International Inheritance Laws: What Happens to Property You Own Abroad

Owning property or accounts outside the United States can be exciting—and it can also complicate estate planning. Many people assume their U.S. will or trust automatically controls everything worldwide. In reality, international inheritance laws may control what happens to foreign real estate and other assets, sometimes in ways that surprise families and delay administration.

Why this matters: you can do “everything right” under U.S. law and still trigger forced-heirship rules, local probate requirements, or restrictions on who can inherit (or even own) certain property abroad.

Why you need to know which laws apply

Before you rely on assumptions, two questions usually matter most:

• Where is the asset located? Local law often controls foreign real estate no matter what your U.S. documents say.
• What is your legal “home” for inheritance purposes? Some countries look to nationality, domicile, or habitual residence when deciding which inheritance rules apply.

If you own property abroad—or expect to inherit it—this is a smart time to coordinate estate planning, wills and trusts, and cross-border tax and reporting advice into one coherent legacy planning strategy.

A quick reality check: the “same” inheritance can produce very different outcomes

Here are examples of how inheritance rules can change depending on the country.

Spain (forced heirship can apply even when your plan says otherwise)
Spain recognizes an EU succession framework that can allow some non-Spanish nationals to elect their nationality’s inheritance law in certain situations. If that election is not properly made and implemented, Spanish forced heirship rules can apply, limiting how freely assets pass to chosen beneficiaries.¹

England & Wales (more flexibility—but not “set it and forget it”)
England and Wales follow a common-law system.² That generally means strong testamentary freedom, where many people can leave assets to whomever they choose.³ Inheritance tax rules and beneficiary planning can still shape outcomes, so coordination matters. Spousal transfers may receive favorable treatment in certain situations.⁴ Also, in some cases, dependents can challenge a will and ask the court for financial provision.⁵ If someone dies without a will, intestacy rules control distribution—and those rules depend on the estate’s value and family structure.⁶

Portugal (civil law and reserved shares)
Portugal follows a civil-law system.⁷ Civil-law countries often limit “complete freedom” through reserved shares for close family members. In Portugal, a portion of the estate may be protected for certain heirs, and only the remaining “disposable” portion may pass according to personal wishes.⁸

United Arab Emirates (different rules depending on religion, planning, and registration)
The UAE includes Sharia-based inheritance rules for Muslims, while non-Muslims often fall under civil-law style rules depending on the emirate and circumstances.⁹ Under applicable frameworks, a surviving spouse typically does not automatically inherit the entire estate, and other relatives may be entitled to shares.¹⁰ For Muslims, wills can be limited in how much can be freely gifted (often up to one-third), with the remainder passing under the applicable inheritance scheme. If there is no will, distribution commonly follows default rules that may allocate shares between a spouse and children.¹¹ If there are no children, parents may inherit instead.¹² In some cases, expatriates can request that inheritance be governed by their home-country law if the will is properly registered in the UAE.¹³

Panama (civil law, but meaningful differences in who inherits)
Panama also uses a civil-law system.¹⁴ It can allow meaningful testamentary flexibility in some circumstances.¹⁵ However, if there is no will, descendants may inherit according to a priority structure. If there are no descendants, ancestors may inherit.¹⁶ A surviving spouse can inherit alongside other heir classes under the applicable rules.¹⁷

Thailand (inheritance rules plus land-ownership restrictions)
Thailand operates under a civil-law structure, and foreign ownership of land can be restricted.¹⁸ In practice, some rules limit or prohibit foreign ownership of certain Thai land interests.¹⁹ If there is no will, Thai law determines who inherits.²⁰ The order of priority can include descendants, parents, siblings (full-blood and half-blood), and other relatives.²¹ A surviving spouse’s share can change depending on which other heirs are living.²²

Common traps when families inherit internationally

These issues come up again and again:

• A plan can be “valid” but still fail in practice. If documents are not drafted, registered, or structured in a way the foreign jurisdiction recognizes, your loved ones may face costly workarounds.
• Your U.S. will and trust may not control foreign real estate. Local rules may override your plan.
• Forced heirship can limit your choices. Some countries reserve mandatory shares for children or other family members.
• Local procedures can delay everything. Your family may need local counsel and local filings before a transfer can happen.

How to protect your legacy when you own assets abroad

You do not need to panic—but you do need a coordinated plan.

• Inventory foreign assets now. Identify what you own, where it sits, and how it is titled.
• Confirm which country’s inheritance rules can apply. This is where experienced counsel matters.
• Coordinate your wills and trusts with local requirements. Sometimes a jurisdiction-specific will or structure is appropriate.
• Build your plan around real-life administration. The best plan is the one your family can actually carry out without years of delay.

If you own property abroad—or expect to inherit internationally—this is the right time to review your estate plan. The goal is simple: protect your loved ones, reduce legal friction, and ensure your legacy planning works the way you intend. Reach out if you need to discuss your situation with us.

1. European Parliament and Council Regulation 650/2012, art. 22, 2012, https://www.legislation.gov.uk/eur/2012/650/article/22. ↩︎
2. United Kingdom Law: Legal System, Bodleian Librs. (Oct. 21, 2025), https://libguides.bodleian.ox.ac.uk/law-uklaw/legalsystem. ↩︎
3. Gary Buswell, Inheritance Law and Estate Taxes in the UK, Expatica (June 11, 2025), https://www.expatica.com/uk/finance/taxes/inheritance-tax-uk-1040799/#laws. ↩︎
4. Neil Quantick, UK Will–Assets Abroad?, QLaw (Apr. 6, 2024), https://qlaw.co.uk/wills/uk-will-assets-abroad. ↩︎
5. Inheritance (Provision for Family and Dependants) Act 1975, ch. 63 (UK), https://www.legislation.gov.uk/ukpga/1975/63. ↩︎
6. Law of Intestacy: What Are the Rules of Intestacy Law?, Nat’l Bereavement Serv., https://thenbs.org/practical-support/intestacy#1 (last visited Oct. 28, 2025). ↩︎
7. João Vitor, Portuguese Inheritance Law: Everything You Need to Know, Glob. Citizen Sols. (Oct. 10, 2025), https://www.globalcitizensolutions.com/portuguese-inheritance-law. ↩︎
8. Id. ↩︎
9. Hassan Elhais, Inheritance Law and the Disposal of Assets in the UAE, JD Supra (July 7, 2025), https://www.jdsupra.com/legalnews/inheritance-law-and-the-disposal-of-3472828. ↩︎
10. Jane Jablan, UAE Inheritance Law for Expats, MHG Wealth, https://mhgwealth.com/insights/uae-inheritance-law-for-expats (last visited Oct. 28, 2025). ↩︎
11. Id. ↩︎
12. Id. ↩︎
13. Elhais, supra note 10. ↩︎
14. Panama: International Team Project: Foreign Law, Nw. Pritzker School L. (Dec. 13, 2024), https://library.law.northwestern.edu/c.php?g=1367591&p=10103880. ↩︎
15. Code Civ. bk. 3, tit. 3, ch. 1 (Pan. 1916), https://webfiles-sc1.blackbaud.com/files/support/helpfiles/npoconnect/content/resources/attachments/panama-law-2-1916-civil-code.pdf. ↩︎
16. Id. ↩︎
17. Id. ↩︎
18. Thai Inheritance Laws, Samui for Sale, https://www.samuiforsale.com/knowledge/inheritance-laws-thailand.html (last visited Oct. 28, 2025). ↩︎
19. Id. ↩︎
20. Mikhail, Last Will and Testament in Thailand: A Practical Guide for Foreigners, Aim Bangkok (Oct. 21, 2025), https://aimbangkok.com/thai-will-and-testament-guide-for-foreigners/#Inheritance_Rules_Without_a_Will. ↩︎
21. Id. ↩︎
22. Id. ↩︎