First topic message reminder :

[size=55:wzymimhp]Opp 29 September 2010

Overseas residents prefer to bank at home

Two thirds of British expats believe that UK banks are better than those available in their country of residence and that sterling will prove a better bet than the Euro, according to a major new survey out this week from Lloyds TSB Bank.

Four times as many responders believing that sterling is stronger for their savings than the euro and many UK overseas residents maintain ties with their homeland. 79% hold their money in sterling and over half still holding a UK current account.

Two thirds of expats believe that British banks are better than those available in their country of residence (62%). Furthermore when asked which services they still used a British provider for, 83% of the responses were financial services related including banking products, pensions and insurance. Very few respondents felt that they needed a British provider for other services for example legal (five per cent) or healthcare (five per cent) according to a new survey[1] commissioned by Lloyds TSB International. Additionally despite almost 90% of respondents having been abroad for over five years, over half (55%) still maintain a UK current account and 80% still holding money in sterling.

Jakob Pfaudler, Managing Director of Lloyds TSB International, said: “It’s good to see confidence in the British banking system is returning. Britain's economy is showing continued signs of progress, with consumer confidence returning and businesses beginning to invest again. At the same time, the British banking system has returned to profitability, which will enable it to support and underpin the economic recovery.’’

The survey of British expats, living in France, Hong Kong, Spain, South Africa, UAE and USA, also shows that confidence in sterling is high in comparison with other currencies, with four times (44% versus 11%) as many respondents believing that sterling is stronger than the euro for their savings. Only three per cent of those now living abroad cite weakness in sterling as a factor most likely to contribute to having to return home early.

Jakob Pfaudler continued, “It is also reassuring to see that so many British expats are confident in the future of sterling which, after depreciating over the past few years, has stabilised as the economic recovery has taken hold and measures to improve the public finances have been laid out. In part their behaviour has been a reflection on what has occurred in the wider financial markets with the flight from more indebted economies.’’

starlite wrote:

Emil, if you reside in bulgaria, are my uk assests protected by my uk will.

Yes, but don't forget the reserved portion

BTW the amount of the inheritance tax is between 0.4 and 6.6% (for properties valued over 250k leva). And there is no tax for the spouse and the inheritors of direct line (children, grandchildren and so on)

sorry dont understand that. are my assests in the uk subject to the reserved portion. so my uk will while i reside in bulgaria is subject to bulgarian law. if it is thats scary.

starlite wrote:

sorry dont understand that. are my assests in the uk subject to the reserved portion. so my uk will while i reside in bulgaria is subject to bulgarian law. if it is thats scary.

Oh, no, no, no! I meant that your properties in UK are subject ONLY to your will that you have done in UK (and hence protected by your UK will) - Bulgarian law is definitely NOT applicable when it comes to your real estates in UK

The reserved portion is only applicable when we speak about properties in Bulgaria

phew

many thanks emil, you have been a really good help.

Just got this from my lawyer and thought I would share it.


How to Make a Bulgarian Will

Many Britons and Irish who own properties in Bulgaria are turning to me with the question how to make a Bulgarian will. There is a huge difference between the Bulgarian Wills and Probate process and the UK one. That’s why the Bulgarian will has to be drafted as much close to the UK requirements as possible. Before we go through the details how you can make a will in Bulgaria, we have to clarify some jurisdiction specific topics. If you have already made a will in UK, check below if it is not in contradiction to the statutory requirements in Bulgaria.

What you can put in your Bulgarian will

As you are probably a UK citizen, your will is generally regulated by the statutes of the UK laws. Your UK will can contain how your bank accounts, movables, intellectual property etc. can be disposed after your death. However, a general legal principle provides that any rights and obligations concerning a real estate property are regulated by the jurisdiction,where the property is located. Following this principle, you can see the specific regulation in the Bulgarian International Private Code:

"
Article 89 (2) Succession to immovable property shall be governed by the law of the State in which the said property is situated"


However this could be interpreted also for the probate process (death without will). Therefore the Code also provides explicit regulation, so that wills are valid, namely:

"
Article 90. (1) The capacity of a person to dispose of the property thereof by means of a will (making and revocation) shall be governed by the law applicable according to Article 89 herein."


As you can see, Article 90 refers the will regulation to Article 89 and we can clearly see that if you want to include your Bulgarian real estate property in a will, the latter should be made in Bulgaria, according to the statutes of the Bulgarian law.
How can I make my Bulgarian will

It’s easy to make a Bulgarian will. We, at MHLegal solicitors can draft your will, so that it conforms with the Bulgarian statutory requirements. Moreover we can make your will bilingual – both in Bulgarian and English language, because many translators in Bulgaria are just not aware of the legal terminology, which on the other hand can bring more troubles than benefits for the heirs of the deceased.

When you instruct our solicitors to prepare a draft of Bulgarian will for you, we will look at all aspects of the process, including going through a very simple process of estate planning in Bulgaria. We will look at your current property status – whether you own the real estate on your personal name(s) or through a limited company and will suggest the best way forward.

After the final draft is approved by you, you will have to attend a notary public office in Bulgaria, so that the will is certified. There are two types of will in Bulgaria:

* Handwritten will and
* Notarised will

The first type of will cannot be used by foreigners unless they can write, speak and understand Bulgarian. The statutory requirement for a handwritten will is that it is written in Bulgarian language. Therefore we assume most of the English who own properties in Bulgaria cannot use this option for their Bulgarian will. Even if someone considers that he is fluent in Bulgarian, a future will dispute will complicate the matter as the heirs will need to prove if their ancestor had been fluent in Bulgarian indeed.

The second option for a Bulgarian will suits our needs perfectly. There are a few benefits of the notarised will before the handwritten one.

First of all, the notarised will is witnessed by the notary public, who has official witness functions in Bulgaria. Therefore any disputes of the will are to be more difficult. Secondly, the notary keeps a book of all notarised wills e.g. there will be an original at notary’s archive after the person’s death. Even if the original is lost, the heirs can always get a copy from the notary’s archive.

And thirdly, the wills are registered at the Registry Agency. The wills have to be signed also by two witnesses. Every person has to make a separate will e.g. a married couple cannot make a single will.

Claiming and Disputing a Bulgarian will

Claiming the will is as simple as using the original for disposal deals. Of course this has to be done after the death of the person who made the will. Normally the authority where you present the will, requires a death certificate, legalised in UK, if the person died in the UK. If you will be using the will in UK (e.g. probate court), the Bulgarian will has to bear an apostille issued by the Bulgarian Ministry of Foreign Affairs.

Disputing a will can be done by the lawful heirs of the deceased and can be initiated only before the Bulgarian courts.

Thank you Andy very much appreciated.

All well and good but there is a simpler method for those who only need a very basic Bulgarian Will. My lawyer asked me to write my Will to ensure that my property share was passed to my partner and also that he would have access to any named bank accounts. We then went to a Notary and lodged the Will which superceded an original one. I decided not to amend the first one as it would cost to see it. The whole cost was a few leva. My lawyer also told me or my partner to inform her immediately on the death of the partner and she would deal with the formalities. I found this very reassuring. I made a Will for my family in UK many years ago and kept it simple so that it need not be changed. Everyone's happy.