New rules introduced by the European Commission on 17 August allow individuals across EU member states to choose whether their foreign assets will be governed by local succession rules, or those in their country of nationality.
Before the change, Britons were subject to ‘forced heirship’ rules prescribing who was entitled to inherit their estates. For example, if a British couple owned a holiday home in France, the ownership transfers to the children and only gives the surviving spouse a life interest. This was irrespective of any intention written in an English will.
The European Succession Regulation, known as Brussels IV, aims to simplify cross-border EU succession. It will allow individuals to choose the law governing the succession of their EU assets on death. While the UK did not opt in to Brussels IV, any Britons with assets in any EU country that has adopted the changes will benefit from the new rules - this would mean Britons with assets in all EU countries, except those within Ireland and Denmark, which have also chosen to opt out.
Britons must however update their wills to express their intention that English law is to be applied. This also includes a UK person living in France who wants their UK will to apply to their house in France, even though they are resident in France, provided they elect to apply nation rules rather than residential rules.
The European Commission has said that around 450,000 cross-border successions occur in the EU every year, estimated to be worth more than €120 billion.
New rules introduced by the European Commission on 17 August allow individuals across EU member states to choose whether their foreign assets will be governed by local succession rules, or those in their country of nationality.
Before the change, Britons were subject to ‘forced heirship’ rules prescribing who was entitled to inherit their estates. For example, if a British couple owned a holiday home in France, the ownership transfers to the children and only gives the surviving spouse a life interest. This was irrespective of any intention written in an English will.
The European Succession Regulation, known as Brussels IV, aims to simplify cross-border EU succession. It will allow individuals to choose the law governing the succession of their EU assets on death. While the UK did not opt in to Brussels IV, any Britons with assets in any EU country that has adopted the changes will benefit from the new rules - this would mean Britons with assets in all EU countries, except those within Ireland and Denmark, which have also chosen to opt out.
Britons must however update their wills to express their intention that English law is to be applied. This also includes a UK person living in France who wants their UK will to apply to their house in France, even though they are resident in France, provided they elect to apply nation rules rather than residential rules.
The European Commission has said that around 450,000 cross-border successions occur in the EU every year, estimated to be worth more than €120 billion.
