Owning property overseas can be a dream come true, whether it’s a holiday home in Spain, an investment apartment in France, or a retirement villa in Portugal. However, when it comes to planning for the future, property ownership outside the UK brings its own set of legal complexities. Writing a will that covers assets in another country requires careful thought, clear legal guidance, and an understanding of how cross-border inheritance rules work. Without proper planning, your family could face lengthy delays, high legal costs, and even disputes after your death.
Understanding the Basics of Cross-Border Inheritance
The first step in writing a will when you own property abroad is understanding how inheritance laws differ between countries. Some countries, like the UK, allow you to leave your assets to whomever you choose. Others, such as France, Spain, and Italy, operate under “forced heirship” rules. These laws dictate how an estate must be divided among certain family members, regardless of what your will says.
This means that even if your UK will states one thing, local law in the country where your property is located might override it. Being aware of these differences from the outset can help you work with legal professionals to draft documents that will be recognised both in the UK and abroad.
Why a Separate Will Might Be Necessary
Many people assume one will is enough to cover their global assets, but this isn’t always the case. In some situations, it is more practical to have two wills — one for your UK assets and one for your overseas property. This approach can make the probate process in each country more straightforward, as the legal requirements are handled locally.
However, if you choose to have more than one will, they must be carefully drafted to ensure they do not accidentally cancel each other out. This is why it’s essential to work with solicitors in both the UK and the country where your property is located. Coordination between these legal professionals will ensure that both documents are valid and work together without creating conflicts.
Considering the Impact of Taxation
Owning property abroad also raises questions about taxation after death. In addition to UK inheritance tax, you may be liable for local inheritance or estate taxes in the country where your property is situated. These rules vary widely — for example, some countries have lower thresholds and higher rates, while others apply different rules depending on your relationship to the beneficiary.
A well-drafted will can help manage this by structuring your estate in a way that minimises unnecessary tax exposure. For instance, in some cases it might be advantageous to transfer property during your lifetime or hold it in joint names to reduce the tax burden for your beneficiaries.
The Importance of Professional Translation
If your will needs to be recognised in a non-English-speaking country, it will often require an official translation. This is not simply about converting words from one language to another — legal documents must be translated by a certified professional to ensure they meet the formal requirements of the jurisdiction. An inaccurate or informal translation could result in delays or rejection during the probate process.
How Brexit Has Changed the Rules
Brexit has had a notable impact on how UK citizens’ estates are handled in the EU. While the UK was never part of the EU Succession Regulation (Brussels IV), many UK property owners still relied on provisions that allowed them to choose which country’s laws should govern their estate. Since Brexit, the process has become more complex, and some EU countries are applying their inheritance laws more strictly. This makes it more important than ever to seek updated legal advice before finalising your will.
Planning for Probate in More Than One Country
When you pass away, your estate will need to go through probate or its local equivalent in every country where you own property. This means your executor in the UK may need to appoint a lawyer overseas to handle the process there. If your will is not properly prepared, this can cause significant delays.
Including clear instructions in your will and appointing executors who understand the responsibilities involved can make the process smoother. In some cases, you may want to appoint different executors for your UK and overseas assets.
Keeping Your Wills Updated
Life changes, and so should your will. If you buy or sell property abroad, move to a different country, or change your mind about who should inherit, it’s vital to update your will accordingly. For overseas property owners, even a small change — such as taking on a new joint owner or changing the use of the property — can have legal implications for inheritance. Regular reviews with your solicitor will ensure your will remains accurate and enforceable.
Why Early Planning Protects Your Family
The reality is that dealing with property in another country can be complicated, stressful, and expensive for loved ones if you haven’t planned ahead. A clearly written, legally valid will that takes into account the laws of each country where you own assets can prevent disputes, reduce costs, and allow your beneficiaries to inherit without unnecessary obstacles.
If you own property abroad, don’t leave your estate planning until it’s too late. Speak to both UK and overseas legal professionals to ensure your wishes are carried out exactly as you intend — and to protect your family from future difficulties.
