Potential Probate Issues With Foreign Assets
“A whopping $539 million was assessed in the 12 months to March 31, more than five times the $105 million assessed in the 2007 tax year…, but the payment may not be immediate, as wills and so forth can take many months to settle.” wrote the September 10 issue of the Straits Times article titled “Did bumper $539m death tax come from them?”.
Yes, Estate Duty can be hefty and the probate process can be lengthy. Fortunately, Estate Duty has been abolished in Singapore. However, death taxes are still practised in countries like the US, UK, Japan and South Korea, amongst others. The lengthy probate process can be further delayed and complicated if foreign assets are involved. Some of the possibles issues include:
- Filing individual probate in foreign jurisdictions
- language barrier
- potentially high legal fees
- potential long delays in locking assets
Ease of probate should be considered in holistic Financial Planning. Too often, this aspect is neglected as products are pushed into consumers’ hands. Overlooking probate issues can bring lots of headaches for the family. Thankfully, available to us are platforms that can help minimise potential taxes and facilitate probate processes.
Few people like to think about death and probate matters. Taking care of them when we are well and the mind is sharp will definitely ease the pain in future. Seeing a love one depart is already hard enough. Do not let the administrative matters trouble them further.
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Tags: Estate
