If you are considering relocating abroad, with a new job or even
a new life in prospect, it is easy in the excitement to overlook
some practical legal issues that you need to consider if you are to
protect your wealth and to ensure the well-being of those dear to
you. These can be split into two categories - click on the link
below for a summary of the key issues:
We are also able to help with any notarial
requirements or residential property matters that arise as a
result of any relocation.
tax and inheritance planning
Two factors that will determine how your move abroad might
affect your tax position and the effectiveness of the provisions of
your Will are:
- residence – where you dwell more than temporarily; a person can
have several residences
- domicile - where you have your permanent home and to where,
whenever you are absent, you intend to return; every person must
have one and only one domicile at a time. It is not the same as
'domicile' in France and other countries.
your tax position
On emigrating, the country in which you are resident will
change. Residence in the UK is one of the main factors that makes
you liable to pay UK income tax and capital gains tax, so moving
abroad may remove you from the scope of these taxes.
It is possible that the place of your domicile will change as
well, but not necessarily; your domicile is likely to remain in the
country of your origin unless you have definitely abandoned it for
good. Domicile in the UK in the main factor that puts you within
the scope of UK inheritance tax but, because your residence and
your domicile are not necessarily the same, a move abroad does not
mean that you also move out of the net of UK inheritance tax.
The residence and domicile status of other members of your
family may also change as a result of the move.
your inheritance provision
Domicile is the main factor determining whether English law
applies to your Will. This also determines whether a Will can be
challenged on the grounds of its failure to provide adequately for
members of the family.
If you emigrate, the legal system of the country to which you
are moving may not work the same way as in England and Wales. This
is because there is no effective international coordination of the
operation of Wills and inheritance systems. So, unless suitable
planning is in place, you face the uncertainty that assets acquired
in a third country, where you are neither domiciled nor a resident,
will pass on your death by the law of any/one of the following:
- the country where you are resident
- the country where you are domiciled
- the country where the assets are, or
- the country of your nationality.
We can help with inheritance tax issues on a move, as well as
advise you how your Will might be affected by a decision to
emigrate, whether it is a permanent emigration or a job-related
move. We may be able to do this alone or by utilising the strong
relationships with advisers in other countries around the
world.
children issues
When deciding to emigrate, the legal obstacles relating to
removing a child from the jurisdiction, can often be very
difficult. The main reason is that there is a need for another
person's consent which is often overlooked.
When parents are separated/divorce, the consent of the other
parent is required before the Visa application can proceed. If a
non-resident parent does not agree to the move, then a court
application is necessary to obtain a court order which allows the
children to be lawfully removed from the jurisdiction. In
determining if the application should be granted, the court has to
review the current arrangements, the contact in place and the plans
and proposals for the future. In assessing this it is helpful for
the court to have as much information as possible about the planned
emigration as this will help them determine if the move in the
child's best interest.
There can also be legal issues to consider when a parent decides
to emigrate but their child continues to reside in the UK with
their other parent. There is a specific requirement for certain
governments abroad to have information about that child's health
even though the child is still based in the UK. The reason being
that, should something drastic happen to the UK resident parent and
the child seeks to join its other parent, the government will need
to be aware of that child's health. The health check is standard
emigration medical (with some exceptions). Obtaining the consent of
the UK resident parent can sometimes be difficult as the process
can be complicated and there may also be hostilities following a
difficult separation.
Our Family team is able to assist with such issues
including:
- dealing with applications for residence and permission to leave
the jurisdiction temporarily and permanently
- advising on contact arrangements between the child and absent
parent such as the amount of contact and timing, travel
arrangements, payment of cost of travel arrangements and indirect
contact arrangements
- assisting with child maintenance orders where one parent lives
abroad.
