Brexit to affect European holiday homes?
What Brussels IV means for wills and inheritance in Europe
I read an interesting article the other day which led me to wonder how many people who own properties abroad know about Brussels IV? This is one of those pieces of EU legislation that might well have benefited.
Many European states dictate how property is passed on in the event of an owner's death and therefore personal wishes could count for nothing. Brussels IV however allows owners to override local legislation and leave European properties to their chosen beneficiaries by invoking Brussels IV as part of their wills.
Apparently though, The UK opted out of Brussels IV meaning that UK citizens could benefit in EU member states with the exception of Denmark and Ireland. EU citizens cannot however benefit in respect of properties owned in the UK.
Graham Dragon, the author of the article, questioned whether it is likely that UK citizens' current potential to benefit from Brussels IV will continue on Brexit, given that the UK has not given EU citizens equal benefit in the UK.
If and when Brussels IV no longer helps UK overseas property owners in Europe the consequences could be serious. Wills will need revisiting!
Steve Hall
Brexit Could Force Foreign Homeowners to Create Two Wills
A Leave from the EU could force UK citizens to draft two wills in order to prevent their homes in other EU countries falling under local inheritance rules.
Under English law, if an English person owns a house in France, the question of who will inherit the house is decided under French law.
In August 2015, the Brussels IV regulation was adopted by the EU. The aims was to simplify issues when an individual dies and has assets in more than one EU member state, i.e. which country's law applies, who inherits the assets and who administers the estate.
Even though the UK has not adopted Brussels IV, it has meant that UK individuals who own assets in other EU member states are able to include a choice of English law clause in their wills.
After Brexit, it is not known whether UK individuals would continue to benefit from Brussels IV and whether EU member states would continue to give effect to a choice of English law clause in wills
It may be important for UK individuals who own property in the EU to make sure that they have made a will in the country where the asset is located, as well as an English will, which was always the case prior to Brussels IV.