Navigating Dual Citizenship in Estate Planning: Key Considerations and Action Items

Understanding the Impact of Dual Citizenship on Estate Planning

If you hold dual citizenship, it's essential to understand how this status can impact your estate planning, especially in terms of inheritance tax laws and residency status. Here are the key points to consider:

Inheritance Tax Laws

One of the primary considerations for dual citizens is whether their country of citizenship has inheritance tax laws that tax worldwide assets, including those owned or controlled in Australia. This could significantly affect your estate's value and the inheritance your beneficiaries receive.

Australian Residency Status

Your dual citizenship can also influence your Australian residency status for tax purposes. Understanding this relationship is crucial, as it could have adverse tax effects if you or any of your nominated beneficiaries are considered non-residents for tax purposes.

Executors' Residency

It's important to consider the residency status of your chosen executors. If any of your executors are non-residents, your estate could be deemed a "non-resident trust" for taxation purposes, potentially leading to higher tax liabilities.

Foreign Assets

If you hold assets in a foreign jurisdiction, you should determine whether that country is a signatory to the Convention Providing a Uniform Law on the Form of an International Will. If it is, you may discuss with your lawyer the possibility of making your Will an "International Will" to cover your worldwide assets. Otherwise, you might need to create separate Wills for each country where you hold assets.

Action Items

To ensure comprehensive estate planning, consider the following action items:

• Identify Overseas Assets: Determine the location, nature, and holding method of any assets you own overseas.

• Jurisdiction of Assets: Check if your assets are in a common law or civil law jurisdiction, as there may be rules on forced inheritance.

• Residency and Domicile Status: Clarify your residency and domicile status in Australia to understand the tax implications fully.

• Beneficiary of Foreign Trust: Verify if you are a beneficiary of a foreign trust, as this could impact your estate planning.

Start Your Estate Planning Journey with Inherit Australia

Navigating the complexities of dual citizenship in estate planning can be challenging, but you don't have to do it alone. Inherit Australia Estate Planning Assistant helps advisers and individuals explore and solve estate planning issues.

We Can Help

Inherit Australia Estate Planning Assistant is designed to assist advisers and individuals in understanding and addressing estate planning needs. Start your estate planning journey with Inherit Australia and ensure your assets are protected and your wishes are honored.

For personalized guidance and support, reach out to Inherit Australia and take the first step toward securing your legacy.