International estates can create significant complications for families, executors and beneficiaries – particularly when inheritance tax and foreign assets are involved.
We recently acted in a complex estate administration matter involving questions around foreign domicile and UK inheritance tax liability.
The Challenge
The deceased had been born in the UK but had spent much of their adult life living permanently overseas, where they built substantial wealth and established their life and financial interests.
The key legal issue was whether they had successfully acquired a “domicile of choice” outside the UK.
In simple terms, this meant proving that although they were born in Britain, they had permanently settled in another country and no longer intended to return to live in the UK.
This was critically important because if HMRC did not accept the change of domicile, the deceased’s worldwide estate – including substantial overseas assets – could potentially have been subject to UK inheritance tax.
Why the Case Was Complex
Cases involving foreign domicile are rarely straightforward.
Although the deceased had clearly established a life abroad and intended to remain there permanently, they still retained certain UK assets. This meant detailed evidence was needed to demonstrate that their long-term connections and intentions were firmly based overseas.
Questions of domicile often involve careful analysis of:
- where a person lives permanently;
- where their financial interests are based;
- family and personal connections;
- property ownership;
- future intentions; and
- ties remaining to the UK.
The Outcome
We prepared and submitted extensive evidence to HMRC demonstrating that the deceased had acquired a domicile of choice outside the UK.
HMRC accepted the position.
As a result:
- the foreign estate was not subject to UK inheritance tax;
- the administration of the estate became significantly more straightforward;
- unnecessary tax complications were avoided; and
- the executors and beneficiaries gained clarity and certainty during the probate process.
Supporting Clients With International Probate Matters
International probate and inheritance tax issues can be highly technical and financially significant, particularly where foreign assets, residency or domicile are involved.
Our experienced Private Client team regularly advises executors, beneficiaries and families on:
- foreign domicile disputes;
- international probate matters;
- inheritance tax issues involving overseas assets;
- cross-border estate administration; and
- complex estate planning matters.
We provide clear, practical advice to help clients navigate complicated international estate issues with confidence.
Need Advice About Foreign Domicile or International Probate?
If you are dealing with an estate involving overseas assets, questions of domicile, or potential inheritance tax complications, our team can help. To speak to our experienced Private Client team, call 01244 312306, email law@oliverandco.co.uk or complete our Contact Form and we’ll be in touch as soon as possible.
