Let’s start with a question; why do we need a Will?
A will, also known as a last will and testament, is a legal document that outlines a person’s wishes and instructions regarding the distribution of their property, assets, and possessions after their death. It serves as a written record of how an individual wants their estate to be managed and divided among their beneficiaries, which may include family members, friends, organizations, or charities.
Which is useful!
However, it is a legal document and therefore it involves the law and needs to conform with the law in order to be effective. It is also only effective after death, which means the individual is no longer around to confirm that these were truly their wishes.
Many of the problems surrounding a Will arise from this confirmation.
Witnesses
A Will must be witnessed by two individuals, who are not beneficiaries. They must sign each page.
They may be called on to confirm their signature when the Will is presented at the Probate Registrar, so it is best if the witnesses are alive and live in Cyprus. A potential problem can be eliminated by having the witnesses sign in front of a Certifying Officer or in the Probate Registrar prior to lodging the Will there.
If the witnesses are not available then affidavits may be required and additional costs created.
Executor
The Executor is the person responsible for ensuring that the individual’s wishes are carried out, and it is an onerous task. It is particularly difficult for anyone who is not able to read and write Greek, as much of the paperwork is only available in Greek. For this reason a lawyer is often either appointed as the Executor, or is given Power of Attorney to act on behalf of the Executor.
Having a member of the family or a close friend as Executor is generally considered beneficial, but it is important that they live in Cyprus, so as to be able to visit the Probate Court when required. They can also negotiate fees with lawyers and have the right to discharge them, should they be unsatisfactory. However, that can be an expensive exercise and not to be undertaken lightly.
Appointing a lawyer as Executor can open the estate to significant costs as some lawyers charge a percentage of the estate, plus miscellaneous expenses.
Scope
It is possible to have your Cyprus Will used to cover Worldwide assets, but this is generally not the most effective or efficient way to deal with an estate.
For a Cyprus Will to have an effect on assets held in other jurisdictions it needs to first get Grant of Probate, and then a lawyer in the relevant jurisdiction is contacted and the Will resealed there. This means delay, and the cost of two lawyers.
It is therefore best to arrange a Will wherever you have assets; it should result in less time wasted and reduce costs.
Avoiding forced heirship rules
A clause can be inserted in a Will requesting that one’s national laws apply to the distribution, rather than Cyprus forced heirship rules. This is an attractive option where the forced heirship rules are not aligned with one’s wishes, but there is a significant potential problem for a UK national.
Using English/Scottish/Irish/Welsh law could mean that you continue to be deemed UK domiciled, even if you have been a tax resident in Cyprus for many years, and never intend to return. This could mean that you entire worldwide estate is subject to UK Inheritance Tax.
In summary, tread carefully, there are potential pitfalls.
If at all possible avoid using a Will and therefore avoid probate – for more information contact us.
