Having a UK will — even if you live abroad — could now be essential
From April 2027, unused UK pensions will be included in inheritance tax (IHT) calculations. For UK expats living overseas, this change has important implications — not just for tax, but for how your estate is administered. We covered this in a previous blog: The Coming UK Inheritance Tax (IHT) Shake-Up: Why You Need a Will.
If you live abroad but still hold UK assets such as pensions or property, it may now be more important than ever to have a UK will alongside a local will in your country of residence.
For many expats, pensions are one of the largest remaining UK assets — making them a key focus of estate planning.
If you are a UK expat with UK pensions or property, the 2027 changes make this a good time to review your estate planning.
What’s Changing in 2027?
To recap, under new UK rules taking effect from 6 April 2027:
- Most unused UK pensions will fall into your taxable estate.
- Estates above the £325,000 threshold may face 40% IHT.
- Pension wealth that was previously IHT-efficient may now trigger tax.
For many expats, pensions are one of the largest remaining UK assets — making them a key focus of estate planning.
Why UK Expats May Need a UK Will
Even if you are not UK resident, UK law still governs UK-based assets such as:
- UK pensions
- UK property
- UK investment and bank accounts
A UK will can:
- Ensure your UK assets go to the right people
- Appoint UK-based executors
- Reduce probate delays
- Clarify how UK inheritance tax should be handled
Why a Local Will Is Still Important
Your country of residence controls how local assets are inherited and taxed — and many countries have forced heirship rules or different succession laws.
That’s why many UK expats use two coordinated wills:
- A UK will for UK assets
- A local will for overseas assets
The key is that they must be properly drafted so they don’t revoke each other.
Summary
If you are a UK expat with UK pensions or property, the 2027 changes make this a good time to review your estate planning.
Having the right wills in place can:
- Protect your beneficiaries
- Reduce delays and disputes
- Help avoid unnecessary tax problems
- Ensure your wishes are followed across borders
What Next?
If you’re a UK expat and haven’t reviewed your will recently — or don’t yet have a UK will — now is a sensible time to get professional advice.
A cross-border estate planning specialist, with the help of Aisa International, can help you ensure your wills are properly structured, tax-efficient, and legally effective in both jurisdictions.
