When was the last time you paused to consider what will happen to your assets after you’re gone?
As an expat, it’s never too early to start thinking about how you want to pass on your wealth and who should benefit from your assets.
At Ascenta, we regularly meet with expats who’ve built wealth across countries: property in one, pensions in another, and other savings elsewhere.
Although people come to us for help consolidating and organising their assets, most haven’t considered how it all affects their family’s future.
This is where an estate plan can help.
Top 3 reasons to put an estate plan in place now
Your estate plan isn’t about giving everything away. It’s about giving yourself peace of mind by taking care of your needs today and protecting your family in the future.
Here are three primary reasons to have one ready, even if you hope you’re a long way from needing it.
1. Your assets go where you want them to go
Having an estate plan in place gives you control. Without a clear plan, your assets may not be distributed according to your wishes – particularly if you have assets in multiple jurisdictions.
To avoid distress and hassle when your family is grieving your death, make sure you have a will in each jurisdiction where you hold assets.
A comprehensive estate plan will ensure you’ve taken appropriate steps to specify exactly who inherits what and when. If you’ve remarried or have a blended family, it’s especially important to set out your intentions in writing.
As an expat, you also need to account for differing legal systems and cross-border inheritance laws – more on this later.
Ultimately, having an estate plan is all about protecting your wishes and avoiding confusion or stressful legal issues.
2. You avoid adding more stress at an already difficult time
Losing a loved one is always difficult – and the last thing anyone wants during such a time is added stress or uncertainty.
Taking the time to put your affairs in order now can help ease the burden on your family.
A well-thought-out estate plan outlines not only who receives your assets but also appoints key people such as executors, guardians, and medical proxies.
This can help to avoid admin headaches and allow your family time and space to grieve. It could also reduce the risk of delays or expensive legal fees.
3. Your loved ones are financially secure, even when you’re not around
Far more than a mechanism to allocate wealth, a well-executed estate plan can also provide financial security for your family and loved ones, long after you're gone.
This might include setting up trusts, choosing the right beneficiaries for life insurance policies and pensions, or planning how dependents will be supported.
For example, if you have young children, you might consider naming a legal guardian and setting funds aside for their education or living expenses.
Crucially, your estate plan can also be structured to mitigate potential tax charges, ensuring that more of your wealth reaches the people and causes that matter to you most.
Inheritance Tax rules might affect your plans
While Singapore abolished Inheritance Tax (IHT) in February 2008, many jurisdictions still apply tax to assets you leave behind when you die.
In the UK, the standard IHT rate is 40%. This is charged on assets above the nil-rate band of £325,000 (with potential additional reliefs).
Don’t be fooled into thinking you’re not subject to UK tax because you live (or die) overseas: if you're deemed “a long-term resident”, your worldwide estate remains liable for UK IHT, regardless of where you live.
In fact, if you own a UK property or any UK asset, your beneficiaries might be liable for IHT even if you’re neither a UK citizen nor living in the UK at the time of your death.
4 IHT rule changes to heed if you’re a British expat
1. The freeze on tax-free IHT thresholds has been extended to 2030 – When thresholds don’t rise with inflation, your beneficiaries could face a higher IHT bill.
2. Reforms to the non-dom status regime – Previously, British-domiciled citizens were potentially liable to pay IHT on their global assets, regardless of residence. From 6 April 2025, your overseas assets may be exempt if you’ve lived outside the UK for 10 consecutive tax years at the time of your death.
3. UK pension funds and death benefits will be brought within the scope of IHT from 6 April 2027 – Currently, pension assets can usually be passed on without an IHT bill. New rules will bring pension assets into your estate for IHT purposes. If you were planning to preserve your pension to pass on, you may need to reconsider.
4. Agricultural Property Relief and Business Property Relief will be capped from 6 April 2026 – You can currently claim 100% IHT relief on agricultural and business assets. However, from 6 April 2026 any such assets worth over £1 million will only attract 50% relief.
The good news is that you may be able to structure your affairs to reduce IHT exposure by using trusts, gifting strategies, or international structures. These need to be set up in advance, ideally with help from a professional who understands both financial rules and multi-jurisdictional laws.
If you want to ensure your legacy is protected, we’re here to help you navigate all the complexities.
