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 Sam Orgill of ProACT Partnership discusses Wills & Costs and Delays in Probate
It is always difficult in Cyprus to find sound professional advice regarding your Will. What are your options and what is best to protect your family assets?
Professional advice are ‘opinions' based upon laws, regulations, case law, tax rulings. There is also an element of standard practice and ‘norms' of business ethics and moral standards. These vary by country and legal systems (jurisdictions).
ProACT Partnership offers FREE REVIEWS of international Wills including UK & Cyprus aong with Inheritance Tax, Trust and Probate advice and services in the Paphos Cyprus office and the UK through Gareth Fatchett, a UK Solicitor.
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Differences
In the UK conflict of interest is strictly regulated by the Law Society, Financial Services Authority and accounting bodies. The resulting standard practice is that no one professional can act for two parties to any transaction. This applies to property conveyance, Wills and probates, financial trades and trust administration.
In Cyprus the standard practice is different with conflict of interest regulated within the professional bodies and the result is one professional firm regularly acts for both parties. There is nothing wrong with this but it means that clients need to consider the different practice when deciding what is best for them.
So when seeking advice on your Will in Cyprus consider what is best for you. ProACT consider the following issues when advising clients;
Executors
The appointed executor has sole control of the assets on death. You should ensure that the person appointed is someone you trust to carry out your wishes - family?
Cost of Probate
Cyprus solicitors have a fixed scale of charges they can use. This is the Cyprus rules. But be aware of the cost of obtaining probate on your Cyprus estate may be 2.5% of the value of assets - property and investments. A UK Will can reduce Cyprus probate costs.
Jurisdiction
‘Real' assets - land, property, business, cars, and shares - must be settled with probate in the country in which they exist. Personal assets - financials, chattels, jewels, art can be settled with probate in relevant country i.e. you can use your home country. Some Expats can settle some or all of their estate through a UK Will.
Will Storage
In Cyprus a Will must be stamped as a ‘deed' and ‘lodged' in the district court. If you store the Will in the district court an additional stamp duty is paid but you know it is secure and in place in event of death. However the Will cannot be varied only destroyed so, if you want to make changes, you have to by writing a new Will, with the expense that incurs. This would include changing the executor.
In the UK standard practice is not to lodge the Will in the court until after death. This practice is adopted in Cyprus in practice of some professional firms. This approach allows revision of the Will over the years and the will can still be lodged in court on death with a slightly higher stamp duty.
Conflicts of Interest
Probate fraud happens all over the world, in the UK and in Cyprus included. Bank accounts and house contents are often emptied by family members on death. The executor as ‘legal owner' of the estate is in a position to dictate events. To avoid property being sold ‘cheap' ensure the executors you appoint are people you trust and that appropriate checks and balances are put in place to protect your family assets.
ProACT Partnership offers FREE REVIEWS of international Wills including UK & Cyprus aong with Inheritance Tax, Trust and Probate advice and services in the Paphos Cyprus office and the UK through Gareth Fatchett, a UK Solicitor.
 Sam Orgill
ProACT Partnership
Tel: +357 26 819 424
www.proactpartership.com |
