How New EU Rules For Cross-Border Estates Impact Canadians

When a client dies leaving assets in more than one country, conflict of laws rules (also known as private international law or PIL rules) step in to help determine which country's law should govern succession of the estate.

These rules are often complex and challenging to navigate.

To achieve more clarity and certainty, the European Union passed a law known as the Succession Regulation in July 2012. It will be fully operational in all EU member states as of August 17, 2015 (except in Denmark, the U.K. and Ireland, which decided to opt out).

The Succession Regulation can significantly impact Canadians with assets in, or other ties to, a participating EU member state. So, advisors must understand how the Succession Regulation operates and can be used by their clients.