Owning assets overseas can add value to your estate. However, it can also create complications with tax and administration.
A Last Will and Testament made in the UK may cover some overseas assets effectively. Even so, it may not control every asset in the way you expect. Each country follows its own inheritance rules, probate procedures and tax laws. In some cases, even local law may change who inherits.
Since 6 April 2025, long-term UK residence can also bring overseas assets into the UK Inheritance Tax net.
What are Overseas Assets?
Overseas assets include anything you own outside the United Kingdom. These assets may be high value or relatively modest. Even small holdings can create complications.
Common assets include:
- Holiday homes
- Rental property or land abroad
- Foreign bank accounts
- Overseas shares and investment portfolios
- Business interests outside the UK
- Pensions or insurance policies held overseas
- Personal possessions abroad (such as vehicles or artwork)
Many people focus only on foreign property. However, you should review every asset held outside the UK.
Can a UK Will Cover Overseas Assets?
Yes, a UK Will can include overseas assets. In many situations, this works well. However, inclusion in a Will does not guarantee simple administration abroad.
Some countries recognise UK probate documents more easily. Others require a separate legal process. Certain Commonwealth jurisdictions allow a UK grant to be resealed. This means the foreign court confirms the UK grant.
In contrast, many civil law countries follow stricter procedures. France, Spain, Germany and Italy often require local applications. Executors may need a local lawyer, notary or court filing.
Why Overseas Assets Need Extra Care
A Will that works well in England and Wales may not work smoothly abroad. This does not mean the Will is invalid. Instead, foreign authorities may apply their own legal process.
They may request additional documentation. They may also require translations, notarisation or court applications. Because of this, overseas assets often create extra work for Executors.
Executors may need to:
- Obtain probate in the UK
- Gather certified copies of documents
- Arrange official translations
- Legalise documents with an apostille
- Instruct a lawyer in the foreign country
- Apply for local probate or an equivalent process
Consequently, cross-border estates often take longer to complete. They also tend to cost more to administer.
Having a Separate Will for Overseas Assets
Cross-border estates sometimes involve more than one Will. A person may sign one Will in England and another abroad. This separate local Will may help when you own significant overseas property. It may also help where a country has a slow probate process.
A local Will can sometimes:
- Speed up administration abroad
- Reduce transition delays
- Comply with local legal formalities
- Help foreign institutions act quicker
Each Will must deal with the correct assets and the wording must also remain consistent. However, one Will must not revoke another. If drafted poorly, one document may also cancel the other. This can create confusion over which assets each Will covers.
Movable and Immovable Assets
English law draws an important distinction between movable and immovable assets. This distinction affects which legal system governs succession.
Movable assets usually include:
- Cash
- Bank accounts
- Shares and investments
- Vehicles
- Jewellery
- Personal possessions
Immovable assets usually include:
- Land
- Houses
- Flats
- Villas
- Rights attached to land
In general, movable assets follow the law of the deceased’s domicile. Immovable assets follow the law of the country where the property is located.
For example: A UK Will may deal with a foreign bank account effectively. However, the same Will may not control a property abroad.
Domicile, Residence and Nationality
These terms often cause confusion. However, they have different legal meanings.
- Domicile refers to a person’s permanent legal home
- Residence refers to where a person lives
- Nationality refers to a person’s citizenship
These concepts may overlap. Even so, they serve different purposes. Domicile can affect which succession rules apply to movable assets. It can also influence Inheritance Tax exposure.
A person may live abroad for years and still retain a UK domicile. Another person may hold foreign nationality but still fall within UK rules.
Forced Heirship Rules
In England and Wales, individuals usually have the freedom to leave assets as they choose. However, other countries apply Forced Heirship rules. These rules reserve part of the estate for close family members. This often includes children. In some cases, it also includes a spouse.
For example: France gives children fixed inheritance rights, while Italy reserves minimum shares for close family members.
Therefore, a UK Will may not achieve the expected outcome abroad. This risk often affects foreign property.
EU Succession Regulation
The UK did not join the EU Succession Regulation (Brussels IV). Even so, it can still affect UK nationals with assets in participating EU countries.
A Will can sometimes include a choice of law clause. This clause selects the law of nationality to govern succession. This can help create a consistent estate plan. It may also reduce the risk of unexpected outcomes.
What is Probate?
Probate is the legal process for administering a person’s estate after death.
The process usually involves:
- Proving the Will
- Identifying assets and liabilities
- Valuing the estate
- Applying for legal authority to act
- Paying debts and taxes
- Distributing the estate to beneficiaries
In England and Wales, executors usually obtain a Grant of Probate. Administrators apply for Letters of Administration where no valid Will exists.
This grant gives authority to deal with UK assets. However, it may not provide authority over overseas assets. That is where cross-border complications often begin.
Tax on Overseas Assets
The standard nil-rate band for Inheritance Tax in the UK remains £325,000. The residence nil-rate band may also apply.
However, overseas assets may face tax in two countries. The UK may tax the estate, while the foreign country may tax the local asset. This creates the risk of double taxation, but relief may still be available.
The UK has Inheritance Tax treaties with multiple countries. These include Ireland, the United States, France, Italy, the Netherlands, Switzerland and South Africa. Where no treaty exists, unilateral relief may apply.
What Documents Do Executors Need?
Cross-border estates often require more documentation, which may include:
- The original or certified Grant of Probate
- The death certificate
- The original Last Will and Testament and any codicils
- Certified translations
- An apostille
- Foreign application forms
- Affidavits or declarations
- Proof of identity and address
An apostille confirms the origin of a public document. It helps foreign authorities accept UK documents. Without the correct paperwork, institutions may refuse to act.
Valuing Overseas Assets Correctly
Executors must value all estate assets accurately. This includes overseas holdings. The process often proves more difficult than expected.
- Foreign property may require a local valuation
- Bank accounts may need date-of-death balances
- Investments may require market values in local currency.
Executors then convert these figures into Pounds Sterling. Business interests often require professional valuations.
Do You Need a Will?
Our experienced team is here to help you protect your legacy with expert will writing and estate planning advice. Contact us today to speak with a specialist and discover how our personalised solutions can give you and your loved ones peace of mind.
01452 698 989 | office@willguardian.co.uk | Facebook
This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK laws and regulations are subject to change. Please speak to a professional for advice tailored to your individual circumstances. Will Guardian accepts no responsibility for any issues arising from reliance on the information provided.