EU "clawback" law could snatch UK homes

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EU "clawback" law could snatch UK homes

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Plans to alter inheritance law across the European Union could leave UK families vulnerable to home losses if their property was ever owned by someone with relatives living abroad.

According to the Daily Mail, the law could make beneficiaries hand over their property to 'forced heirs' which may undo property sales from as far back as 30 years ago, if proper provisions are not made in estate planning and wills.

If you would like to arrange your will please call Emma Mower on 0800 0271452.

Under current law, properties and land are distributed according to British legislation, but most European countries force citizens to leave a proportion of their estate to specific relatives known as 'forced heirs'. These named individuals are handed up to two thirds of an estate, dependant upon their relationship to the deceased.

The Ministry of Justice (MoJ) is currently considering joining EU regulation which means legal cases affecting British properties would be heard in the country where the deceased was 'habitually resident'.

Therefore, relatives in France, Germany, Spain, and nine other EU states where the 'clawback' law exists, could stake a claim to properties which have since been purchased by British families.

Experts have warned that British citizens could lose their homes or be forced to pay hundreds of thousands of pounds to the foreign relatives of previous owners. House prices could also rise due to homeowners buying insurance that prevents them from losing properties that fall foul of future land grab claims.

Prof Roderick Paisley of the University of Aberdeen warned that if the regulation is introduced, UK property rights could be seriously hampered.

"The Regulation would force courts in the UK to recognise 'clawback' under the law of other Member States in relation to cross-border successions," he wrote.

'The difficulty with this is that gifts made validly under domestic law, which people expect to be subject to domestic law, could be invalidated by foreign courts. This would represent an interference with UK property law.'

The MoJ and Justice Secretary Jack Straw, who has recently finalised a consultation on the EU regulations, said they support the "simplification of succession laws in the EU", but will address the growing concerns over property ownership.