More people now own property or money in more than one country. It might be a holiday home in Spain, a flat abroad, or a bank account overseas. If you have foreign assets, your Will needs careful thought, because other countries have their own rules about inheritance. This guide explains the main points to consider when dealing with foreign assets in your Will if you live in England and Wales.
Why foreign assets in your Will need extra care
A Will made under the law of England and Wales can, in principle, cover assets anywhere in the world. However, the country where an asset is located may apply its own rules. These can affect who is allowed to inherit, how the Will is recognised and how the estate is dealt with locally.
At A.D.E. Wills, we write Wills under the law of England and Wales and advise on assets here. For any assets abroad, we always recommend you also take advice from a lawyer in the relevant country.
Do you need a separate foreign Will?
Broadly, there are two options:
- one Will made in England and Wales covering all your assets, including those abroad
- a Will in England and Wales for your assets here, plus a separate Will made locally for assets in another country
Which is better depends on the country and the assets involved. So a lawyer in that country is best placed to advise on whether a local Will is helpful.
Possible advantages of a separate foreign Will
Local legal systems. Countries have different legal systems. For example, England and Wales has a common law system, while most of continental Europe uses civil law systems. A Will prepared locally is drafted with those rules in mind.
Local formalities. Some countries have their own requirements for how a Will is made, signed or registered. Also, some do not recognise concepts that are common here, such as trusts.
Dealing with the estate. If one Will covers everything, the authorities abroad may need certified and translated copies of the Will and the English grant of probate before they will release assets. A separate local Will can sometimes make this simpler. However, each country’s process is different.
Making sure your Wills work together
If you have more than one Will, each must be drafted so it does not accidentally revoke the other. A standard revocation clause cancels all earlier Wills. Therefore, each Will should make clear which assets it covers and that it does not revoke the other.
Forced heirship and choice of law
Many countries have “forced heirship” rules, which reserve a fixed share of an estate for certain relatives, usually children. England and Wales has no such rules, so this can come as a surprise.
Within most of the EU, a regulation known as Brussels IV applies. It allows a person to choose the law of their nationality to govern their succession. For example, a British national with a home in a participating EU country can choose the law of England and Wales in their Will. Where appropriate, we can include a choice of law clause. Even so, the effect of the clause depends on local law, so you should check it with a lawyer in that country.
Inheritance tax and foreign assets
From 6 April 2025, whether UK inheritance tax applies to your worldwide assets depends on long-term UK residence rather than domicile. In broad terms, you are a long-term UK resident if you have been UK resident for at least 10 of the previous 20 tax years. If so, your assets anywhere in the world are generally within the scope of UK inheritance tax. If not, it generally applies only to your UK assets. There are transitional rules, and the position can continue for some years after you leave the UK.
Other countries may also tax the same assets. Some double taxation agreements and reliefs can reduce the risk of being taxed twice, but they vary. We do not give tax advice on UK or foreign tax. We can refer you to an appropriate professional, and you can read more about inheritance tax on GOV.UK.
Steps to take with foreign assets in your Will
- List all your assets abroad, including property, bank accounts and investments.
- Take advice from a lawyer in each country where you own assets.
- Decide, with that advice, whether a separate local Will is helpful.
- Make sure any Wills are drafted so they do not revoke each other.
- Consider whether a choice of law clause is appropriate.
- Take tax advice on your UK and overseas position.
- Review your Wills after you buy or sell assets abroad, move country, or have a major life change.
How A.D.E. Wills can help
We write Wills under the law of England and Wales and advise on your assets here. We do not prepare foreign Wills or advise on foreign law or tax. However, we can:
- prepare a clear Will for your assets in England and Wales
- draft it so that it works alongside a Will you make abroad
- include a choice of law clause where appropriate
- explain the general points to raise with a lawyer abroad
Talk to us about your Will
If you have foreign assets and want to make or update your Will, call 01865 507174 or email info@adewills.co.uk for a free initial chat. You can also read more about our Will writing service.
