How to Handle Overseas Assets in a Will

Owning assets in more than one country adds complexity to estate planning. Property, bank accounts, investments or business interests outside of England and Wales are known as overseas assets. A will that works perfectly for UK‑based assets might not operate as intended for property overseas unless specific legal steps are taken. Understanding how foreign succession laws interact with UK wills, tax obligations, and practical administration is essential to ensure that your wishes are followed and your beneficiaries are treated fairly.

This guide explains how overseas assets are treated, how to include them in your will, when separate foreign wills might be appropriate, and what legal and tax issues your executors are likely to encounter.

What Counts as an Overseas Asset?

Overseas assets are defined as assets you own that are located outside England and Wales. Common examples include:

• Property or land in another country.
• Overseas bank accounts.
• Shares and investments held through non‑UK institutions.
• Business ownership interests outside the UK.
• Overseas pensions and savings.

Everything you own in another country may form part of your estate on death and needs to be considered when making a will.

Legal Recognition of a UK Will Abroad

Differences in Succession Law

Each country has its own laws governing how estates are administered on death. A will made in England and Wales may:

• Apply directly in jurisdictions with similar legal systems (common law countries).
• Require local probate (or the equivalent) to be recognised in foreign jurisdictions.
• Be overridden by local succession rules, such as forced heirship, common in civil law countries that entitle spouses or children to fixed shares regardless of the will's terms.

For example, civil law jurisdictions in parts of Europe may have strict inheritance rules that limit freedom of testamentary disposition, while others recognise the deceased's choice of law.

Validity and Enforcement

A UK will is generally valid for assets worldwide if it is properly executed under the Wills Act 1837 and reflects the testator's intentions. However, foreign courts may not automatically enforce it. Executors may need to present the English will to local authorities or obtain a local grant of probate for the overseas assets.

Including Overseas Assets in Your UK Will

You can include overseas assets in your UK will, but clarity and precision are paramount.

Clear Description of Assets

When including overseas assets, you should describe them clearly in the will, including property descriptions, account details, and country of location. Accurate identification helps executors locate and administer these assets efficiently.

Executors and Local Assistance

Choose executors familiar with cross‑border matters whenever possible. Your will can also direct executors to work with local lawyers or representatives in the jurisdictions where assets are located. Having trusted contacts in those jurisdictions can ease administration and reduce delays.

Separate Foreign Wills

When a Separate Will Is Advisable

A separate will for foreign assets may be recommended where:

• Local laws require specific formats or formalities for a will to be valid.
• Foreign succession laws (especially forced heirship) could override UK instructions.
• Probate processes differ significantly and may be slow or costly if using only a UK will.

Separate wills should be drafted carefully so that they do not revoke each other unintentionally. Tailored revocation clauses can ensure that each will operates in its chosen jurisdiction without conflict.

Benefits and Risks

Having a local will can speed up estate administration in that jurisdiction and reduce translation, notarisation, and compliance delays. However, maintaining multiple wills increases the risk of inconsistencies, so legal coordination is essential.

Inheritance Tax and Overseas Assets

UK Inheritance Tax on Worldwide Assets

If you are domiciled or deemed domiciled in the UK, your worldwide estate - including overseas property and investments - is potentially liable to UK inheritance tax (IHT), subject to allowances and reliefs.

This means that all foreign and domestic assets must be valued, reported to HM Revenue & Customs (HMRC), and potentially taxed unless exemptions apply.

Double Taxation and Treaties

The jurisdiction where the asset is located may also impose its own death taxes or estate duties. The UK has double taxation treaties with some countries (for example, the US, France and the Netherlands) to mitigate liability in both countries. Executors should seek professional tax advice to understand treaty benefits, unilateral relief claims, and how to avoid paying tax twice on the same asset.

Executors should never distribute estate assets until they have clearance from both HMRC and relevant foreign tax authorities where applicable, as premature distribution can lead to personal liability if tax liabilities emerge later.

Practical Issues in Administration

Local Probate

Executors handling foreign assets often need to obtain a probate grant or equivalent in the country where the assets sit. This can involve:

• Translation of documents.
• Notarisation and legalisation of the will and death certificates.
• Local legal representation.

Some countries allow an English grant of probate to be resealed locally for easier administration.

Documentation and Records

Keeping comprehensive records of ownership, deeds, account details and legal documents is essential. Providing this information early to your executors or appointed solicitors can reduce delays and confusion during probate.

Timing and Communication

Foreign probate processes can take longer than in England and Wales. Executors should communicate clearly with beneficiaries about expected timelines, costs and tax liabilities to manage expectations and minimise disputes.

Common Questions

Will my UK will automatically apply to overseas assets?
Not always. It may be recognised, but foreign laws may require local procedures or separate documents depending on jurisdiction‑specific succession law.

Do I need a foreign will for all overseas assets?
It depends on where the assets are held and local legal requirements. In some jurisdictions, a UK will suffices; in others, a local will tailored to local law is advisable to avoid administrative or succession conflicts.

How does double taxation work?
If both the UK and the country where assets are located impose estate taxes, double taxation treaties may allow tax paid in one jurisdiction to be credited against tax owed in the other, reducing overall liability.

Key Takeaways

Handling overseas assets in a will is a key part of international estate planning. A UK will can address foreign assets, but differences in inheritance law, local probate requirements and tax obligations mean that careful planning is essential. Options include drafting separate foreign wills, specifying clear instructions for executors, and seeking specialist legal and tax advice in each relevant jurisdiction. Clear documentation and proactive coordination between advisers help ensure your estate is administered according to your wishes and legal obligations across borders.