Don't Just Die Anywhere

Don't Just Die Anywhere!

Lake

We all know we can't take our money with us. But do we really want to leave it to the tax-man? Not surprisingly most countries that tax us most when we're healthy are often the ones that impose the heaviest taxes when our bodies have had enough of mortal existence. So, when it's time to depart, be aware of the rules of the ground upon which your departure terminal is situated. Some countries charge a lot more than others for spiritual flights! Leading the till-ringing list of pleased-to-hear-of-your-demise countries are Sweden, Spain, France, Belgium and the Netherlands.

Although some countries don't have inheritance tax, e.g. Luxembourg (very civilised), Canada, Mexico, Monaco (sort of sexy image), Argentina, Australia, Israel, Egypt, India and Indonesia, some of them can have other little ways of making up their potential losses by adding the value of your estate to your last year's income and taxing that. Mainland China doesn't have inheritance tax but Hong Kong does - I wonder which one will fall into line with the other? Rates can be high, and 55% is not an uncommon rate, and in certain circumstances some countries can make that look positively bargain basement.

To add to the woe many countries have "forced heirship" which can actually dictate who can inherit and how much. This might completely contradict the will, but when we're no longer around to point this out, it makes it a trifle difficult to argue the matter!

The camels are behind the pyramids

None of us wants to think about the eternal beyond, well, not when it involves us directly. Many of us haven't even made a will, never mind digging in to repel inheritance tax borders. Like it or not, it can pay to plan for your departure, unless you are happy making a donation to the tax-man. Perhaps a large donation. Perhaps a very large donation!

Tax-planning will obviously vary depending on where you decide to rest your remains. That will steer the course of action you will have to take to mitigate the potential tax burden of the estate. There's a myriad of ways to help reduce the millstone, some good, some not so, some easy, some complicated, and some possibly more expensive than the tax! Beware, take professional advice.

So, get your plans together and do something about keeping your wealth intact before you take the final step to the tax haven in the sky - God (used wisely), what misery to find out it wasn't! We can't minimise the fact that we will not be putting our clogs on one morning, but we can certainly curtail the joy the tax-man will have when he comes knocking at the doors of our wake, where we are celebrating our escape from his clutches!

The example below shows the tax payable from a $3 million estate with half of the estate going to the deceased's spouse and the other half to three adult children.
Viking Ship - Deactivated

Sweden brings the biggest chest to be filled at $839,281. Denmark, having long left behind their distant history of pillage and plunder, only extract $108,000, Switzerland even less.

However, if there was no spouse living to hand on half the goodies to, or she/he was a different nationality, or it all went to the children, then the tax payable in some countries can increase, severely!

SJIC can guide you about which countries have forced heirship - and recommend actions to reduce or avoid inheritance tax. Usually there are many ways to minimise the tax and our comments here are only made to make you think about it, although some readers might want to cry! It's doubtful anyone would want to commit suicide though until they have sorted out their trusts or moved to another land!

Back to Forced Heirship

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