DELIVERY OF FOREIGN ASSETS

There are many situations when a person is faced with the fact that he was left an inheritance abroad. And then you have to deal with the intricacies of not only Ukrainian, but also foreign legislation in order to properly take care of organizational aspects and not be “in the red”. Sometimes it happens that a relative who had a business or real estate abroad dies, but there is no will. Then there are a lot of questions about who and in what shares will get the abandoned assets. But this is not the only important issue of inheritance.

General Features of Heritage Taxation

So, the important aspects are that:

• Inheritance is subject to double taxation. First, taxes must be paid in the country where the assets are located, and only then - in Ukraine.
• Tax rates in some countries are very high. They can reach 60 percent.
• In Ukraine, there are no such huge inheritance taxes, but foreign heritage falls under the category of sources of income from abroad. Therefore, you need to pay personal income tax in the amount of 18%.

Sometimes clients have a question about whether taxes paid by the heir abroad are credited in Ukraine. However, it is important to understand what was said in point 1 of the above list. Heterogeneous taxes are not subject to offset in different states.

Things to Consider About Inheritance

Here it is important to consider such aspects as:

• Circle of main beneficiaries. The degree of relationship between the testator and heirs is important. For example, in Ukrainian legislation, inheritance by a wife, husband, parents, siblings is the basis for a zero tax rate. But this is not the case in all countries. For example, in France, only the inheritance that a wife receives from her husband and vice versa is not taxed. As for other cases, there is a progressive rate - from 5 to 60 percent.
• The total cost of inherited objects. For example, if we are talking about the UK, then direct heirs can inherit assets up to 325 thousand pounds sterling without taxation. In other countries, this amount varies.

If taxes are not paid, this may not be noticeable at first glance, but subsequently the heir will face the consequences of his decision. No transaction relating to assets can normally pass the procedure of financial monitoring at the international level.

What else is important

Although issues related to the taxation of inherited foreign assets are among the key inquiries in this category, the topic of taxes is far from the only thing to pay attention to. When such a case is handled by the lawyers of Prikhodko and Partners, we make sure that the client can really receive and formalize the inheritance on favorable terms for himself. Here it is important to pay attention to such aspects as:

• Features of the discovery, acceptance and registration of heritage in the country where a person inherits certain assets.
• The presence of other heirs and the intersection of their rights. For example, when it comes to common property, it is important to find out the legal regime for further use, the possibilities for transforming the relationship of heirs in the legal field, and other important aspects.
• The expediency of accepting the inheritance in one way or another.

The last of these points should be considered in more detail. Imagine a situation where a person inherits a good building from a distant relative in another country. And then it turns out that the deceased had a lot of debt. And since not only the rights are inherited, but also the obligations of the testator, the heirs will have to be responsible for debts within the limits of the inherited property.

If the debts are huge, it turns out that by not acquiring anything, the heirs create a problem for themselves and are obliged to pay off the testator's creditors. They deal with organizational and legal issues for a long time, distribute debts, but do not receive any benefits.

In order not to get into such a situation, it is important to first consult with a good lawyer who will tell you about the prospects for inheritance in each specific case and in accordance with the laws of the country where the assets are located. In short, the team of the law office "Prikhodko and Partners" will help you in this case. Contact us!