Latest Posts
Does EU Law Still Apply To My Estate?
The EU Succession Regulation more commonly known as the Brussels IV (the Regulation) came into force in 2015. The main objective of the Regulation is to simplify cross-border estates and succession planning which is particularly important with more geographic mobility in the world today than ever before.
Position prior to the Regulation
Prior to the introduction of the Regulation, if an individual had connections to the UK and more than one EU member state, each state had its own rules to determine which court had jurisdiction. This in turn lead to uncertainty and complications in the estate administration.
Position after the Regulation
The key provision of the Regulation is that the court in which the deceased died habitually resident have jurisdiction in succession matters. The Regulation also does not distinguish between property that is movable or immovable.
The default position under the Regulation may, however, be overridden in two circumstances:
- Habitual residence can be displaced by an election made in an individual’s Will for the law of their nationality to apply; or
- The individual is manifestly more closely connected with another jurisdiction at the date of their death.
For example, if an individual is habitually resident in a jurisdiction subject to the Regulation, but their Will contains an election for English law to apply to their estate as this is their nationality, this could effectively apply English law to their estate across not just the UK but also other member states in which they hold assets.
How does an EU regulation effect the UK?
Despite the UK not being part of the EU, the Regulation is important for individuals who have assets and connections to the UK and an EU Member State.
In 2015, the UK was one of the few Member States to opt out of the Regulation and considered a “third state”. Practically, this means that whilst the UK is not bound by the Regulation or subject to its application, it does affect the way in which conflict of law rules in the UK interact with the EU Member States where the Regulation does apply.
It is important to add that there has been no change in how the Regulation affects the UK since Brexit.
The importance of making an election and a practical example
Rose is a UK national, who has lived in Spain for the last 15 years. She still has a property in the UK that her husband lives in, but they are separated, and she has two estranged children she has not seen for 20 years. Spain has forced heirship rules and Rose does not wish for her children or husband to benefit from her estate and instead wishes for her estate to pass to her nephews.
Rose could therefore put in place a worldwide Will that includes an election for the law of her nationality to apply to the succession of her estate therefore disapplying forced heirship. She would therefore have testamentary freedom under English law to leave her estate to her nephews regardless of the fact she is habitually resident in Spain.
A nationality election also gives greater certainty than relying on habitual residence as a default. This is particularly relevant for internationally mobile individuals who move around regularly therefore meaning that their habitual residence is changing constantly. By electing for the law of their nationality to apply to their estate, this gives them certainty of the succession of their estate in relation to their assets within the EU. Rose in this circumstance would therefore also have certainty that this will remain the position even if she moves in the future.
If you have any queries relating to cross-border estate planning, please contact Ben Rosen or Eleanor Catling at Quastels LLP.
Read More
Your Home, Your Risk: Why Legal Contracts Matter on Renovations
What value do you place on your home?
Your home is one of the largest investments you will make. In almost all cases, it is your most important asset not just because of its capital value, but because it’s your home and hopefully a sanctuary. Yet so many of us neglect its importance when arranging for works to be undertaken to it.
It is exciting to be improving or extending your home. However, without proper planning and legal safeguards, home improvement projects very often spiral into dispute, financial loss, and even damage to your most valuable asset.
How can you protect yourself?
- Contractor selection – Select your contractors and professionals very carefully.
- Defined works – Be very clear about what is and what is not included.
- Insurance – Make sure the contractor is adequately insured.
- Contract – Have the contractors and advisers enter into a formal contract.
Selecting a Contractor
Just a few of the many considerations include:
- Where possible, obtaining a personal recommendation, and attending previous jobs and speak to the contractor’s client;
- Checking the contractor’s financial solvency; and
- Ensuring the contractor is adequately insured.
Defining the Works
Make sure that all the works you are instructing to be carried out are clearly defined, and that you specify to what standard these must be completed.
Insuring the Works
Even on small jobs, things can do drastically wrong – a nail through the wrong wall could mean a pipe bursting and flooding your home and any adjoining properties, or faulty wiring could result in fire damage to your property and contents. Standard home insurance will not cover any ongoing works, and you should ensure that your contractor (a) is adequately insured to cover these risks and (b) takes responsibility for such damage by means of a formal contract.
A Formal Contract
The best step you can take to protect yourself is put a proper building contract in place at the outset. A well-drafted contract does more than just describe the works to be carried out – it manages your risk, defines responsibilities, and provides legal recourse if something goes wrong.
Many homeowners assume that standard or unamended forms of agreement offer sufficient protection. In reality, these agreements are inherently contractor-friendly and leave homeowners exposed.
Why do you need a contract?
Without appropriate contractual protection, you may be exposed to serious risks which can affect your ability to live in, sell, or borrow against your home. For example:
1. Defective works
Statutory construction obligations are unlikely to protect you from the full extent of any damage and financial losses you might suffer as a result of poor workmanship. And even where they do, contractors routinely seek to limit your ability to recover losses by inserting onerous limitation clauses into construction forms. Even where you believe you are “covered,” you may find you cannot recoup your losses in practice.
2. Legal and Regulatory Consequences
If works are completed without the necessary approvals or certificates (e.g. building control sign-off or listed building consent), you may be in breach of legal obligations or planning conditions. Standard forms of contract tend to place the burden of complying with these on you, rather than on the contractor. This can cause problems years down the line. Solicitors acting for prospective buyers will raise enquiries about the works, and any gaps in paperwork will come to light.
3. Impact on Property Value and Mortgageability
Failure to complete your project in compliance with your mortgage terms could reduce a valuation of your home – or worse, lose you your mortgage. Mortgage lenders can refuse to lend against properties with unresolved building issues or works which have not been signed off. If you need to refinance or a buyer needs a mortgage, the transaction could fall through.
4. Inadequate Insurance and Uninsured Works
Standard, unamended building contracts often contain minimal insurance provisions, offering little or no protection against professional negligence, leaving you exposed if things go wrong. The risks of professional negligence are real and potentially devastating, as seen in tragic cases like Grenfell Tower.
Your home insurance should be carefully considered to establish if it covers the works, but worse, could also be in jeopardy. Many homeowners are also unaware that their standard buildings insurance policy will almost certainly not cover construction works, and that these need to be insured separately. Failure to notify your insurers or ensure the works are completed in accordance with their requirements could also invalidate your cover.
Your contract, if well drafted, can provide critical protection, allowing you to recover losses arising from negligent or defective works for up to 12 years after completion.
5. Breaching your Leasehold Terms
Leaseholders face heightened risk, as they must comply not only with general legal obligations but also with general legal obligations but also with the specific terms of their lease. Unauthorised works can amount to a breach, exposing the leaseholder to enforcement action or even forfeiture.
Even when works are authorised, problems can arise if the building contract doesn’t require the contractor to comply with the terms of the lease or any licence for alterations. Breach of those terms, however inadvertent, remains the leaseholder’s responsibility. Crucially, you are unlikely to recover losses from the contractor, who is not bound by your lease or licence as they are not a party to that agreement.
Get in touch with our Construction Team
Our specialist Construction Team is experienced in identifying and addressing risks before problems arise. We offer cost-effective, tailored contracts that help safeguard your home and your finances, giving you peace of mind.
Making this small investment now could save you significant time, stress, and expense later – potentially avoiding costly litigation. Get in touch to find out how we can help.
Read More
Why U.S. Companies Need to be Prepared for UK Employment Law
Expanding into the UK: A Strategic Opportunity
As global markets continue to evolve, more U.S. businesses are looking to expand operations overseas; and the United Kingdom remains one of the most attractive destinations.
With a shared language, a highly skilled workforce and a strategic location deemed a gateway to Europe, the UK is an ideal launchpad for American companies seeking international growth. However, while the business environment may appear generally familiar, the legal and regulatory framework in the UK, particularly around employment law, can differ significantly from the U.S. system. For this reason, it is essential for any U.S. businesses entering the UK market to seek early guidance from experienced UK employment lawyers.
Key Differences in Employment Law
UK employment law places a strong emphasis on employee rights and protections. For instance, here in the UK, workers benefit from statutory entitlements including paid annual leave, statutory notice periods, redundancy pay, and protection against unfair dismissal. Many of these apply from day one of employment. Unlike the U.S. ‘at-will’ employment model, UK law places a key emphasis on employers following specific legal procedures when handling disciplinary action, grievances, redundancies, and dismissals. Therefore, failing to follow the various statutory processes can lead to legal claims, regardless of whether employers have just cause to discipline or terminate an employee’s employment.
Legal Reach Beyond Borders
Additionally, the reach of UK employment law can extend beyond borders. For example, sexual harassment protections apply even if the parties involved are located in different countries. A UK-based employee subjected to inappropriate behaviour from a colleague overseas could bring a claim under UK law. Employers can be held vicariously liable unless they have taken all reasonable steps to prevent such conduct, including providing training and enforcing clear policies.
Laying the Groundwork for Compliance
Early preparation is essential when establishing a UK presence. From the outset, U.S. businesses should ensure employment contracts (required from day one of employment), HR policies, and internal procedures complaint with UK law are in place. This proactive approach not only reduces legal risk but also sets the tone for a healthy workplace culture.
The Importance of Due Diligence in Acquisitions
Moreover, when entering the UK market through the acquisition of an existing business, it is critical to conduct a full employment law audit. Without proper due diligence, U.S. companies risk inheriting non-compliant practices, unresolved disputes, or hidden liabilities that could result in costly claims or operational disruption.
Legal Guidance: A Strategic Advantage
Involving UK employment lawyers at an early stage helps ensure a smooth, compliant entry into the UK market (whether this is through organic growth or acquisition) while protecting both the business and its workforce.
Read More