Cross Border Estate Settlement UK US

The Two-Court Problem

When a US citizen dies in the UK with assets in both countries, a single probate case won't cover everything. US probate courts have jurisdiction over US-situs assets — bank accounts, real estate, investment portfolios held in the US. UK courts have jurisdiction over UK-situs assets — a UK bank account, property in England, a UK pension.

Neither court's authority automatically extends to the other country. An executor armed with a US Grant of Probate can't walk into a Barclays branch and close the deceased's UK account, and a UK administrator can't use Letters of Administration from the High Court to access a Wells Fargo account in Ohio.

The executor must determine whether the estate requires a UK resealing of the US grant or separate, concurrent administration, with coordination between the two systems.

Getting the Death Recognized in Both Systems

For US proceedings: The executor needs either a Consular Report of Death Abroad (CRODA) from the US Embassy or an apostilled UK death certificate (paper-based Hague Apostille from the FCDO). Most US probate courts accept the CRODA as the primary proof-of-death document. Some state courts and financial institutions also require the apostilled UK certificate.

For UK proceedings: The certified UK death certificate from the local registrar is sufficient. No apostille is needed within the UK system.

US Bank Acceptance Rules

This is where most families hit friction. A death certificate — even an apostilled one, even a CRODA — proves the account holder died. It does not prove anyone's authority to manage the money. US banks require:

Letters Testamentary (if the deceased left a valid will): Issued by the US probate court in the county where the deceased was domiciled, naming the executor and granting legal authority to access accounts.

Letters of Administration (if the deceased died intestate): Same court, naming an administrator appointed under state intestacy rules.

Estate EIN: The IRS requires an Employer Identification Number for the estate before the executor can open an estate bank account or file the estate's tax return. Apply using Form SS-4, available online. The EIN replaces the deceased's Social Security number for all estate tax and banking purposes.

Banks also typically require signed indemnification agreements and their own internal affidavits before releasing funds. Each institution has its own form — there's no universal template.

The UK Side: Grant of Probate and Resealing

If the deceased held UK assets, the executor has two routes:

Apply for a UK Grant of Probate directly: File with the Probate Registry in England and Wales (or the equivalent in Scotland or Northern Ireland). This is a separate, standalone application — the executor needs the original UK death certificate, the will (if any), and an inheritance tax account even if no IHT is owed.

Reseal a US Grant of Probate: If a US probate case is already open, the executor can apply to have the US grant "resealed" by the UK High Court. Whether this route is available depends on the grant and the relevant UK probate rules. Consult a UK solicitor to confirm eligibility.

UK financial institutions will freeze sole accounts on notification of death and hold the funds until presented with a Grant of Probate or Letters of Administration issued by a UK court.

Tax Complications

The US-UK Estate and Gift Tax Treaty exists specifically to prevent double taxation, but navigating it requires professional help. The key issues:

• The US taxes worldwide assets of citizens regardless of residence
• The UK imposes a 40% Inheritance Tax on UK-situs assets (with a nil-rate band currently at £325,000)
• The treaty provides tax credits to prevent the same asset being taxed at full rates in both countries
• The executor must file a US estate tax return (Form 706) if the estate exceeds the federal filing threshold, plus state-level estate or inheritance tax returns depending on the US state

For the UK side, the executor files an IHT400 (Inheritance Tax Account) with HMRC.

Joint Accounts and Powers of Attorney

Joint accounts held with a surviving spouse generally transfer automatically to the co-owner under the principle of survivorship — in both the US and UK systems. But the bank still needs a certified death certificate to update the registration.

All powers of attorney — both US Durable Powers of Attorney and UK Lasting Powers of Attorney — terminate automatically at the moment of death. Any action taken under a power of attorney after the principal has died is legally void and can result in personal liability for the agent.

Our American Dies in the UK — Family Emergency Guide includes a cross-border estate checklist, a document-routing matrix showing which certificate goes to which institution, and a timeline for coordinating parallel US and UK probate filings.