Estate planning is essential, whatever your family circumstances; however, when you have a blended family, it is even more important. 

Second spouses, biological children and step-children can find themselves in conflict with regard to their loved one’s final wishes. Not only does this exacerbate grief at an already stressful time but it is also likely to be costly and time-consuming.

If you have remarried and have children from a previous marriage it may not be as simple as leaving everything to your surviving spouse in the case of your death. While you may expect them to honour your wishes – providing for your children and their children equally – there is a risk that they could amend their Will after your death or remarry and fail to execute a new Will. This could result in your estate passing to your spouse’s biological children or that he or she could remarry or have future children. 

If, on the other hand, you have step-children who you would want to inherit then it is imperative that you make a Will as dying intestate would mean that only your spouse and blood relatives could benefit from your estate. 

You should be able to provide for your intended beneficiaries in the way that best reflects your intentions. It is also important to consider the implications of inheritance tax. A properly drafted Will incorporating a trust can enable you to provide for a spouse during his or her lifetime whilst still making sure that on their death your estate passes to your children and not anyone the spouse may choose to leave it to. This not only protects your assets for your children but can also ensure your estate passes in a tax-efficient manner.

For more information, get in touch with our team here at Pannone Corporate on 0800 131 3355.

If you have assets in different jurisdictions it is important to consider the implications when estate planning.

Consider Issues Prior to Acquisition 

You should consider the implications of owning foreign assets before making any substantial purchases so that you are able to structure the purchase in an efficient way which could simplify transfer on death. In order to achieve this it is imperative that you take local specialist advice and cross border estate planning from your UK advisor.

During Estate Planning

When considering your estate planning, it is vital that you disclose all assets – foreign or otherwise – to your solicitor. If your solicitor is unaware of particular assets, they will not be able to guide you on what appropriate estate planning measures to take.

Multiple Wills 

Depending on your circumstances, it may be appropriate to have more than one will. Again, it is important to have the benefit of local specialist advice. For example, some countries may not recognise the legitimacy of a trust, thereby making it difficult to transfer assets into trust following your death if this is stipulated in your Will. By taking local advice, the Wills can be drafted appropriately and should make the probate process run much more smoothly when the time comes.

However, one Will could potentially revoke your Will in another country if drafted incorrectly. It is therefore essential to have a holistic approach to your worldwide estate planning. 

Domicile

One final thing to consider is your domicile, as non-UK domiciled clients could gain significant tax advantages. Clients domiciled in certain jurisdictions (even if long-term resident in the UK) can have particular opportunities to shelter non-UK situs assets from UK inheritance tax.  

Overall, there are a number of ways that you can work to protect your foreign assets with comprehensive estate planning. However, your chosen method will depend on your personal circumstances. Get in touch with the Pannone Corporate team on 0800 131 3355 or fill out our contact form.