What you need to know about international assets and how they fit into an estate plan

These days it is extremely common to own assets that are not held in Australia, that is, the assets are held overseas, and hence are overseas assets. It has become increasingly common for people to enquire whether they can make provision in their Australian will for assets owned in an international jurisdiction. The short answer is that it depends where these assets are held.

International Will

Australia is a party to the UNIDROIT Convention Providing a Uniform Law on the form of an international will. This essentially means that Australia and other countries who are signatories to the convention mutually accept the validity of international wills.  In short, this allows you to make provision for your assets located in various jurisdictions in one international will.

It is important to note that there are several processes to be adhered to in putting in place an international will. Most importantly it needs to be executed in a manner that complies with both the convention and the jurisdiction in which the will is made. In this connection, it is essential that you engage the services of an estate planning lawyer to ensure that these requirements are met. Should these requirements not be met it may be deemed that your will is not a valid international will which invariably leave both your assets and family exposed.

Which countries are a signatory to the UNIDROIT Convention

If you own assets in the following countries, you may be able to put an international will in place:

• Australia

• Belgium

• Bosnia-Herzegovina

• Canada

• Croatia

• Cyprus

• Ecuador

• France

• Holy See

• Iran

• Italy

• Laos

• Libya

• Niger

• Portugal

• Russian Federation

• Sierra Leone

• Slovenia

• United Kingdom

• United States of America

If you hold assets in a country that is not a party to the convention you will not be able to put an international will in place and will need to put a separate will in place in the country in which you own your international assets.

Things to consider when determining if an International Will is right for you

Although your overseas assets may be held in countries that allow you to put an international will in place, careful consideration of the process must be undertaken prior to doing so.

For someone who has substantial Australian assets and a sole bank account in the United Kingdom, it would seem a logical to put in place an International Will. Australia and the United Kingdom have similar legal systems and the international assets held in the United Kingdom are simplistic in nature.

If, however you have substantial personal, business and trust assets in Australia, United States and Italy you need to consider the viability of an international will. Firstly, you would need to give consideration to the local procedures for probate and asset administration in both the United States and Italy.  You would also need to also give consideration to the tax implications, inclusive of any inheritance taxes in these countries.

It is therefore paramount that you receive the relevant expertise of estate planning lawyers as well as tax experts in both the United States and Italy so that the correct informed decisions could be made pertaining to your international assets held in those jurisdictions.

It may sound cumbersome to have separate wills in different jurisdictions, however Australia, America and Italy have very different legal systems and sometimes the benefits outweigh having separate wills in each jurisdiction as opposed to one international will.

Alternatively, the countries in which you hold your personal assets or business assets may have similar legal systems and tax implications and if this is the case, then after receiving the appropriate legal, tax and accounting advice  you may consider that an International Will is appropriate for you.

With the world becoming more accessible and people having assets and business interests globally, it is important to consider all jurisdictions where your assets are held when putting in place your estate plan, and to ensure that they are sufficiently catered for in either an international will, or specific wills pertaining to each jurisdiction where your assets are held.

Disclaimer: The advice provided in this blog is of a general nature only and you should always seek legal advice relevant to your own circumstances.