International and cross-border considerations
What the exam tests
International and cross-border issues test the conflict of laws: which court has jurisdiction, which law governs the trust or succession, and how foreign assets and beneficiaries are treated. Expect questions on domicile, situs, treaty relief and automatic exchange.
Core rules
Domicile is a common-law concept: domicile of origin, domicile of dependence and domicile of choice (residence plus intention to remain permanently). Residence and domicile are different, and a person can be resident in one country and domiciled in another. The situs of assets matters: land is governed by the lex situs, while movable property is generally governed by the law of the owner's domicile for succession. The Hague Trusts Convention 1985 provides for recognition of trusts and the governing law chosen by the settlor, subject to mandatory rules and public policy. Forced heirship regimes may claim against movable assets of a deceased who was domiciled there. CRS and FATCA require financial institutions to report account information to tax authorities.
Worked example
A settlor domiciled in a forced-heirship country settles English situate assets on an English-law discretionary trust. The trust's validity and administration are generally governed by English law under the Hague Convention, but the settlor's home court may apply its forced-heirship rules to movable assets. The trustees should obtain local advice, document the governing law and consider whether the settlor needs a certificate of non-domicile or local tax advice.
Traps
Treating domicile and residence as interchangeable; assuming one law governs the trust, the succession and the asset; and ignoring mandatory local rules or reporting obligations. Do not assume a foreign grant will be recognised without resealing or local probate.