EU Regulation 650/2012 – Are you protected?

EU Regulation 650/2012 (also known as Brussels IV) is designed to harmonise succession law across the EU. Although the UK didn’t opt in to this Regulation it still applies to clients who have assets in EU states who die after 17th August 2015. It changed the law in that now, if you own overseas property which you live in or intend to live in one day and want it to devolve under English law, you must expressly state so in your English Will. You can elect for your national law to apply. If you have more than one nationality you can choose which one is to apply to your assets.

If you do not make an election the law applicable to your EU assets will be the law of the state in which you had your habitual residence at the time of your death. Habitual residence involves a right to be in the country and intending to stay in that country. This is unless at your death you were more closely associated with another state.

UK nationals can protect themselves by making an election that succession to their assets situated in EU states should be via English law. It is advisable to do this wherever they are currently living. Though, it must be noted that the usual local succession taxes will continue to apply and must be considered as part of estate planning. It is also advisable for a testator to make a separate Will in accordance with the law of the EU member state where the property is situated and to provide in that will that English law is chosen as the law of succession.

If you have a foreign property please make an appointment with one of our specialist lawyers and they will be happy to talk through the issues with you.