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In an increasingly international world, it is common for individuals to hold assets, residences and family connections in more than one country. When a death occurs in these circumstances, the administration of the estate can raise complex legal, tax and procedural issues across multiple jurisdictions.
At IMD Solicitors LLP, we advise individuals, families, trustees and family offices on the administration of cross-border estates, including coordination with overseas advisers and the UK probate process. Set out below is a high-level question-and-answer guide addressing some of the main issues that arise when international assets form part of an estate.
Why are assets in multiple countries difficult to administer?
An international estate is rarely governed by a single legal system. Different countries apply different rules on succession, taxation and estate administration, and those rules do not always align.
The treatment of assets may depend on factors such as domicile, habitual residence, nationality, asset location and the existence of multiple Wills. Decisions taken in one jurisdiction can have direct consequences in another, making coordination essential from the outset.
What practical steps should be taken immediately when someone dies?
The initial stage of administration focuses on information-gathering and asset protection. This typically includes:
- Identifying all assets and liabilities worldwide
- Notifying banks, investment managers and other institutions
- Obtaining date-of-death valuations for financial assets, real estate and valuables
- Preparing a jurisdiction-by-jurisdiction inventory of the estate
- Recording tax filing deadlines and reporting obligations in each country
Early clarity on the asset base is critical, as it informs both legal strategy and tax planning.
Which legal systems may apply to the estate?
This depends on the nature and location of the assets and the deceased’s personal circumstances. Key points often include:
- Domicile: commonly relevant under common law systems for moveable assets
- Habitual residence: frequently applied under civil law systems
- Asset location: particularly important for land and buildings
- Wills: whether there is a single worldwide Will or multiple jurisdiction-specific Wills
Local legal advice is usually required in each relevant jurisdiction, with oversight to ensure that advice is aligned and does not produce conflicting outcomes.
How do succession laws differ between countries?
Succession rules vary widely. Issues that commonly arise include:
- Whether full testamentary freedom is permitted
- The existence of forced heirship or reserved share regimes
- The effect of matrimonial or community property systems
- Whether a choice of law has been made and whether it is recognised
Real estate is usually governed by the law of its location, while moveable assets are often governed by the law of domicile or habitual residence, depending on the system involved.
What tax issues need to be considered?
Tax exposure is often one of the most significant challenges in a cross-border estate. Considerations include:
- Whether estate tax or inheritance tax applies in each jurisdiction
- The risk of the same assets being taxed in more than one country
- Availability of reliefs, exemptions and spousal transfers
- Application of double tax treaties
- Differences in valuation rules and payment deadlines
Careful sequencing and coordination can reduce the risk of unnecessary duplication or penalties.
Are probate or court applications required in every country?
Not always, but frequently. Each jurisdiction has its own procedural framework. Questions commonly include:
- Whether assets pass automatically or require formal authority
- Whether a UK grant can be recognised or re-sealed abroad
- Whether an original Will must be lodged locally
- Whether inheritance agreements or notarial processes are required
Managing the order in which applications are made can be critical, particularly where original documents are required in multiple places.
How are assets ultimately distributed?
Before any distribution takes place, executors or administrators must ensure that:
- All beneficiaries have been correctly identified
- Debts, taxes and administration costs have been settled
- Local succession rules have been satisfied
Assets are then distributed in accordance with the will and applicable local law. Where assets pass into trust, additional steps are required to document and complete those transfers.
What is the key takeaway for families and executors?
Administering a cross-border estate is a strategic and coordinated exercise. A decision taken in one jurisdiction can affect timing, tax exposure or enforceability elsewhere. A structured, joined-up approach is essential to avoid delay and unintended consequences.
At IMD Solicitors LLP, we work closely with overseas lawyers, notaries and tax advisers to manage international estates efficiently and coherently, while overseeing the UK probate and succession aspects.
This article provides a general overview of the issues that may arise in connection with international estates. It does not constitute legal advice and should not be relied upon as such. Specific advice should always be sought based on individual circumstances.
