Succession is a fundamental process for the distribution of a deceased person’s assets. However, when there are assets abroad, the process can become more complex. It is crucial to understand how these situations are handled to ensure that the distribution of assets is conducted in accordance with applicable laws and the wishes of the deceased.
1. Understanding International SuccessionĀ
When a person passes away with assets in more than one country, the succession process must be addressed in each jurisdiction where those assets are located. This means that not only will a succession process take place in the country of the deceased’s residence, but also in the country where the assets are located. This type of succession is known as “international succession.”
Each country has its own laws and regulations regarding succession, which can lead to confusion and additional complications. Therefore, it is important to work with professionals experienced in international succession to navigate these challenges.
2 .Determining JurisdictionĀ
The first step in the international succession process is to determine which jurisdiction has authority over the assets. This will depend on several factors, such as the place of residence of the deceased, the location of the assets, and the laws of each country.
In general, real estate, such as properties and land, is governed by the laws of the country where it is located. On the other hand, personal assets, such as bank accounts and investments, may be subject to the laws of the country where the deceased resided.
3. Succession Processes in Different CountriesĀ
Each country has its own process for handling the succession of assets. Some countries may require the initiation of a separate probate procedure, while others may allow the succession to occur as part of the process in the deceased’s country of residence.
It is essential to research and understand the specific requirements of each jurisdiction. Some countries may have simpler procedures, while others may be more complicated and require more time and resources. For example, some countries have a notarial succession process, which may be quicker than judicial proceedings.
4. Tax ImplicationsĀ
When it comes to international succession, tax implications can be an important factor to consider. Each country has its own tax laws regarding inheritances and gifts, and this can affect the amount of taxes that heirs must pay.
It is essential to have a tax advisor experienced in international succession to help plan and minimize the tax burden. This is especially important if there are significant assets at stake, as inheritance taxes can vary dramatically from one country to another.
5. Necessary DocumentationĀ
To manage the succession of assets abroad, several legal documents may be required, including the death certificate, the will (if one exists), and other documents proving ownership of the assets. It may also be necessary to translate documents into the language of the country where the succession process is taking place.
Ensuring that you have all the proper documentation in the correct format is essential to avoid delays and complications in the process.
6. The Importance of Having an AttorneyĀ
Given that international succession can be a complicated process, it is highly advisable to work with an attorney specializing in international succession. This professional can help you navigate the different laws and procedures in each country, ensuring that all aspects of the process are handled effectively and in compliance with the law.
An experienced attorney can also help identify potential issues before they become disputes, which can save time and money in the long run.
The succession process varies significantly when there are assets abroad. From determining jurisdiction to handling tax implications, each step requires careful attention and specialized knowledge. By addressing these complexities with the right support, you can ensure that the wishes of the deceased are fulfilled and that the distribution of assets is conducted fairly and legally.
Protect Your AssetsĀ
If you find yourself in this situation or need guidance on the succession of foreign assets, we are here to help. Call us at (305) 921-0976, email us at [email protected], or contact us via WhatsApp at +1 (305) 921-0976.