One of the beneficiaries of a will lives abroad. Does this add complexity?

You’ve been made an executor. It’s fairly simple as there are just two beneficiaries. But whilst one lives nearby, the other beneficiary moved abroad many years ago, and now lives in the USA. What challenges might there be? What factors do you need to take into account?

Here’s a few:

Getting ID

It’s vitally important that the estate’s proceeds are distributed to the correct beneficiaries. In the UK, this is easy to do. You might know them, you might even be able to meet them. They can show you their ID, in the form of their passport or driving licence, and you can take copies for your files.

For beneficiaries abroad, the same principles apply, but the documentation will be unfamiliar to you. For example, whilst a UK driving licence photocard is valid for 10 years, in the USA, driving licences are provided by individual states, and are valid for between four and eight years. Most British people – around 86% – have passports. Passport ownership in the USA isn’t as common; only 44% have this form of ID.

Make sure the ID is genuine. It is advisable to ask the overseas beneficiary to provide a notarised copy of their ID, whereby a legal advisor in the overseas’ beneficiary’s country will authorise the validity of the ID.

Overseas Bankruptcy Searches

Another important task is to undertake an overseas bankruptcy search in relation to the beneficiary. This reduces the risk to the executors of being subject to a claim for compensation from the creditors of a bankrupt beneficiary.

The search requirements are usually quite basic: name of beneficiary, address, date of birth. But some countries may request different or more information. In the USA for example, a social security number is needed.

Foreign tax

Beneficiaries abroad may have to pay tax in the country in which they live, even if Inheritance Tax has been paid in the UK. But they may be entitled to receive a refund or Double Taxation Relief.

The Double Taxation Relief will need to be claimed from HMRC in the UK. Forward planning may potentially avoid double taxation.

Gov.UK gives more detail on this, with a worked example.

Currency exchange and transferring money

When distributing funds to a foreign bank account, currency exchange rates and transfer charges need to be considered. UK cheques are rarely accepted by overseas banks, therefore electronic transfer is the preferred method. Alternatively, funds could be transferred to a UK bank if the overseas beneficiary has retained one.

It is a good idea to look at all of these issues before the end of the estate management process. Money can be held up unnecessarily whilst these logistics are being worked out.

If you need any further advice or support please do not hesitate to contact Lois Di Vito on 01756 692869 or email lois.divito@awbclaw.co.uk

Some useful resources

Tell Us Once – an essential tool for bereaved relatives 

Do you actually need a solicitor to arrange probate? 

Do you know where are all your pensions are?

29 May 2025