UK & Germany wills, probabte, IHT tax etc

Brighty

Hi all

Wife and I are getting prepped to get our wills written, which has made me think about my brothers situation and that i should really get him to get will(s) written too, but i want to understand a bit more before i advise him what he needs to do. The more i think about it, the more complex the situation could end up, with potential IHT issues as it currently stands

Situation is, my brother moved to Germany with his German girlfriend, around 10 yrs ago.

They bought a house there together 3 or 4 years ago.

They never married and have no children, no previous children or marriages on either side.

They have now split up, but it looks like brother is staying in Germany

He is my only sibling, our parents are deceased, therefore i am his next of kin. As it stands with no will, i would inherit under UK intestancy laws, how about Germany?

I own 3 properties in the UK with him, 50% him, 25% each me and my wife
Therefore he has assets in the UK and Germany

His share of the UK properties is currently worth approx £410k, £380k once the mortgage is paid off

Does he need 2 wills? A UK and a German one?

Do both estates get lumped together and go through probate in the country of residency/death? Or are they treated completely separately?

Does he get the £325k inheritance tax limit on UK assets, then the German assets get a separate allowance over there?

So many more questions in my head on this one, definitely needs sorting

Any advice appreciated

Thanks

Brighty

Yorkshireman99

Brighty wrote: »

Hi all

Wife and I are getting prepped to get our wills written, which has made me think about my brothers situation and that i should really get him to get will(s) written too, but i want to understand a bit more before i advise him what he needs to do. The more i think about it, the more complex the situation could end up, with potential IHT issues as it currently stands

Situation is, my brother moved to Germany with his German girlfriend, around 10 yrs ago.

They bought a house there together 3 or 4 years ago.

They never married and have no children, no previous children or marriages on either side.

They have now split up, but it looks like brother is staying in Germany

He is my only sibling, our parents are deceased, therefore i am his next of kin. As it stands with no will, i would inherit under UK intestancy laws, how about Germany?

I own 3 properties in the UK with him, 50% him, 25% each me and my wife
Therefore he has assets in the UK and Germany

His share of the UK properties is currently worth approx £410k, £380k once the mortgage is paid off

Does he need 2 wills? A UK and a German one?

Do both estates get lumped together and go through probate in the country of residency/death? Or are they treated completely separately?

Does he get the £325k inheritance tax limit on UK assets, then the German assets get a separate allowance over there?

So many more questions in my head on this one, definitely needs sorting

Any advice appreciated

Thanks

Brighty

He needs an English and a German will. The best thing is for him to consult a lawyer who has expertise in both countries. As he is resident in Germany he needs to ask around there. The wills need to be probated in each country. There are provisions so that the estate is not taxed twice. A lawyer with expertise in both countries laws will be able to advise him on this and also IHT planning rules. Well worth the expense of doing.