Top tips for effective cross-border estate planning

In the connected world in which we live today, it is increasingly common for families to live in England, own a holiday home abroad, hold investments in another country and have children whose lives have taken them elsewhere.

Passing on your cross-border wealth can be complex, and involve more than making a will in one country.

Different laws might govern different assets. Multiple tax authorities may take an interest in the same estate. Family members may have expectations or legal rights that do not align with the terms of your will.

Without a coordinated cross-border estate plan, when you die this can cause unintended delays and disputes at what is an already difficult time.

Azeam Akram, Consultant Solicitor in the Private Wealth & Tax team at Jurit, explores what happens to a cross-border estate when someone dies and some of the common challenges that can arise.

What happens to an cross-border estate when someone dies?

An estate can be made up of property, money and other assets that a person leaves behind, together with their debts and other liabilities. It might include a home, bank accounts, investments, business interests and personal possessions.

In England and Wales, the people responsible for administering a deceased’s estate must identify and value the assets, establish what is owed, deal with any tax and distribute what remains.

A valid will generally names executors responsible for administering the estate, and sets out who should benefit. Where there is no valid will, the intestacy rules determine who inherits and who may administer the estate.

There are some assets which pass outside a will. For example, a jointly owned property held as joint tenants generally passes to the surviving owner. Whether probate is needed, and which assets it covers, depends on how they are owned.

Why do international estates create additional risks?

International estates can be a lot more complex to administer when you die. This is because a will that appears clear in England might not produce the expected result elsewhere.

The position depends on the countries involved, the location and ownership of each asset, and the laws that apply to succession and tax. For example:

1. Inheritance rights may differ.

England and Wales generally allow people considerable freedom to choose who inherits. Other jurisdictions have forced heirship rules that reserve a share for certain relatives. Religious or community-based succession rules may also be relevant in some places. A family should establish which rules apply to each part of its estate before assuming that one will can govern everything.

2. A will might be challenged.

Disputes can arise over a person’s capacity to make a will, undue influence, whether the will was properly signed, or what the person understood and approved. In England and Wales, certain eligible people may also seek financial provision from an estate under the Inheritance (Provision for Family and Dependants) Act 1975. That is a distinct issue from challenging whether the will itself is valid.

3. Family relationships matter.

Blended families, estranged children, unmarried partners and stepchildren can make an estate plan more complicated. If someone dies without a will in England and Wales, an unmarried partner does not automatically inherit under the intestacy rules. A person’s assumptions about who counts as an heir may differ from the legal position in another country too.

4. Assets can be difficult to locate or administer.

Overseas property may require a separate local process. Business interests and other assets can be hard to value or sell. Unclear ownership records can add further delay, particularly where family members believe they hold different shares.

5. More than one tax system may be relevant.

At the time of writing, the UK’s standard Inheritance Tax rate is 40% on the taxable portion of an estate above the available thresholds, but that figure alone does not establish what a family will pay. From 6 April 2025, the scope of UK Inheritance Tax on non-UK assets has generally depended on long-term UK residence rather than domicile. Overseas taxes and any available relief from double taxation also need to be considered.

A family example

Imagine a parent who lives in England, owns a property overseas and has children from two relationships, including one from whom they are estranged. Their will leaves most of the estate to their current partner and the children with whom they remain close.

There may be good reasons for the parent’s wishes. The point is to understand whether the plan will work as intended and where a challenge could arise. For example:

Does the will validly deal with the overseas property, and will it be recognised where that property is located? Does local law reserve a share for a child? Could anyone bring a claim against the English estate? How is each asset owned, and could tax arise in more than one country?

Reviewing those questions while the parent can still explain their decisions, will give the family a better opportunity to understand and address them.

Where can a family trust help?

A trust is a legal arrangement under which trustees hold and manage assets for beneficiaries under terms set by the person establishing the trust.

Depending on its purpose, a Trust can help a family manage assets across generations, provide for someone who needs ongoing support, or set out how and when beneficiaries can benefit. Trustees can also provide continuity in managing assets if a family member dies or loses capacity.

However, they do require careful design.

Putting an asset into trust does not automatically remove it from a person’s taxable estate, avoid every probate requirement or ensure that another country will treat the trust as England and Wales does.

Trusts can themselves give rise to tax charges, including charges when assets enter or leave certain trusts and on ten-year anniversaries. Their effectiveness must be assessed against the assets, beneficiaries and jurisdictions involved.

What does a family office add?

A family office is different from a trust.

Family Offices are a way of organising the people and services involved in managing family wealth and affairs. Depending on the family, a family office might cover investment oversight, record keeping, governance, succession and coordination between legal, tax and other advisers.

For a family with assets and relatives in several countries, that coordination can be valuable. It can help ensure that advisers work from the same picture of what the family owns, how it is held and what the family wants to achieve. However, a family office does not replace a will, a trust or jurisdiction-specific legal and tax advice.

Start with a complete picture

Effective cross-border estate planning begins with an inventory of assets and liabilities, where they are located and how they are owned.

The next step is to understand the people involved. Who should benefit, who may have a claim, and who will be responsible for carrying out the plan?

Wills, trusts and family governance arrangements can then be considered together, with advice in each relevant jurisdiction. They also need reviewing when a family moves, acquires or sells property, changes its business interests, or welcomes new members.

For families with wealth beyond one border, you need a plan which works just as well in practice as it does on paper. Early, coordinated cross-border estate advice can make it easier to protect your family’s legacy and intentions, whilst reducing the scope for uncertainty later down the line.

To discuss cross-border estate planning, trusts or a potential inheritance dispute, contact Azeam Akram and Jurit’s Private Wealth & Tax team.