Without a cross-border will, your assets could be frozen for years, taxed in multiple jurisdictions, and distributed under foreign laws you never chose. Here is what to do.
Estate planning is the most-neglected area of expat financial planning, and the cost of neglect falls on your family rather than on you. Without proper cross-border estate planning, your death can trigger multi-year asset freezes, double taxation, distribution under foreign laws you never chose, and family disputes that drain the estate. This guide covers what expats need to know and do.
Domestic estate planning is about distributing assets according to your wishes while minimising tax. Cross-border estate planning adds three layers of complexity: which country's laws apply to which assets, which country can tax which assets, and how to coordinate multiple legal systems that may have contradictory rules.
For example, a UK citizen living in the UAE with a UK property, a UAE bank account, a US brokerage account, and a holiday home in Spain has assets in four jurisdictions. Without explicit planning, each jurisdiction's laws may apply to the assets within it, the estate may be subject to inheritance tax in multiple countries, and the distribution may follow forced-heirship rules in Spain that conflict with the UK will.
A will is the foundation of any estate plan, and for expats it needs to be specifically designed to work across jurisdictions. A single will drafted in your country of residence may not be recognised for assets in other countries; multiple wills for different jurisdictions can create conflicts if not carefully coordinated.
The best practice for most expats is a single "international will" drafted in your country of residence, with explicit clauses addressing assets in other jurisdictions. The will should specify: which country's laws govern the will, how assets in each jurisdiction should be distributed, who the executor is in each jurisdiction, and how to handle any conflicts between jurisdictions.
A small minority of expats benefit from multiple wills — typically those with substantial assets in jurisdictions with very different legal systems (common law vs civil law, secular vs religious). This requires careful coordination through a specialist cross-border estate lawyer to avoid the wills conflicting with each other.
A power of attorney authorises someone to act on your behalf if you become incapacitated. For expats, this is particularly important because incapacity in a foreign country can leave family members unable to access bank accounts, manage property, or make medical decisions.
The challenge is that powers of attorney are jurisdiction-specific. A UK power of attorney may not be recognised by a UAE bank, and a UAE power of attorney may not be recognised by a UK bank. The practical solution is to have powers of attorney in each jurisdiction where you have significant assets or ongoing relationships, naming the same trusted person in each.
A healthcare directive specifies your wishes for medical treatment if you become unable to communicate them. For expats, this is particularly important in countries where end-of-life decisions may be handled differently from your home country. The directive should specify: what treatment you do and do not want, who should make decisions on your behalf, and your preferences for organ donation.
Like powers of attorney, healthcare directives are jurisdiction-specific. A directive valid in your home country may not be recognised in your country of residence. Have directives in both, and ensure your family knows where to find them.
Many civil law countries (France, Spain, Italy, Germany, much of Latin America, Saudi Arabia) have "forced heirship" rules that restrict how you can distribute your estate. These rules typically reserve a portion of the estate for close family members (spouse, children) regardless of what your will says.
For expats with assets in forced-heirship countries, the rules can override your wishes. A UK citizen with a Spanish holiday home cannot leave that home to a friend if forced-heirship rules reserve it for children. The European Union's European Certificate of Succession helps coordinate cross-border estates within the EU, but does not override forced-heirship rules.
The mitigation: structure asset ownership to avoid forced-heirship application where possible. This may mean holding assets through a company rather than directly, using life insurance with named beneficiaries (which typically bypasses probate), or choosing which jurisdiction's laws govern the succession of specific assets. Specialist legal advice is essential.
Inheritance tax is the area where cross-border estates most commonly face double taxation. Unlike income tax, there is no comprehensive global network of inheritance tax treaties — many countries have no treaty with each other, and the treaties that exist are limited in scope.
Common situations:
The mitigation: structure asset ownership to minimise exposure. Common strategies include holding US shares through non-US-domiciled holding structures (where treaty access allows), using life insurance to provide liquidity for tax payments, and gifting assets during lifetime where tax rules permit.
The procedural aspects of dying abroad are often more challenging than the tax and legal issues. Without preparation, your family may face:
Practical preparation: ensure your family knows where to find your will, insurance policies, and bank account details. Maintain an emergency fund in a joint account that your spouse can access immediately. Carry a card in your wallet specifying your emergency contacts and any medical directives. If you live in a country with complex death procedures (most Gulf states, for example), engage a local lawyer in advance to handle the procedural aspects.
Expats married to non-citizens of their home country face additional complications. US citizens married to non-US-citizen spouses lose the unlimited marital deduction for US estate tax — assets passing to a non-citizen spouse are taxed above USD 60,000 (with some planning alternatives). UK-domiciled individuals married to non-UK-domiciled spouses lose the spouse exemption above GBP 325,000 unless the spouse elects to be UK-domiciled.
The mitigation: specific estate planning for mixed-citizenship couples, including Qualified Domestic Trusts (QDOT) for US situations, and use of the non-domiciled spouse's own exemptions and reliefs. Specialist advice is essential.
Cross-border estate planning is too important and too complex to DIY. The cost of a specialist cross-border estate lawyer (USD 3,000–10,000+ depending on complexity) is recovered many times over in avoided taxes, avoided disputes, and avoided procedural delays. The cost of getting it wrong is borne by your family at the worst possible time.
If you have not done so, the action items are: (1) make or update an international will that explicitly addresses your cross-border assets, (2) put in place powers of attorney in each jurisdiction where you have significant assets, (3) review the inheritance tax exposure of your estate and structure assets to minimise double taxation, and (4) ensure your family knows where to find all the documents they will need. None of this is pleasant to think about, but the alternative — leaving your family to navigate multiple legal systems in a foreign language while grieving — is worse.
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