Many expats spend years building wealth across pensions, property, investments and businesses in different parts of the world. Naturally, much of the focus goes into growing those assets and protecting them from unnecessary tax.
There is actually another question that often receives far less attention: what happens when the next generation takes over?
Over the coming decades, trillions are expected to pass between generations globally. For internationally mobile families, that transfer can be more complicated than simply leaving assets behind. Children may live in different countries, family wealth may span multiple jurisdictions and family members may have very different levels of financial experience.
The challenge isn't just transferring wealth, it's transferring responsibility.
The families that tend to navigate these transitions most successfully aren't always those with the largest estates. More often, they're the ones who have put the time in preparing the next generation, discussing expectations openly and creating a clear framework for managing wealth long before it changes hands.
A Generation of Globally Mobile Wealth
The traditional image of inheritance involves a family home, a savings account and likely a few pensions. For many expats, the reality looks rather different.
It's certainly not unusual to find a family with a pension from one country, a property in Asia, investment accounts held offshore and children living in entirely different countries. Add multiple tax systems, currencies and legal frameworks into the mix, and wealth transfer becomes quite a bit more complex.
Many expats have also accumulated significant wealth during periods of strong property growth, rising investment markets and long international careers. As these assets begin to pass to children and grandchildren, families are increasingly recognising that a successful transfer involves more than ensuring the paperwork is in order.
When Inheritance Crosses Borders
Cross-border wealth brings opportunities, but it can also create complications that families may not fully appreciate until they're faced with them.
Different countries have different rules around inheritance, taxation, probate and succession. An estate plan that works perfectly in one jurisdiction may produce unintended consequences in another.
For those with UK ties, the inheritance tax position has changed materially. Since 6 April 2025, the UK has moved to a long-term residence system for inheritance tax. This means some expats may remain within the UK inheritance tax net for non-UK assets after leaving the UK, depending on their residence history.
Asset location remains important too. Leaving the UK doesn't automatically remove UK assets from inheritance tax exposure. UK property, certain UK-based investments and some structures holding UK residential property may still require specialist review as part of a wider estate planning strategy.
Then there's the practical challenge. How many beneficiaries actually know where all the assets are held? How many understand how a pension works, how investment accounts are managed, or who to contact if something happens unexpectedly?
These aren't questions most families love to discuss at dinner time. Yet avoiding the conversation rarely makes the situation simpler.
A well-structured estate plan can help address legal and tax considerations and a well-prepared family is what helps ensure those plans work as intended.
Preparing Heirs for International Wealth
One of the biggest misconceptions surrounding inheritance is that wealth automatically creates financial security.
In reality, inheriting money and managing money are two very different skills.
Someone may be highly successful in their career yet have limited experience dealing with investment portfolios, tax planning or long-term wealth preservation. Without preparation, even substantial inheritances can be poorly managed.
That’s why many families are beginning the education process long before any wealth changes hands.
This doesn’t require formal lessons or complex financial discussions from an early age. Often, it starts with simple conversations about money, investing, budgeting and decision-making.
As children grow up, involving them in broader family discussions can help them understand not only what assets exist, but why certain decisions have been made over the years.
Some useful questions for families to discuss include:
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- What role should wealth play in a person's life?
- What responsibilities accompany financial security?
- How should future generations balance spending, investing, and preserving capital?
- What family values should accompany inherited wealth?
These conversations are rarely about numbers alone. They’re about mindset, judgement and stewardship.
The goal isn’t to create financial experts overnight. It’s to ensure beneficiaries have the confidence and understanding needed to make informed decisions when the time comes.
Practical Actions Families Can Take Today
The Great Wealth Transfer may sound like a distant event, but preparation often works best when started early.
A few practical steps can make a meaningful difference:
1. Review existing wills and estate planning arrangements across all jurisdictions.
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- Consider whether one global will is appropriate or whether separate, carefully coordinated wills are needed in different countries. Poorly drafted multi-jurisdiction arrangements can sometimes create unintended conflicts or accidentally revoke one another.
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2. Create a clear record of assets, advisers, and key documents.
3. Introduce adult children to trusted professional advisers where appropriate.
4. Review pension nominations and estate liquidity, particularly in light of the planned April 2027 inheritance tax changes affecting most unused pension funds and pension death benefits.
5. Begin age-appropriate conversations about wealth and financial responsibility.
6. Discuss family values alongside financial objectives.
7. Consider whether a formal family governance structure would be beneficial.
Conclusion
The Great Wealth Transfer will move vast amounts of wealth between generations over the coming decades. For expats, the process is often more complex than a standard inheritance plan can address.
In many cases, the most important part of an estate plan isn't the assets themselves.
It's the clarity, understanding and shared purpose that walk alongside them. When families invest time in those conversations early, wealth has a much greater chance of becoming a lasting benefit and not a future complication.