Why You Need Two Wills for Assets in Australia and Iran
If you have assets in both Australia and Iran, it’s essential to have a proper estate plan in place. A common mistake many people make is thinking one will can cover all their assets, regardless of location. However, the legal systems in each country are distinct, meaning you may need two separate wills—one for your Australian assets and another for your Iranian assets—to ensure your estate is managed according to your wishes. In this article, we’ll explain why and how you need two wills, and how they can save you and your beneficiaries from unnecessary legal complications.
Why One Will is Not Enough:
When you live or have assets in two different countries, each with its own legal framework, it’s unlikely that a single will would be recognised or enforceable in both countries. This is especially true when dealing with assets located in Iran and Australia.
Jurisdictional Issues: Each country’s laws govern how assets within its borders are distributed. For example, an Australian will won’t necessarily be recognised for property in Iran, and vice versa. By creating two wills, one in each country, you ensure that each country’s legal system acknowledges and respects your intentions.
Different Inheritance Laws: Iran and Australia have different approaches to inheritance. While Australia allows freedom of testamentary dispositions (you can leave your assets to whomever you choose), Iranian law imposes different inheritance principles, particularly regarding family members. These differences mean that one will cannot fully cover assets in both countries.
The Australian Will:
Your Australian will is crucial for ensuring that all your Australian assets, such as property, bank accounts, and investments, are properly distributed according to your wishes.
What It Covers: This will should be drafted to cover all your assets located in Australia. Whether you own real estate, personal property, or have financial investments in Australia, your Australian will governs their distribution.
Legal Requirements in Australia: In Australia, the basic legal requirements for a valid will include it being signed by the testator and witnessed by two independent witnesses. If properly executed, your Australian will can be easily administered and executed by your executors.
Recognition of the Will in Australia: An Australian will is legally binding for assets within Australia’s jurisdiction. However, it will not be recognised for assets located in Iran, and thus, a separate Iranian will is necessary to cover those assets.
The Iranian Will:
For any assets you hold in Iran—whether property, business interests, or bank accounts—you need a second will drafted according to Iranian laws.
What It Covers: This will will address all your Iranian assets. Without it, there’s a risk that Iranian law could take precedence over your wishes, especially if you die intestate (without a will).
Legal Requirements in Iran: Iranian law has specific formalities for wills to be legally recognised.
Enforcing the Iranian Will: If you have assets in Iran, a local will ensures your wishes are respected. Without a proper Iranian will, your beneficiaries could face significant delays and complications when trying to access or distribute your assets in Iran.
The Benefits of Having Two Wills:
Clear Distribution of Assets: By creating separate wills for your assets in Australia and Iran, you ensure that your estate is divided exactly as you wish in both countries, without confusion or conflict.
Avoiding Probate Complications: Probate can be a lengthy and costly process, particularly when assets are located in multiple jurisdictions. Having two wills can streamline the probate process in both countries, reducing delays.
Minimising Legal Disputes: With properly executed wills in both countries, your beneficiaries will face fewer legal obstacles. They won’t have to navigate the complexities of foreign legal systems or fight over assets because your intentions will be clearly outlined.
How to Draft Both Wills:
Work with Lawyers in Both Countries: It’s essential to consult legal professionals familiar with the laws in both Iran and Australia. A local Australian lawyer will be able to draft a will in accordance with Australian law, while a qualified Iranian lawyer can ensure your Iranian will meets the local legal requirements.
Coordinating Between the Wills: Your two wills should not contradict each other. It’s important to ensure that the wills are coordinated so that there are no conflicts between the distribution of assets in the two countries. This may involve specifying that the Australian will applies to Australian assets, and the Iranian will applies to Iranian assets.
What Happens if You Don’t Have Two Wills:
Without two separate wills, your beneficiaries could face unnecessary delays, additional costs, and legal hurdles. The distribution of your assets may be tied up in probate for a long time, and your wishes may not be honoured. Additionally, if one will is deemed invalid or incomplete for assets in either country, the estate could be distributed in a way that you never intended, causing confusion and potential family disputes.
Conclusion:
If you own assets in both Australia and Iran, it’s essential to have two wills in place: one to cover your Australian assets and another for your Iranian assets. By taking the time to create properly executed wills in both countries, you’ll ensure that your estate is distributed according to your wishes, avoid lengthy probate procedures, and save your beneficiaries from unnecessary complications. Always seek professional legal advice to help guide you through the process in both jurisdictions.