With more Australians living, investing, and building families abroad, the line between local and international assets has blurred. Whether you’re a dual citizen, own property overseas, or have relatives living abroad, foreign inheritance laws can dramatically shape how your estate is distributed.
When someone passes away or prepares a will, international ties can turn what seems like a straightforward process into a complex legal puzzle. Understanding when and how foreign inheritance laws in Australia apply is crucial to protect your assets and prevent disputes between jurisdictions.
Understanding How Foreign Inheritance Laws Work in Australia
Foreign inheritance laws determine how another country’s succession rules interact with Australian estate law. They typically come into play when a person’s life, property, or will connects more than one country.
Common cross-border scenarios include:
- An Australian citizen who owns overseas property or investments
- A foreign resident with assets located in Australia
- A will prepared under another country’s legal system
- Beneficiaries or executors who live overseas
While Australia usually applies local law to local assets, foreign inheritance laws may take precedence if there’s a strong international link — especially when property or domicile is involved.
When Do Foreign Inheritance Laws Apply to Australian Estates?
Foreign succession laws are generally triggered by one or more of the following factors:
1. The Deceased Was Domiciled Overseas
Domicile refers to the country a person legally considers their permanent home. If the deceased lived and intended to remain overseas, that country’s laws may influence how their Australian assets are distributed — even if they were an Australian citizen.
2. The Estate Includes Property in Another Country
Under the legal rule known as lex situs, real property (land or houses) is governed by the law of the country where it’s located. For example, a French villa or a Japanese apartment will fall under local inheritance law, not Australian law.
3. The Will Was Created Overseas
Wills written under foreign law can raise validity questions in Australia. If a will doesn’t comply with local standards under the Succession Act 2006 (NSW)—for instance, if it lacks witnesses or proper translation—it may delay or complicate probate.
4. The Beneficiaries Live Abroad
Inheritance disputes often arise when heirs are governed by different tax or legal systems. For example, an heir in the UK may owe inheritance tax even though Australia has none, complicating the settlement process.
The Role of Domicile: Why It Matters More Than Citizenship
Domicile is one of the most important legal factors in inheritance. It’s not the same as where you pay tax or where you currently live — it’s where you legally call home.
A person may live and work in Australia but remain legally domiciled in another country if they intend to return there permanently. If someone dies domiciled abroad, their home country’s inheritance laws can affect their Australian estate. This can include forced heirship systems in countries like France, Greece, or Saudi Arabia, where certain heirs must receive a share of the estate regardless of what a will states.
Real-World Scenarios of Cross-Border Inheritance Conflict
While the concept of domicile sets the legal foundation, the real challenges often appear in practice. Each cross-border estate is unique, and the interaction between Australian and foreign laws can lead to unexpected outcomes. To illustrate how these situations unfold, let’s look at some real-world examples where international inheritance rules have caused—or prevented—disputes.
Scenario 1: Dual Citizen with Property in Greece and Australia
Greece enforces strict forced heirship. Even if a Greek-Australian father leaves his entire estate to one child in his will, Greek law may still entitle other children to portions of the Greek estate.
Scenario 2: A UK Will Covering Australian Real Estate
A British expat passes away with a valid UK will that includes property in Sydney. NSW law requires local probate, which may cause delays if the will doesn’t meet Australian execution standards.
Scenario 3: A Spanish Will Without English Translation
A will written in Spanish but not translated or notarised in Australia may be rejected by the court, leading to additional legal applications and months of delay.
These examples highlight why international estate planning is critical for anyone with cross-border connections.
Managing Cross-Border Estates: Wills, Probate, and Tax
These case studies reveal how easily cross-border estates can become entangled in legal complexity. Fortunately, most of these issues can be prevented through careful planning and the right legal structures. Managing wills, probate, and taxation across multiple countries requires a coordinated strategy—one that respects both Australian and international law.
International Wills
Australia recognises wills created under the UNIDROIT Convention, which standardises international wills. This allows for one document to be valid across multiple countries that are signatories, such as Australia, Italy, and Canada. However, these wills do not override local inheritance laws like forced heirship.
Multiple Jurisdiction-Specific Wills
Many estate lawyers recommend separate wills for each country—so long as they don’t revoke each other. Coordinated wills simplify probate, reduce costs, and ensure each jurisdiction’s requirements are met.
Foreign Will Validity in Australia
To be recognised in Australia, a foreign will generally must:
- Comply with the laws of the country where it was made
- Be signed and witnessed appropriately
- Include a certified English translation (if not in English)
- Not contradict an existing valid Australian will
Even when valid, executors often need to apply for resealing of probate through an Australian Supreme Court to manage local assets legally.
Tax and Superannuation Considerations
Australia has no inheritance tax, but other countries do. Beneficiaries may face double taxation depending on residency and asset location. Similarly, superannuation benefits aren’t automatically included in wills and may be subject to international taxation rules. Consulting both Australian and foreign tax advisors is essential.
How to Avoid International Inheritance Conflicts
Cross-border estates can be managed smoothly with careful preparation. Here’s how to protect your assets and family:
- Keep a Detailed Asset Register: List every property, investment, and account across all jurisdictions.
- Engage Dual-Qualified Lawyers: Work with professionals experienced in both Australian and foreign inheritance law. LegalFinda can connect you with verified specialists.
- Create Coordinated Wills: Draft separate wills for each country that work together seamlessly.
- Plan for Probate: Identify which countries require local probate and ensure documentation is ready.
- Communicate with Executors and Heirs: Make sure your family understands where each will is stored and what steps to take.
Case Study: A Seamless International Estate Plan
Emily, a Sydney resident with dual Italian citizenship, owned a villa in Tuscany and superannuation in Australia. She originally had one Australian will. After consulting a cross-border lawyer, she:
- Created a second, Italian-compliant will
- Registered both wills with their respective courts
- Updated her superannuation nominations
- Informed her executors and family members
When Emily passed away, her estate was distributed smoothly across both countries — without disputes or double taxation — demonstrating how proper legal coordination can simplify even complex global estates.
Conclusion
Foreign inheritance laws can affect anyone with overseas assets or family ties — not just the wealthy. Understanding how they interact with Australian estate law helps ensure your will is valid, your wishes are honoured, and your loved ones are protected across borders.
Whether you’re managing an international estate or planning ahead, expert advice makes all the difference. LegalFinda connects you with experienced lawyers specialising in wills, probate, and cross-border inheritance, helping you safeguard your assets wherever they are.
