Since the Labour Party’s election victory in July 2024, several sweeping changes have been introduced that have affected people around the UK, especially regarding estate planning.
If you’re a British expat with assets still in the UK, these changes could have significant implications for you, particularly as the government changed Inheritance Tax (IHT) rules from a domicile-based to a residency-based system, coming into effect in April 2025.
While this change to “non-dom” rules could bring more consistency and predictability to cross-border estate planning, it might also introduce additional complexities to consider.
In fact, managing your estate can be complicated at the best of times if you’re an expat.
So, continue reading to discover five estate planning tips if you’re a British expat with assets in the UK.
1. Have an in-depth conversation with your family
A practical first step – but one that’s easy to overlook – can be having a comprehensive conversation with your loved ones regarding your estate.
Read more: 3 essential conversations worth sitting down for
You might find these discussions about your passing uncomfortable or even upsetting.
Still, speaking openly with your family about your intentions could prevent future confusion and avoidable conflicts.
This is because you could explain some of the reasoning behind your decisions, offering some much-needed clarity.
Moreover, your beneficiaries may also have questions about how you plan to divide your estate. Addressing these early could help you manage their expectations and offer reassurance, both of which can reduce stress later down the line.
2. Ensure you fully understand tax rules in the UK
Depending on whether you live in Canada, the US, Europe, or Switzerland, it’s essential to stay informed about how tax rules in the UK may affect your estate. This is especially the case given the aforementioned non-dom rule changes.
Indeed, under the previous tax regime, your liability to UK IHT was based on your domicile status. If you were deemed UK-domiciled when you died, your entire global estate could be liable for IHT at 40% on the value above the nil-rate band (which stands at £325,000 as of 2025/26).
From April 2025, the system moved to a residency-based approach. This means that if you’ve maintained close ties to the UK and been a tax resident in 10 out of the last 20 years, parts of your estate could still be liable for UK IHT.
However, if you’re a tax resident elsewhere and don’t fall within the UK’s new residency-based rules, only your UK-based assets may be liable.
This is only a brief glance at these tax laws, and, as you can see, they are complex. So, professional guidance from a specialised planner could help you plan effectively.
3. Create wills in multiple countries
If you hold assets in more than one country, it may be prudent to have a valid will in each jurisdiction, which could help make administering your estate smoother.
Each country may have its own inheritance rules and requirements. For instance, some nations enforce “forced heirship” rules, which could create conflict with your wishes laid out in your UK will.
As such, creating multiple wills could help ensure that each portion of your estate is dealt with following local laws.
Doing so might even reduce the risk of disputes or probate delays for your beneficiaries.
4. Write a “living will” for additional peace of mind
Once you’ve created your will, it can be tempting to file it away and forget about it. In reality, it’s sensible to view your will as a “live” document.
Major life events, such as welcoming a new child into the family, divorce, or a change in your financial situation, all typically require a review of your will.
If you fail to revisit your will, it may no longer reflect your wishes. For example, failing to include a newborn grandchild could leave them without a share of your estate.
Or, if you’ve separated from a partner but not updated your will, part of your estate may pass to them.
If you find that you’re too busy to update your will, it can be helpful to dictate a set time – perhaps even just once a year – to ensure it remains current. This might prevent complications in the future.
5. Review your estate plan regularly
As well as keeping your will updated, there are other aspects of your estate plan you might want to review on a regular basis.
You may want to consider how much of your wealth you’re planning to give to each of your beneficiaries, and how.
As an example, you may decide that one of your younger loved ones would not be financially responsible enough to inherit a sudden significant sum of wealth.
In this case, you might decide to place it in a trust with the stipulation that they can only inherit it once they reach a certain age or complete higher education.
You may also decide to review any Lasting Power of Attorney (LPA) measures you have in place, ensuring the person you’ve nominated is still trustworthy.
Get in touch
We can help you manage your estate plan and protect your wealth from being eroded by IHT.
Since we specialise in helping British expats manage their wealth across borders, we could help you create a plan that reflects your personal circumstances as you progress through life.
To find out more, please email enquiries@alexanderpeter.com or call +44 1689 493455.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning, tax planning, trusts, Lasting Powers of Attorney, or will writing.
