Swisstony

Hello,

does anyone here have recent experience of setting up an estate plan?

I recently consulted an estate planning attorney and am somewhat
a) bewildered and
b) alarmed at his price

and wanted to validate what I was told and quoted....

Happy to share details if helpful....

JAJ

"If they have any financial ties to the UK."

A person who permanently settles in another country, becomes a citizen of that country and makes a will under the laws of that country, is generally no longer UK domiciled.

And in such a case, if there are no UK assets, the question won't ever arise as the entire probate process will take place outside of UK law.

One should also point out that 95% of estates (in the UK) are worth too little to be subject to IHT.

JAJ

British Subject - your last British passport must have been issued in 1979, since 1983 the term has generally been British Citizen.

UK Inheritance Tax : could be applicable (in theory) at least, if you have kept your UK "domicile". Where do you see as your long term home? Canada, the USA or the UK?

Canada : as far as I am aware, does not have an inheritance tax.

USA : I'm open to correction on this, but the federal estate tax was abolished at the end of 2009. Depending on decisions Congress takes, it may come back in 2011 for estates worth more than $1m. Estates can normally transfer between spouses, but this is not the case if the inheriting spouse is not a US citizen.

There may also be a state inheritance/probate tax in your state.

Based on all the above, you should probably become a US citizen and make sure your will is under US law. If you still have assets in the UK, you should consider selling them (subject to tax and other considerations).

fatbrit

Well I'm glad someone pointed out the crafty neologism.

JAJ

There is a distinction between an estate tax (such as in the USA and UK) and a capital acquisitions tax (such as in Ireland). The former taxes the estate/donor while the latter taxes the recipient.

A person giving a gift may also be liable for capital gains tax, although usually capital gains tax isn't levied when a person dies.

fatbrit

We've just been through an election here in the US. When I hear the words death tax (or obamacare, securing the border, activist judges, etc), I just turn off.