EY analyzes risks in cross-border inheritance and wealth succession

EY (Ernst & Young) recently held a seminar addressing the complexities of cross-border inheritance, will validity, and family wealth succession. Experts highlighted that the location of assets does not necessarily dictate which country's laws apply; instead, factors such as the deceased's nationality and domicile are critical in determining applicable legal frameworks.

Cross-border inheritance can be a lengthy process, often taking one to two years due to requirements for document notarization and authentication across different jurisdictions. Without proper planning, legal disputes regarding will validity or asset distribution can persist for years.

Regarding taxation, experts noted that under recent amendments to Taiwan's Estate and Gift Tax Act, gifts made to specific relatives within two years prior to death are integrated into the total estate for tax purposes. Under the new rules, the recipient of such gifts is responsible for paying the tax proportional to the value of the assets received, rather than all heirs sharing the burden collectively.

To mitigate risks, EY recommends a holistic approach to wealth transfer, utilizing tools such as life insurance for liquidity and trusts for structured asset management and distribution.