What to Know About International Assets in Your Estate Plan Posted by Probate Bureau , 18/06/2025

What to Know About International Assets in Your Estate Plan

Navigating cross-border estate complexities in today's global world

In an increasingly interconnected world, more British citizens than ever find themselves with assets spanning multiple countries. Whether you've purchased a holiday home in Spain, maintain investment accounts in Switzerland, or own business interests in Australia, these international holdings create unique challenges for effective estate planning. At The Probate Bureau, we've guided countless clients through the intricacies of protecting their worldwide assets since our establishment.

Understanding the fundamental challenges of international estate planning

Creating comprehensive wills remains the cornerstone of effective estate planning. However, when assets cross international borders, the complexity increases exponentially. Many clients mistakenly assume that a single UK will automatically cover all their worldwide possessions, a misconception that can lead to significant complications for beneficiaries and potentially costly legal proceedings after death.

Different jurisdictions approach inheritance matters with vastly different legal traditions. Common law countries like the UK, Australia, and the United States operate under fundamentally different principles than civil law jurisdictions such as France, Spain, or Germany. These differences can create significant conflicts when attempting to apply a UK will to assets held abroad. For instance, many civil law countries employ forced heirship rules that may override your explicitly stated wishes, directing specific portions of your estate to particular family members regardless of your will's provisions.

Furthermore, tax implications vary dramatically across borders. Without proper planning, your estate might face taxation in multiple countries on the same assets which is a scenario that could substantially diminish the inheritance received by your beneficiaries. Our experienced team regularly assists clients in navigating these international tax complexities to preserve wealth effectively for the next generation.

Crafting an effective international estate strategy

Developing a robust plan for international assets typically involves deciding whether to create multiple country-specific wills or a carefully crafted international will. Both approaches have distinct advantages depending on your specific circumstances and asset distribution.

Multiple wills, each governing assets in different jurisdictions, often provide the most comprehensive protection. This approach allows each document to comply precisely with local legal requirements and cultural expectations. However, these wills must be meticulously coordinated to avoid inadvertent revocation or contradictions between documents. Our specialists at The Probate Bureau regularly help clients create harmonious multi-jurisdictional will structures that work together seamlessly.

Beyond wills, comprehensive international estate planning should include consideration of power of attorney & probate processes across relevant jurisdictions. Many clients overlook the fact that a UK Lasting Power of Attorney typically holds limited or no authority over assets in foreign countries. This oversight can create significant difficulties if you become incapacitated while owning international property or investments.

Creating jurisdiction-specific powers of attorney may be necessary to ensure your chosen representatives can manage your affairs worldwide if you become unable to do so. Similarly, understanding the unique probate processes in each relevant country helps your executors navigate post-death administration more efficiently, reducing delays in asset distribution to beneficiaries.

Essential considerations for different types of international assets

Real estate holdings abroad

Property represents one of the most common international assets requiring specialised estate planning. Foreign real estate invariably falls under the jurisdiction of its physical location, regardless of your domicile or citizenship status. This means local inheritance laws will likely govern how this property passes to heirs.

For instance, if you own a villa in France, French succession laws (including potential forced heirship provisions) may apply regardless of your UK will's instructions. Creating a jurisdiction-specific will for such properties often represents the most effective approach to ensure your wishes are respected within the constraints of local law.

Understanding how estate planning for international assets affects property transfer becomes particularly crucial when considering potential foreign inheritance taxes. Some countries impose substantial taxes on non-resident heirs, which proper planning might minimise through various available mechanisms. Our advisors can help you explore potential solutions including modified ownership structures, lifetime gifts, or the strategic use of trusts to optimise tax efficiency across borders.

Financial assets and investments

International financial assets, including bank accounts, investment portfolios, and pensions, present their own distinctive challenges. The governing jurisdiction for these assets typically depends on complex factors including the institution's location, account type, and applicable international agreements.

Some financial institutions impose their own procedures for asset transfer upon death, which might operate independently from your will's provisions. For example, certain Swiss banks follow specific protocols that could conflict with standard UK probate processes. Understanding these institutional requirements forms an essential component of comprehensive planning.

Digital assets with international dimensions add another layer of complexity. Cryptocurrencies, online investment platforms, and intellectual property rights may exist in ambiguous jurisdictions, requiring specialised planning approaches to ensure these valuable assets don't become inaccessible or lost after your passing.

Business interests crossing borders

For entrepreneurs and investors with business interests spanning multiple countries, succession planning becomes particularly intricate. Different jurisdictions approach business succession with varying requirements regarding foreign ownership, management transitions, and ongoing operations.

Creating clear succession plans for international business interests often involves coordinating legal tools across countries. This potentially includes trusts, foundations, and specialised corporate structures. These arrangements must balance tax efficiency, operational continuity, and compliance with diverse regulatory frameworks.

Our team at The Probate Bureau works closely with international specialists to develop cohesive strategies for business succession that preserve enterprise value while minimising cross-border complications for your heirs or chosen successors.

Practical steps for implementing your international estate plan

Professional guidance and documentation

Effectively managing international assets requires coordination between legal experts familiar with each relevant jurisdiction. Our firm maintains an established network of international associates who collaborate closely to develop seamless estate plans across borders.

Proper documentation becomes paramount when assets span multiple countries. Beyond wills and powers of attorney, consider creating comprehensive asset inventories that include precise details about international holdings (including account numbers, property addresses, ownership structures, and local contacts). This information proves invaluable to executors navigating unfamiliar foreign systems.

Additionally, maintaining copies of crucial documents in each relevant jurisdiction ensures executors can readily access necessary paperwork without delays caused by international document transfers or translation requirements.

Regular review and adaptation

International estate plans require more frequent reviews than purely domestic arrangements. Changes in any relevant jurisdiction's laws could significantly impact your strategy's effectiveness. Political developments, tax treaty modifications, or Brexit-type events may necessitate substantial revisions to existing plans.

We recommend reviewing international estate plans at least biennially, or whenever significant life changes or asset acquisitions occur. This proactive approach helps ensure your carefully constructed arrangements continue providing the protection and efficiency your beneficiaries deserve.

While navigating international estate planning undoubtedly presents challenges, with proper guidance from specialists at The Probate Bureau in Hertfordshire and thoughtful preparation, you can create arrangements that effectively protect your global assets and provide clarity for loved ones across jurisdictional boundaries. Contact our experienced team today to begin developing your comprehensive international estate strategy.

Still have questions? Get in touch or call us on 0808 239 8390.