Wills and Stuff
#1
Wills and Stuff
Sorry to bring up death, but its best to know now.
I read on the forum about making a will, found the original post but it did not elaborate.
I have a UK will at present which will cover everything I have here.
My understanding is that I then need an Australian will to cover any assets I may gain in Australia but have to reference the UK one else it cancels it out.
Is this correct and whats the best way to go about it.
How does this affect tax, capital gains etc. In the event that I croak, which country gets paid or has claim to what.
Any links to website with the answers will be appreciated, or if its been answered on forum anyone know where.
Thanks
I read on the forum about making a will, found the original post but it did not elaborate.
I have a UK will at present which will cover everything I have here.
My understanding is that I then need an Australian will to cover any assets I may gain in Australia but have to reference the UK one else it cancels it out.
Is this correct and whats the best way to go about it.
How does this affect tax, capital gains etc. In the event that I croak, which country gets paid or has claim to what.
Any links to website with the answers will be appreciated, or if its been answered on forum anyone know where.
Thanks
Last edited by karawara88; May 27th 2003 at 2:45 am.
#2
Do any of our solicitor members have any answers for this I am most interested. I particularlyneed to know about the ramifications of having property in UK and oz and how this affects Inheritance Tax - particularly if you do not obtain PR but are always classed as temporary resident. Help Please
#3
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Wills and Inheritance Tax
Quick comments (recognising that this is an area of tax where you really should take professional advice):
- Your liability to Inheritance Tax is determined by your domicile, not by your residence.
- Residence is relatively easy to change, but your domicile is a far more enduring status. You could live in Australia for the next 20 years and still be considered to be a UK domiciled person - and your status for Australian visa purposes is most unlikely to have any bearing on your UK domiciled status.
- A UK domiciled person is subject to IHT on his or her worldwide assets - which usually becomes an issue at death when the executors have to settle any outstanding IHT before securing probate.
- A non-UK domiciled person is subject to UK IHT on real estate, etc located in the UK. Note also that a person whose original domcile is outside the UK can be deemed UK domiciled for IHT purposes if they live in the UK for 17 out of 20 years.
Insofar as Wills are concerned, I would suggest an Australian Will should be drawn up to deal with your Australian located assets, but make sure that it does not invalidate any existing Wills (such as one in the UK, which might be required to obtain title to assets of an estate that are located in the UK). Again, please take professional advice - if you need a name and contact details please contact me directly by email.
Best regards.
- Your liability to Inheritance Tax is determined by your domicile, not by your residence.
- Residence is relatively easy to change, but your domicile is a far more enduring status. You could live in Australia for the next 20 years and still be considered to be a UK domiciled person - and your status for Australian visa purposes is most unlikely to have any bearing on your UK domiciled status.
- A UK domiciled person is subject to IHT on his or her worldwide assets - which usually becomes an issue at death when the executors have to settle any outstanding IHT before securing probate.
- A non-UK domiciled person is subject to UK IHT on real estate, etc located in the UK. Note also that a person whose original domcile is outside the UK can be deemed UK domiciled for IHT purposes if they live in the UK for 17 out of 20 years.
Insofar as Wills are concerned, I would suggest an Australian Will should be drawn up to deal with your Australian located assets, but make sure that it does not invalidate any existing Wills (such as one in the UK, which might be required to obtain title to assets of an estate that are located in the UK). Again, please take professional advice - if you need a name and contact details please contact me directly by email.
Best regards.
Originally posted by yafm
Do any of our solicitor members have any answers for this I am most interested. I particularlyneed to know about the ramifications of having property in UK and oz and how this affects Inheritance Tax - particularly if you do not obtain PR but are always classed as temporary resident. Help Please
Do any of our solicitor members have any answers for this I am most interested. I particularlyneed to know about the ramifications of having property in UK and oz and how this affects Inheritance Tax - particularly if you do not obtain PR but are always classed as temporary resident. Help Please
#4
Account Closed
Joined: Jan 2003
Posts: 759
Originally posted by yafm
Do any of our solicitor members have any answers for this I am most interested. I particularlyneed to know about the ramifications of having property in UK and oz and how this affects Inheritance Tax - particularly if you do not obtain PR but are always classed as temporary resident. Help Please
Do any of our solicitor members have any answers for this I am most interested. I particularlyneed to know about the ramifications of having property in UK and oz and how this affects Inheritance Tax - particularly if you do not obtain PR but are always classed as temporary resident. Help Please
Nicola
#5
Originally posted by Nicstids
Sorry I haven't got back to you but our probate partner has got a domestic crisis at the moment and I don't feel I can really pester him at the mo....
Nicola
Sorry I haven't got back to you but our probate partner has got a domestic crisis at the moment and I don't feel I can really pester him at the mo....
Nicola
OK understood thanks
#6
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Also, note that there is no IHT in Australia, but that chargeable assets that are bequeathed to non-Aussie resident beneficiaries of the estate may well be subject to capital gains tax in Australia - but only if the asset does not have the "necessary connection with Australia."
So (for example) real estate that is located in Australia and that is bequeathed to a non-resident beneficiary and that was owned by an individual who was tax resident in Australia at death would not be subject to CGT.
Best regards.
So (for example) real estate that is located in Australia and that is bequeathed to a non-resident beneficiary and that was owned by an individual who was tax resident in Australia at death would not be subject to CGT.
Best regards.
#8
Originally posted by karawara88
Thanks Alan, I sort of think I understand, my best bet is not to die.
Thanks Alan, I sort of think I understand, my best bet is not to die.
I think we'll join the ranks of that club also