Yes, where you live when you die can make a big difference in how your estate is dealt with. You might be surprised to learn that if you are living in Switzerland at your death, forced heirship laws could overrule what your Will says.
I’ve just returned to Ottawa from Zurich, Switzerland, where I attended a conference about international estates. I met other estate professionals from all over Europe, the UK, and as far away as Australia and the USA. We learned a great deal about the differences in the way estates are handled in Europe, the UK and the USA.
What system of law will apply to my assets?
Switzerland, Germany, France and many other jurisdictions, including the province of Quebec and the state of Louisiana, have a system of law based on the Napoleonic civil code. Laws in a civil law jurisdiction can limit testamentary freedom … the freedom to decide how your estate will be distributed on your death.
England and Wales operate under a common law system as does most of Canada and the USA. However dealing with an estate in each of those countries won’t be the same. Scotland, although still part of the UK after the recent referendum, does not share England and Wales’ system of law. One presenter referred to the Scottish system as a hybrid of civil and common law.
I’m thinking of buying a vacation home abroad….Is there anything I need to do?
If you move to another jurisdiction or if you own real property or other assets outside Canada, what will happen to your assets on your death might not be what you think. Even if you already have a Will and Powers of Attorney, which every capable adult should, acquiring real property or assets outside Canada should trigger a review and update of your documents. In fact, based on recommendations of many presenters at the Zurich conference, it would be a really good idea to review your documents before you move or buy real property in another country.
Careful advance planning could reduce or, in some cases eliminate, significant taxes including probate tax, inheritance tax, income tax and capital gains tax. Shockingly, double taxation (paying tax on the same assets twice) is also a possibility without careful planning.
If you have recently moved to Ontario from another province or from another country or if you living in Ontario and own real property or assets outside Canada, email ([email protected]) or call (613.836.9915) our Ottawa office to make an appointment to meet with me. We will review your current Will and Powers of Attorney and your unique situation and determine how best to reduce taxes and achieve your estate planning goals to best provide for your loved ones.
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
