Swiss executors dealing with UK assets – what do I do? Part two

This article is the second part of a two-part series addressing the key considerations for a Swiss executor dealing with UK assets. 

What needs to be done?

• Practical steps. The executor needs to know all the assets in the estate and to understand what documents are needed for the administration process. As part of the probate / administration process in the UK, in almost all cases, a certified copy of the Will is needed with an official translation if it is not in English. Similarly with the death certificate and any formal succession certificate (such as the Swiss Certificate of Heirs) – an official transition should be obtained if it is not in English. Valuations of the assets are also needed (as at date of death, and date of administration if significantly later). Typically for financial assets, valuations can be requested at the same time as notifying the financial provider of the death. For real estate, the involvement of local agents may be necessary.

• UK inheritance tax. UK inheritance tax liabilities of the deceased need to be considered. This could be in relation to UK assets and possibly also other assets of the estate, depending on the personal circumstances of the deceased. Even if no UK inheritance tax is due, an inheritance tax report may nevertheless need to be filed. In some circumstances, payment of UK inheritance tax can be made directly from the UK assets which may be beneficial where, for example, the administration of the non-UK estate has been completed.
• Grant of Probate. Probate confirms the executor’s authority to administer the estate – as a general rule, no UK asset of the estate can be transferred, sold or dealt with until UK probate has been granted. In certain limited circumstances, however, probate will not be required to release the UK assets to the executor – this is usually for low value assets. Similarly, in certain circumstances, if an equivalent to UK Grant of Probate has been issued elsewhere, it may be acceptable to ‘re-seal’ this document in the UK to avoid the need of applying separately for UK probate. Each asset provider will be able to confirm their position. 

If there is a Will which addresses the UK assets, a Grant of Probate can be applied for by the executor. The executor will need to submit all supporting documentation, and confirmation from the UK tax authorities that an inheritance tax account has been filed and all liabilities settled, if applicable. If there is no Will, a Grant of Letters of Administration can be applied for by the appointed administrator instead. The application is as above, and will also include an affidavit explaining why the administrator is entitled to obtain a UK grant in accordance with the law of the jurisdiction in which the deceased died domiciled. For example, a Swiss Certificate of Heirs could be submitted as evidence of (one or more of) the heirs’ entitlement to be administrator.

• Release of assets. Once probate is obtained, the executor will be able to coordinate the release of the UK assets for onward distribution to the heir(s). Depending on the complexity of the UK assets, the timeframe from identification to distribution to the heir(s) can take 12 weeks or up to a year or more, if a detailed inheritance tax account needs to be prepared and filed followed by an application for probate.

At Charles Russell Speechlys in Geneva and Zurich we have a dedicated UK team to assist with the administration of UK assets either as part of a wider non-UK estate administration exercise, or as an independent engagement advising executors, administrators or heirs. 

Please contact Sophie Hart on sophie.hart@crsblaw.com or Michael Wells-Greco on michael.wells-greco@crsblaw.com  for further information