Establishing a will if you’ve recently become a UK resident

Moving to a new country brings with it a host of practical and legal considerations, especially when planning for the future. For those who have recently gained residency in the United Kingdom, drafting a will is an essential yet often overlooked part of settling in. While it might seem premature or even uncomfortable to think about end-of-life arrangements shortly after relocating, creating a will is crucial to ensure your assets, dependants, and wishes are protected.

A will is a legal document that sets out how your money, property, and possessions should be distributed after your death. In the UK, the legal landscape surrounding inheritance is specific, nuanced, and varies significantly from laws in other countries. Without a valid will, the distribution of your estate follows a rigid set of intestacy rules that may not align with your personal wishes or cultural expectations. Therefore, understanding the UK’s expectations around estate planning, and tailoring your will to meet those requirements, is something every new resident should make a priority.

The Legal Framework for Wills in the UK

The United Kingdom consists of four countries: England, Wales, Scotland, and Northern Ireland. While there are broad similarities in their legal systems, there are also important distinctions when it comes to estate planning and wills. For example, Scotland has different rules on forced heirship and legal rights for spouses and children. Thus, understanding the region-specific requirements for your place of residence is vital.

In England and Wales, the creation of a valid will must comply with specific rules outlined in the Wills Act 1837. Broadly speaking, a will must be written, signed by the person making the will (the testator), and witnessed by two independent adults who are not beneficiaries. If these formalities are not followed strictly, the will may be deemed invalid. Northern Ireland follows similar guidelines, while Scottish law allows for handwritten wills and has slightly more flexible witnessing rules.

Why Creating a UK-Based Will is Essential

For new residents with existing wills from their home countries, one common question arises: “Is my foreign will still valid in the UK?” The answer depends on several factors. Generally, a foreign will can be valid in the UK if it complies with the law of the country where it was executed or the law of the testator’s nationality or domicile at the time. However, practical challenges often emerge, such as language barriers, recognition of legal terms, and differences in property succession rules.

Relying solely on an overseas will could result in lengthy probate delays, increased legal costs, and complications in asset distribution. For instance, the UK probate process may require the translation and legalisation of foreign documents, which adds time and expense to the administration of your estate. Additionally, if you have assets located both in the UK and abroad, your estate plan may be best served by drafting separate wills for each jurisdiction with the guidance of cross-border estate planning professionals.

Understanding ‘Domicile’ and Its Impact on Your Will

One of the most conceptually complex but legally impactful aspects of estate planning in the UK is the concept of domicile. In legal terms, domicile refers to the country that is considered your permanent home. Determining your domicile status affects how your estate is taxed upon your death and which laws govern your worldwide assets.

There are different types of domicile, including domicile of origin, domicile of choice, and deemed domicile. For most new UK residents, domicile of origin is tied to your country of birth and may only shift to the UK if you demonstrably settle here with the intention of making it your permanent home. Inheritance tax (IHT) exposure in the UK depends heavily on your domicile status. UK domiciled individuals are generally subject to IHT on their worldwide assets, whereas non-domiciled residents may only be taxed on their UK-based assets, at least initially.

After 15 out of 20 years of residency in the UK, you are deemed domiciled for tax purposes. This can significantly broaden the scope of UK inheritance taxes applicable to your estate. Thus, it is essential to consider not only the legal framework but also the tax implications when establishing a will.

Assessing Your Assets and Family Circumstances

Before drafting a will, take stock of your financial situation and personal relationships. This includes identifying your UK-based and international assets. Assets could include property, bank accounts, personal belongings, life insurance policies, shares, pensions, and business interests. It’s also critical to understand the value of each asset and how you own them — whether individually, jointly, or in trust.

Next, consider your family dynamics. Think about who depends on you financially or emotionally: a spouse, children, elderly parents, or other dependants. The UK legal system gives significant rights to spouses and civil partners. However, cohabiting partners do not enjoy automatic inheritance rights without being explicitly named in the will. If you want to provide for a partner to whom you are not legally married or civilly partnered, their inheritance must be specifically laid out.

If you have children under 18, you will need to appoint guardians who would look after them in the event of your death. This decision should be made carefully and discussed with the intended individuals beforehand. Without a legal directive in place, the courts will determine guardianship based on legal procedures, which may not align with your preferences.

Appointing Executors and Trustees

One of the most important decisions you’ll make in your will is who to appoint as your executor(s). Executors are responsible for handling your estate, ensuring your debts and taxes are paid, and distributing assets according to your wishes. Trustees, on the other hand, manage any trusts you establish within your will, such as those set up for minor children or charitable causes.

Choose individuals you trust implicitly, who are financially literate and emotionally capable of managing complex legal tasks during a potentially stressful time. Many people appoint family members, but it’s also possible to appoint professional executors such as solicitors or banks, although they will charge a fee for this service.

Writing Your Will with Professional Assistance

While there are many DIY will-making kits and online tools available in the UK, seeking professional legal advice is highly recommended for new residents. The added complexities of foreign assets, potential changes in domicile status, and cultural differences make it prudent to consult a solicitor who specialises in wills and probate.

A solicitor can help you craft a will that is both legally sound and fully aligned with your intentions. They will also help ensure your will complies with UK formalities and advise on clearing up any inconsistencies with existing foreign wills. Moreover, they can provide guidance on how to minimise inheritance tax and safeguard vulnerable beneficiaries. Legal advice is not just about avoiding errors — it’s about creating clarity and peace of mind.

The Role of Inheritance Tax Consideration

Inheritance tax in the UK can significantly impact the size of the estate passed to your beneficiaries. As of 2024, IHT is charged at 40% on estates valued above the basic nil-rate band of £325,000. There’s also a residence nil-rate band of up to £175,000, which applies when a family home is left to direct descendants. These thresholds may change, and complexities increase when dealing with international assets and varying domicile statuses.

There are legal strategies to reduce IHT exposure. These might include gifting strategies, setting up discretionary trusts, or using exemptions such as those for spouses and charities. Consulting a financial adviser who understands your international background is key to building a comprehensive estate planning strategy.

Dealing with Cross-Border Estate Planning

For residents of the UK who retain assets abroad — perhaps property in their home country, overseas bank accounts, or pensions — estate planning becomes further complicated by the interaction of differing legal systems. Some countries follow civil law systems with fixed inheritance portions to certain heirs, while others adhere to common law principles similar to those in the UK. Conflicts between these systems can result in delays, disputes, and unintended tax consequences.

In such cases, a multi-jurisdictional approach to estate planning is recommended. This often involves creating separate wills for each country in which significant assets are held, with careful drafting to ensure the documents do not contradict or invalidate one another. Working with legal professionals experienced in cross-border matters is essential to get this right.

Storing and Updating Your Will

Once your will is complete, it’s essential to store it safely. Most solicitors offer to hold the original document free of charge or for a nominal fee. You can also deposit your will with the Probate Registry. Wherever you store it, make sure your executors know where to find it.

Life changes frequently, and major events such as marriage, divorce, the birth of children, or significant changes in wealth can all render portions of your will obsolete. In the UK, getting married automatically revokes a previous will unless it contains a specific clause stating otherwise. Regularly reviewing and updating your will ensures that it remains aligned with your current wishes and personal circumstances.

Providing Additional Instructions

Although a will is primarily intended to distribute your financial assets, it’s also a suitable place to include instructions that reflect your broader values and desires. These might include funeral wishes, such as burial or cremation preferences, organ donation, or even personal messages to your loved ones.

Some individuals choose to write a separate letter of wishes — a non-legally binding document — to provide further guidance to executors and trustees. This can include advice on raising children or preferred recipients for sentimental items. While not enforceable, such letters can offer invaluable emotional and practical guidance in the administration of your estate.

Taking Action Early Is Key

Becoming a resident of a new country involves adaptation, organisation, and forward planning. While the process of drafting a will may not be the most exciting aspect of your relocation, it is one of the most important steps you can take to ensure accurate and compassionate administration of your estate.

By engaging with the UK’s legal framework, seeking appropriate professional support, and tailoring your will to reflect both your new circumstances and any international connections, you can protect your loved ones and provide clarity in times of uncertainty.

In summary: Drafting a UK-based will as a new resident isn’t just a legal formality — it’s a thoughtful, proactive step toward securing your future and the well-being of those you care about. With careful planning and expert guidance, you can ensure that your assets are managed according to your wishes, wherever life may take you.