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Estate planning is already complex when all your assets are in the U.S., but adding international properties, foreign bank accounts, or business interests abroad creates an additional layer of legal considerations. If you own assets in another country, ensuring they are properly transferred to your heirs requires careful planning.
At Jeffrey S. Berenholz, LLC, we help families navigate the intricacies of estate planning for international assets. Here’s what you need to know to avoid legal roadblocks and protect your global estate.
Understanding Estate Planning for International Assets
Different countries have different laws regarding wills, trusts, and inheritance rights. Without proper planning, your international assets could be subject to local laws that may not align with your wishes.
Does Your Will Cover Foreign Assets?
A will can include international assets, but its enforceability depends on the laws of the country where the assets are located. Some nations recognize foreign wills, while others require a separate, country-specific document that complies with local inheritance laws.
Example:
Common Law Countries (U.S., UK, Canada): These countries generally accept foreign wills and trusts, making estate planning more straightforward.
Civil Law Countries (France, Spain, Germany): These nations often have forced heirship rules, meaning a portion of your estate must go to certain heirs, regardless of your will.
How to Avoid Conflicts Between U.S. and Foreign Laws
Work with an estate planning attorney familiar with international assets
Consult legal professionals in the country where your assets are located
Consider having a separate will for foreign assets to comply with local laws
Using Trusts to Manage International Assets
Trusts offer flexibility and protection, but their effectiveness depends on the country in which your assets are held. While common law jurisdictions recognize trusts, many civil law countries do not.
Key Considerations:
A trust can help manage and distribute assets without the delays of probate.
Some countries impose high taxes or may not recognize the legal authority of a trust.
Dual wills and careful structuring may be required to ensure seamless asset transfers.
Example: If you own property in France, a country that doesn’t fully recognize U.S.-based trusts, your heirs may still be subject to forced heirship laws, regardless of your intentions. Working with a legal expert in both the U.S. and France ensures your estate plan remains valid.
Additional Considerations for Estate Planning Abroad
When managing international assets, estate planning should also account for:
Foreign Bank Accounts: Many countries have strict regulations regarding inherited financial accounts. Ensure you have the proper documentation to transfer ownership.
Tax Laws: The U.S. taxes worldwide income, but international assets may also be taxed by the foreign country. Proper structuring can minimize tax burdens.
Business Ownership Abroad: If you own a business overseas, succession planning ensures a smooth transition for your heirs and partners.
What Happens If You Don’t Plan?
Without an estate plan that considers your international holdings:
Your heirs could face delays and legal complications in accessing foreign assets.
Local inheritance laws may override your will.
Double taxation could significantly reduce the value of your estate.
We Can Help Protect Your Global Estate
International estate planning requires strategic legal expertise. At Jeffrey S. Berenholz, LLC, we specialize in creating tailored estate plans that protect assets across borders.
Start with a Peace of Mind Planning Session
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