What Happens to Your Finances If You Die Abroad? A Guide for Expats

Death abroad creates a unique set of administrative, legal and financial challenges for families. When someone dies overseas, the practical and bureaucratic burden on their next of kin is considerable — and is made significantly worse when financial affairs have not been planned in advance. This guide explains what happens to an expat's finances when they die, what families need to do, and — most importantly — the steps you can take now to make the process as smooth as possible.

This is a difficult subject. The purpose of this guide is practical preparation, not to dwell on mortality, but to give you and your family the tools to handle an already difficult situation without additional financial chaos.

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The Immediate Steps When an Expat Dies Abroad

1. Registration of death

In most countries, a death must be registered with local authorities promptly — typically within 24–72 hours. If the cause of death is unclear, a post-mortem examination may be required before a death certificate is issued, which can cause delays.

The British Embassy or High Commission in the country can advise and provide consular assistance. The FCDO's "Death of a British National Abroad" guidance is a useful practical resource. Consular staff can help contact next of kin, provide lists of local lawyers and funeral directors, and assist with documentation.

2. Obtaining the death certificate

A foreign death certificate is issued in the local language. For UK estate administration purposes, you will need a certified translation. For some UK institutions, an apostilled foreign death certificate is required.

You should also register the death with the UK General Register Office (GRO) if the deceased was a UK citizen — this creates a UK record.

3. Repatriation

Repatriating a body from abroad is expensive — costs can range from £2,000 to £10,000+ depending on the country, the airline, and the circumstances. Funeral companies that specialise in repatriation manage the logistics, but the family bears the cost unless repatriation insurance was in place.

Travel insurance typically includes emergency repatriation of remains. International life insurance policies sometimes include this as a benefit. Standard UK life insurance policies (covering death "anywhere in the world") may not cover the repatriation logistics cost itself — check the policy wording carefully.

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Estate Administration When an Expat Dies

Grant of probate — which country?

When someone dies, their personal representative (executor if there is a will, administrator if there is not) must obtain authority to deal with the estate. In England and Wales, this is called a Grant of Probate (where there is a will) or Letters of Administration (where there is no will).

A UK grant of probate covers UK-situs assets. For assets held in other countries, a separate grant of probate or equivalent authority is typically required in each country. This is called a resealing of probate in some Commonwealth countries (which will recognise an English grant) or a fresh local grant in others.

The need to obtain grants of authority in multiple countries simultaneously is one of the main reasons why estate administration for expats takes far longer and costs far more than for a domestic estate.

Which country's law applies?

The EU Succession Regulation (Brussels IV) governs cross-border succession within participating EU member states. The UK never opted into the Regulation (even before Brexit) and is treated as a "third state" for these purposes — but it remains highly relevant to UK nationals because EU member states apply it to assets situated within them:

• Participating EU countries generally apply the law of the country where the deceased was habitually resident at death
• A deceased person may have elected the law of their nationality in their will to govern the succession

For non-EU countries, the general principle is that personal property (investments, bank accounts) is governed by the law of the deceased's domicile, and real property (land, buildings) is governed by the law of where it is situated.

Practical implication: A UK expat who dies habitually resident in France, with a UK will drafted for English law, may find that French succession law governs the French-situated estate regardless — including forced heirship rules that override the will's instructions.

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UK Tax on the Estate

Inheritance Tax

From 6 April 2025 the UK moved to a residence-based IHT system, replacing the old domicile/deemed-domicile test. If the deceased was a "long-term UK resident" — broadly, UK tax-resident in at least 10 of the previous 20 tax years — UK inheritance tax (IHT) applies to their worldwide assets.

The nil-rate band is £325,000. The residence nil-rate band (for a main residence passed to direct descendants) is £175,000. IHT at 40% applies to the estate above the available allowances.

Spouses and civil partners: Assets passing to a surviving spouse or civil partner are generally exempt from IHT where the recipient is a long-term UK resident; a limited exemption cap can apply where the recipient is not. Unused nil-rate bands can be transferred to the surviving spouse's estate.

Assets abroad: IHT on foreign assets may produce a double-taxation issue where the foreign country also imposes a death or succession tax on the same assets. UK tax treaties dealing with estate taxes exist with a number of countries, but the network is much smaller than income tax treaties. Unilateral credit relief may be available.

Not a long-term UK resident

If the deceased was not a long-term UK resident under the post-April-2025 rules, UK IHT applies only to UK-situs assets — UK property, UK bank accounts, UK shares, and UK-registered pension rights (pension changes from 2027 — see below).

Pension death benefits

As of 2026, uncrystallised defined contribution pension pots can generally be passed on death before age 75 free of income tax (though IHT treatment is changing — from April 2027, unspent pension pots are expected to be brought within the estate for IHT). Defined benefit pensions may include a dependants' pension or a lump sum death benefit. Check the scheme's rules carefully.

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Life Insurance and Death-in-Service Benefits

Life insurance

A UK whole-of-life or term life insurance policy that is written in trust pays out outside the estate, directly to named beneficiaries, without passing through probate. This avoids both probate delay and IHT on the policy proceeds.

A policy not in trust forms part of the estate, is subject to IHT, and requires a grant of probate before it can be paid.

For expats, check whether the policy covers death anywhere in the world (most UK life insurance does, but confirm) and whether there are any exclusion for certain activities (extreme sports, for example).

International life insurance

Some expats take out international life insurance — policies written in the Isle of Man, Dublin, or other offshore centres. These often have the advantage of being structured outside the UK estate for IHT purposes and paying out in the currency of choice.

Death-in-service benefits

Many employer packages include a death-in-service lump sum (typically 3–4 times salary). This is usually a discretionary payment made by the employer's pension scheme trustee to the employee's nominated beneficiaries. It does not form part of the estate and is not subject to IHT, though it can be if the trustees decide to pay it into the estate rather than directly to beneficiaries.

Ensure your expression of wishes nomination is up to date with your employer's HR or pension scheme administrator.

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What Happens to Accounts and Assets Abroad?

Bank accounts in your country of residence

Local bank accounts will be frozen when the bank is notified of the death. Your family will need to obtain local probate authority to access them. This can be straightforward (in countries with simple succession laws and small estates) or complex (in countries with court proceedings, mandatory notarial involvement, or forced heirship claims from relatives).

Investment accounts

International investment accounts (offshore bonds, brokerage accounts) will each have their own death administration procedures. The provider will require a certified death certificate, proof of identity of the executor, and typically a grant of probate or equivalent authority.

Property

Foreign real estate passes according to the law of the country where it is situated. Local lawyers must be involved. In community-of-property regimes (common in France, Spain, etc.), the surviving spouse's rights must be established alongside probate.

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Planning Ahead: What You Can Do Now

The most effective thing you can do to protect your family from unnecessary administrative burden is to plan your estate carefully before anything happens.

Practical steps:

1. Make a will — in the UK and in each country where you hold significant assets (see our estate planning guide for expats)
2. Write your life insurance in trust — so it pays out promptly and outside the estate
3. Keep your expression of wishes up to date on all pension and death-in-service schemes
4. Create a "letter of wishes" or emergency information document — listing all accounts, policies, advisers, property details, and where key documents are held. Store it securely and tell your trusted person where to find it.
5. Ensure joint accounts are in place for essential day-to-day funds — joint accounts pass automatically to the surviving account holder outside probate
6. Check your travel and international health insurance includes repatriation of remains
7. Register your presence abroad with the FCDO (UK government's "Living Abroad" registration) so consular services can contact your family

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Checklist: Preparing Your Affairs for the Unexpected

• Valid, up-to-date will in the UK
• Jurisdiction-specific wills for countries where assets are held
• Life insurance written in trust with current beneficiaries
• Expression of wishes completed for all pension schemes
• Emergency information document listing all accounts, policies, advisers
• Trusted person knows where all documents are held
• Travel insurance including repatriation of remains
• Joint account arrangements for essential daily funds
• Lasting power of attorney registered in the UK
• FCDO "Living Abroad" registration completed

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This guide provides general information only. Succession law, estate administration and tax rules vary by country and are subject to change. You should seek qualified legal advice in the UK and in each country where you hold assets. This guide does not address all possible scenarios and is not a substitute for personalised legal and financial advice.

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How Global Investments Can Help

At Global Investments, we understand that the best financial planning is the kind that protects your family when they need it most. We work with expat clients to review their overall estate structure — ensuring that life insurance, pension nominations, will provisions and investment arrangements are aligned and would function effectively in the event of an unexpected death. We also help clients ensure that the financial aspects of their estate can be administered efficiently across multiple jurisdictions. Contact us for a confidential estate planning review.