Samantha Waller, Case Consultant, Title Research
An estate comprising of foreign assets can often appear daunting given that each jurisdiction has their own regulations that must be fulfilled. The requirements also differ depending on the value and type of asset. Our wealth of experience in these areas enables us to offer a fixed fee, guaranteed results service. We have the expertise to deal with the matter as quickly, and cost effectively, as possible.
The special relationship
There are several USA assets that come up again and again in British estates, including shares with Invesco, Dr Pepper Snapple Group, Marsh & McLennan. An estate with shares or bank accounts in the USA valued at under $60,000 at the date of death requires an abundance of forms to be completed, including a Medallion Signature Guarantee stamped transfer form, Affidavit of Domicile and the W8-BEN tax form.
However, if the date of death value is over the $60,000 threshold then tax clearance from the Internal Revenue Service (IRS) must be obtained before the transfer procedure can even begin. Tax clearance requires the submission of a Tax Affidavit and the form 706-NA, plus continuous liaising with the notoriously difficult IRS. The IRS take a minimum of twelve months to complete their processing of the estate documents. This whole process can be complicated and subject to unnecessary delays for those unfamiliar with the red tape; as we routinely deal with assets in the USA we have the knowledge to navigate the systems with ease, and complete the transactions as promptly as possible.
Resealing the Grant
Other jurisdictions have a range of conditions, one of the most complex of which can be the need for a Reseal of the English Grant of Probate in the relevant courts. We frequently obtain Reseals in countries such as Australia, Bahamas, Cayman Islands, Ireland, New Zealand and Malaysia.
Obtaining a reseal in a jurisdiction where the courts are subject to far less stringent regulations than our own can be a protracted process. Fortunately, our specialised lawyers are able to traverse the complexity of the ever changing requirements and obtain the Reseal in as swift a time as possible.
The Far East
An example of a jurisdiction where the requirements can seem truly daunting is Malaysia. Following the economic slump in the Far East in the 1990’s, the Malaysian Government took the decision to create the Central Depository System (CDS) where all shares are held electronically.
There are three main hurdles to overcome in this jurisdiction; obtaining a Reseal in the arduous Malaysian courts, opening a brokerage account in order to sell the shares and attain money laundering clearance from the CDS. The last two of which require the completion and execution of at least eight different documents, many in duplicate!
You might assume that shares or dividends remitted to the Malaysian Government in accordance with the Unclaimed Money Act 1965 would be lost, but this is not the case. We have worked on numerous estates where this has been the case, and each time successfully retrieved the funds within a matter of months. In fact, the time frame is far shorter than for funds escheated in many states of the USA.
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