Foreign assets in a Will – what you need to know

In recent years, it has become increasingly common to own assets in multiple countries. While global diversification can be beneficial to your investment portfolio and estate, dealing with foreign assets in a Will can be complex. At Attwaters, we understand the intricacies of managing foreign assets and are here to guide you through the process.

What are foreign assets?

Foreign assets encompass more than just an overseas holiday home; they could also include a foreign bank account, international investments, or shareholdings in a company where the registrar is based abroad. Even assets held in Jersey are considered foreign, so different laws would be applicable when administering an estate.

The significance of domicile

A critical factor in estate planning is determining your domicile – the country that you consider to be your permanent home.  This will affect which laws apply to your estate and can influence tax liabilities.  For example, your domicile will determine your income tax position at death and if your beneficiaries are liable to pay inheritance tax and capital gains tax on your assets. It’s therefore vital to correctly identify your domicile status when getting your affairs in order.

What to consider if you have foreign assets

When preparing a Will, it’s important to understand the potential complexities of holding foreign assets. Each country has its own legal processes for estate administration, and many jurisdictions have their own succession laws, which could dictate the destination of any assets held in that country.

The executor of your Will should be advised that it usually takes longer to administer an estate with foreign assets. In England and Wales, the deceased’s personal representative must obtain a Grant of Representation before dealing with any assets. Other countries have their own laws, so executors will need to liaise with legal experts in each jurisdiction to coordinate the administration of foreign assets. 

The importance of effective planning

Effective estate planning is essential to mitigate the challenges faced by your loved ones after your death. Firstly, it’s important to understand the different tax obligations in each country so you can plan your estate accordingly. Also, depending on the jurisdictions involved, it may be beneficial to make a separate Will for assets held in another country. You should then regularly review your Will to ensure it remains compliant with all relevant laws, particularly in light of the upcoming abolition of non-dom status in the UK.

We can support you

There is no universal approach to dealing with estates, particularly where assets are held in different countries. If you are preparing a Will with foreign assets or are responsible for administering an estate with assets abroad, you should seek legal advice. Attwaters’ experienced specialists are well equipped to help you support you through the process. Get in touch with our Wills and Probate team on enquiries@attwaters.co.uk or 0330 221 8855