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Repatriation of Assets

Also known as: Asset Repatriation, Bringing Assets Home

Definition

Repatriation of assets is the process of transferring a deceased person's overseas property, money, and investments back to the UK so executors can distribute them to beneficiaries.

Over 25% of UK residents now have overseas financial interests or property, making asset repatriation an increasingly common requirement in estate administration—though it's often not needed if beneficiaries can inherit foreign assets directly.

What Does Repatriation of Assets Mean?

Under UK law, executors have a fiduciary duty to collect all estate assets, including those located overseas. The Administration of Estates Act 1925 gives executors legal authority to manage the estate, but this authority doesn't automatically extend to foreign jurisdictions. When a UK domiciled individual dies holding assets abroad, executors must declare these on HMRC Form IHT417, as UK inheritance tax applies to worldwide estates—not just UK-based property and accounts.

Repatriation typically involves selling foreign property, closing overseas bank accounts, transferring foreign investments, and converting foreign currency into sterling. The process varies dramatically by country. Commonwealth nations including Australia, New Zealand, and Hong Kong allow UK probate grants to be "resealed" under the Colonial Probates Act, providing faster access to foreign assets. Most EU countries including Spain, France, and Italy require separate local probate applications under their own succession laws, significantly extending timelines.

For example, Sarah's father David died leaving a UK estate worth £280,000 plus a Spanish apartment valued at £165,000. Sarah must obtain Spanish legal representation to sell the property under Spanish succession law, which takes 9-12 months. After selling for €192,000 and paying Spanish legal fees, taxes, and estate agent costs totaling €23,220, the net proceeds are approximately £144,300—nearly £21,000 less than the date-of-death valuation due to currency fluctuation and transaction costs.

However, repatriation isn't always necessary. If foreign beneficiaries can inherit overseas assets directly in their local currency, executors can transfer assets without bringing them to the UK—though UK inheritance tax still applies to worldwide estate value. James's grandfather left a French bank account with €42,000 to his daughter Marie, who lives in Provence. Rather than repatriating the funds at a cost of €4,200 and 10 months, James transferred the account directly to Marie's French account within 6 weeks for just £115 in certification costs.

Common Questions

"What does repatriation of assets mean when someone dies?" Repatriation of assets means transferring overseas assets back to the UK as part of estate administration. This involves selling foreign property or investments, closing overseas bank accounts, and converting foreign currency into sterling so executors can distribute the estate according to the will or intestacy rules.

"Do I need to repatriate all foreign assets to the UK?" No, you don't always need to repatriate foreign assets to the UK. If beneficiaries live abroad or prefer to inherit overseas assets directly, executors can distribute foreign property, bank accounts, or investments without bringing them to the UK—though UK inheritance tax may still apply.

"How long does it take to repatriate assets from abroad?" Repatriating assets typically takes 6-18 months depending on the country and asset type. US assets often require Federal Transfer Certificates if worth over $60,000 USD. Commonwealth countries may allow UK probate grant resealing (faster), while European countries usually require separate local probate applications (slower).

Common Misconceptions

Myth: "My UK grant of probate will be accepted by foreign banks and property registries, so I can access overseas assets immediately."

Reality: A UK grant of probate is not automatically valid in other countries. Most foreign institutions require either a "resealed" UK grant—only available in Commonwealth countries like Australia, New Zealand, and Hong Kong under the Colonial Probates Act—or a completely separate probate application under local law, required in most EU countries, US states, and Asian jurisdictions. This means executors often need multiple probate grants, significantly extending timelines and increasing legal costs.

Myth: "Assets located abroad aren't subject to UK inheritance tax—only UK-based property and accounts need to be declared to HMRC."

Reality: UK inheritance tax applies to the deceased's worldwide assets if they were UK domiciled or, from April 2025, long-term UK residents (10 out of 20 years). This means Spanish villas, US investment accounts, French bank deposits, and Australian properties all count toward the £325,000 nil-rate band threshold. Executors must complete HMRC Form IHT417 declaring all foreign assets, and inheritance tax at 40% applies to worldwide estates exceeding the threshold. While double taxation treaties may provide relief if the foreign country also taxes the inheritance, UK IHT is still calculated on global estate value.

  • Foreign Assets: The broader category of overseas property, bank accounts, and investments that may require repatriation during estate administration.
  • Overseas Property: Immovable assets like Spanish villas or French apartments that require repatriation under the property location country's succession law.
  • Currency Fluctuation Risk: Exchange rate changes during the repatriation process can materially reduce estate value when converting foreign currency to sterling.
  • International Probate: The process of obtaining foreign probate grants or resealing UK grants to access assets in multiple jurisdictions.
  • Estate Administration: The overarching executor responsibility of which asset repatriation is one critical phase when foreign assets are involved.

Need Help with Your Will?

If you own overseas property or investments, making a clear will now prevents your executors from facing complex international probate procedures. Specify how foreign assets should be distributed and consider whether beneficiaries abroad could inherit directly without repatriation.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.