Conduct a full assessment of your assets before moving abroad
One of the biggest mistakes expats make is overlooking their assets before relocating. Instead, you should carry out a complete assessment of your estate to identify the best tax strategies based on the laws of your host country. The larger your estate, the more important it is to consult an international tax expert. Many people assume that inheritance matters are governed by the laws of their home country. Others assume the host country handles the entire inheritance process. In reality, several factors determine which law applies to inheritance, starting with the expat's own will. A thorough review of your assets matters when it comes to inheritance, since the legal framework used to classify your estate directly affects how it will be handled after your death.
Understand your host country's inheritance laws
Does moving abroad automatically exclude your family from your estate? Here too, plenty of misconceptions exist. Many assume that relocating lets you "cut ties" completely, even when it comes to passing on assets. But inheritance law is remarkably complex, even within a single country, and the reality varies significantly from place to place.
Countries with forced heirship rules
In France, for example, the law prohibits fully disinheriting a child. This is known as "forced heirship" (réserve héréditaire). This means you can't simply move abroad to cut your child out of your estate. A minimum share is always reserved for legal heirs, with the exact portion depending on the number of children. Many European countries follow the same principle, including Germany, Sweden, Hungary, Portugal, Italy, and Greece. Saudi Arabia applies a similar rule.
That said, be aware of key legal differences between countries. In Portugal, for instance, forced heirship exists on paper but isn't strictly enforced, giving expats more flexibility over how they distribute their assets. In Saudi Arabia, forced heirship extends to the surviving spouse, meaning both children and the spouse are guaranteed a share of the inheritance. In Luxembourg, Germany, Belgium, and Sweden, this protection applies only to direct descendants.
France and Spain both allow one exception to forced heirship: disinheriting a child deemed "unworthy." However, this exception is tightly regulated, and the child's behavior must meet the specific legal definition of "unworthy" in each country's legislation.
Countries with no forced heirship rules
By contrast, the United States, Israel, and China have no forced heirship laws. The same holds true across most common law countries, which grant expats full freedom to distribute their estate. England and Wales are prime examples: there's no forced heirship, so you're free to structure your estate however you like. You could leave everything to your surviving spouse and nothing to your children, for instance. Scotland, however, does apply forced heirship rules.
This lack of forced heirship can have serious consequences for inheritance planning. For example, if an expat's primary residence is in a country that doesn't recognize forced heirship, that country's laws will apply to their estate. Here's another scenario: a foreign national from a country without forced heirship dies in a country that does recognize it. However, if they clearly stated in their will that the law of their home country should apply, that stipulation will govern the succession, though it may still carry tax implications.
The unique case of European inheritance law
In 2015, the European Union harmonized its regulation on international successions. Under this rule, when a European national dies, the law that applies is that of the country where they lived at the time of death, not their country of origin. Where their assets are physically located (even if spread across multiple countries) does not affect which law applies.
One important caveat: EU law defines "country at the time of death" as the deceased's "habitual residence." Simply moving to a country without forced heirship isn't enough to disinherit a child. Your residence must qualify as your official "habitual residence." Also worth noting: Denmark and Ireland have opted out of this regulation.
Inheritance planning for expat families: What else should you keep an eye on?
Wills, double taxation, and marital property regimes are all factors worth examining closely to avoid unpleasant surprises down the road.
Choosing a marital property regime when marrying a foreign spouse
If you married before moving abroad, ask yourself: is your marital property regime recognized in your host country? Keep in mind that civil marriage (a legal marriage performed by official government authorities) is generally the only type of union recognized internationally. In most cases, an unmarried partner has no inheritance rights. The type of marriage you have also affects your marital property regime, and some rules only apply to legally married couples.
For example, US law doesn't guarantee children a forced share of the estate, but it does protect the surviving spouse's rights if they hold US citizenship (unless the will states otherwise). What's more, surviving spouses in the US don't pay inheritance tax. The same exemption applies in France, where surviving spouses are also exempt from inheritance tax.
Resident vs. non-resident status and inheritance tax
Moving abroad while leaving your children in your home country doesn't mean they'll lose their inheritance rights. That said, the rules are complex and vary widely by country. In Italy, for example, anyone residing in the country must pay inheritance tax on all assets owned by the deceased, no matter where those assets are located. Non-residents, on the other hand, owe inheritance tax only on assets located in Italy.
Watch out for double taxation
Moving abroad doesn't necessarily sever your financial ties to your home country. If you earn rental income or keep a residence there, you'll likely still owe taxes. To avoid surprises, check the tax treaty between your host country and your home country. If there's a conflict between national laws, the treaty takes precedence.
Drafting a solid will
The key here is making sure your will holds up internationally. One option is the international will, established under the Washington Convention of December 26, 1973. You can use it whether or not your estate involves an international succession. The concept is straightforward: this standardized will format is recognized across many countries. It can be handwritten or typed, but to be valid, it must be presented to a notary in the presence of witnesses. An international will offers greater legal certainty and makes it easier to carry out your wishes, provided it's drafted correctly. That's why it's best to draft your will with a notary. This type of will, whether international or not, is considered "authentic" and carries more legal weight than one drafted without a notary's involvement, which matters especially in international succession cases.
