Overseas assets: a headache for estate administration
Assets held overseas can cause significant practical difficulties when it comes to estate administration. While having money abroad may have made sense at the time of investment, unfortunately serious complications can arise post death.
The same is true for home-based assets. Many people accumulate multiple UK bank accounts, shareholdings and funds held with investment platforms over the years. After death, however, each additional account then creates more work.
Each and every bank or investment provider must be contacted separately. They will have their own closure forms, identity requirements and timelines. AI has not yet simplified this! Even within the UK, multiple accounts can slow matters down and increase professional costs. Consolidating accounts where possible can therefore make a noticeable difference to how quickly and efficiently an estate can be dealt with.
It is particularly difficult where assets are held abroad. Different countries have different legal systems, succession rules and tax requirements, and an English grant of probate document is rarely enough on its own.
In many cases, executors are required to obtain a separate grant of probate in that foreign jurisdiction where the asset is located. This almost always means instructing a solicitor abroad. Obviously this then means additional legal fees, unfamiliar procedures and considerable delay.
Shares held abroad can be particularly difficult to deal with when they are registered directly with individual company registrars, rather than being held through a central investment firm or platform. Each registrar will have its own requirements, documentation standards and timescales. Executors can find themselves dealing with multiple overseas registrars, each applying different rules, which can make the process extremely slow and frustrating.
Dealing with overseas institutions is generally time consuming. Documentation requirements are often extensive and requests for information can take time to process. Language differences may add another layer of difficulty. Where assets are held in countries with significant time differences, even basic communication can be significantly protracted, with emails and queries taking days rather than hours to resolve, or requiring telephone calls early in the morning or late at night!
All of this has knock-on effects. Estate administration can stall while overseas assets are realised or transferred. Tax positions may need to be revisited, and distributions can be delayed for long periods. Professional fees can multiply as advisers spend more time coordinating matters across borders.
It is therefore prudent to review whether overseas assets are still necessary at the current stage of life. Also to be considered is to bring individually held shares within an investment firm or platform. Even if this incurs some extra commission and fees, this can well be cheaper than the cost of unwinding the shareholdings after death. In some cases, bringing assets back to the UK during life can simplify matters considerably. It goes without saying that tax advice needs to be taken.
A similar review can be helpful for UK-based assets. Reducing the number of bank accounts and investment platforms, where appropriate, can significantly ease the administrative burden later on. Fewer institutions mean fewer forms, fewer delays and clearer oversight. Again, shares held with an investment house can cost less in commission and fees than the cost of liquidating the shareholdings post death.
Consolidation is not about limiting choice or flexibility during life. It is about reducing cost , stress and complexity later on. Addressing these issues during life can save significant time, cost and difficulty in the future.