Since leaving the European Union in December last year, much of the focus has been on how it will affect your business. But what about your personal assets?
In this blog, we will look at the key changes affecting property, investments and other personal assets based in the EU.
Your State Pension (if you moved to the EU before or by 31 December 2020)
If you were living in an EU country by 31 December 2020, you are covered by the EU Withdrawal Agreement. This means that you will continue to receive your State Pension and it will increase in line with rates in the UK. Private pensions should continue to be paid interrupted.
Your State Pension (if you move to the EU after 31 December 2020)
You can carry on receiving your UK State Pension if you move to live in the EU, EEA or Switzerland and you can still claim your UK State Pension from these countries. It will also be increased each year in the EU in line with the rate paid in the UK. Private pensions should continue to be paid interrupted.
Will and estate planning
Don’t panic – your existing Will continues to cover all of your overseas assets, even after Brexit. But creating multiple Wills could speed up the time it takes for those assets, such as property and investments, to be released after your death.
This is because your existing English Will may need to be translated and notarised in the foreign jurisdiction your assets belong to.
EU succession regulation
The EU succession regulation was introduced in 2015 to make it easier to administer estates across the single market. Simply, the regulation provides that where EU citizens have assets in two or more countries, a single law of succession will apply to their estate on death – usually the law of the state in which the deceased was habitually resident at the time of death.
However, the landowner can choose the law of the state of their nationality instead. This can be used to side step forced heirship rules in countries such as France.
As a UK-domiciled individual, Inheritance Tax will apply to your worldwide estate. Non-UK domiciled individuals, however, will only be taxed on the part of the estate that is based in the UK.