UK opts out of EU regulation on succession and wills

The government has decided not to opt in to the proposed EU bill on succession and wills. Jack Straw acknowledged efforts to simplify and clarify the rules that apply to international successions could produce huge benefits for UK citizens, as the current diversity of rules can make for considerable complications when a person owns property across borders. He said that the decision to opt out had been because of two major problems with the bill: 

• clawback, a legal mechanism where gifts made during a person’s lifetime can be recovered after their death – this  could create major problems in Britain, particularly for the recipients of such gift, including charities;
• using habitual residence (the person’s primary country of residence at the time of death) as the factor of a person’s circumstances which determines when the regulation’s other rules apply – in the case of a British citizen who had settled abroad and died soon after, this could create complications for their beneficiaries, who would find the estate governed by unfamiliar, foreign rules, which could lead to unforeseen and unfair outcomes.

The decision followed a Ministry of Justice consultation on the bill, respondents to which also mentioned these concerns. A report of the consultation will be published in due course.

However, the government said it would be negotiating with EU member states on these issues, and would reconsider adopting the bill if changes to the relevant clauses could be made.

Jack Straw’s speech was reported in Hansard (HC Deb, 16 December 2009, c140WS).