Bank of Scotland International warns expats on inheritance tax implications

The bank said many British expatriates who have moved to Spain believe that, upon their death, their assets would pass automatically to their spouse tax-free, or be disposed of in accordance with their wishes as outlined in their will. They also assume they will automatically avoid the issue of inheritance tax if they are living overseas. However, this is not the case. Spanish law dictates that, with regards to British property owners, British law should be applied in the event of death. However, British law states that if you are UK domiciled you are subject to inheritance tax on your wor...