Expat Wills – What You Need to Know

Estate planning regulations are different around the world, and in many countries, people have found that their will is invalid, putting their hard-earned assets at risk. 

The topic of wills for British expats is notoriously difficult to navigate and poses a number of frequently asked questions; for example, ‘do you need separate wills in different countries?’ and ‘are foreign wills valid in the UK?’

If you live abroad, making a will is not an easy task and usually requires advice from a legal expert like those here at Quick Wills, but this complete guide will help to give you a good insight into foreign wills, how they work and how British expats can secure their assets.

What is an expat?

An expat (or expatriate) is a term used to describe somebody who lives outside of their native country.

Why expats should make a will

If you’ve spread your life over more than 1 country, your last will and testament are unlikely to stand firm in them all.

Moveable assets, such as money or personal possessions, are usually safe under English and Welsh law, but issues arise with the distribution of tangible or immovable assets like property or land.

If your will is deemed invalid in a foreign country, the immovable assets held within that country will be distributed as per its intestacy laws. Inheritance laws around the world can vary significantly, meaning that when you die, your property may not end up with who you’d originally intended.

Failing to register a valid will could also extend the process of probate by years, as well as make the estate subject to more Inheritance Tax than necessary.

Issues faced when making a will if you live abroad

Logistics aside, there are a number of issues that must be considered when writing a will abroad. The 2 most frequent problems are both Inheritance and Inheritance Tax (IHT).

Inheritance – Without a professionally written will, a country’s intestacy laws could clash with the will that you have in place in the UK.

Inheritance Tax – IHT rates differ around the world, and if not planned for, this death tax might be charged both by the UK and your country of residence.

Remember, dying without a will (known as dying intestate) puts your entire estate at risk, no matter what country it may be based.

Inheritance tax for expats

In the UK, the current Inheritance Tax threshold (also known as the nil rate band) is £325,000, and anything above this value will be charged at a rate of 40%.

When living outside of the UK, it is only the assets that are held within the UK that make up an estate and can be subject to IHT. This also includes any moveable assets such as bank accounts, savings and personal possessions which can be easily transferred from abroad back to the UK.

Immovable assets outside of the UK, such as property and land, make up a foreign estate – this estate will be subject to an entirely separate Inheritance Tax fee, depending on its value and the country in question.

To find out how you can reduce the amount of Inheritance Tax paid on your property, read our useful guide here.

Expats and the law of succession

Succession law is used to regulate the inheritance of property after death.

There are some wills, known as worldwide wills, which allow property and other assets to be distributed in a number of countries; however, many countries require the will to have been written locally for it to be legally binding.

Foreign jurisdiction can also have a significant impact on inheritance. For example, some European countries deploy ‘forced heirship’ laws which ensure that protected heirs, such as children or a spouse, are always entitled to at least a share of the deceased’s estate.

These laws also apply in some non-European countries which have become popular destinations for Brits to emigrate to, specifically Japan and Saudi Arabia.

Wills and the European Union (EU)

While the country is still operating under EU legislation, UK citizens that emigrate to another country within the EU are able to decide which country’s laws their estate is distributed under. For example, somebody who moves from the UK to Germany is able to choose between British and German laws.

British expats in the EU often prefer UK jurisdiction as it is typically not as strict as that of foreign countries.

The impact of Brexit on successions and inheritance is still unknown, making it all the more important that you seek expert advice. Fill out our short contact form below to see how can advise you on writing a will abroad.

Is foreign inheritance taxable in the UK?

Any property or land held abroad is not subject to Inheritance Tax in the UK. 

For those who live permanently outside of the UK, the only assets which are taxable under UK law are assets held within the country and moveable assets like bank accounts and possessions.

You will not qualify for permanent residency outside of the UK if:

• You have lived in the UK for at least 15 of the last 20 years

• You have lived in the UK on a permanent basis at any time during the last 3 years

Those living permanently outside of the UK might be charged IHT at a rate defined by the country in which they are residing.

Expat wills with Quick Wills

If you are one of the hundreds of thousands of Brits currently living overseas, you’ll want to seek expert advice on how best to manage your estate. 

At Quick Wills, our trained legal professionals are on hand to ensure that your loved ones, whether in the UK or otherwise, receive their inheritance without any hassle or unnecessary taxes.

Click here to start writing your will, or complete the contact form below if you have any further questions about expat wills.