Cross-Border Succession Planning: Protecting Your Estate Across Multiple Jurisdictions

For internationally mobile individuals with assets in multiple countries, succession planning is one of the most complex and high-stakes areas of financial planning. Dying without a clear, internationally coordinated succession plan can result in your estate being distributed under rules you did not choose, significant delays and costs in administration across multiple probate systems, family members facing unexpected tax liabilities, and forced heirship rules overriding your wishes. This guide examines the key principles and planning tools for cross-border succession.

The Core Problem: Multiple Overlapping Legal Systems

A domestically focused individual generally deals with a single succession law, a single probate process, and a single inheritance tax regime. An internationally mobile individual with, for example, a UK domicile of origin, current habitual residence in Spain, a holiday home in France, investment accounts in Guernsey, and a pension in the UK faces overlapping and sometimes conflicting claims from:

• UK succession law (for UK assets, and potentially for all movable assets as UK domiciliary)
• Spanish succession law (for Spanish property, and potentially as habitual residence under Brussels IV)
• French succession law (for French property)
• Guernsey law (for Guernsey-sited investments)

Without a clear, professionally coordinated plan addressing each jurisdiction, the outcome may differ significantly from what you intend.

Domicile: The Foundation of Common Law Succession

In the common law tradition (UK, Ireland, Australia, New Zealand, and most former British territories), domicile at death is the foundational concept for succession of movable assets:

• Domicile of origin: acquired at birth, typically based on the domicile of the father at the time of birth. Extremely difficult to lose.
• Domicile of choice: acquired by residing in a country with the intention of remaining there permanently or indefinitely. The threshold is high — courts have historically been reluctant to find that a domicile of choice has displaced the domicile of origin, particularly where the individual retains strong connections to their country of origin.
• Long-term residence: since 6 April 2025, the "deemed domicile" concept for IHT was replaced by a residence-based test. An individual who has been UK resident for at least 10 of the previous 20 tax years is a "long-term resident" and is within the scope of UK IHT on worldwide assets, regardless of domicile. This is a tax concept only — not a succession law concept.

For succession purposes (rather than IHT), UK domicile means UK succession law applies to all movable assets worldwide. For property (immovable assets), the succession law of the country where the property is situated generally applies regardless of domicile.

EU Succession Regulation (Brussels IV)

EU Succession Regulation (also known as Brussels IV) has applied in all EU member states (except Denmark and Ireland, which opted out) since August 2015. It significantly simplifies succession planning for EU-resident individuals by establishing a single set of rules for determining which member state's law governs an estate.

The key rules:

• Default rule: the law of the country where the deceased was habitually resident at death governs the entire estate (including both movable and immovable assets in EU member states).
• Election: an individual can elect in a valid will for the law of their nationality to apply to their estate rather than the law of their habitual residence.
• Effect: a UK national habitually resident in Spain can elect for UK succession law to apply to their estate. Under UK succession law (and Scots law), there are no forced heirship rules beyond rights of surviving spouses, and testamentary freedom is near-complete. This avoids the forced heirship rules that would otherwise apply under Spanish law.

Important: Brussels IV is an EU regulation, and the UK is no longer part of the EU. A UK national resident in an EU country can still make a Brussels IV election of UK law in their will, and EU member state courts will respect it for EU-sited assets. However, UK courts apply their own private international law rules, which have not been aligned to Brussels IV since Brexit. Always take advice from lawyers in both jurisdictions.

Common Law vs Civil Law: The Forced Heirship Divide

The most practically significant difference in succession law for internationally mobile individuals is between common law countries (where testamentary freedom is the general rule) and civil law countries (where forced heirship rules apply).

Forced heirship (known as réserve héréditaire in France, legítima in Spain, and similar in most continental European jurisdictions) reserves a fixed minimum proportion of the estate — known as the reserved share or forced portion — for close family members, primarily children. In France, for example, one child is entitled to a reserved share of one half the estate; two children share two thirds; three or more children share three quarters. These shares cannot be reduced by will; legacies to third parties that encroach on the reserved share can be clawed back.

For internationally mobile individuals, this creates a specific planning challenge: a carefully drafted will directing, say, the bulk of an estate to a surviving spouse rather than children may be partially overridden if the estate includes French, Spanish, Italian, or other civil law country property, or if Brussels IV's default rule applies to the estate.

Planning solutions include:

• Brussels IV election (for EU-resident UK nationals): elect UK law in your will.
• Trust structures: assets held in a properly constituted trust are generally not part of the settlor's estate for succession purposes. However, some civil law jurisdictions have anti-avoidance provisions that can challenge transfers to trust as disguised donations subject to forced heirship.
• Holding structures: holding property through a company or other legal entity may affect the characterisation of the asset (shares in a company rather than immovable property) and thus which succession law applies — though this is a complex area with significant tax and practical implications.
• Life insurance in trust: a life insurance policy written in trust is not part of the estate for succession purposes in most jurisdictions and can direct funds to beneficiaries without passing through the estate.

Asset Siting and Choice of Law

Where you hold assets — not just their economic substance — can affect which succession law applies to them. Key considerations:

• Immovable property (land and buildings): the succession law of the country where the property is located almost always applies to that property, regardless of domicile or habitual residence elections.
• Movable assets (investments, bank accounts, company shares): the governing law varies. For EU-sited movable assets, Brussels IV applies. For movable assets in non-EU jurisdictions, the applicable law depends on the private international law rules of the courts dealing with the estate.
• Offshore structures: assets in a Guernsey, Isle of Man, or BVI structure are governed by the succession law applicable in that jurisdiction for the shares or interests held there.

An effective cross-border succession plan coordinates asset siting, will elections, and trust or holding structures across all relevant jurisdictions.

UK Inheritance Tax and Domicile

UK inheritance tax applies to the worldwide estate of long-term UK residents (UK resident for at least 10 of the previous 20 tax years) at 40% above the nil-rate band (currently £325,000, potentially with the Residence Nil Rate Band of a further £175,000 for direct descendants). For those who are not long-term residents, IHT applies only to UK-sited assets. Since 6 April 2025 this residence-based test has replaced the previous domicile-based rules.

The interplay of UK residence history, the long-term resident test, and IHT is central to cross-border succession planning for those with significant UK connections. See the separate guide on IHT planning for internationally mobile individuals for detailed treatment of this area.

Practical Steps for Cross-Border Succession Planning

1. Asset and jurisdiction mapping: prepare a schedule of all significant assets, where they are legally situated, and the succession law applicable to each.
2. Domicile review: obtain a legal assessment of your current domicile position and its succession law implications.
3. Will review and update: ensure you have valid wills in every jurisdiction where you hold property or significant assets. For EU-resident UK nationals, include a Brussels IV election of UK law where appropriate.
4. Coordination between wills: ensure that multiple jurisdiction-specific wills do not revoke each other (a will that says "I revoke all previous wills" may inadvertently revoke your carefully drafted French will). Each will should be limited in scope to the assets of a specific jurisdiction.
5. Trust and structure review: assess whether existing trust structures are effective in each relevant jurisdiction and whether new structures would improve the outcome.
6. Power of attorney: confirm that appropriate powers of attorney exist for each jurisdiction where you have significant assets.
7. Regular review: succession law changes, family circumstances change, and asset portfolios change. Review your succession plan every three to five years or after any major change.

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The information in this guide is for general educational purposes only and does not constitute financial, tax, or legal advice. Succession law is jurisdiction-specific and complex. Rules change, and the interaction between different legal systems is not always predictable. You should seek independent legal and financial advice in all relevant jurisdictions before making any succession planning decisions.

How Global Investments Can Help

Global Investments works with internationally mobile high-net-worth individuals on cross-border succession planning, coordinating with legal professionals in relevant jurisdictions to ensure that your wishes are clearly expressed, legally effective, and tax-efficient across all the countries where you hold assets. Contact our advisory team to arrange a succession planning review.