You can’t take it with you, so what happens to your assets once you’ve passed?
There are a lot of great reasons to move to your dream location when you retire, to enjoy the quality of life you have earned. However, there are a few things you need to keep in mind to avoid problems if your happy place becomes your final resting place.
Expat financial advice that deals with the ‘here and now’ is vital, to make sure your retirement abroad is comfortable. It’s easy, though, to neglect to make provisions for beyond retirement. Or perhaps it is tough for people to deal with this topic while they enjoy their retirement to the maximum.
Here are some things you shouldn’t overlook:
Inheritance tax pitfall
Many expats are unaware that they would still be classed as UK residents when they die. This would mean that their assets anywhere in the world would be liable for UK Inheritance Tax. Clearly this can become a substantial problem for beneficiaries. They could find themselves paying 40% tax on your estate. In some cases, they could struggle to pay the Inheritance Tax bill while releasing revenue from your assets.
Getting Inheritance Tax advice from a trusted advisor is essential these days – but getting specialist expat insights could save your family from sizeable financial problems.
Will your will stand?
Another pitfall expats sometimes fall in to, is believing that their will has credibility wherever they are in the world. This is something you can’t assume as different countries have their own laws and customs on these issues. If you have lived there for some time, it is possible that the laws will outweigh the provisions you have made.
The best solution is always to check local regulations on all financial matters – an expat financial advisor will be able to help with this.
Hidden debts left behind
UK expats who retire abroad may also unwittingly leave their will executors and beneficiaries with a tangled web of debt to deal with.
You need to keep in mind that income and gains that are generated from UK assets or property continue to be subject to UK taxes. And when you retire abroad, never imagine that credit agreements and other debts disappear. Even small amounts can accrue significantly over time.
Where there’s a will, there’s a way
To make plans to meet inheritance tax liability, tie up loose ends in the UK, and be sure that financial aspects of your will can be fulfilled when you die, contact Harrison Brook today.
The information contained herein is for informational purposes only which is subject to change and should not be relied upon. You should seek advice from a professional adviser before embarking on any financial planning activity.