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Please read this first
Estate and tax rules for people connected to two countries are genuinely complex and they change. Nothing on this page is legal or tax advice, and it cannot cover your personal situation. Treat it as background before a proper conversation with qualified cross-border professionals.
Q. Is my UK will valid in the United States?
Do not assume so. A UK will may not deal cleanly with US-based assets, and US property can end up going through the US court process for settling an estate (known as probate), state by state, regardless of what your UK will says. Many cross-border families end up needing coordinated wills, one in each country, carefully drafted so they work together rather than accidentally cancelling each other out. This is precisely the kind of thing to get a specialist to structure, because a well-meaning DIY fix can make matters worse.
Q. How does estate planning work with assets in the UK and the USA?
When you own property, pensions, investments or accounts in both the UK and the US, two legal systems and two tax systems can each have a claim on how your estate is handled and taxed. They do not automatically coordinate. Without planning, your family can face duplicated legal processes, delays, and tax outcomes you never intended. The good news is that with the right structure it is manageable. The danger is assuming your existing UK arrangements simply carry over. They may not.
Q. What is situs, and how does it affect UK-US estate tax?
"Situs" simply means where an asset is treated as being located for legal and tax purposes. It matters because the US can levy estate tax on assets it considers US-situated (for example, US real estate and shares in US companies), even for someone who is not a US citizen. And the threshold at which that can apply to a non-US person's US assets is far lower than most people expect, which catches families out. On the UK side, the rules on who is within the scope of UK inheritance tax moved to a residence-based test from April 2025. The interaction between the two systems, softened in places by the UK-US estate and gift tax treaty, is exactly why cross-border estates need specialist eyes.
Q. What should British expats check in their estate plan?
As a general checklist to discuss with professionals, not as advice:
- Whether you need a will in each country, drafted to work together.
- How US estate tax might touch your US-situated assets, and how the UK-US treaty and any available reliefs apply.
- How UK inheritance tax applies given the residence-based rules, and your history of UK residence.
- Whether beneficiary designations on pensions, life insurance and accounts still reflect your wishes and work across borders.
- Powers of attorney and healthcare directives that are valid where you actually live.
- Keeping everything reviewed as you move, as the law changes, and as your family changes.
Q. What if my spouse isn't a US citizen? US estate and gift tax for UK couples
Normally, US estate tax lets assets pass to a surviving spouse tax-free through the unlimited marital deduction. The IRS says this is generally not allowed if the surviving spouse is not a US citizen, and gifts to a non-citizen spouse are limited too. There are planning routes, and the US-UK estate tax treaty can change the result in some cases.
Seek professional advice on anything like this. The Directory lists specialists.
Q. Do I still pay UK inheritance tax if I live abroad?
Quite possibly. Since 6 April 2025 the UK decides this on long-term residence rather than domicile. If you were UK resident in at least 10 of the previous 20 tax years, your worldwide assets can be in scope for UK inheritance tax, including what you have built in America. Leaving does not end it straight away. There is a tail: three tax years after you go if you were resident for 10 to 13 years, growing by roughly a year for each additional year of residence, up to a maximum of ten.
Seek professional advice on anything like this. The Directory lists specialists.
Worth knowing: if you left the UK recently, you may still be inside the tail without realising it. The number of years you were resident before leaving decides how long it lasts.
Q. Are UK pensions subject to inheritance tax from April 2027?
From 6 April 2027, most unused pension funds and pension death benefits count as part of your estate for UK inheritance tax. This was announced in the Autumn Budget 2024 and legislated in the Finance Act 2026. There is no separate allowance for pensions: the £325,000 nil-rate band, plus the residence nil-rate band of up to £175,000 where it is available, applies across everything, with 40% charged above that. For Brits in America who are still UK long-term residents, or inside the tail, a UK pension left untouched for years could now be pulled into a UK inheritance tax bill.
Seek professional advice on anything like this. The Directory lists specialists.
Who to talk to
This is specialist territory. Look for a cross-border estate planning attorney or solicitor experienced in UK-US estates, ideally working alongside a tax adviser qualified in both countries and, where investments and pensions are involved, a cross-border financial adviser. The right team will build a plan that holds up on both sides of the Atlantic. This site does not recommend specific firms; ask about relevant cross-border experience, qualifications, and fees before engaging anyone.
Links reviewed July 2026. Tax thresholds and estate rules change, so always confirm the current position with the official pages and a qualified professional.