14th October, 2024
As the number of Australians with international ties continues to grow, it’s essential to understand how your Will can impact overseas assets. If you own or expect to inherit assets outside Australia, ensuring your Will addresses these assets properly is crucial.
Classifying Overseas Assets
Overseas assets typically fall into two categories: moveable and non-moveable. Moveable assets include items like bank accounts, shares, and personal property, while non-moveable assets refer to real estate, such as houses and commercial properties.
The laws governing these assets can vary significantly. Moveable assets are often managed according to the laws of your home country or the country where you lived before your passing. In contrast, non-moveable assets are usually subject to the laws of the country where the property is located. This distinction is vital when drafting your Will.
Potential Issues with International Assets
A common complication is that some countries do not recognise foreign Wills. For example, if you own property in Bali, it’s advisable to consult a local lawyer who can provide guidance on applicable laws and help ensure your Australian Will properly addresses your overseas assets.
Moreover, certain jurisdictions have laws that dictate how assets must be distributed, regardless of your wishes. Seeking expert legal advice is essential to avoid unexpected challenges.
The Role of the UNIDROIT Convention
Australia is a signatory to the UNIDROIT Convention, developed by the International Institute for the Unification of Private Law. The convention aims to simplify the management of international assets. This convention allows for the creation of an international Will, which can streamline estate administration in signatory countries, aligning it with both Australian law and the laws of the foreign country. If you have overseas assets, it’s crucial to draft your Will with care.
While our firm, Castrikum Adams Legal, does not handle international Wills directly, we can help guide you and point you in the right direction for further assistance. Contact us today on 02 6687 1167 for more information on ensuring your estate planning is comprehensive and effective.
If you found this blog post informative and want to dive deeper into related topics, we invite you to check out our other blog posts.