Death Abroad: What Happens to Your Assets and How to Plan for It

It is a subject most people prefer not to confront, but for internationally mobile individuals, the question of what happens to assets spread across multiple countries if you die abroad is a practical planning necessity. Without proper preparation, a cross-border estate can take years to administer, cost tens of thousands of pounds in legal fees, result in assets being distributed differently from your wishes, and cause significant additional distress to an already grieving family.

This guide explains what actually happens when a British or internationally mobile individual dies abroad, what the legal and tax implications are, and — most importantly — how to plan effectively so that your wishes are carried out as smoothly as possible.

Nothing in this article constitutes legal advice. Laws on succession, probate, and inheritance tax vary significantly by country and change over time. Seek independent legal and financial advice.

The Immediate Practicalities of Death Abroad

When a British national dies abroad, the immediate practical steps fall to the family or next of kin:

Local registration. The death must be registered in the country where it occurs, according to local law. The local death certificate is then used to begin all subsequent legal and administrative processes.

British Consular services. The British Consulate or Embassy in the country of death can assist with:

• Registering the death with UK authorities
• Obtaining multiple certified copies of the local death certificate
• Assisting with repatriation of the body to the UK (if desired)
• Providing information about local funeral procedures

The Consulate cannot arrange funerals, pay bills, or provide legal advice. They can, however, provide lists of local lawyers and funeral directors.

Repatriation. If the family wishes the body to be returned to the UK, repatriation costs — transport, embalming, consular documentation, translation, and UK death registration — can cost £5,000–£20,000 or more depending on the country and circumstances. Travel insurance with repatriation cover (now standard in most comprehensive travel and expatriate health policies) covers these costs where in place.

Travel insurance and expatriate health insurance. These policies typically cover emergency repatriation of a body. Confirm whether your policy includes this, and at what limit. If your policy has lapsed or was inadequate, the costs fall to the estate.

How UK Succession Law Applies to Deaths Abroad

Domicile and Residence: Two Central Concepts

It is important to separate two distinct questions. Domicile still governs general succession (which country's law decides who inherits, and whether forced-heirship rules apply). But from 6 April 2025, UK inheritance tax is no longer based on domicile — the old domicile-based regime (including "deemed domicile" and the remittance basis) was abolished and replaced with a residence-based test. Domicile remains a legal concept with a technical meaning:

• Domicile of origin: The country associated with your father's domicile at the time of your birth (for most British nationals, this is England and Wales, Scotland, or Northern Ireland).
• Domicile of choice: Acquired by living in a country permanently and indefinitely with the intention of making it your permanent home, abandoning any intention of returning to the country of origin.

For IHT purposes, what now matters is whether you are a long-term UK resident — broadly, UK-resident for at least 10 of the previous 20 tax years. Many British expats who have lived abroad for many years may fall outside this test in time, but it can take a decade or more out of the UK for worldwide IHT exposure to fall away, and the precise position needs specialist analysis.

Why this matters:

• If you are a long-term UK resident, UK inheritance tax applies to your worldwide assets.
• If you are not a long-term UK resident, UK inheritance tax applies only to UK-sited assets.

The difference in IHT exposure can be many hundreds of thousands of pounds.

The Will(s): What Governs Your Estate?

Each country generally governs the succession of assets situated there. For a British individual who dies with:

• UK property
• A bank account in Spain
• An investment account in Singapore
• A QROPS pension in Malta
• Property in Thailand

...the succession of each asset is potentially governed by different legal systems.

Your UK will governs UK assets. If there is no UK will, UK intestacy rules apply.

Foreign assets require either:

• A separate will in each relevant country, specifically addressing local assets
• Provisions in the UK will that are recognised and given effect in each overseas country (which is not always the case)
• The use of succession planning structures (trusts, companies) that bypass local succession rules

Without co-ordinated planning, each country's local legal system applies to local assets, often producing results that differ from the deceased's intentions.

Intestacy: What Happens Without a Valid Will?

If you die abroad without a valid will (or with a will that is invalid in the relevant country), intestacy rules apply. These vary dramatically:

England and Wales intestacy (if UK domiciled):

• Spouse/civil partner receives all personal property and the first £322,000 of the estate, plus half of the remainder
• Children receive the other half of the remainder above £322,000 (shared equally)
• Unmarried partners receive nothing
• Stepchildren receive nothing

Common law countries (US, Australia, Canada): Generally similar principles to England; surviving spouse is prioritised but children also receive a share depending on the state or jurisdiction.

Civil law countries (France, Spain, Germany, Italy): "Reserved shares" (legal minimum shares) protect children and sometimes surviving spouses. A UK will that attempts to disinherit children may be overridden by the local reserved share rules in these countries.

Islamic inheritance law (applicable in UAE, Saudi Arabia, and other GCC states by default for Muslims; potentially applicable for non-Muslims in some jurisdictions): Distributes estate according to specified shares. In the UAE, non-Muslims may now register a will with the DIFC Wills Service to ensure their estate is distributed according to their own wishes rather than under Sharia principles. For non-Muslims in the UAE without a registered will, the local courts may apply default rules.

Thailand: Foreign nationals cannot own land freehold in Thailand. Property held through Thai companies or long-term leases requires careful succession planning beyond a standard will.

UK Inheritance Tax on Death Abroad

The Rules

If you are a long-term UK resident at death:

• Worldwide assets are subject to UK IHT at 40% above the nil-rate band (£325,000, frozen to April 2031; up to £500,000 with the residence nil-rate band of £175,000 where the main home passes to direct descendants)
• A married couple can combine their allowances to pass up to £1 million free of IHT where both the nil-rate band and residence nil-rate band are fully available
• Overseas taxes paid on the same assets may generate credit against UK IHT (under double tax treaties where applicable, or unilateral relief)

If you are not a long-term UK resident:

• UK IHT applies only to UK-sited assets
• Overseas assets are not subject to UK IHT
• Transfers between spouses are normally exempt; where the deceased was a long-term UK resident but the surviving spouse is not, the spouse-exemption rules can be more restrictive, and specialist advice is needed

Pension Funds and IHT (from 2027)

A major change affects internationally mobile individuals: from 6 April 2027, unused pension funds held at death are brought within the IHT estate (legislated in Finance Act 2026, which received Royal Assent on 18 March 2026; personal representatives are made liable for the IHT due). As of 2026, pension funds normally pass outside the estate. From April 2027 this change brings large SIPP balances and other pension pots within IHT scope.

Planning ahead of this change — including reviewing whether drawdown of pension funds before death makes sense — is a live planning issue for 2026 and 2027.

Lifetime Gifts and the Seven-Year Rule

Gifts made more than seven years before death are not subject to IHT (Potentially Exempt Transfers that become fully exempt). Gifts made within seven years are either subject to IHT (within three years of death) or attract taper relief (between three and seven years).

For an internationally mobile individual, gifts of foreign assets — if genuinely non-UK domiciled — are not subject to UK IHT regardless of timing. For UK-domiciled individuals, the seven-year rule applies to all gifts of all assets worldwide.

Cross-Border Succession Planning: The Framework

Multiple Wills

The most practical solution for internationally mobile individuals with assets in multiple countries is to have multiple wills — one for each country where significant assets are held — each specifically addressing that country's assets and governed by that country's law.

Key requirements for a valid multi-will structure:

• Each will must comply with local formal requirements
• Wills must be co-ordinated to avoid unintended conflict (e.g., each will should expressly state that it applies only to assets in its own country)
• Where possible, the "choice of law" provisions under the EU Succession Regulation (for EU assets, if applicable) or local private international law should be used

Trusts

Properly structured international trusts can hold assets across multiple jurisdictions under a single governing structure, avoiding the need for separate probate in each country. The trust assets pass on death according to the trust deed, not by succession law.

Important considerations:

• UK-domiciled settlors who establish offshore trusts retain UK tax exposure on trust assets in many cases
• Trust structures must be professionally drafted and correctly established — DIY trusts are high-risk
• Trusts carry ongoing administrative costs and trustee obligations
• HMRC scrutinises offshore trusts carefully

Companies

Holding foreign property through a company (e.g., a Cyprus or BVI company) can simplify succession: shares in the company pass according to the shareholder's will or the company's constitution, avoiding the need to transfer the underlying foreign property itself through local succession law. There are significant tax and regulatory considerations that make this approach suitable only with specialist advice.

Practical Planning Actions

1. Make a will in every country where you have significant assets. Ensure wills are co-ordinated and up to date.
2. Register a will in the UAE if you reside there (DIFC Wills Service for non-Muslims; enforced in UAE courts).
3. Establish Lasting Powers of Attorney in the UK (and equivalent documents in other countries where held).
4. Update pension Expression of Wish forms for every pension scheme.
5. Ensure life insurance policies are written in trust (proceeds then bypass the estate).
6. Review domicile position if you have been abroad for many years and may have acquired a domicile of choice — the implications for IHT can be enormous.
7. Ensure death benefit nominations on all insurance and pension products are current.
8. Hold comprehensive travel and expatriate health insurance including repatriation cover.
9. Tell your family where key documents are held and who your advisers are. A "letter of instructions" (not the will itself, but a separate document) should set out account numbers, policy references, adviser contact details, and key wishes (funeral preferences, etc.).
10. Review and update every two to three years — particularly after a change in country of residence, significant change in asset position, or change in family circumstances.

How Global Investments Can Help

Global Investments works with internationally mobile individuals and families to ensure robust cross-border estate planning is in place. Our advisers coordinate with specialist solicitors and estate planners in each relevant jurisdiction to ensure wills, trusts, LPAs, and death benefit nominations reflect clients' actual wishes.

Planning services include international estate plan review, trust structuring, pension succession planning (including the 2027 pension IHT reform), IHT analysis and mitigation, and co-ordination of multi-country legal documentation.

Death abroad should not be a crisis for your family. With proper planning in place, even a complex multi-jurisdictional estate can be administered smoothly. Speak with a Global Investments adviser today — while the planning is straightforward and the urgency is not yet acute.

This article is for general information only and does not constitute legal or financial advice. Succession laws and tax rules vary significantly by country and are subject to change. Always seek independent specialist advice in all relevant jurisdictions.