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Double trouble? Dealing with probate in the UK and a foreign country

The complications of probate can be intensified when part of an estate includes assets in another country.

The estate could include a holiday home in Spain or a bank account in France. Whatever the asset, cross-border probate requires careful planning and an understanding of both UK and foreign laws.

Understanding probate for foreign assets

When someone passes away, their estate, including all property, bank accounts, and other assets, may need to go through probate, which is the legal process of settling their affairs.

In the UK, this process is governed by UK law, but assets located in another country may fall under that country’s legal system.

Each jurisdiction has its own rules regarding inheritance, taxation, and the process for transferring ownership of property.

If you have assets in a foreign country, you might need to deal with multiple legal systems simultaneously, making an already complex process even more daunting.

So, what are the key challenges of cross-border probate?

Different legal systems

Countries often have differing inheritance laws.

For example, in many European countries, “forced heirship” laws apply, meaning that specific family members are entitled to a share of the estate, regardless of the deceased’s will.

This can conflict with UK laws, where you have more freedom to distribute assets as you wish.

Language barriers

Dealing with legal documents and proceedings in a foreign language can be challenging.

It may require translations of official documents, which adds time and cost.

Tax implications

Foreign assets may be subject to taxes in both the country where they are located and the UK.

Without proper planning, this could lead to double taxation, although double taxation treaties can sometimes help mitigate this.

Delays in the probate process

Different jurisdictions have varying timelines for probate, which could delay the overall estate settling process.

Tips for managing cross-border probate

Plan with separate Wills

If you own property or assets abroad, consider having a Will drafted in that country, in addition to your UK Will.

However, ensuring these Wills are compatible and do not unintentionally revoke each other is essential.

Our team are experienced in cross-border probate and can assist you with avoiding this trap.

Understand local laws

Familiarise yourself with the inheritance laws of the country where the assets are located.

This will help avoid surprises, such as forced heirship rules, which might impact your wishes.

Check double taxation treaties

If you are concerned about taxes on foreign assets, review any double taxation treaties between the UK and the country in question.

These agreements can often prevent you from being taxed twice on the same asset.

Document everything

Keeping thorough and organised records of your foreign assets, including ownership documents, valuations, and tax records, will make the probate process much smoother for your executors.

If you have assets in another country, it is worth reviewing your estate plan to ensure it reflects your wishes and complies with both UK and foreign laws.

A small investment of time and effort now can save your loved ones stress and expense later.

Contact us today to discuss your estate and ensure your assets, no matter where they are, are managed according to your wishes.

Rachel Blackburn

Head of Wills, Probate and Older Client Services

I joined Mander Hadley’s Wills, Probate and Older Client Services Team in 2018.I specialise in the preparation of Wills, Probate and estate administration, trusts and trust administration and Lasting Powers of Attorney. I also have experience of care fee planning and appeals of Continuing Health Care decisions.

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