Beyond the Grant: Coordinating an Estate That Spans Two Legal Systems

An estate that includes a villa in France, a bank account in Jersey or a beneficiary in Australia is not unusual for UK families. The difficulty is not the existence of foreign assets; it is the assumption that a UK grant will carry authority everywhere. It will not. A UK executor is appointed under the law of England and Wales, Scotland or Northern Ireland, and that appointment generally has no direct effect over property situated abroad. The administration therefore becomes an exercise in coordination: one estate, two or more legal systems, and a timetable that must be sequenced with care.

Domicile is not a single label

Domicile is often treated as a simple question of where someone lived. In a cross-border estate, it is rarely that simple. English law distinguishes between a domicile of origin, a domicile of dependence and a domicile of choice. Tax law may also apply a statutory concept of deemed domicile for inheritance tax after a period of UK residence. Foreign law may not use domicile at all; it may look to habitual residence, nationality or the location of the assets.

The executor should establish the position before applying for the first grant. The answer affects whether UK inheritance tax applies to worldwide assets or only to UK assets, and it may affect how a foreign court or registrar views the UK executor’s authority. A UK tax return, a residence certificate or a statement in a will is not, by itself, proof of domicile. Correspondence, travel records, permanent home arrangements and the location of family life may all be relevant.

Map the estate before the first application

Before applying for a UK grant, the executor should build a clear asset map. For each foreign asset, record the address or account details, the legal owner, how title is held, the approximate value, any income, and the documents that prove ownership. Jointly owned property, trust interests and nominated accounts require particular attention because they may not pass under the will at all.

The same exercise should be applied to liabilities. A mortgage on an overseas property, a foreign tax bill or a maintenance obligation may affect what can safely be distributed in the UK. Beneficiaries should also be identified with their countries of residence, since paying them abroad raises questions of identity, tax and banking practice.

This map should be prepared before the first application, not after. Some foreign authorities require a UK grant before they will issue a local grant. Others require a local grant or local succession document before the UK executor can deal with the asset. Knowing which sequence applies prevents an application from being made in the wrong order.

The UK grant and its limits

A UK grant authenticates the executor’s authority within the relevant UK jurisdiction. It does not, by itself, transfer foreign immovable property or close a foreign bank account. Some countries will accept a UK grant with a translation and an apostille; others will require a separate local probate or confirmation process. In some cases the foreign authority will need a certified copy of the UK grant, and the original may need to be produced elsewhere.

Executors should therefore order sufficient sealed copies of the grant at the outset and keep a clear record of where each copy has been sent. Original documents should not be parted with unless local advice confirms that it is necessary. Where the deceased owned property in Scotland or Northern Ireland, the separate UK procedures should be identified early, particularly if the estate is administered in England and Wales.

When to instruct foreign counsel

Foreign counsel should be instructed when the estate includes immovable property abroad, when a foreign bank or registrar insists on a local grant, when foreign succession rules may override the will, or when a foreign tax return is required. Local advice is also prudent where the deceased had a foreign spouse or civil partner, where forced heirship or community property rules may apply, or where a foreign will exists alongside a UK will.

The instruction should be specific. Local counsel should advise on the local succession rules, the probate or equivalent procedure, property transfer, local tax and any restrictions on distributing funds. A translation service alone is not enough. The UK executor needs to know what local counsel requires from the UK side, how long the process will take, and what evidence must be produced.

Double taxation and the residue

A UK-domiciled or deemed-domiciled individual may be liable to UK inheritance tax on worldwide assets, while the country where a property or account is situated may impose its own inheritance or estate tax. Double taxation treaties and unilateral relief may reduce the burden, but relief is not automatic. It must be claimed, within time limits, with the right evidence.

The executor should not distribute the UK residue until the foreign tax position is understood. Foreign liabilities, property transfer taxes and local probate costs can reduce what is available for beneficiaries. Keeping a single schedule of values, tax paid and relief claimed will make the eventual account easier to reconcile.

Beneficiaries abroad

Paying a beneficiary overseas is not simply a matter of transferring funds. Banks may require proof of identity and residence, and may apply withholding or reporting rules. Exchange rates and payment charges should be explained. A beneficiary who is tax resident abroad may also have local reporting obligations, although the executor’s duty is to administer the estate rather than to advise the beneficiary personally.

Avoiding the stalled estate

A cross-border estate rarely stalls because the law is unknowable. It stalls because documents are missing, responsibility is unclear and the UK and foreign processes have not been sequenced. The executor should keep a single timeline showing the UK grant application, the foreign application, tax filings and expected distributions. That timetable should be reviewed whenever local counsel provides new information.

Where the estate is complex, it may be sensible to bring in professional coordination early. At Howard Fairbairn, the focus is on clear guidance and practical sequencing, so that families are not left to reconcile two legal systems alone. The grant is an important step, but it is not the whole journey. An estate that crosses borders needs an executor who knows where the UK authority ends and where local advice must begin.