Wills and Estate Planning for Expats: Protecting Assets Across Borders

For most UK residents, a single will drawn up by a local solicitor is sufficient. For internationally mobile individuals with property, investments, and financial accounts across multiple countries, estate planning becomes considerably more complex. The consequences of inadequate preparation — assets frozen for years in foreign probate, forced heirship rules overriding your wishes, pension nominations that contradict your will — can impose significant costs and distress on your family at an already difficult time.

Why a UK Will Is Not Enough

A UK will covers assets subject to UK law — UK-situs property, UK bank accounts, UK investments held in your name. It does not automatically govern the succession of assets in other countries.

Many countries apply their own succession laws to property and assets located within their territory, regardless of what a foreign will says. If you own an apartment in Spain, a villa in France, or a condo in Thailand, the succession of that property may be governed primarily by local law — and local law may have very different rules about who inherits what.

The practical solution is to have separate wills in each jurisdiction where you hold significant assets. While this adds cost and administrative complexity, it avoids situations where a single will must be translated, apostilled, and litigated through foreign courts — a process that can take years and cost far more than the original investment in proper planning.

Brussels IV Regulation (EU Property)

If you hold property in EU member states, the Brussels IV Regulation on Succession (EU Succession Regulation No 650/2012) is directly relevant. This regulation applies to deaths occurring on or after 17 August 2015 and establishes which country's law governs the succession of your estate in EU states.

The default rule under Brussels IV is that the law of the country of your habitual residence at death governs your entire estate. For a UK expat habitually resident in Spain, Spanish succession law would apply by default.

Critically, Brussels IV allows EU nationals — and UK nationals, since the provision covers individuals exercising the choice — to elect that the law of their nationality governs their succession. This election must be made expressly in a will. A UK national living in France can elect that English and Welsh law governs their entire estate for succession purposes, thereby avoiding French forced heirship rules.

Note that Brussels IV applies to EU member states. It does not apply in the UK (which left the EU), Denmark, or Ireland (which have opt-outs). UK-situs property remains subject to English succession law.

Forced Heirship: France, Spain, and Beyond

Many civil law countries impose forced heirship — legal requirements that a portion of the estate passes to specified relatives, regardless of what the deceased's will says. This is the single most significant issue for UK nationals owning property in continental Europe.

France (réserve héréditaire): French succession law reserves a portion of the estate for children. With one child, they are entitled to 50% of the estate; with two children, two-thirds; with three or more, three-quarters. The remaining portion (quotité disponible) can be freely disposed of by will. Spouses do not have a reserved share under French law but have specific rights of usufruct.

A UK national who owns a French property and has made a Brussels IV election for English law to apply can potentially sidestep the réserve héréditaire — but this interplay has been the subject of French court cases and the position is not entirely settled. French tax law is also separate from succession law and is not affected by the Brussels IV election.

Spain (legítima): Spanish forced heirship reserves two-thirds of the estate for children (descendants), with one-third (the mejora) which the testator can freely give to any descendant, and one-third (the libre disposición) freely given to anyone. The autonomous regions of Navarra, Aragón, Catalonia, and the Basque Country have their own succession rules, some significantly more flexible.

Germany (Pflichtteil): German law provides children and spouses with a statutory entitlement to half the value of their legal intestacy share, even if excluded from the will. The claim is against the estate as a monetary debt.

Thailand and Indonesia: These countries apply their own civil law succession rules to real property located in their territories. Foreign-owned property structures (long-term leases, company ownership) affect succession differently from direct ownership.

Community Property

Several US states — including California, Texas, Arizona, Nevada, Washington, and others — operate a community property regime. Property acquired during marriage is owned equally by both spouses regardless of who paid for it. This affects how UK couples structure US property ownership and what can be disposed of by will. Understanding community property is essential before purchasing US real estate as a married couple.

Updating Nominations: Pensions and Life Insurance

A will does not cover nominated beneficiaries on pension schemes and life insurance policies. These assets pass directly to the nominated individual — entirely outside probate and outside the will.

Many expats fail to update pension nominations when they move abroad or when their personal circumstances change. A pension nominated to a former spouse years ago, or to a parent who has since died, creates significant problems.

Review and update all nominations:

• UK workplace pensions (defined contribution, defined benefit)
• SIPPs (Self-Invested Personal Pensions)
• Group life insurance through an employer
• Individual life policies

Pensions and death-in-service benefits are typically written in trust, so nominations are recommendations to the trustee rather than legally binding instructions — but an up-to-date, carefully drafted nomination expression of wishes is the best way to ensure the trustees follow your preferences.

Lasting Power of Attorney: UK and Foreign Equivalents

A UK Lasting Power of Attorney (LPA) allows a named person (your "attorney") to make decisions about your property and financial affairs or health and welfare if you lose mental capacity. UK LPAs are registered with the Office of the Public Guardian and are only valid in England and Wales.

A UK LPA does not give your attorney authority over assets in other countries. Most countries require their own equivalent document:

• Spain: Poder notarial (power of attorney before a Spanish notary)
• France: Mandat de protection future or procuration
• Germany: Vorsorgevollmacht
• UAE: Notarised power of attorney (must be attested for use in the UAE)

For UK expats, consider whether a trusted individual in the UK holds a valid UK LPA for your UK assets, and whether separate arrangements are in place for assets abroad. The cost of setting these up while you have capacity is small compared to the cost of a court-supervised guardianship if you do not.

Digital Assets

Digital assets are an increasingly significant element of estate planning. Cryptocurrency holdings, online investment accounts, domain names, digital businesses, and cloud-stored intellectual property all need to be considered.

Most wills make no provision for digital assets. The practical challenges are considerable: cryptocurrency is irretrievable without the private key or seed phrase, and assets held at exchanges may be frozen if the exchange requires probate documentation before releasing funds.

Consider:

• A secure, updated record of digital assets and access credentials (held separately from the will, in a secure location known to your executor)
• Specific provision in your will for digital assets by category
• Where relevant, a Letter of Wishes to your executor providing additional practical guidance

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Important: Succession law varies significantly between countries and changes over time. Forced heirship rules, tax implications, and the interaction between UK and foreign succession laws are complex areas where the stakes are high. This article is general guidance only. Always take specialist legal advice from practitioners qualified in the relevant jurisdictions before making estate planning decisions.

How Global Investments Can Help

Estate planning for internationally mobile clients is a specialism that sits at the intersection of law, tax, and financial planning. Global Investments works with advisers and legal practitioners across the international markets we operate in and can connect you with the cross-border legal specialists and private client advisers best placed to structure your affairs. Whether your estate involves UK property, overseas real estate, pension assets, or investment portfolios, proper planning protects your family and your wealth. Contact our team to discuss your situation.