When it comes time to make your will, you might assume it will automatically be recognised in any jurisdiction where you own assets. Wills can be complex documents to write, especially when managing assets across borders.
International wills provide a solution, and our expert estate planning team can help you protect your family, assets, and future. This information will guide you through the essentials of international wills and how they protect your cross-border assets.
The Challenge of Managing Global Assets
Managing assets across multiple countries poses substantial challenges for estate planning today. Australian property owners with overseas investments and bank accounts face increasing complexity when distributing these assets upon death.
Why a local will may not be enough
Australian wills often fall short in handling international assets. Every country maintains its own set of rules to determine if a will is valid. How your assets are treated depends on their classification:
- Laws of the asset’s location govern immovable assets like real estate
- The deceased person’s domicile laws typically apply to movable assets such as bank accounts
This difference means your Australian will might not work for certain overseas assets, and they could end up being distributed according to foreign laws instead of your wishes.
Common issues with cross-border estate planning
Cross-border estates face many complications beyond simple validity concerns. Some countries enforce forced heirship rules where children have guaranteed inheritance rights that can override your Australian will. The administration process itself often brings its own set of hurdles. Your executor must work through:
- Multiple probate applications in different jurisdictions
- Tax systems that could lead to double taxation
- Succession laws that often conflict with each other
Your global assets could remain frozen for long periods without proper planning, leaving your loved ones to struggle with unfamiliar legal systems.
How International Wills Help
To make succession law simpler and more consistent, Australia adopted the Convention Providing a Uniform Law on the Form of an International Will 1973. The convention took effect in Australia on 10 March 2015, and all states and territories have introduced laws to implement it.
One of the ways the convention sought to simplify the process was to introduce a new form of will, known as an international will.
What is an international will?
An international will is a will drafted in a standard format recognised by multiple countries under an international convention. It’s designed to be legally valid across different countries, often following specific rules about how it’s signed and witnessed so other participating countries can recognise it.
It doesn’t always automatically deal with tax or inheritance laws in other countries, but it helps ensure your will itself is accepted as valid.
How the UNIDROIT Convention works
The International Institute for the Unification of Private Law (UNIDROIT) drafted the Convention to solve a common issue where assets didn’t get distributed as planned because wills from Country A didn’t meet Country B’s requirements. The Convention created a uniform law that adds international wills as an option, allowing participating countries to accept each other’s wills without checking local formalities.
The Convention only deals with formal validity and doesn’t change inheritance laws in signatory countries. This means that while courts will recognise your international will’s format, local succession laws still control asset distribution.
Are international wills valid everywhere?
Australian courts accept international wills since Australia joined the UNIDROIT Convention in 2015. Twelve countries now have laws that recognise international wills:
- Australia
- Belgium
- Bosnia-Herzegovina
- Canada (except Quebec)
- Cyprus
- Ecuador
- France
- Italy
- Libya
- Niger
- Portugal
- Slovenia
Some U.S. jurisdictions also accept international wills even though the country hasn’t officially signed. You should check if the countries where you own assets have signed the Convention before creating an international will.
Steps to Making a Valid International Will
Creating a valid international will is important for protecting your global assets. The best way to ensure you have the right protection is to consult with an expert wills and estate lawyer first, but below we’ll provide a quick overview of what’s involved.
Step 1: Confirm countries where you hold assets
List all countries where you own property, investments, bank accounts, or other valuable assets. This list lays the foundation for your international estate planning and helps determine whether an international will fits your situation.
Step 2: Check if those countries are signatories
You need to verify if the countries holding your assets have adopted the UNIDROIT Convention. Keep in mind some countries like Canada and the United States haven’t adopted it across all their regions.
Step 3: Work with an authorised legal practitioner
Australia’s rules allow only Australian legal practitioners or public notaries to handle international wills. Our team are experts in both local inheritance laws and the Convention’s requirements, and getting the right advice is vital for proper execution.
Step 4: Follow the formal requirements
Your international will must meet these specific criteria:
- Written content in any language, handwritten, or typed
- Your signature with two witnesses and the authorised person present
- Your signature on each numbered page
- A declaration that this is your will and you understand its contents
Step 5: Attach the certificate of compliance
The authorised person must complete and attach the Convention’s prescribed certificate. This certificate attests to the formal validity of your will in all signatory countries.
Risks and Limitations
Why some countries may not accept your will
The UNIDROIT Convention has been ratified by just 13 countries, which leaves some big gaps in worldwide coverage. Different approaches exist in Canadian provinces and U.S. states, even among countries that signed the agreement. Your will’s legal structures, like trusts, might face recognition issues in other countries.
Delays in probate due to original will retention
Probate courts in each country need original signed documents. Documents can get lost or delayed during international transfers, which can freeze your assets for long periods and create administrative problems.
When multiple wills work better
Multiple wills for different jurisdictions (concurrent wills) are another way to handle your estate, especially when you have:
- Substantial overseas assets
- Assets that need local executors
- Assets you want to protect from potential claims
Get the Right Advice for Your International Will
Australian citizens with global assets face unique challenges when planning asset distribution across borders. Your estate planning strategy needs to match your unique situation and where your assets are located.
Our estate planning specialists are a great way to get help with complex Australian and foreign succession laws. We can guide you toward the best structures that protect your assets, making sure your wishes are followed, whatever country holds your property.
Quick action today means your assets will be distributed the way you want them to be. Book a consultation with our team to find out how we can help you today.