Becoming an Expat – Financial planning before you leave home
Moving to a new country to start a new life can be very exciting, but also a bit overwhelming with everything that you have to organize before you leave. Here is a helpful list of financial matters which should be thought about.
• If you own a house in your home country which still has a mortgage on it, then it is essential to tell your lender you are moving abroad. You can discuss payments with them and see what the best way is for making the payment while you are abroad.
• If you are renting your house out, then make sure you find a household insurance suitable for landlords, and you may want a management company to take care of all your landlord duties such as fixing broken utilities.
Cancel any bills or regular payments
• Make sure you cancel any unnecessary regular payments before you leave.
• If you are renting your house out, ensure the new tenants are responsible for paying the council tax, gas, electricity, telephone etc. Therefore you should contact the providers and settle the bills before you leave. This will give you fewer payments to worry about while abroad.
• If you already own life insurance, you should check with your insurers that they will still cover you while you are abroad. Some providers will, while some will not.
• A lot of big insurers will have international offices, so if your cover is cancelled make sure you are covered once you have moved abroad.
• Many expat families rely on one income while living abroad; therefore it is important to get adequate cover. Check what life insurance your work provides and take out any additional coverage that is needed.
• If you die without a Will, it can be very complicated for your family to sort out your affairs. This is even harder when you live abroad. Make sure you have Shadow Wills in all countries where you hold assets.
• Update any Wills when you have a change in circumstance, for example when you have children, get married or divorced.
Deed of Appointment
• If you have minor children, make sure that when you are in your new country you sign an appointment of guardian form. You can nominate interim and permanent guardians to look after your children if anything happens to you and your partner while living abroad.