Can you gift money to a foreign government in your will?

nash0819

Yes, I know most of us probably want to minimise the amount of money that government gets from us when we die.

However, a relative, who wants me be to be an executor in his will and has asked for guidance in redrawing it, explicitly wants to donate money to the Australian and New Zealand governments, for personal reasons. I've suggested he give money to charities over there but he explicitly does not want to do that. We both live in England.

Is this even possible? My googling suggests it is possible in the States but I can't find anything similar for Aus or NZ.

Brynsam

Ask direct: https://dpmc.govt.nz/contact-us

Keep_pedalling

You can gift money to who ever you like. Gifts to the nation, UK charities and UK political parties is exempt from IHT, but I am pretty sure that does not apply to gifts foreign governments.

BrassicWoman

What does he mean by government? A political party? The civil service? A specific department (which may not exist in the future, these things change)?

I think this needs clarifying first.

Malthusian

BrassicWoman wrote: »

What does he mean by government? A political party? The civil service? A specific department (which may not exist in the future, these things change)?

I think this needs clarifying first.

Indeed. There was a famous case of someone who left money in their Will to "the Government" and the Tory Party successfully argued that the money should go to them, not the Exchequer, as they were "the Government" at the time. If I remember correctly - I haven't been able to find it on Google as the results were swamped with political spam.

As Australia and New Zealand also follow the UK common law system it is more than likely that the exact same thing can happen.

He should donate a fixed amount, for the same reason you should never give a percentage of your estate to a charity, and review this regularly.

If you're not a beneficiary I would decline to act as executor as this has the potential to be a big headache. Even if his wishes are crystal clear you still have to deal with two foreign tax offices trying to find someone who knows how to accommodate an unusual request.

Keep_pedalling

Malthusian wrote: »

Indeed. There was a famous case of someone who left money in their Will to "the Government" and the Tory Party successfully argued that the money should go to them, not the Exchequer, as they were "the Government" at the time. If I remember correctly - I haven't been able to find it on Google as the results were swamped with political spam.

As Australia and New Zealand also follow the UK common law system it is more than likely that the exact same thing can happen.

He should donate a fixed amount, for the same reason you should never give a percentage of your estate to a charity, and review this regularly.

If you're not a beneficiary I would decline to act as executor as this has the potential to be a big headache. Even if his wishes are crystal clear you still have to deal with two foreign tax offices trying to find someone who knows how to accommodate an unusual request.

I seem to remember that as well, but also can’t find it.

relaxtwotribes

Malthusian wrote: »

Indeed. There was a famous case of someone who left money in their Will to "the Government" and the Tory Party successfully argued that the money should go to them, not the Exchequer, as they were "the Government" at the time.

Yes, I remember this, too, but after a kerfuffle in the press about it the Tory Party and the Lib Dems (for it was in 2013) handed it over to the Treasury. Try Googling 'Lib Dems and Tories hand back £520,000 bequest'

G_M

nash0819 wrote: »

...... a relative, who wants me be to be an executor in his will and has asked for guidance in redrawing it, explicitly wants ......

This is madness.

DIY will-writing is perfectly possible for simple straight-forward wills, drawn up by anyone with a basic understanding, and the ability to read basic guides and cut/paste legal jargon (once the meaning of said jargon has been understood).

But a complex will? With strange requests that are not run-of-the mill? NO!

Pay a suitable solicitor, probably working within a firm that has offices in Australia/NZ.

Do not even attempt to advise your relative other than to point him/her at a suitable solicitor. To advise on the feasibility or wording of a will like this would be foolhardy, and if you are to be executer will cause you no end of issues down the line, with no guarantee of his wishes being ultimately carried out.


If the will is to include other Beneficiaries, who might challenge it, or % bequests rather than fixed amounts, or unclear wording as suggested above, or bequests to loosely identified beneficiaries, or benefirciaries incable of receiving the bequest, or beneficiaries which might entail tax complications, you could spend years (yes, really years) untangling it following death.


Property involved? Can't be sold for years till untangled, but must be insured, protected, council tax paid, ongoing mortgage..............The estate could be eaten away in all time-consuming mess.


Get professional help.

p00hsticks

Malthusian wrote: »

He should donate a fixed amount, for the same reason you should never give a percentage of your estate to a charity, and review this regularly.

Why is this please ? I've always thought a percentage would be better as if the estate is worth considerably less at the time of death than when the will is written, fixed amount bequests could end up swallowing the whole estate and leaving nothing for the residual beneficiaries ?

G_M

p00hsticks wrote: »

Why is this please ? I've always thought a percentage would be better as if the estate is worth considerably less at the time of death than when the will is written, fixed amount bequests could end up swallowing the whole estate and leaving nothing for the residual beneficiaries ?

There is a risk of the Beneficiary questioning the value of the Estate and therefore the amount they are due.

Charities have a duty to maximise their income. If, for example, they consider the deceased's property was sold for less than they think it could have been, they could demand a % based on what they believe the property (and hence Estate) was worth rather than what is being offered.

And indeed, any Beneficiary could query the amount they are receiving.

There have been legal cases over such disputes that have lasted for years!

A fixed amount cannot be disputed.

Mojisola

p00hsticks wrote: »

Why is this please ? I've always thought a percentage would be better as if the estate is worth considerably less at the time of death than when the will is written, fixed amount bequests could end up swallowing the whole estate and leaving nothing for the residual beneficiaries ?

This is indeed a risk especially if someone loses capability and goes into residential care - the amount of the estate can reduce dramatically but the person can't write a new will.