Cross-Border Inheritance Disputes in Mixed-Citizenship Families

When families span multiple countries, the death of a loved one can trigger complex legal challenges that extend far beyond grief. Mixed-citizenship families often find themselves navigating a labyrinth of conflicting laws, jurisdictional disputes, and inheritance regimes that can turn an already difficult time into a prolonged legal battle.

Cross-border inheritance disputes have become increasingly common as globalisation connects families across continents. Understanding these complexities before they arise can save families from costly disputes and ensure your loved one’s final wishes are honoured, regardless of where they lived or died.

The Foundation: Domicile and Its Critical Role

Domicile forms the cornerstone of inheritance law determination. Unlike nationality or residence, domicile refers to the country you consider your permanent home—where you intend to remain indefinitely. This legal concept determines which country’s inheritance laws apply to your estate.

For mixed-citizenship families, establishing domicile can be particularly complex. Consider a British citizen who has lived in Spain for 20 years but maintains strong ties to the UK through property ownership and regular visits. Their domicile determination will significantly impact how their estate is distributed and which country’s courts have jurisdiction.

The consequences are substantial. English law, for instance, allows complete testamentary freedom—you can leave your assets to anyone you choose. However, many European countries operate forced heirship regimes, where certain family members (typically spouses and children) have automatic inheritance rights that cannot be overridden by a will.

Post-Brexit Legal Landscape

Brexit fundamentally altered the UK’s position in cross-border inheritance matters. Prior to leaving the EU, the UK was subject to Brussels IV Regulation, which provided a framework for determining jurisdiction and applicable law in succession matters across member states.

Now, UK estates are governed by domestic law and bilateral treaties, creating potential conflicts when dealing with EU member states that continue to apply Brussels IV. This disconnect can lead to forum shopping, where different parties attempt to bring proceedings in courts they perceive as more favourable.

For families with assets spanning the UK and EU countries, this regulatory divergence means careful planning is more crucial than ever. What was once a relatively streamlined process now requires navigation of multiple legal systems that may not recognise each other’s judgments.

Common Pitfalls in Cross-Border Estates

Conflicting Inheritance Regimes

The clash between common law systems (like England and Wales) and civil law systems creates significant challenges. A British citizen living in France may create a will under English law, believing they can freely dispose of their assets. However, French law’s forced heirship provisions could override these intentions, leading to disputes between family members who expected different outcomes.

Multiple Wills and Jurisdictional Confusion

Many international families create separate wills for different countries, believing this simplifies matters. However, without careful coordination, later wills may inadvertently revoke earlier ones, or courts in different countries may reach conflicting decisions about the same estate.

Double Taxation Risks

Cross-border estates often face taxation in multiple jurisdictions. Without proper planning, beneficiaries may find themselves liable for inheritance tax in several countries, significantly reducing the estate’s value. The UK’s inheritance tax treaties with other countries can provide relief, but navigating these requires specialist knowledge.

Structuring Effective Cross-Border Estate Planning

Professional Legal Coordination

Successful cross-border estate planning requires coordination between legal professionals in each relevant jurisdiction. This might involve solicitors in England working alongside notaries in France or estate attorneys in the United States to ensure wills complement rather than conflict with each other.

Strategic Use of Trusts

English law trusts can provide significant advantages in cross-border planning, as many civil law countries do not recognise trust structures. This can help protect assets from forced heirship provisions, though recent international efforts to increase trust transparency have complicated this strategy.

Clear Domicile Planning

Taking concrete steps to establish domicile can prevent disputes. This includes maintaining primary residence, severing ties with previous countries of domicile, and creating documentation that clearly expresses the intention to remain permanently in the chosen country.

Minimising Disputes Through Proactive Measures

The key to avoiding cross-border inheritance disputes lies in comprehensive, advanced planning. Families should regularly review their estate plans, particularly when circumstances change—such as relocating to a new country, acquiring foreign property, or changes in family structure.

Consider how international custody arrangements can become similarly complex, requiring careful legal navigation across multiple jurisdictions. Just as with inheritance matters, understanding each country’s legal framework before conflicts arise proves invaluable.

Regular family communication about inheritance intentions can also prevent surprises that often fuel disputes. When beneficiaries understand the reasoning behind estate planning decisions and the legal constraints that shaped them, they are less likely to challenge the arrangements.

Taking Action: Next Steps for Your Family

Cross-border inheritance planning requires specialist expertise that goes beyond general estate planning knowledge. Early intervention prevents the costly disputes that arise when families discover conflicting legal requirements after a loved one’s death.

If your family spans multiple countries, do not wait until a crisis emerges. Professional guidance can help you navigate these complex waters while your loved one is still able to express their wishes and make necessary adjustments.

Protect your family’s future across borders. Contact A L Law today for specialist advice on cross-border inheritance planning. Our experienced family law team understands the complexities of international estates and can help ensure your wishes are respected, regardless of where life takes your family. Call us now to schedule your consultation.