ProACT Expatriate Advice

How can I protect my overseas asset?

Make a Will
All adults should have an up-to-date Will and for anyone with property abroad a carefully written local Will taking into account local law and practice is absolutely essential. 
This is a key part of ProACT’s Family Protection business; we understand UK & Cyprus estate planning and can write UK & Cyprus Wills.

It is always necessary to take account of the foreign property, business or investment in drafting Wills and that inheritance taxes are minimised as far as possible. Co-ordinating UK advice with Cyprus property advice is the key to making sure your families interests are protected against the demands of property.

ProACT Expatriate Advice
 ProACT Expatriate Advice Services are for professionals, business and the retired living and
working abroad or relocating overseas include making a will, expatriate pensions, and inheritance tax. ProACT provides cost effective solutions focused around the family for clients in Cyprus saving tax and probate fees. ProACT offer free reviews for all matters relating to this
article.

Sam Orgill
www.proactpartnership.com
Tel: +357 26 819 424  
Contact us at info@proactpartnership.com

Rose Between Two Thorns

Sam Orgill of www.proactpartnership.com on using

Wills to Cut Costs and Save Inheritance Tax when you die

When living, working or retired abroad with assets in more than one country making a two Wills, one for each country in which you own assets, can save you probate costs and reduce inheritance tax liability dramatically. In this article we consider the pros and cons for making a Will in separate locations whether you live abroad or if you just own overseas property.

A Cyprus estate of €250,000 can attract fixed probate fees of €19,500 to be paid in cash when
probate is granted. UK inheritance tax is charged at 40% of the estate, that’s £40,000 on an estate of £425,000. When someone dies how will your family cope with the 2 thorny issues of paying for 
probate costs settling the Cyprus estate and inheritance tax during the grieving process?

UK Wills for Expats

UK legislation allows for a statutory estate of £250,000 to pass between spouses on death. But even without a Will you will still need probate if savings are over £15,000 or if you own property
or certain other assets. A UK Will ensures the process is always simpler and quicker.

If there is no UK Will the administration can be complicated if you live abroad. If you live outside the UK for more than 7 years your legal tie to the UK is broken and you can be forced to use your resident country, eg Cyprus, for worldwide probate increasing causing additional probate cost and delay.

If you have UK bank and financial balances of under £150,000 and live abroad, a UK Will allows settling of these quickly and simply.

Review with ProACT if you need to Make a UK Will if:

• You have bank accounts with more than £15,000 in your name 
• You own financial assets in your name You own UK property
• You have a UK business

Cyprus Will for Expats

Probate can take longer in Cyprus, 2 years typically, and can be expensive with fixed probate costs. By writing a Cyprus Will to cover only Cyprus property, bank accounts, cars and
businesses you can reduce the fixed costs and ensure offshore bank accounts are not frozen because of delays in Cyprus probate. Without a Cyprus Will a Cyprus lawyer can be appointed with
fixed probate costs.

Review with ProACT if you need to Make a Cyprus Will if:

• You have bank accounts in your name
• You own a car or boat
• You own Cyprus property
• You have a Cyprus business

 Inheritance Tax

Two Wills for different countries can help separate assets and reduce inheritance tax in one or both countries using Will Trusts. UK inheritance tax is charged at 40% of property value and payable within 6 months of death. Making a UK and Cyprus Will together is a good tool for reducing Inheritance tax

Review and Make a Will

It is always wise to review your Wills every few years to take account of changing circumstances. ProACT offer a free review online, by phone or in Cyprus with one of our advisers.

Review with ProACT if you need to Make a UK Will if:

1. You have bank accounts with more than £15,000 in your name
2. You own financial assets in your name
3. You own UK property
4. You have a UK business

Review with ProACT if you need to Make a Cyprus Will if:

1. You have bank accounts in your name
2. You own a car or boat
3. You own Cyprus property
4. You have a Cyprus busines

ProACT Expatriate Advice

ProACT Expatriate Advice Services are for professionals, business and the retired living and
working abroad or investing in overseas property. UK lawyers and UK accountants based in Cyprus offer professional advice and expertise in estate planning to avoid inheritance tax and help make a will, and inheritance tax. ProACT provides cost effective solutions focused around the family for clients in saving inheritance tax and probate fees. ProACT offer free reviews for all matters relating to this article.

Sam Orgill
ProACT Partnership

Tel: +357 26 819 424
 Contact us at info@proactpartnership.com

Or see www.proactpartnership.com

Directions to the New ProACT Office www.proactpartnership.com/services 

Cutting Living Costs When You Die - Make a Will

Sam Orgill www.proactpartnership.com on ways to pay less in hard times
The tax curse of the near future is death quickly followed by probate fees and inheritance tax due at 40% on all your hard earned wealth. Some people avoid planning ahead but the family ends up paying. For expatriates the situation is complex with their home country and their resident country
both wanting a slice of the cake which can inflate the probate lawyers fees even more.

A Cyprus estate of €400,000 can attract fixed probate fees of €24,000 to be paid in cash. Meanwhile inheritance tax at home can be 20- 40%, that’s £40,000 for every £100,000 over a person’s allowance. All to be paid in cash from the estate before the family can inherit.

The sad thing is inheritance tax is a voluntary tax only paid by those who dislike their family more than the taxman, while probate fees can be reduced dramatically by good advice and prudent planning.

The art of kicking a person when they’re down is one that has been practised diligently by those with power and control with some excellent results especially among those who cannot speak for themselves – like the recently deceased or family in another country.  When your husband, wife or parent dies, the handing over of vast sums of money to pay the inheritance bill is not exactly the most comforting part of the grieving process.

Domicile
Inheritance tax is charged to all people who are domiciled in the UK and is hard to get rid of. You would be mistaken for thinking “domicile” means where you live – not to the UK Inland revenue. “Domicile" at the Inland Revenue is far more complicated. Forcing a change of domicile to Cyprus where there is no inheritance tax then leaves you exposed to potential fixed probate fees of 10% of your estate. 

Cyprus is a great place to live for the Expatriates looking for low taxes but the converse is that administration fees on death can take a hefty chunk of an estate for those that have not planned ahead with independent advice.  

Dying intestate just isn't healthy
You are run over by a bus and you haven't made a Will. Where does that leave your loved ones? In a terrible mess, Rows over Wills are common as families fragment, multiply and move around the world with estate buoyed by booming house prices over the last decade.

The best way to avoid acrimony which can divide families - and hefty legal bills that eat into estates - is to make a well-drafted Will that benefits from sensible estate planning. 

Make a Will                           CONTACT US
All adults should have an up-to-date Will but, for anyone with property abroad, a carefully and clearly written local will, which takes into account local estate tax rules, is absolutely essential. This is a key part of ProACT’s business because we understand UK & Cyprus estate planning and can write UK & Cyprus Wills.

It is always necessary to take account of the foreign property, business or investment in drafting Wills, to ensure that they do not conflict with the arrangements made for the foreign property, and that inheritance taxes are minimised as far as possible. Again, co-ordinating UK advice with  appropriate foreign advice is the key.

ProACT ive
ProACT Partnership has Legal, Tax, Trust and Investment expertise in the UK and Cyprus, the Middle and Far East on taxation and trust matters. Our clients can benefit from the resources of our UK Legal Experts and Taxation and Trust department in Cyprus. ProACT provides cost effective solutions focused around the family that have worked for clients in Cyprus saving
many thousands of pounds in tax and probate fees. And you might only have to Make a Will.

ProACT Professional Expatriate Advice Services for people and business professionals living and working abroad or relocating abroad.  ProACT offer free reviews and seminars in Cyprus & the UK on Inheritance Tax, Probate and Making a Will contact us for more information CONTACT US

Sam Orgill
Tel: +357 26819424
Contact us at info@proactpartnership.com
 Or see www.proactpartnership.com

TAX SERVICES – WILLS & ESTATES – BUSINESS SERVICES – PROPERTY SERVICES

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Free Seminars - Free Reviews - Free Workshops - Free Business Networking

ProACT offer expatriate advice information from professionals to family and business living and working abroad. Our websites provide free information when moving overseas and we offer a range of free services to guide you. Our mission is to help business, investors, and the retired relocating abroad with less stress and to avoid expensive mistakes along the way  CONTACT US

 

Will Things Change in Time?

....... Relatively speaking yes. Make a Will and it can last a lifetime. But circumstances,  relationships, where you live, relocation, health, births, deaths, marriages all create circumstances where you need to update your Will.  For Expats while the law may not change dramatically the fact that you own property, business and financial assets in different countries with different
laws means that added vigilance is necessary to protect your assets in event of death and ensure they go to your intended family members without unnecessary expense or delay in the probate process.

Sam Orgill www.proactpartnership.com highlights the need to review your Will regularly

Review your Will

We look back at Will written more than 4 years ago and in most cases there has been specific changes. Wills made for Expat clients in 2002 before Cyprus were in the EU are based upon different advice and practice today. Time changes things. Below we detail a checklist of issues to consider when reviewing your Wills. Contact ProACT if you feel that changes in your circumstances over time means that a revision and update of your Will for UK, Cyprus or other countries where you have property, business or financial assets.  

Remember that consideration should be given to the location of financial assets, which legal jurisdiction applies. ProACT can provide advice and assistance to ensure your Wills work for you in a cost effective and secure manner. Revisions can be made by side letter of wishes, codicil or rewriting the Will. 

 Tax Check

Everyone likes to think things you own can be passed on to your next of kin on death but
this is often far from the case. With ever more tighter money laundering rules being enforced by governments looking for criminals and people to pay more tax, banks and investment companies are required to have all transferred verified. When your dead you can’t do this – that is why your executor needs a ‘court order’ to authorize the issue of probate allowing assets to be passed to the widow and children…. Or current partner. Legal ties are determined by how you hold assets, who you hold them with, which country they are in, what type of asset they are and what tax is due before and after death.
 
We look back at Will written more than 4 years ago and in most cases there has been significant
changes, these can cause confusion and delay of not addressed by action before it is to late.

Will Review Checklist

1. Are you in contact with your executors and have up to date details. Can they
still act for you? Are family members appointed to keep control of your money?
2. If you are appointing Cyprus Solicitors are you aware that they will charge
a statutory fee of around 10% of the value of your assets?
3. Are the beneficiaries still relevant? Are there additions or removals
required?
4. Have you made provision to avoid 40% UK inheritance tax on offshore
assets? This can be done using a Will for overseas assets?
5. Have you a Will for each jurisdiction in which you own assets? This can save
time, money and inheritance tax.
6. Have you wishes not in your Will that you would like included?
7. Is there any issue you would like clarification and checking?
Changing Concerns

If you identify areas you would like clarification or advice we strongly advise that you consider a review and update advice regarding your Wills to take account of changes in Cyprus since they joined the EU in 2004 and change of practices in UK and around the world also in order to
minimise expense and delay in probate.
 
ProACT can also assist and offer independent free review and advice if you have Wills made elsewhere to provide updates or revisions as required. This may just give piece of mind, but also ensures that when the Will is needed then unforeseen problems, expense and taxes are avoided by planning ahead.

ProACT Expatriate Advice

ProACT Partnership offer professional expatriate advice services for Professionals Entrepreneurs and the Retired. ProACT Professional Expatriate Advice Services for Professionals Entrepreneurs and the Retired living working retired or relocating abroad including retired and working people covering tax returns abroad, make a will, probate services in Cyprus UK, inheritance tax and pensions paid aboard. We help and advise expats with assets in different countries or when relocating abroad.

ProACT offer FREE reviews find out more at www.proactpartnership.com

Sam Orgill
ProACT Partnership
EMAIL: info@proactpartnership.com
 CYP TEL: +357 26 819 424

Trusting Relations

Sam Orgill of www.proactpartnership.com asks looks at ways of protecting your family assets.

Making a Will to protect assets is the start but not the whole picture when protecting the family assets; jewels, the silver, financials, business and property. People need protecting in different ways and every family is different in its needs when considering the future health, wealth and happiness of the family

It is always difficult to find sound professional advice regarding your Will. What are your options and what is best to protect your family assets? 

Local Differences

In Cyprus the opposition can be formidable and can include:

• A legal system that allows a legally high charges for probate.
• A Title Deed system that leaves many owning contractual rights to property but not the land’s Title Deeds itself.
• Cultural and language barriers causing confusion and delay
• Assets and people from different countries and jurisdictions bringing potential conflict and complexity to affairs when managing the family assets.

Professional

Professional advice is ‘opinions’ based upon laws, regulations, case law, tax rulings. There is also an
element of standard practice and ‘norms’ of business ethics and moral standards. These vary by country and legal systems (jurisdictions).

In the UK conflict of interest is strictly regulated by the Law Society, Financial Services Authority and accounting bodies. The resulting standard practice is that no one professional can act for
two parties to any transaction. This applies to property conveyance, Wills and probates, financial trades and trust administration.

In Cyprus the standard practice is different with conflict of interest regulated within the professional bodies and the result is one professional firm regularly acts for both parties. There is nothing wrong with this but it means that clients need to consider the different practice when deciding what is best for them.

So when seeking advice on your Will in Cyprus consider what is best for you. ProACT consider the following issues when advising clients

Death & Probate

Wills are a fantastic way of giving control to the family on death. The executor is the legal owner of the estate. Why would you pass this control to a stranger, especially if that stranger can make a legally extortionate charge against the  estate? Make a will that puts the family in control. But properly managed Probate is not just about keeping the family in control. It is also about organising and arranging assets so that they can be easily and simply dealt with by the family in times of need and distress, avoiding the costs and delays of Probate.

Executors

The appointed executor has sole control of the assets on death. You should ensure that the person appointed is someone you trust to carry out your wishes. ProACT always recommend family
members first or trusted friends. The executor has legal control of the estate and all its assets so the best way to ensure your wishes are carried out is for the family beneficiaries to be in control. This does not stop them using  professionals to administer the estate. 

Conflicts of Interest

Probate fraud happens all over the world, in the UK and in Cyprus included. Bank accounts and house contents are often emptied by family members on death. 
 
The executor as ‘legal owner’ of the estate is in a position to dictate events. To avoid property being sold
‘cheap’ ensure the executors you appoint are people you trust and that appropriate checks and balances are put in place to protect your family assets.

In the UK examples of sharp practice by professional executors have illustrated the dangers of a family losing control. By following the letter of the law a professional executor can make large fees. The cosy relationship ‘insider dealing’ between probate solicitors and estate agents resulting in property in
estates being sold on the cheap has long since been regulated. If it does happen it is always hard to prove
without the ‘evidence’.
 
This danger can be avoided when an executor is always a trusted family member even if they are only signing off the estate administration done by a professional.  

Cost of Probate

Cyprus solicitors have a fixed scale of charges they can use. This is the Cyprus law and entirely legal, if not expensive. The system derives from a price control regulation to stop overcharging, but inflation leaves the expense out of proportion to the work involved. 

Wills for assets in other countries can therefore help reduce Cyprus probate costs. The UK cost of probate is typically only 1/5th of the cost of Cyprus probate. 

Jurisdiction

‘Real’ assets – land, property, business, cars, and shares – must be settled with probate in the country in which they exist. Personal assets – financials, chattels, jewels, art can be settled with probate in relevant country i.e. you can use your home country. Some Expats can settle some or all of their estate through a UK Will.
 
It may be possible to use one worldwide Will for all your affairs. While this has the advantage of only one set of instructions, it can lead to significant delay and extra expense verifying a probate obtained in the home country in other jurisdictions. It is normal best advice to have a Will for each jurisdiction in which you own significant real assets.

Will Storage

In Cyprus  a Will must be stamped as a ‘deed’ and ‘lodged’ in the district court on death. If you store the Will in the district court while living an additional stamp duty is paid but you know it is secure and in place in event of death. However the Will cannot be varied only destroyed if you want to make changes at a future date. Then you have to write a new Will, with the expense that incurs. This would include changing the executor.

In the UK standard practice is not to lodge the Will in the court until after death. This practice is adopted in Cyprus in practice by many professional firms. This approach allows revision of the Will over the years and the Will can still be lodged in court on death with a slightly higher stamp duty. 

Plan Ahead

Death or poor health is always inconvenient, but often inevitable. When your team is in a foreign land playing the overseas game it is essential to look forward but plan for the worst.

Complete professional advice will look after the whole game plan and give the family so much more than just a Will. It will give the team, your family, strategies to cope with whatever the game of life throws at it and ensure that you protect assets during your lifetime and pass them on with the minimum of fuss and
expense. By managing assets during your lifetime you can avoid confusion and delay and ensure that the team passes the ball to a trusted family member. 

ProACT

ProACT Partnership offers a Free Will review, writing and advice service in Cyprus and in the UK
through Gareth Fatchett, a UK Solicitor. ProACT Partnership offer professional expatriate advice services to family and business living and working abroad. ProACT offer free reviews in Cyprus, at our Paphos
Cyprus office for all expat Will & Tax issues. For a FREE review contact ProACT by email at info@proactpartnership.com  or CLICK HERE 
 
Sam Orgill
ProACT Partnership
 Tel: +357 26 819 424
  www.proactpartnership.com 
ProACT Partnership the Expat Experts for Professionals Entrepreneurs and the Retired. ProACT Professional Expatriate Advice Services for people and business professionals living working retired or relocating abroad. We help and advise expats dealing with new and different countries.
TAX SERVICES – WILLS & ESTATES – BUSINESS SERVICES – PROPERTY SERVICES
 
ProACT offer FREE reviews and seminars find out more at www.proactpartnership.com

EMAIL: info@proactpartnership.com       
CYP TEL: +357 26 819 424 CYP FAX: +357 26 221 223
UK Tel: +44 1753 27 2116 UK FAX: +44 1753 27 2001
UK OFFICE: 59-60 Thames Street, Windsor, Berks, UK
CYP OFFICE: 103 Elefthterios Venizelos Avenue, office 102 PO Box 62474, 8065 Paphos, Cyprus

Do you really need a Will for each country?

Sam Orgill of www.proactpartnership.com asks “Do Expats you really need a Will where they live”?

You need a Will to protect your assets on death and to make sure that they go to your family and
beneficiaries.

Without a Will a court appointed executor in Cyprus is given the power to administer the estate and charge by a legally valid fee formula that includes the property value and amount distributed to beneficiaries.

 
Closed

Your assets include property, vehicles, bank deposits, shares and investments including any businesses that you run. Without the correct legal protections in place bank accounts, businesses and investments can be closed; property and vehicles can’t be sold and in some cases can’t be used.

Resealed

Through international conventions most jurisdictions recognise a Grant of Probate validating a Will from another country. So an English Will can be validated in the UK and then used in for example, in Spain, Portugal, Channel Islands or Cyprus.However, there may be long delays in this process depending on the local jurisdiction.

The Isle of Man is quick, England is ok and Cyprus or South Africa are slow, due to the processes in these countries.

Risk

In Cyprus a core weakness is the lack of Title Deeds for property and the treatment of cars as “fixed assets”. This means that on death the surviving spouse and family are exposed to third parties having a financial interest in the estate that can include solicitors, developers, the commercial bank or the original Title Deed holder 

Delays

While in the UK Probate takes on average 3 months to issue, 12 months is good for Cyprus and Title Deed matters can delay matters further adding additional stress at an already difficult time for the family.

Solutions

ProACT recommend using UK Wills for worldwide assets with Cyprus Wills for fixed assets such as
properties and cars. Every client is different. Inheritance tax is a factor, but our core belief is to keep control within the family and to get the money to the beneficiaries as soon as possible. Extreme care should be exercised to using a Will for separate jurisdictions. It is easy for wording in one jurisdiction to cancel it in another. Format and terminology vary from country to country.

ProACT are expatriate experts in Wills.

FREE Review

Contact ProACT for a FREE review and to make UK or Cyprus Wills as well as advice on resealing a foreign Will in Cyprus

ProACT Partnership offer professional expatriate advice services to family and business living and
working abroad. ProACT offer free reviews in Cyprus, at our Paphos Cyprus office for all expat Will & Tax issues. For a FREE review contact ProACT
 
Sam Orgill
ProACT Partnership
Tel: +357 26 819 424
Web: www.proactpartnership.com 

Who Will You Trust?

Sam Orgill of www.proactpartnership.com discusses Wills.

 

ProACT offer Free reviews in Cyprus and the UK. Contact us at info@proactpartnership.com

 

It is always difficult in Cyprus to find sound professional advice regarding your Will.  What are your options and what is best to protect your family assets?
 
Professional advice are 'opinions' based upon laws, regulations, case law, tax rulings. There is also an element of standard practice and 'norms' of business ethics and moral standards. These vary by country and legal systems (jurisdictions).

ProACT Partnership offers FREE REVIEWS of international Wills including UK & Cyprus aong with Inheritance Tax, Trust and Probate advice and services in the Paphos Cyprus office and the UK through Gareth Fatchett, a UK Solicitor.

CONTACT US

Read More CLICK HEREIn the UK conflict of interest is strictly regulated by the Law Society, Financial Services Authority and accounting bodies. The resulting standard practice is that no one professional can act for two parties to any transaction. This applies to property conveyance, Wills and probates, financial trades and trust administration.

In Cyprus the standard practice is different with conflict of interest regulated within the professional bodies and the result is one professional firm regularly acts for both parties. There is nothing wrong with this but it means that clients need to consider the different practice when deciding what is best for them.

So when seeking advice on your Will in Cyprus consider what is best for you. ProACT consider the following issues when advising clients;

Executors
The appointed executor has sole control of the assets on death. You should ensure that the person appointed is someone you trust to carry out your wishes - family?

Cost of Probate
Cyprus solicitors have a fixed scale of charges they can use. This is the Cyprus rules. But be aware of the cost of obtaining probate on your Cyprus estate may be 2.5% of the value of assets - property and investments. A UK Will can reduce Cyprus probate costs.

Jurisdiction
'Real' assets - land, property, business, cars, and shares - must be settled with probate in the country in which they exist. Personal assets - financials, chattels, jewels, art can be settled with probate in relevant country i.e. you can use your home country. Some Expats can settle some or all of their estate through a UK Will.

Will Storage
In Cyprus a Will must be stamped as a 'deed' and 'lodged' in the district court. If you store the Will in the district court an additional stamp duty is paid but you know it is secure and in place in event of death. However the Will cannot be varied only destroyed so, if you want to make changes, you have to by writing a new Will, with the expense that incurs. This would include changing the executor.

In the UK standard practice is not to lodge the Will in the court until after death. This practice is adopted in Cyprus in practice of some professional firms. This approach allows revision of the Will over the years and the will can still be lodged in court on death with a slightly higher stamp duty.
Conflicts of Interest
Probate fraud happens all over the world, in the UK and in Cyprus included. Bank accounts and house contents are often emptied by family members on death. The executor as 'legal owner' of the estate is in a position to dictate events. To avoid property being sold 'cheap' ensure the executors you appoint are people you trust and that appropriate checks and balances are put in place to protect your family assets.

ProACT Partnership offers FREE REVIEWS of international Wills including UK & Cyprus aong with Inheritance Tax, Trust and Probate advice and services in the Paphos Cyprus office and the UK.

FREE Review

Contact us for a Free review of your expatriate issues including relocation abroad, UK & Cyprus tax issues,  making a will, investment and savings and business services. 

ProACT offer Free reviews in Cyprus and the UK.

Contact us at info@proactpartnership.com

 

Sam Orgill

Email: info@proactpartnership.com

Web: www.proactpartnership.com
Tel  (+ 357) 26 819 424
UK   (+ 44) 1753 27 2116

PLEASE NOTE OUR NEW CYPRUS FAX NUMBER (+ 357) 26 221 223