Briefing: a will and estate plan covering assets UK

For a family with assets in both Hong Kong and the United Kingdom, a will drafted in one jurisdiction can quietly undermine the estate plan in the other. The cross-border interface – different succession rules, different tax regimes, different probate processes – is where most planning errors sit undetected until a death crystallises them.

A will and estate plan covering assets in the United Kingdom must address the interaction between Hong Kong succession law, UK inheritance tax, and the private international law rules that determine which instrument governs which asset. Neither jurisdiction's rules operate in a vacuum, and a document adequate for one side of the corridor is rarely adequate for both.

This briefing identifies the recurring trigger, who it affects, and the immediate step.

What the cross-border trigger looks like in practice

The United Kingdom applies inheritance tax on a residence-and-domicile basis. A person deemed UK-domiciled – or deemed domiciled under the UK's long-residence rules – faces UK inheritance tax on worldwide assets, not merely UK-situated ones. That exposure travels with the individual regardless of where assets are held.

Hong Kong, by contrast, abolished estate duty. There is no Hong Kong succession tax. The asymmetry matters: a family that has structured its affairs around Hong Kong's nil-rate position may be carrying a significant UK inheritance tax liability that no document in their current file acknowledges.

The practical trigger for many families in our cross-border practice is a change in UK residence status – a family member relocating to the United Kingdom, a child educated there who stays on, or a principal spending extended time between London and Hong Kong. Each of those events can alter the domicile analysis, with consequences for both the tax position and the scope of any existing will.

The Trustee Ordinance (Cap. 29), substantially reformed with effect from 1 December 2013, governs trust-based estate planning on the Hong Kong side. It abolished the rule against perpetuities for Hong Kong trusts and strengthened the protection of Hong Kong-law trusts against foreign forced-heirship claims. Where a family has established a Hong Kong discretionary trust, the question is whether that trust has been coordinated with the UK will – and whether the UK inheritance tax position of the settlor has been addressed at the structuring stage, not after the event.

The United Kingdom's succession rules for immovable property follow the lex situs (the law of the place where the asset is situated). For movable property, the governing law follows domicile. A single will covering a UK property, a Hong Kong bank account, and a BVI holding entity may be simultaneously valid, partially ineffective, and silent on the most material asset – depending on how the private international law rules apply to each class.

Who this affects and what to do now

This briefing is relevant to any principal who holds UK-situated assets – real estate, listed securities, bank accounts, or business interests – and whose primary base, family structure, or holding entities sit in Hong Kong, an offshore centre, or both. It is equally relevant where a surviving spouse or an adult child is UK-resident, even if the principal is not.

The immediate steps are specific. First, establish the domicile position under UK rules: not the factual residence, but the technical domicile of origin and any domicile of choice, together with the deemed-domicile analysis if UK residence has been long or recent. Second, map each asset class against the applicable succession law: immovables by situs, movables by domicile. Third, review any existing wills – in Hong Kong, in the United Kingdom, and in any offshore jurisdiction – for conflicts, gaps, and the unintended revocation of one instrument by another. Fourth, consider whether a Hong Kong trust, properly structured under the Trustee Ordinance, provides a more durable succession vehicle for the cross-border position than a will alone.

In our private wealth practice, we regularly advise families at exactly this intersection – a Hong Kong base, UK assets, and a will file that has not been reviewed since the family's circumstances, or the UK's deemed-domicile rules, last changed. The planning gap is common. It is also avoidable.

For a structured review of your will and estate plan across Hong Kong and the United Kingdom, write to us at info@lockhartyip.com.

Further analysis on succession planning across Hong Kong and the Mainland is available at this analysis. For a guide to estate planning covering Cayman-held assets, see this guide. Our private wealth practice is described at lockhartyip.com/practices/private-wealth.

Frequently asked questions

What is the first step in a will and estate plan covering assets in the United Kingdom?

The first step is establishing the domicile and deemed-domicile position under UK rules, because that analysis determines both the scope of UK inheritance tax exposure and the governing law of movable assets. Without a clear domicile read, no will or trust structure can be correctly calibrated. A cross-border mapping exercise – covering each asset class, each jurisdiction, and each existing instrument – follows from that foundation.

How long does a will and estate plan covering assets in the United Kingdom usually take?

The timeline depends on the complexity of the asset map, the number of jurisdictions engaged, and whether an existing structure requires amendment or replacement. A straightforward review of a Hong Kong will with a UK real-estate holding can be completed within a few weeks. Where the position involves a trust, an offshore holding entity, and a UK deemed-domicile question, the process runs longer. Parties should allow adequate time before a planned change of residence or a significant asset transaction.

What documents are needed for a will and estate plan covering assets in the United Kingdom?

At the outset, we typically need copies of all existing wills and testamentary instruments, a schedule of assets by jurisdiction and class, evidence of the individual's residence and domicile history, and any existing trust deed or company structure chart. For UK-situated real estate, the title documents confirm the situs and the ownership form. Where a Hong Kong trust is in place, the trust deed and any letter of wishes are relevant to the coordination exercise.

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This publication is general information and does not constitute legal advice. For advice on your situation, contact info@lockhartyip.com.

Briefing: a will and estate plan covering assets in the United Kingdom

What the cross-border trigger looks like in practice

Who this affects and what to do now

Frequently asked questions

Speak with Lockhart & Yip

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