When handling an estate that has assets outside of Ireland, an already emotionally charged situation can become even harder. Fortunately, Irish probate law does offer clear rules for managing overseas assets, particularly in the UK where the legal systems are somewhat similar. This helps ensure that your loved one’s wishes are honoured and that their assets are managed according to their wishes, regardless of where they are located.
At Anthony Joyce & Co Solicitors, we have a wealth of experience in both Irish and international probate law. We understand the complexities of managing overseas assets across borders and are here to guide you through every step of the process.
How Probate Works With Overseas Assets
In Ireland, probate is the legal process for managing and distributing a deceased person’s estate. When it involves assets located in other countries, the process can get complicated due to different legal systems. Usually, if the deceased lived in Ireland, the main probate process begins here, but additional probate procedures may be needed in the countries where those assets are. This can make following the deceased’s wishes more challenging, especially if there are conflicting laws or no will at all.
To handle this, executors in Ireland often need to first get a grant of probate here, and then seek similar legal approval in the countries where the assets are located. This is sometimes called “resealing” a grant of probate. Some countries have agreements with Ireland that can make this easier, but many do not, requiring separate legal steps according to their local laws.
Challenges of Managing Overseas Assets
Managing assets outside of Ireland comes with a few challenges:
- Legal Complexity: Every country has its own rules about inheritance that can be quite different from those in Ireland. Understanding these differences may require specialised legal knowledge or the assistance of experts both in Ireland and abroad.
- Language Barriers: If you’re dealing with assets in a country where another language is spoken, it can make communication with banks, courts, and lawyers more difficult, raising the chances of misunderstandings or mistakes.
- Costs: Managing assets overseas typically costs more than handling those in Ireland. This can include higher legal fees, costs for translations, and possibly travel expenses.
- Time: The process of settling overseas assets can take a long time, especially if there are complications like disputes about the will or legal issues in the other country.
- Tax Implications: Each country has its own tax rules regarding inheritance, which can be tricky to manage. Sometimes, the estate might even face double taxation – meaning it could be taxed both in Ireland and in the country where the asset is located.
Steps to Manage Overseas Assets in Irish Probate
- Seek Professional Help: Talk to probate lawyers who know about international estates, like Anthony Joyce & Co. We can give you important advice tailored to your situation and work with legal experts from other countries to make sure everything follows each jurisdiction’s laws.
- Know the Local Rules: Learn about the probate laws and tax requirements in the places where the assets are located. This includes understanding any agreements between Ireland and the other country that might impact the estate.
- Choose Local Executors: If you can, choose executors in the countries where the assets are. This can make things easier and ensure someone who understands the local laws and language is managing the situation.
- Gather and Translate Documents: Collect all necessary documents like death certificates, wills, property deeds, and bank statements. Make sure these are translated correctly if they need to be submitted to authorities in other countries.
- Prepare for Taxes: Work with a tax advisor to understand and plan for any potential inheritance taxes due in both Ireland and abroad. They can help you come up with ways to reduce tax costs.
Managing Assets in the European Union (other than Denmark)
In order to facilitate freedom of movement and enhance the functioning of the Single European Market, EU Regulation (650/2012) was brought into force in July 2012. Both Ireland and Denmark opted out of the Regulation. According to the Minister for Justice, Ireland took the decision not to opt-in on the grounds that the final text of the Regulation would have interfered to an unacceptable extent with the manner in which estates are administered in this jurisdiction. Our non-participation has caused confusion with regard to documents that Continental authorities require to distribute EU property such as holiday homes and bank accounts. A Certificate of Succession issued under the Regulation will often be demanded even though the Irish authorities do not issue them on account of the opt out. Having an experienced firm of solicitors such as Anthony Joyce and Company is therefore extreme useful in navigating your way through such obstacles.
If you wish to have Irish Law applied to the distribution of your real property located in EU countries (other than Denmark) you should elect to do so in your will. It appears that countries that have signed up to the Regulation will respect this choice in your will notwithstanding the opt out. However, before making such an election, you should enquire about the tax implications in both Ireland and the jurisdiction where the property is located.
Managing Assets in the UK: Northern Ireland, England, Wales, and Scotland
When handling assets in the UK, which includes Northern Ireland, England, Wales, and Scotland, the process for dealing with probate often matches closely with that of Ireland. This is due to mutual legal agreements and similar laws. Generally, these areas allow the use of an Irish probate grant, which makes it easier to manage and transfer assets across the borders.
Resealing an Irish probate grant in the UK is quite simple. You usually just need to submit the original Irish grant, a certified copy of the will (if there is one), and a completed application form. While the rules on inheritance tax are different in Ireland and the UK, these jurisdictions have methods to prevent being taxed twice.
Managing assets in the UK is also generally less complicated than in many other foreign countries because there’s no language barrier and there are established legal connections.
Don’t let the challenge of managing overseas assets in probate overwhelm you! If you’re dealing with assets in the UK or further afield, or need guidance on Irish probate laws, contact Anthony Joyce & Co Solicitors today. We can help you navigate the process to ensure the best possible outcome for your estate.
