1. Estate Practice: Clients and Multiple Jurisdictions Michael J Perkins BUSINESS & ESTATE LAWYERS www.mjplegal.com

2. Key Challenges Australians as global citizens - media commentary 1 in 4 Australian residents were born overseas 1 in 3 Sydney residents were born overseas  As at the 2006 census in Armidale top 6 countries of birth were:  Australia  England  New Zealand  China  United States of America  Germany  What assumptions can you make about the territorial connections of your clients? BUSINESS & ESTATE LAWYERS www.mjplegal.com

3. Estate Planning – What do we mean?  “Estate Planning is a professional service (encompassing strategies, processes and actions) focused on the preservation and transfer of a client's wealth for the client and their designated successors” BUSINESS & ESTATE LAWYERS www.mjplegal.com

4. What is your role?  Advice and management services  assistance with analysis and interpretation of legal and factual issues  assistance with the planning and management of a client ’ s affairs  Transaction execution  assistance with the enforcement of legal rights and obligations, including ownership of property  assistance with the authentication and assurance of title to property of any type BUSINESS & ESTATE LAWYERS www.mjplegal.com

5. Get To Know Your Client!  Was the person born in Australia?  Does the person hold dual citizenship?  What is their migration status in Australia?  Is the person subject to the law of another country, state or legal system? If so, how?  Asset location  Family location  Citizenship  Domicile  Investment activity  Central management and control BUSINESS & ESTATE LAWYERS www.mjplegal.com

6. What is your Client’s Family and Social Heritage?  Does any family member or legal personal representative of the person reside outside Australia?  Is the person a citizen or domiciliary of any country other than Australia?  Is the person a member of a non-Christian religion?  Is the person subject to native title customary law or first nation based legal rights? BUSINESS & ESTATE LAWYERS www.mjplegal.com

7. With What Territories Is Your Client Connected?  Has the person worked outside Australia?  Is any estate property located outside Australia?  Is the person a trustee, agent, representative or fiduciary for another person and, if so, where is that person located?  Has the person created a waqf which binds their estate?  Has the person made arrangements for the management or co-ownership of property in any legal jurisdiction? BUSINESS & ESTATE LAWYERS www.mjplegal.com

8. Estate Review - Key Questions  Do you own all rights in your estate assets?  Can all elements of your estate be transferred to your successors?  What is the limit to the jurisdiction of your will?  How is your estate to be taxed? BUSINESS & ESTATE LAWYERS www.mjplegal.com

9. Will drafting issues  Immovable property is governed by the law of its location  Movable property is governed by the law of domicile of the will maker and includes:  Bank accounts  Intangible assets  Contractual rights  Other choses in action BUSINESS & ESTATE LAWYERS www.mjplegal.com

10. Estate taxation  The citizenship of a client can affect taxation of the estate e.g. USA  The domicile of a client can impose death duties on Australian estates e.g. UK  Forced heirship can apply to Australian connected property e.g. movable estate of Australian resident non-domiciliary  Central management and control can change BUSINESS & ESTATE LAWYERS www.mjplegal.com

11. Wills essentials  A will must be valid by the law of its place of execution (s.48 Succession Act 2006)  Deceased estates are taxed as trusts and therefore by the location of the trustee  Align estate trustees with the location of assets whenever possible  Consider if Australian tax rules apply to non-Australian operations of the estate  Assess if inheritance tax will impact the estate BUSINESS & ESTATE LAWYERS www.mjplegal.com

12. Estate Management Issues  Management right changes can have taxation impacts.  How is trustee succession to occur?  How might Australian structures be impacted by a mobile family?  Managing diminished or absolute incapacity can be more complex than death – how healthy is your client? BUSINESS & ESTATE LAWYERS www.mjplegal.com

13. BUSINESS & ESTATE LAWYERS www.mjplegal.com Phone: 02 8022 4714 www.mjplegal.com