Proposed easing of the legal burden for cross-border estates
Regulations proposed by the European Commission (EC) to simplify international successions or estates (i.e. where an individual dies owning assets in more than one country) moved closer to final approval after a recent vote in the leading European Parliament committee.
Background
As a result of European citizens becoming increasingly mobile there are currently around 12.3 million Europeans living abroad in other EU countries which results in around 450,000 estates with an international element each year (10% of the total estates in Europe). These estates are valued at about 123 billion Euros. However, there are different rules on jurisdiction and applicable law in the 27 EU member states that complicate the issues surrounding cross-border estate administration and inheritances.
In response to this the EC proposed regulations on 14 October 2009, to simplify the process of dealing with international estates.
The Regulations
The Regulations provide a single criterion for determining both the jurisdiction and the law applicable to a cross-border estates: the deceased's habitual place of residence. It will also be possible for those individuals living abroad to have the law of their country of nationality apply to the entirety of their estate.
The vote has cleared the way for the introduction of the European Certificate of Succession. This allows a person to prove that they are heirs or administrators of an estate throughout the EU, thus avoiding additional administrative and legal complications. This was supported by the EU Justice Commissioner Viviane Reding who stated that "the European Certificate of Succession would substantially facilitate the legal formalities for successions in cross-border situations."
Impact of Regulations
The proposed Regulations will be of particular interest to our clients with holiday homes abroad within the EU. The single criterion for determining the jurisdiction and law applicable will ensure that their heirs or administrators will face a far simplified process of succession which should be faster and cheaper. The Regulations will also impact individuals with other property abroad within the EU, such as bank accounts and other investments, for similar reasons. We will be keeping the proposals under review as they progress.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
