Brussels IV is Now in Effect

Brussels IV is now in effect, but whether or not it will succeed is still a viable question. Apart from its internal issues, its success will be hampered by the fact that the United Kingdom decided not to join Brussels I V. (Ireland and Denmark also decided against joining). In the end, fundamental...

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Bibliographic Details
Published in:Trusts & Estates 2014-11, p.30
Main Author: Hauser, Barbara R
Format: Article
Language:English
Subjects:
Civil law
Clawback
Estate planning
Inheritance taxes
International
Jurisdiction
Situs
Tax regulations
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Summary:Brussels IV is now in effect, but whether or not it will succeed is still a viable question. Apart from its internal issues, its success will be hampered by the fact that the United Kingdom decided not to join Brussels I V. (Ireland and Denmark also decided against joining). In the end, fundamental differences between the continental and English systems of inheritance have meant that the Government feels unable to commit to the Regulation at this time. This hesitance will come as a particular relief to trustees and charities, who were especially concerned by the prospect of continental "clawback" rules that allow gifts made during an individual's lifetime to be recouped after their death. The need for harmonization across Europe (or, indeed, across all countries - which was the goal of the poorly received Hague Convention on the Law Applicable to the Estates of Decedents) - is serious. Without harmonization, the conflicts among various countries' laws can make it nearly impossible to make an estate plan. The Regulation's solution is to find a way in which the law of one state will be applied to the succession (without any renvoi).
ISSN:0041-3682