restricted to New Zealand assets, a Will applies to worldwide assets. This may give the impression that all one needs is a single Will to govern the assets in all countries. However, in many cases that is not a wise thing to do.
It must be remembered that each country has its own rules as to inheritance, estate administration, estate duty, and even capital gains taxes. Preparing a Will without any understanding of the implications of those rules relating to the assets in that country is usually unwise. An example is that New Zealand, unlike many other countries, has no capital gains tax and therefore has not capital gains consequences. That is an exception rather than the rule, as many jurisdictions do have capital gains tax. Preparing a will taking into account capital gains consequences or other consequences could be important for those whom you wish to benefit from your Will.
New Zealand lawyers are not qualified to advise clients on the laws of another country, and their implications. The same applies to lawyers in another country as to NZ laws.
Another problem with a Will which is made in New Zealand but has application to assets in other countries is that there could be a conflict of laws and there is a question as to which law applies to the assets in that country.
The best thing to do is for a Will to be made applicable to only New Zealand assets and for a Will to be made in the country in which the assets are situated. It is important to seek advice from a lawyer from the country in which the asset is situated to ensure that the implications of the laws of that county, whether they relate to inheritance, estate administration, tax, and other issues are taken into account.
Teresa Chan
10 July 2019
The above article is for general information only. For specific advice, please contact Teresa Chan at Teresa Chan Law Limited.
KEYWORDS: Assets in more than one country, Wills
