Overseas Chambers of Peter Harris

EU Succession Regulation 650/2012: Movables in Europe and the position for residents and '[nationals?]' of the The Crown Dependencies

January 6th 2016

See Peter's short warning as to the position of Channel Islanders and incidentally Manxmen as to choices of law and habitual residence issues under the EU Succession Regulation 650/2012, which is now effective within Europe for assets situated there in the event of a decease.

There is no doubt that each testamentary disposition made prior to 17th August, 2015 needs checking and that any testamentary disposition involving assets within the European Union needs careful preparation given the change in the law applicable to each succession.

You may also need to refer to Peter's outline of the dispositions regulating the Crown Dependencies' Constutional position in relation to the EU, which is now of direct relevance to the allocation of nationalities under the Regulation and as to whether we remain within the umbrella of the United Kingdom or not for the purposes of the Regulation.

Peter's position on the applicability of the Regulation is that in relation to it, Jersey is a third state both in relation to the EU and what is more in relation to the United Kingdom, which has opted out of the Regulation. The  Crown Dependencies are not within the UK's internal allocation rules under article 36 of the Regulation, for habitual residence purposes, as they are not part of the Member State. However those allocation rules do apply where the deceased has opted for their suucession to be governed by the laws of their nationality, and there is an EU asset in question.  In that case, article 36.2.  allocates the law of the British nationality to the jurisdiction with which the testator was most closely connected, in this case, at the date of the execution of the testamentary disposition containing the option, whether resident there or not.

Issues will arise in implentaing this where a deceased has opeted for his nationality to govern his entire succession and dies habitually resident, and, for the purposes of this example, domiciled outside the EU but within a counrry which allocates the law governing the succession by reference to domicile.  Each case needs to be reviewed separately. Therefore changes in residence and domicle need to be carefully monitored and wills updated where these changes affect an EU asset.

Why?  Prioto Brexit, British citizens, including "Channel Islanders and Manxment", were citizens of the European Union under the non discrimination and nationality provisions of the TFEU, see articles 18 and 20 in particular, irrespectve of the Third Protocol Arrangements, which have been overtaken by the subsequent TFEU. The consequence of having the TFEU citizenship right to reside meant that Channel Islanders and Manxmen had the right to acquire and dispose of immovable residences and movable assets in Europe as citizens, under the protection of the Succession Regulation and other EU dispositions of a similar impact.

Hence the need to update the current lack of Golf club barstool wisdom and discernment.