Trusts, Estates & Tax: what makes a winning team - Part 8

Cross-border estates: UK grants where the deceased had connections with different jurisdictions

Over recent years it has become increasingly common for individuals to have legal connections with more than one jurisdiction. This can arise from a person holding assets in more than one jurisdiction, moving abroad (temporarily or permanently) or entering into a relationship with a person who has foreign connections. When a person dies, these foreign connections will impact the way in which their estate is administered (and can lead to complications as different jurisdictions can apply dissimilar – and sometimes competing - succession laws in relation to the estate). Lisa has a particular interest in the administration of cross-border estates.

In order for us to become involved, the deceased must have had a connection to the UK (more particularly, England & Wales, since Scotland and Northern Ireland are separate legal jurisdictions). Usually the assets in England & Wales cannot be administered without an English grant of representation first being issued by the Court of England & Wales. The English grant confirms the names of the people who have legal authority under English law to administer the assets in England & Wales. 

Lisa often obtains English grants for estates where the deceased was domiciled in England & Wales but held foreign assets, but also for estates where the deceased was domiciled abroad but held assets in England & Wales. This often involves consideration of private international law principles (the rules that apply when there is a conflict of law between different jurisdictions), proving a foreign will (if there was a will) or working with multiple wills (which in turn encompasses considerations regarding the validity of the wills(s) under English law, scope of the will(s) and whether there are any revocation issues) or otherwise determining who is legally entitled to apply for an English grant. It is sometimes necessary to obtain affidavits of foreign law and arrange translations of foreign documents. Where assets are taxed in more than one jurisdiction, the provisions of double taxation treaties and/or unilateral relief become relevant to help mitigate the same assets being taxed more than once. 

Most recently, Lisa has obtained English grants for estates where the deceased was domiciled in the following jurisdictions: the Isle of Man (which involved proving a Manx will); France (which involved proving the French equivalent of a statutory will, namely a will made on behalf of a person who had lost capacity – no executor was appointed in the will); Monaco (which involved proving a Monegasque will); Switzerland (which involved proving a Swiss will – no executor was appointed in the will) and Japan (which involved proving a UK will designed to cover the deceased’s worldwide assets).

Sometimes, instead of obtaining an English grant, it is possible to reseal a foreign grant which has already been issued by the Cout of a foreign jurisdiction which has a link to the Commonwealth. A resealed foreign grant can be used in the same way as an English grant. 

Lisa deals with reseal applications from numerous jurisdictions. Some recent examples include resealing grants which have already issued in Malaysia, Cayman Islands, New Zealand, different Canadian provinces and different Australian states.

Lisa enjoys the technical challenges of cross-border estates, engaging with legal processes and professionals in other jurisdictions and guiding clients through this legal maze.