Last will's and testaments for expats?

I'm curious as to what other expats have done for their wills.  Besides the issue of having assets in two different countries, I also have adult children from a first marriage as well as a soon to be second spouse.  Any thoughts or ideas on how to do things fairly as well as the expat situation will be much appreciated.

I'm also hoping I haven't already posted a thread on this topic - I don't think so, but my memory is not so great anymore. 

When we got our wills drawn up, we were advised by the solicitor to have a will in every country that one has assets, as that way there would be no dispute.

Thanks, that does seem to be the majority of advice on the subject and it makes sense.  I guess problems can arise from not making sure the various wills are in agreement, which could then lead to disputes over which one is the "last will and testament".  Luckily for me, I don't think there is enough in my estate to cause much of a dispute. 

We were advised to do the same thing -- have wills in both countries.  We did so, and made sure that the lawyer in the US and the solicitor here each had a copy of both wills.

Thanks orkneytime. 

After thinking about it for awhile, it makes sense to me to have basically the same will (adjusted for respective legal differences if any) in both the US and UK, as opposed to one for US property and another for UK property.  That seems less confusing to me anyway.

Will?  What will?  I keep nagging DH ...

Will?  What will?  I keep nagging DH ...

LOL - I hear you, the only will I seem to be getting around to is precious little and that's the will to keep packing and waiting another day for a visa decision....   

Hi Becca, just wondering if you ever did settle all your 'will' issues? I need to do this now; I need to update the 'old' US will and get a new one for the UK.
Can I ask how you decided to divide things up for your children and new spouse? I'm thinking of just equal portions all around. I need to find out if there's a way to have any $ left to my UK spouse, forwarded to my children if something happens to him someday. He hates even talking about wills so I don't think he'll ever want one! I wouldn't want his family (who never bother with us) to have any of it.

Just another thing to take care of I guess!
Mary

I need to find out if there's a way to have any $ left to my UK spouse, forwarded to my children if something happens to him someday.

I was reading a legal article on the difficulties of something like this.

This particular article was speaking more to a person leaving everything to the spouse, with intentions that upon death of the surviving spouse, all will go to the children. A little bit different.

But in the article it mentioned that it is very difficult to "build in" that next step, as the financial conditions of the surviving spouse could change...they could lose everything for instance. They could spend that money. And of course they could remarry. 

Pragmatically speaking, I would think that there would be little chance that any money left to the surviving spouse, if left liquid, would ever make it to the children of the original deceased.

The article suggested living trusts, or if joint property was held, to set it up to where the children inherited the portion belonging to original deceased person. This latter suggestion was mentioned as being a bit problematic in that it sets up a situation where stepchildren would own part of the property of the surviving spouse. I suppose something could be set up where the surviving spouse could buy out the children.

If you were asking my opinion, I would think that there is always the chance that the surviving spouse will enter into a new relationship.....with perhaps a realignment of allegiance. So anything left to the spouse could end up going to some new person....or new stepchildren. Your children, however, will always be your own.

It's dark territory.

Edit: And please remember this was just an article I read in a legal journal.

Hi Becca, just wondering if you ever did settle all your 'will' issues? I need to do this now; I need to update the 'old' US will and get a new one for the UK.
Can I ask how you decided to divide things up for your children and new spouse? I'm thinking of just equal portions all around. I need to find out if there's a way to have any $ left to my UK spouse, forwarded to my children if something happens to him someday. He hates even talking about wills so I don't think he'll ever want one! I wouldn't want his family (who never bother with us) to have any of it.

Just another thing to take care of I guess!
Mary

Hi Mary,

I'd love to report that everything has been taken care of but, unfortunately, we are both guilty of procrastinating - it's just not a fun topic!

We are both retired and at this point most of my accounts are still in the US.  I had vaguely thought I would leave my husband the money in my UK account and my kids would split what is in the US.  As these amounts will be shifting over the years it's not necessarily a great solution, but it has a certain logic to me.  My UKC husband made it clear he didn't want to have anything left to him, but I think he should at least have enough to handle whatever expenses are involved with my demise....   At least our house is held jointly so that automatically goes to the surviving spouse (and for those who might point out the US/UK tax ramifications of that, the house value is well below taxable levels - the joys of living in the Northeast!    )

The scenario that sonofsailor refers to is a very real problem for many (including myself and my sisters in fact), but since my husband only has one sibling and a couple of nieces - no children of his own - I'm not too bothered by that possibility.  Although remarriage for either of us is unlikely at this point, I realize nothing is impossible.  So many what if's!

Honestly, I'm a bit more concerned about a few family heirlooms I brought with me that I think should be back in the hands of my kids if I pass away first - but there aren't many of those, most were left behind for this very reason.

I think the only real solution to all this is just to live forever..... but I suppose that's not the most practical life plan I've ever had. 

 

Well, I usually don't get involved with these finance threads....but have had, over the last few years, relatives die intestate. Nothing really concerning me, but close enough to see what a mess it can leave.

As all states are different in the US, things vary, but in Florida, a state still very much catering to retirees, laws have been enacted that make intestacy attractive - everything pretty much automatically goes to the surviving spouse. Under certain circumstances any court involvement at all can be avoided.

I suppose this is OK, but this choice is often made with these vague promises, perhaps made with all sincerity, that the surviving spouse will "take care of the children/stepchildren", but as these things go....

In the UK, this situation with extreme home values makes things complicated, with a growing portion of the population "millionaires" due to the value of the home....but with insufficient cash to smoothly transition after the death of one of the spouses. The sensible thing to do, I suppose, in this situation is for the surviving spouse to sell up quickly and divide out in some way....but that is complex too...and done perhaps at a time when big financial moves like that are difficult.
   

Death of a spouse doesn't cause inheritance tax if everything goes to the surviving spouse

An estate is exempt from Inheritance Tax if the deceased left everything to their husband, wife or civil partner, who lives permanently in the UK.

Married couples and civil partners can give any value of gifts to each other during their lifetime without Inheritance Tax being due on them.

This is known as ‘spouse or civil partner exemption’.

Death of a spouse doesn't cause inheritance tax if everything goes to the surviving spouse

An estate is exempt from Inheritance Tax if the deceased left everything to their husband, wife or civil partner, who lives permanently in the UK.

Married couples and civil partners can give any value of gifts to each other during their lifetime without Inheritance Tax being due on them.

This is known as ‘spouse or civil partner exemption’.

Yes, this is the case when the first spouse dies, but my understanding is - depending on circumstances - UKC/USC joint ownership can cause tax complications when the second spouse passes away? 

Perhaps I've misunderstood..... I'll admit to suffering brain freeze whenever I try to wade through tax and/or legal issues. 

Yes, but again if we are talking about dividing one's assets between surviving spouse and children, then how is the value of a house  best released?