International Succession Planning for Expat Couples and Families

Succession planning — ensuring your wealth passes to the people you want, in the way you want, with as little tax and bureaucratic friction as possible — is complex enough domestically. For internationally mobile families with assets in multiple countries, succession rights that differ between jurisdictions, and potential heirs who are themselves internationally mobile, it becomes one of the most demanding areas of personal financial planning.

This guide focuses on the specific succession challenges that expat couples and families face and the strategies available to address them.

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The Starting Point: Know What You Have and Where It Is

Before any succession planning can be done, you need a clear inventory of your worldwide assets and how they are held. For most expat families, this includes:

• UK residential property (in sole name, joint tenancy, or tenancy in common)
• Overseas property (in sole name, company, or trust)
• UK pension schemes (defined contribution, defined benefit, SIPP)
• Overseas pension or retirement schemes
• UK investment accounts (ISA, GIA, SIPP)
• Offshore investment accounts (offshore bonds, international brokerage accounts)
• Bank accounts (UK and overseas)
• Business interests (UK and overseas)
• Life insurance policies (in trust or not)
• Valuable personal property (art, jewellery, vehicles)
• Digital assets (cryptocurrency, domain names, online businesses)

For each asset, note: the jurisdiction, the current owner(s), how ownership is structured, and its approximate current value.

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The Interaction of Residency, Domicile and Succession Law

The core complexity in international succession planning is that multiple countries may have a legitimate claim to apply their laws to different parts of your estate. The general principles:

Immovable property (land and buildings): Governed by the law of the country where it is located (lex situs). No choice of law is permitted — French courts apply French law to French land.

Movable property (bank accounts, investments, personal property): Governed by the law of the deceased's domicile at death in most common-law systems (UK, Australia, Canada, etc.). Under the EU Succession Regulation (Brussels IV), EU member states apply the law of habitual residence unless a choice of nationality law was made in the will.

Pensions: Generally regulated by the law of the country where the pension is based (UK pension schemes follow UK law), but the practical distribution depends on the scheme's trust deed and any applicable double tax treaty.

This means that a British expat who dies habitually resident in France with property in Spain, pension in the UK, and investments held offshore will potentially have three different legal systems governing different parts of the estate, plus any relevant treaties between those systems.

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Spousal and Partnership Rights: Critical Differences

How a surviving spouse is protected varies enormously between jurisdictions:

UK (England and Wales)

A surviving spouse generally inherits the entire estate free of IHT under the spouse exemption. Following the move to a residence-based IHT system from 6 April 2025, the unlimited spouse exemption depends on the recipient spouse's long-term UK residence status: where the deceased is a long-term UK resident but the surviving spouse is not, the exemption is capped at the nil-rate band (£325,000) unless the survivor elects to be treated as a long-term UK resident. In the absence of a will, the intestacy rules provide for the spouse and children sharing the estate based on prescribed formulae. Couples who have cohabited but not married or formed a civil partnership have no automatic inheritance rights under English law — only what is left to them in a will.

France

The surviving spouse has a choice of legal entitlement: either a quarter of the estate outright, or full beneficial enjoyment (usufruit) of the whole estate. The children's forced heirship portion (réserve héréditaire) is calculated after the spouse's share. Notably, a will can increase the spouse's share, but cannot override the children's reserved portion.

Spain

The spouse is generally entitled to the usufruct (enjoyment without ownership) of one-third of the estate. The children (or their descendants) inherit the ownership of that third, and the spouse holds it for life. Again, the forced heirship portion (legítima) limits testamentary freedom.

Germany

Under statutory intestacy, a surviving spouse receives one-quarter to one-half of the estate (depending on whether children survive). German law also recognises a statutory increase to the spouse's share to compensate for matrimonial property accumulation (the "Zugewinnausgleich").

UAE

For Muslims, inheritance follows Islamic law (Sharia). For non-Muslim expats, personal law (the law of your home country) may govern movable property, but UAE courts apply Sharia by default unless evidence of foreign personal law is produced. This is a critical point: unmarried partners, non-traditional family structures, and stepchildren may be in a highly vulnerable position without proper documentation and legal advice.

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Structuring Property Ownership for Succession

How you own property can have profound succession consequences:

Joint tenancy (UK)

Joint tenancy means both owners hold an undivided share in the whole property. On the death of one owner, the property automatically passes to the surviving owner by right of survivorship, outside the will and outside probate. This is the standard default for married couples buying UK property together.

Tenancy in common (UK)

Tenancy in common means each owner holds a defined share (e.g., 50/50 or any other proportion). On death, the share passes through the estate (via the will or intestacy), not automatically to the survivor. This allows the deceased's share to be left to children or other beneficiaries rather than the surviving spouse.

Planning point: For second marriages or where there are children from previous relationships, a tenancy in common with a life interest trust (leaving the deceased's share to a trust for the spouse's benefit during their lifetime, then to children) is a common succession planning structure.

Overseas property ownership

In civil-law countries, the equivalent of joint tenancy may work differently. In France, for example, indivision (co-ownership) does not carry automatic survivorship. A tontine clause in the title deeds can create survivorship, but it has specific tax implications. Local legal advice on property ownership structure is essential.

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Pension Death Benefits in an International Context

UK pension death benefits are increasingly the largest financial provision for surviving families. Key points for expat planners:

Before death at age 75 (defined contribution / SIPP)

The entire uncrystallised fund can generally be paid to any nominated beneficiary free of income tax. The fund does not form part of the estate for probate purposes. The trustees of the pension scheme have discretion (not legal obligation) to follow the member's expression of wishes — ensuring this is current and specific is critical.

From April 2027

Unspent pension pots are proposed to be brought within the estate for IHT purposes for deaths from 6 April 2027. This is a significant change that will affect the use of large SIPP accumulations as an IHT-efficient inheritance vehicle. Specialist advice is essential given the potential for legislation to change before implementation.

Overseas pension schemes

Overseas pension schemes (occupational or state) typically follow the law of the country of establishment. UK pension sharing orders do not automatically apply to overseas pensions; nor do overseas sharing orders automatically apply to UK pensions. Each scheme's rules must be reviewed separately.

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Business Succession for Expat Business Owners

If you own a business (UK or overseas), succession planning for the business must be addressed alongside personal succession:

Business relief (BR): UK qualifying business assets attract 50–100% relief from IHT. This remains available for business assets held for at least two years. From 6 April 2026, 100% relief on qualifying business and agricultural property is capped at £2.5 million per individual (raised from the £1 million originally announced); this allowance is transferable between spouses (giving up to around £5 million per couple), with the value above the cap attracting only 50% relief. AIM and other unlisted shares qualify for 50% relief only and fall outside the £2.5 million allowance. Check the current rules.

Shareholder agreements: If you have business partners, a buy-sell or cross-purchase agreement funded by life insurance ensures that on death, your estate receives fair value for the business interest rather than being left holding shares in a business it cannot manage.

Succession to overseas businesses: Each country has its own rules on business succession, inheritance of shares, and transfer of business control on death. Local legal advice in the relevant country is essential.

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Practical Steps for Expat Succession Planning

1. Conduct a worldwide asset audit — list every asset, its location, how it is held, and its approximate value

2. Make or review your will(s) — ensure you have a valid will in the UK and in each country where you hold significant assets

3. Consider coordination across wills — ensure each will does not accidentally revoke the others, and that together they cover all assets

4. Review pension nominations — expression of wishes for all pensions and death-in-service schemes must be current

5. Assess the IHT position — calculate the potential IHT exposure based on your domicile/residence status and worldwide assets

6. Review life insurance and trust structures — life insurance in trust provides liquidity for IHT and immediate support for the family

7. Consider a letter of wishes alongside any discretionary trust — guides the trustees without legally binding them

8. Plan for both deaths — model the succession as if the first to die is either spouse; the financial impact can differ significantly

9. Review annually — succession plans go stale rapidly; review after any major life event, change of country, or significant change in asset values

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Checklist: International Succession Planning for Expat Couples

• Complete a worldwide asset and liability schedule
• Make valid wills in the UK and in each relevant country
• Review whether wills conflict with forced heirship laws in relevant countries
• Consider whether EU Succession Regulation (Brussels IV) applies and whether a nationality-law election should be made
• Review all pension expression of wishes nominations
• Confirm life insurance is written into trust and beneficiary nominations are current
• Assess IHT exposure under both the domicile and long-term residence frameworks
• Review property ownership structure (joint tenancy vs tenancy in common)
• Take local legal advice in countries where property or business is held
• Consider lasting power of attorney (UK) and local equivalents

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This guide provides general information only. Succession law, inheritance tax and estate planning rules are highly jurisdiction-specific and subject to change. Seek qualified legal and financial advice in every relevant jurisdiction.

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How Global Investments Can Help

Succession planning for expat families is one of the most important — and most frequently deferred — areas of financial planning. At Global Investments, we work with internationally mobile clients to map their succession position, identify risks and gaps, and coordinate with specialist lawyers and advisers across jurisdictions. We ensure that the financial dimension of your estate plan is integrated with the legal, so that wealth passes efficiently and according to your wishes. Contact us to arrange a succession planning review.