When a loved one dies, leaving assets abroad, the process of administering their estate can become more complex than usual. Many people today hold property, bank accounts, or investments in different countries, whether through family connections, business, or retirement plans. While probate in the UK is already a detailed process, the involvement of foreign assets adds further legal, tax, and administrative challenges. Understanding how UK probate interacts with overseas property and financial holdings is essential for executors and beneficiaries. The rules vary depending on where the assets are located, and dealing with multiple jurisdictions can often mean navigating two or more legal systems at once.
In England and Wales, probate is the legal process of proving a will and confirming an executor's authority to administer an estate. Where there is no will, the process is called applying for “letters of administration”. Executors or administrators must value the estate, pay debts and taxes, and distribute assets in accordance with the will or intestacy rules.
When assets are located solely in the UK, the process is usually straightforward. The grant of probate (or letters of administration) issued by the probate registry gives executors the authority to deal with banks, sell property, and transfer investments. However, foreign assets complicate matters because UK probate documents are not automatically recognised in other countries.
If the deceased owned property, investments, or accounts outside the UK, the key question is whether those assets can be dealt with under a UK grant of probate or whether a separate legal process must be followed in the country where they are located.
Some countries will accept a UK grant of probate once it has been translated, notarised, or “resealed” (a process that validates it in the foreign jurisdiction). Others will require an entirely separate local probate application in line with their own laws. This can mean appointing lawyers abroad, providing official translations, and complying with unfamiliar rules about succession and inheritance.
Certain countries, mainly those that are part of the Commonwealth, may allow a UK grant of probate to be “resealed”. This means that the local court effectively accepts the UK grant and gives it validity in that jurisdiction. Resealing avoids the need for a full foreign probate process and can save considerable time and expense.
For example, countries such as Australia, New Zealand, Hong Kong, and certain Caribbean territories may permit resealing. The precise requirements vary from country to country, and not all Commonwealth jurisdictions offer this option. Executors should therefore seek advice to establish whether resealing is possible in the country where the assets are located.
Where resealing is not possible, a full local probate application is usually necessary. This is often the case in European countries such as France, Spain, and Italy, or in the United States. Each jurisdiction has its own rules about succession, and these may conflict with the terms of the deceased's will.
For example, many civil law countries apply “forced heirship” rules, which prevent a person from leaving all of their estate to whomever they choose. Instead, children or other relatives may be entitled to a fixed share of the estate. This can cause complications where the deceased's UK will leaves everything to a spouse or partner, but local law requires a portion to pass to children.
In such cases, executors may need to obtain specialist legal advice in the foreign country to ensure the estate is administered lawfully.
Another layer of complexity arises from tax. Executors must deal with UK inheritance tax on the worldwide assets of a deceased person who was domiciled in the UK. However, the country where the foreign assets are located may also impose inheritance or estate tax. This can sometimes lead to double taxation, although the UK has treaties with certain countries designed to prevent this.
Understanding how UK inheritance tax interacts with foreign tax regimes is crucial. Executors may need to obtain valuations of overseas assets, complete tax declarations in more than one country, and seek relief under any applicable tax treaties. Without careful handling, the estate may face unnecessary tax liabilities or delays in releasing assets.
Administering an estate with foreign assets is rarely straightforward. Executors often face delays in obtaining the necessary documents, particularly where official translations or notarised copies are required. Local laws may require documents to be apostilled (formally certified for international use) before they are accepted.
Language barriers and differences in legal culture can also cause difficulties. Some jurisdictions move more slowly than others, and in countries where the legal process is less efficient, obtaining access to assets may take years. Executors may also struggle to value or sell foreign property, especially if they are unfamiliar with the local market or regulations.
There are several ways to reduce the risks associated with foreign assets in estates. For individuals making a will, one option is to prepare separate wills for each country in which they own assets. This must be done with care to ensure the wills do not accidentally revoke one another, but when properly drafted, it can simplify administration by allowing each estate to be dealt with under local law.
Another sensible step is to keep clear records of all overseas assets, including account numbers, property deeds, and contact details for local lawyers or agents. Executors who know exactly what exists and where it is located will find the process far easier.
Appointing executors who have the capacity to manage complex, cross-border estates is also wise. Professional executors such as solicitors may be better placed to deal with multiple jurisdictions, rather than leaving family members to face the challenges alone.
For executors, seeking early advice from lawyers both in the UK and abroad is essential. Establishing whether resealing is possible, whether local probate is required, and how tax issues should be managed will save time and avoid costly mistakes.
Probate is already a demanding process, but estates with foreign assets add significant complexity. Executors may need to deal with resealing a UK grant, applying for local probate abroad, complying with forced heirship rules, and navigating inheritance tax issues across multiple jurisdictions. Delays, costs, and legal conflicts are common, and without professional support, the process can quickly become overwhelming.
For those drafting a will, the lesson is to plan ahead by making appropriate provisions for overseas assets and ensuring executors know what exists and where it is located. For executors, the key is to obtain early, specialist advice so that both UK and foreign requirements are satisfied.
By understanding the interaction between UK probate and foreign jurisdictions, families can ensure that estates are administered properly and that the wishes of the deceased are respected as far as the law allows.
Administering an estate with overseas property, investments, or bank accounts can be complex, but Premier Solicitors are here to make the process easier. Our experienced probate team regularly assists clients with cross-border estates, dealing with resealing applications, local probate requirements, and inheritance tax issues in the UK and abroad.
Whether you are an executor faced with managing foreign assets or you want to plan ahead to ensure your own estate is handled smoothly, we can provide clear, practical advice and professional support tailored to your circumstances.
For more information, please call us on 01234 358 080 or visit our contact page to send an enquiry form.
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