This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how to include overseas assets in estate planning under the law of England and Wales. This guide explains international probate, inheritance tax rules, double taxation, residence tests, foreign succession law, wills strategies, and practical steps to ensure your worldwide estate is managed according to your wishes.
Estate planning becomes more complex when you or the person whose estate is being arranged owns assets outside the United Kingdom. Property, bank accounts, investments, pensions, business interests and other valuable items located abroad raise additional legal, tax and administrative issues in the law of England and Wales. Without careful planning, beneficiaries and executors may face delays, unintended inheritance outcomes, double taxation or disputes over legal authority. This guide explains how overseas assets fit into estate planning from a UK perspective and provides clear, practical steps to help you organise your affairs.
What Constitutes Overseas Assets?
“Overseas assets” are any assets located outside England and Wales. Examples include:
- Property abroad such as holiday homes or investment real estate
- Bank accounts and investment portfolios in foreign jurisdictions
- Shares, pensions or business interests held overseas
- Personal possessions kept abroad or in international storage
Even digital assets with international elements may fall into this category. These assets will form part of a person's estate for UK purposes if they are owned at the time of death.
Worldwide Assets and UK Inheritance Tax
For inheritance tax (IHT) purposes, the UK treats overseas assets differently depending on residence and domicile status:
UK Residents and Long‑Term Residents
If you are resident in the UK for sufficient years - generally at least 10 out of the previous 20 tax years - your worldwide estate, including overseas assets, is subject to UK Inheritance Tax. This rule now focuses on residence rather than domicile, and applies even if you are not domiciled in the UK. Any overseas property, savings or investments you own will be included when determining whether your estate exceeds the IHT threshold (currently £325,000 nil‑rate band, plus potential allowances).
Double Taxation and Relief
If the country where the overseas asset is located also charges inheritance or estate taxes, there is potential for double taxation - that is, paying tax on the same asset in both jurisdictions. The UK has double tax treaties with some countries to mitigate this risk and allow relief, but the details depend on the treaty terms and the countries involved. It is important to check whether a treaty applies and how relief can be claimed.
Legal and Succession Law Differences Abroad
Succession and inheritance laws vary widely by country. Features to consider include:
- Forced heirship rules: Some countries (notably in Europe) require that certain relatives, such as children or spouses, receive a fixed share of the estate, regardless of the terms of a UK will. This can override intentions in a UK will unless properly addressed.
- Local succession procedures: Many foreign jurisdictions require their own probate or succession process before assets can be transferred or sold. This can cause delays if not anticipated.
Step‑by‑Step: Including Overseas Assets in Estate Planning
1. Take an Inventory of Overseas Assets
Gather a clear and detailed list of all overseas assets. For each asset, note:
- The type of asset (property, bank account, shares, business interest)
- The location and legal title information
- Any local documentation or registration details
- Approximate market value and professional valuations if necessary
A complete inventory helps executors locate and manage assets and supports accurate reporting for tax and probate. Professional appraisals may be required for overseas property or valuable investments.
2. Check Local Succession and Tax Laws
Discover the local inheritance law and tax system that applies where your assets are located. Some countries enforce forced heirship rules that may restrict freedom of testamentary disposal. Others impose estate or inheritance taxes at different thresholds and rates from the UK. Understanding these rules early helps prevent unintended outcomes and unnecessary tax burdens.
3. Decide Whether to Use Multiple Wills
In many situations, especially where laws differ significantly between jurisdictions, it may be appropriate to prepare multiple wills:
- A UK will that deals with assets in England and Wales
- A local will for assets in the foreign country
This approach can make local administration simpler and reduce delays. However, careful drafting is required to ensure wills do not revoke each other unintentionally. For example, UK wills can include clauses specifying they apply only to UK assets. Discuss this with a qualified solicitor to ensure proper coordination.
4. Include Clear Provisions in Your Will
Whether you choose a single worldwide will or separate wills, the documents should include:
- Clear identification of the overseas assets and how they should be distributed
- Confirmation of jurisdictional applicability (for example, a clause stating your UK will applies only to UK assets)
- Instructions for executors on managing overseas assets, including sale or transfer
- Reference to local wills if multiple wills are used
Precise language helps avoid ambiguity and dispute during estate administration.
5. Appoint Suitable Executors and Advisers
Selecting executors with experience or access to advisers familiar with international estate administration is important. Cross‑border estates often require coordination between solicitors in different jurisdictions, and executors may need to obtain probate locally as well as in England and Wales. Appointing professional executors, or at least advisers who understand international probate, can streamline the process and reduce risk.
6. Plan for Tax Efficiently
If your overseas assets are substantial, tax planning strategies may help protect value for beneficiaries. Options may include using trusts, gifting during lifetime (bearing in mind UK gift tax implications), or restructuring asset ownership. Specialist international tax advice is often necessary to explore these strategies effectively and to assess treaty relief opportunities.
Administration and Legal Processes
Probate and Grant Requirements
Owning overseas assets does not automatically mean that UK probate is sufficient to deal with those assets. Often the executor must obtain a foreign grant of probate or equivalent document in the country where the asset is held before the asset can be transferred or sold. This process is separate from the English grant of probate, and may involve local court applications, translation of documents, and compliance with local formalities.
Timing and Executor Liability
Administering foreign assets typically takes longer than UK‑only estates because of multiple legal systems. Executors should avoid prematurely distributing estate assets before obtaining tax clearances from HM Revenue & Customs (HMRC) and, where relevant, foreign tax authorities. If assets are distributed prematurely and later a tax liability arises, executors may be personally liable. Planning ahead and coordinating early with advisers reduces this risk.
Common Questions
Are overseas assets always subject to UK Inheritance Tax?
If you are treated as a long‑term UK resident (typically at least 10 of the past 20 tax years), your worldwide assets - including those abroad - are subject to UK Inheritance Tax, currently charged at 40% on the value exceeding the nil‑rate band and allowances. This includes property, bank accounts, investments and other assets held overseas. Double taxation relief may be available under certain treaties.
Do foreign succession laws override my UK will?
Yes. Some jurisdictions enforce forced heirship or similar rules which can limit testamentary freedom and override provisions in a UK will. Assets located in such countries may therefore be distributed according to local law unless planning addresses this directly.
Can one will cover worldwide assets?
Potentially, yes. A UK will can be drafted to include international assets, but it may not be recognised in all jurisdictions without local probate. Many people choose separate wills that comply with local law to facilitate administration and reduce conflict. The interaction between multiple wills must be carefully managed to avoid inadvertent revocation.
Final Thoughts
Including overseas assets in estate planning is crucial for anyone with a global footprint. Without clear documentation and legal structure, beneficiaries may face tax exposure, legal disputes or administrative delay. Effective planning should include:
- A detailed inventory of all overseas assets
- Review of local succession and tax laws
- Consideration of multiple wills where appropriate
- Clear provisions and instructions in your UK will
- Appointment of suitable executors and international advisers
- Evaluation of tax planning strategies and double taxation relief
Thoughtful planning reduces uncertainty, helps protect your beneficiaries, and ensures that your global estate is administered in a fair and orderly way.
