"Why Haggle Over Your Will? The Hidden Costs of "Cheap" International Estate Planning"

Why haggle over the price of your will? It's easy to underestimate the importance of this crucial legal document, especially when you have assets overseas. But a "bargain basement" will can create a mountain of problems that far outweigh any initial savings.

Let's be clear: your will is more than just a formality.?

It's the blueprint for distributing your life's work, ensuring your loved ones are cared for, and navigating complex legal requirements after you're gone.

Why is expertise so important, and why does it come at a cost? Because international estate planning is a complex landscape.

Think about it:

What happens to your overseas investments? Are your loved ones familiar with the processes for accessing those funds? Are you sure they'll have the right documentation??

Even seemingly straightforward financial tasks can become incredibly complex when dealing with international assets.?

Without clear instructions and the right information readily available, these processes can quickly become overwhelming during an already difficult time.?

Here are just a few of the scenarios that can turn a cheap will into an expensive disaster:

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• Hong Kong's Shifting Sands of Marriage: Same-sex marriages are recognised in Hong Kong… until you die.?

Then, inheritance laws can revert to outdated "man and wife" rules, potentially disinheriting your intended beneficiaries.?

A properly drafted will anticipates and addresses these legal quirks.

• The UK Domicile Trap: Are you a UK domicile, even if you don't live there??

UK domicile is complex and affects tax on worldwide income and assets. It differs from residence or citizenship, and you can be UK domiciled without living there.?

Expert advice is crucial to navigate these complexities, ensure compliance, and minimize tax liabilities and can help avoid unnecessary tax burdens on your overseas assets.

• Europe's Forced Heirship: Many European countries have civil law systems with "forced heirship" rules. This means your children are legally entitled to a portion of your estate. A cut-and-paste from the internet won't navigate this.

• Protecting Minor Children: Even if forced heirship isn't an issue, what happens to your European assets if your children are under 18? They can't directly inherit. So, are you just planning to hand them over to be managed by the state??

A well-drafted will should include a testamentary trust. This holds the assets until your children reach a responsible age, with provisions for their care and education in the meantime.

• Thailand: Thailand's inheritance laws can be complex, particularly for foreigners, and there's a significant expat population. While foreigners can make a Thai will to cover assets located in Thailand, it is essential that it is drafted in accordance with Thai law, or it may not be recognised or fully enforceable. If married to a Thai national, the concept of "Sin Somros" (community property) comes into play. Assets acquired during the marriage are jointly owned, which affects inheritance rights. Furthermore, foreigners are generally restricted from directly owning land in Thailand and often lease land or hold it through a Thai company; these arrangements significantly impact how such assets are treated in inheritance. Obtaining a succession certificate in Thailand can be a lengthy process involving court proceedings.

• France: As mentioned earlier, France has "forced heirship" rules, but the complexity goes further. While children are primary heirs, the surviving spouse's rights can be affected by how the couple was married. The surviving spouse's inheritance rights also depend on whether the deceased spouse had children from a previous relationship.?

All of these variables can mean that the surviving spouse's inheritance is significantly reduced.

• Japan: While Japan has a will system, there are strict rules about their validity. Japanese law recognizes a holographic will (written entirely by hand), but it must be dated and signed. Any alterations must also be signed and dated. Minor mistakes can invalidate the entire document. Furthermore, like France, Japan has "forced heirship" rules.

• Switzerland: Swiss inheritance law is heavily influenced by civil law principles, with strong emphasis on forced heirship. Spouses and descendants are protected heirs, entitled to a legally defined share of the estate. The disposable portion of the estate, which can be freely allocated by the testator, is limited. Furthermore, non-Swiss nationals may be subject to Swiss inheritance law even if they are not resident in Switzerland.

The estate rules and laws that apply to your assets will depend on where those assets are located. Are you aware of how your assets can be distributed?

What Are You Really Paying For?

You're not just paying for ink on paper. You're paying for:

• Knowledge: Deep understanding of international inheritance laws, tax implications, and estate planning strategies.
• Experience: Years of experience in crafting wills that withstand legal challenges and achieve your desired outcomes.
• Peace of Mind: Knowing that your affairs are in order and your loved ones will be protected from unnecessary stress, costs, and delays.

The False Economy of "Cheap"

Think of it this way: you wouldn't trust a cut-rate surgeon to perform a heart transplant, would you?

Your will is the heart of your estate plan.

Skimping on it now can lead to exponentially larger costs down the road: legal battles, unnecessary taxes, and family strife.

Moreover, without proper guidance, you may miss out on crucial knowledge needed to transfer your estate in the most efficient and tax-effective manner.

It's Not a Cost, It's a Priority

Writing your will shouldn't be compared with buying something, it should be seen as a priority! It's an investment in your family's future and your legacy.

Don't gamble with your legacy. Book a free meeting today at https://calendly.com/careysuen/free-initial-consultation to discuss your specific needs and ensure your will protects your assets and your loved ones, no matter where in the world they may be.