Foreign Assets and Your UK Will: Cross-Border Estate Planning 2026

Updated: 16 May 2026 • Reading time: 8 min

Millions of UK residents own property, bank accounts, or investments abroad. A common assumption is that an English will automatically covers all assets worldwide. The reality is more complex: for foreign land and buildings, the law of the country where the property sits — not English law — typically governs how it passes on death. Getting cross-border estate planning wrong can leave foreign assets frozen in expensive overseas probate, subject to forced heirship rules you never anticipated, or partially owned by people you never intended.

The Fundamental Divide: Movables and Immovables

English private international law divides assets into two categories for succession purposes:

• Immovable property — land, buildings, and rights attached to land (mortgages, easements, rights of way). Governed by the lex situs: the law of the country where the property is physically located.
• Movable property — everything else: cash, shares, bank balances, jewellery, vehicles, intellectual property. Governed by the law of the deceased’s domicile at death — typically England and Wales if they lived here permanently.

The practical consequence: your English will governs your French bank account (movable), but not your French apartment (immovable). The apartment is governed by French law, which may impose forced heirship rights for children regardless of what your English will says.

The Situs Rule and Forced Heirship

Under the lex situs principle, each country applies its own succession law to real property within its borders. Several popular destinations for UK property ownership have mandatory forced heirship rules:

• France — children have an automatic reserved share (réserve héréditaire) of the estate, ranging from 50% (one child) to 75% (three or more children). This applies to French immovable property regardless of what an English will says.
• Spain — Spanish law similarly gives children a two-thirds share of the estate (legítima), with one-third freely disposable.
• Portugal, Italy — similar forced heirship regimes protecting children and surviving spouses.
• USA, Australia, Canada — generally no forced heirship for adults; testamentary freedom is broad, though spouses may have statutory rights in some states.

Forced heirship rules can result in children you have deliberately excluded from your English will receiving a share of your foreign property. Legal advice in each relevant jurisdiction is essential.

The EU Succession Regulation After Brexit

EU Succession Regulation 650/2012 (Brussels IV) previously allowed EU nationals to elect the law of their nationality to govern their entire estate within the EU — enabling, for example, a British national to elect English law for their French property and bypass forced heirship. Since Brexit (31 January 2020), UK nationals can no longer make this election in most EU member states.

UK nationals with EU property are now governed by each EU country’s domestic private international law rules — most of which revert to lex situs for immovables. Some EU countries (including France) have their own domestic rules that may allow limited choice of law, but these vary. UK nationals with significant EU real estate should take local legal advice in each relevant country to understand their current position.

Should You Have Separate Wills for Each Country?

For significant immovable assets abroad, having a separate local will is strongly advisable. A local will:

• Is drafted in the local language, meeting local formality requirements
• Avoids translation costs and apostille certification of the English will
• Speeds up the foreign probate or estate administration process
• Allows for local forced heirship rules to be navigated properly

Critical coordination requirement: each will must expressly state that it covers only assets in its jurisdiction and does not revoke wills made for other countries. A broadly worded revocation clause (“I revoke all previous wills”) in a Spanish will could accidentally revoke your English will. Use a specialist in each jurisdiction to ensure the wills work together.

UK Inheritance Tax on Foreign Assets

If the deceased was domiciled in England and Wales, all worldwide assets are subject to UK inheritance tax (IHT) at 40% above the nil-rate band (£325,000 in 2026). This includes:

• Foreign real estate (holiday homes, investment properties abroad)
• Foreign bank accounts and investment portfolios
• Shares in foreign companies
• Foreign personal possessions

Double taxation treaties exist between the UK and a limited number of countries including France, the USA, India, and South Africa. Where a treaty applies, the foreign tax paid is credited against the UK IHT liability. Where no treaty exists, HMRC grants unilateral credit relief under s158 Inheritance Tax Act 1984. Foreign assets must be reported on form IHT400, valued at open-market value at date of death in local currency, converted to sterling at that date’s exchange rate.

Practical Steps for Cross-Border Estate Planning

1. List all foreign assets — property, bank accounts, shares, pensions, life policies, vehicles, and valuable personal possessions in each country.
2. Take local legal advice in each country where you hold immovable property — understand the local succession law, formality requirements, and any forced heirship rules.
3. Consider a coordinated multi-will structure — an English will for England and Wales assets, plus jurisdiction-specific wills for major foreign assets.
4. Update your English will’s revocation clause — ensure it does not accidentally revoke a foreign will by using a jurisdiction-limited revocation clause.
5. Review domicile — if you have retired abroad and may be considered domiciled there, the IHT treatment of your worldwide estate changes significantly.
6. Keep a foreign asset inventory — your executors need to know every account number, property address, and institution in each country so they can begin the administration process after your death.

Frequently Asked Questions