New EU inheritance law should prompt wills reviews, say experts

Topics: Wills & Probate

  • Print
  • Share
  • Comments (5)
  • Save

Related images

  • EU flags

Lawyers are warning that UK residents with assets in Europe could unwittingly leave them subject to English law after new rules on cross-border inheritance in the European Union come into effect today. 

The new rules aim to ease succession across the EU by giving individuals the chance to opt either for the law of the country of their nationality or their last habitual residence to be applicable to their inheritance across Europe. The default position will mean the law of the country where someone is a habitual resident when they die governs succession to their estate as a whole. 


The UK has opted out of the new rules, but the changes will still have an impact on UK citizens with properties or other assets in the EU.

The rules allow people to opt out of ‘forced heirship’ rules that apply in a number of EU countries and govern how assets are passed on within a family after death. As an example of how the rule will work practically, the Society of Trust and Estate said previously a woman in the UK with a property in France would have been obliged to leave it to her husband and children under French forced heirship rules. Now under the new succession rule she could instead choose to apply UK law to the property, which would allow her to leave the house to her brother instead.  But for citizens who were not born in the UK, it could mean that English laws will now be applied to their overseas assets without them realising.

‘The fact is a lot of people won’t understand the fact that if they have an English will it means they are automatically choosing English law,’ Richard Frimston, partner at London firm Russell-Cooke and chair of the EU Society of Trust and Estate (STEP) Committee, told the Gazette. 

This could create problems in countries such as France, which do not have experience in dealing with executors, the person named to deal with an estate, he said. 

It will also mean that the Inheritance (Provision for Family and Dependants) Act 1975, which gained attention recently after the Court of Appeal awarded a woman £164,000 from her estranged mother’s state, will apply in other EU countries.

Those who do not want English law to apply to assets which are held in a country that  has opted into the regulation will need to alter their will to make that clear, said Simon Leney, parter at Kent firm Cripps and chair of the Law Society’s Private Client Section executive committee.

George Hodgson, deputy chief executive of STEP, advised anyone who owns assets in the EU to review their inheritance plans. He added that the complexity of the new rules means that anyone seeking to change their will to take advantage of their potentially valuable new rights should seek specialist advice. 

Many people have already revised their will ahead of the law being introduced, Frimston said. 

Jon Gould, head of private client at DWF’s Newcastle office, said whilst the intention of the new rules is to simplify the current situation, it is still a complex area.

’Conflicts may still arise in the future and the situation will not always be clear given that some EU member states, like the UK, have opted out of the new rules,’ he said.

Readers' comments (5)

  • There is nothing new here. I have been advising my clients of these changes for at least 18 months.

    And BTW the I(PFD)Act 1975 only applies if the deceased dies domiciled in UK.

    Unsuitable or offensive? Report this comment

  • PS What this article does not mention is the fact that the local tax laws will still apply to the estate however it devolves. This may lead to more IHT being payable e g in France where the top rate can be 60% with no reliefs if the estate passes to a stranger.

    Those fancy school and hospitals don't come cheap!

    Unsuitable or offensive? Report this comment

  • Well, the "European Succession Certificate", or whatever that is called in EU English, it's a good idea to settle a title in inheritances not ruled by wills.
    The problem is the system is extremely complicated and won't prevent from cross-border law conflicts...
    Anyway, intentions are good, I think we're on right track eventually..

    Unsuitable or offensive? Report this comment

  • Can anyone please tell me if Belgium has signed up to the new rules allowing a foreign national to elect for his estate to devolve according to that nation's inheritance laws? I have been instructed to draw up a UK national's will and want to be able to advise if he can leave his estate to whoever he wants, or will it be governed by Belgium's Civil Code with reserve heirs' etc etc. as he has lived in that country for many years.

    Unsuitable or offensive? Report this comment

  • David. I'd go and get some legal advice from a solicitor on your question if I were you.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

  • Print
  • Share
  • Comments (5)
  • Save

Petty france

Third-party JR funders must be allowed anonymity – Law Society

25 August 2016By

Ministry of Justice says identification of funders giving more than £3,000 will ensure equality of arms.


Buy-to-let tax changes ‘legislation by stealth’

24 August 2016By

Law Society says amendments at committee stage 'set disturbing precedent'. 

Jeremy Wright QC MP

‘Unduly lenient’ sentences hiked for 102 offenders

24 August 2016By Gazette reporter

Number has risen 13% since 2010, but requests have more than doubled – suggesting judges ‘generally get sentencing right’.