Expat Wills: Writing A Will While Living Abroad

Writing a will is one of the most important steps in legacy and estate planning, ensuring that your estate and assets are distributed according to your wishes. For expats, however, this process can present unique challenges. The rules governing inheritance and property transfer vary widely between countries, which can make it more complex to ensure your will is legally valid and recognised in all relevant regions.

That said, there are some general rules that work for most countries, and can make expat wills easier to get your head around. Let’s take a look at how expat wills work, and what you need to think about when preparing expat wills in multiple countries.

This article is for general informational purposes only and does not constitute legal advice. While we aim to provide helpful guidance on will writing for expats, we are not legal professionals. Laws regarding wills and estate planning vary by country, and we strongly recommend consulting a qualified legal professional to ensure your will is valid and meets the legal requirements of your jurisdiction. William Russell accepts no liability for any decisions made based on the information in this article.

How to write a will abroad

Writing a will is an essential part of planning for the future, giving you peace of mind that your estate and assets will be distributed according to your wishes.

For most people, writing a will is straightforward. It typically involves naming beneficiaries who will inherit your estate, appointing an executor to oversee the distribution, and signing the document in the presence of one or two witnesses. It is important to note that these witnesses cannot be beneficiaries themselves.

But for expats, the process can become more complex, particularly if you have assets in multiple countries. Legal systems differ, and the rules governing inheritance, property transfer, and even the validity of wills can vary widely between different regions or nations.

Understanding these differences is crucial to ensure your will is legally binding and that your intentions are respected.

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What should an expat will cover?

Just like any other will, an expat will should lay out how you want your estate to be distributed after you die. This will include any property you own, your possessions, savings and investments, business assets and so on.

A will can also leave instructions for your funeral, detailing whether you want to be buried or cremated and what music you wish to be played. While funeral arrangements aren’t legally binding, having some instructions in place can make the process easier for your loved ones.

Finally, your will must name your executors. These are the people you trust to carry out the wishes outlined in your will. You should be aware that this can be a time-consuming and complex process, especially if you have assets in multiple countries, so be sure to choose someone you feel will be capable of the responsibility and not too overwhelmed. If you have assets spread across multiple countries, you may wish to name different executors to cover each territory.

If you have complicated family or business circumstances, your estate is international, or exceeds your home country’s inheritance tax threshold, you may wish to seek professional advice before writing your will.

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How do expat wills work if you have assets in more than one country?

Different countries have different laws when it comes to wills, which can affect you in various ways.

As an expat, you will need to be aware of both the national and local laws that govern wills, how your residency/citizenship status affects your will, and how your will is to be executed after you pass away.

If you have assets in more than one country, you should be prepared to write more than one will.

Each will should be countersigned by a local citizen, and you should consider naming a local executor in each will, as they will be responsible for the processes of distributing your assets after you pass away – which may involve filling in lots of local legal paperwork.

To understand how to write a will for multiple countries, let’s break it down by the type of assets you might leave behind:

Personal assets

Your personal assets are all your personal belongings. These can range from simple things like books, furniture and collectables, up to significant heirlooms such as jewellery, cars and small boats. These are the things you could physically hand over to someone else and are referred to as your ‘moveable assets’. Pets also fall into this category, as do your digital possessions (for instance, your social media accounts and any digital purchases you have made).

In most cases, personal assets are dealt with under the law of your home country. This is the case in the UK, for instance, meaning if you are a British citizen residing in Brazil, your personal assets should be divvied up according to the terms of your British will, regardless of whether those items are in the UK or Brazil at the time of your death.

There are some exceptions to this rule. Some countries have what’s known as ‘forced heirship rules’, which mandate that certain portions of an estate (usually up to 50%) must go to specific heirs (usually your children or spouse) regardless of the terms of a foreign will. Brazil is one of these countries, so for a British citizen residing in Brazil, the laws of forced heirship could override their UK will for all aspects of the estate, including personal assets.

Other countries with forced heirship rules include France, Spain, Italy, Japan and a number of Caribbean islands.

Does Sharia Law impact inheritance?

Sharia law governs inheritance in countries like the UAE, Saudi Arabia, and Qatar and follows strict rules that differ significantly from Western inheritance systems.

Under Sharia, the estate is divided into fixed shares among heirs, with male heirs typically receiving a larger portion than female heirs. Non-Muslim spouses and other relatives may have limited or no inheritance rights, depending on the jurisdiction.

For expats, this can create challenges, especially if they wish to distribute their estate differently. Some countries, like the UAE, allow expats to opt for the laws of their home country for certain assets by registering a foreign will, but this option varies and often requires careful planning and legal advice.

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Immovable assets

Your immovable assets cover any property you own, whether in your home country, or overseas. In general, immovable assets will be governed by the laws of the country the property is in.

For example, if you are a British citizen who owns a house in Spain and a flat in the UK, you will need to have two wills: a Spanish will to delineate your Spanish property, and an English will to delineate your property in the UK. This is because the property laws in each country are different, as are the taxes related to inheriting property (more on this later).

One notable succession to this rule is the EU Succession Regulation.

What is the EU Succession Regulation (Brussels IV)?

For EU countries that adopted Brussels IV, expats can choose the law of their nationality to govern their entire estate. This applies to individuals of any nationality who have assets in an EU member state that has adopted the regulation and can be useful for avoiding double taxation related to inheritance.

The choice to opt into Brussels IV must be explicitly stated in your will for regulation to apply. As of 2024, the regulation applies to all EU member states apart from Denmark and Ireland. The UK is also not included.

Savings

Personal savings, including bank accounts and investment funds, are generally considered moveable assets, which means they are usually governed by the laws of your home country.

However, in many cases, location matters. If your savings are held in accounts in your home country, they will be distributed according to the laws of that country. On the other hand, accounts held in your country of residence may be governed by local law unless that country has regulations that could exempt you from this rule (such as the EU Succession Regulation).

Forced heirship also applies to savings. This means that if you had US$250,000 savings in a Brazilian bank account, by Brazilian law, 50% of this amount would have to be split in set amounts between your marital partner and your children (not recognising stepchildren or civil partnerships), regardless of what you’ve laid out in your will.

Business assets

Shares in a company are also considered moveable assets and so in theory should be governed by the law in the expat’s home country. However, if the company is registered in a different country, local inheritance and succession laws may come into play.

For example, if a Canadian expat owned a business registered in Spain, the business assets will be subject to Spanish inheritance laws, with local forced heirship rules applying to the business value. If the business has a physical residence overseas, this could be even more complicated.

With so many different laws to think about, you should consider seeking legal advice when writing a will for assets in more than one country. This is especially important as expats will need to write their wills in such a way that they do not contradict each other by law.

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What happens if I don’t write a will?

If you don’t have a legally binding will at the time of your death, or if your will cannot be found, the laws of intestacy apply.

This means your estate will be divided according to the standard rites of your home country, your country of residence, and any other countries where you own possessions. Depending on how much you own, where you are from and where you are living at the time of your death, this could create a messy situation, and the person or persons who inherit your possessions may not be the ones whom you intended.

A common example of this is that a long-term partner (i.e. one whom you are not married nor in a civil partnership with) will not inherit anything under most laws, even if you have children together. The same applies to stepchildren, nieces and nephews.

Each country has its own rules dictating what happens to an estate when someone dies without a will, and these rules may be applied to the deceased’s estate regardless of nationality.

Remember: these rules may apply if your will cannot be found, if it is not legally binding (e.g. it is not countersigned) or if it is damaged. For this reason, you may wish to consider leaving your will with a solicitor. They will ensure the will is fit for purpose and kept in a safe place.

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Inheritance tax on expat estates

When it comes to inheritance tax on expat estates, things can get complicated. Which country has the right to tax your estate comes down to a mix of factors, including where you currently live, where your assets are located, and your nationality.

In order to do best by your loved ones, there are two key things you’ll need to think about when writing your expat will. These are:

1/ Double taxation risks

One of the biggest concerns for expats is the risk of being taxed in more than one country. For example, if you’re a British expat living in Spain, you might find your estate subject to UK inheritance tax (based on domicile) and Spanish succession tax (based on asset location).

While some countries have treaties to avoid double taxation, not all do, so it’s crucial to plan ahead and think about where you keep your most valuable assets.

2/ Rates and exemptions vary

Inheritance tax rules and thresholds can vary wildly from country to country. In some places, like the UK, inheritance tax is charged at a flat rate of 40% on estates above a certain threshold (£325,000 at the time of writing). Meanwhile, countries like France apply a progressive tax based on the relationship between the deceased and the heir, with children enjoying more favourable rates than distant relatives or unrelated heirs.

To make sure your loved ones aren’t caught off guard by hefty tax bills, be sure to research the inheritance tax rules in both your home country and your country of residence – especially to see if the two countries have a double taxation treaty.

And remember, inheritance tax planning for expats can be complex wherever you are in the world, so consulting a specialist is essential to minimise liabilities and ensure your wishes are honoured.

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