Estate Planning Across Jurisdictions: Cross-Border Considerations

Why cross-border estate planning matters

Many families and individuals own property, bank accounts, investments, pensions, or businesses in more than one country. When a person dies, those assets are subject to the laws of the country where each asset is located and, potentially, the decedent’s country of residence or citizenship. Without advance planning, beneficiaries may face multiple probate processes, conflicting legal rules, costly delays, and unanticipated taxes.

In my practice over 15 years I’ve seen simple oversights—an out-of-date beneficiary form, a U.S. will that didn’t meet a foreign formal requirement—create months of delay and significant legal fees. Good cross-border planning reduces friction and protects family wealth.

(Authoritative resources: IRS estate tax guidance and international tax pages; Consumer Financial Protection Bureau resources on planning and fiduciary duties.)

Key concepts you need to understand

• Jurisdiction of property: Real estate is usually governed by the law where the property sits. Bank accounts and securities are typically governed by the law where the account or asset is located or where the custodian is organized.
• Domicile vs. residence vs. citizenship: Tax and succession rules often look to your domicile or tax residency rather than where you spend a few weeks a year.
• Probate vs. non-probate transfer: Assets held in joint tenancy, payable-on-death (POD) accounts, retirement accounts with named beneficiaries, and assets in properly drafted trusts often pass outside local probate.
• Double taxation and credits: Multiple countries may claim tax on the same transfer. Tax treaties and domestic laws sometimes provide credits or exemptions to avoid or reduce double taxation.

Common cross-border pain points (real examples)

• U.S. resident owning a vacation home in France: French succession law may reserve a portion of the estate to children, and French inheritance taxes can be substantial; local formalities often require a French notarial process.
• Canadian property and a U.S. trust: A U.S.-based revocable trust may not avoid Canadian probate if title remains in an individual’s name or if Canada treats trusts differently.
• Multiple beneficiary forms: A retirement plan payable to a named beneficiary in the U.S. may bypass a will, but a foreign court might require a local probate for other assets, producing uneven distributions.

One case I handled: a U.S.-based client with an apartment in Paris and investment accounts in the U.S. We coordinated a French law review, updated title and local wills, and used a trust for U.S. assets. That mix reduced French probate steps and smoothed distributions for the heirs.

Practical strategies and planning steps

Below are concrete actions to consider. All should be reviewed with lawyers and tax advisors in each jurisdiction.

1. Inventory assets and map governing law

• Create a jurisdictional asset map listing each asset, its legal owner/title, and the country of situs. This makes it clear which laws will apply.

1. Use the right documents in each country

• A single U.S. will often isn’t sufficient. Consider a short, local will for real estate in another country that follows local formalities. Some families use complementary wills (one for domestic assets and one for foreign-located assets) to avoid conflicts—drafted so they don’t revoke each other unintentionally.

1. Consider ownership and title changes

• Where appropriate, retitle property into entities (an LLC in the U.S., a French SCI, etc.), but be mindful of local anti-avoidance or reporting rules. Entity ownership can simplify single-jurisdiction administration, but may create tax consequences.

1. Trusts and non-probate tools

• Revocable and irrevocable trusts can move assets out of probate in some countries. However, foreign recognition of trusts varies—some civil-law countries have limited trust concepts. Consider hybrid structures and local equivalents.

1. Review beneficiary designations and POD/transfer-on-death mechanisms

• Ensure beneficiary designations on retirement plans, life insurance, and bank accounts reflect your overall estate plan and are valid under local law.

1. Address tax liabilities and treaty relief

• Check whether tax treaties or foreign tax credits will mitigate double taxation. For U.S. taxpayers, the IRS permits certain credits for foreign estate or inheritance taxes; foreign countries may have similar reliefs—confirm with your advisor and the relevant tax authority (see IRS guidance).

1. Spousal portability and marital planning (U.S.-specific)

• If you are a U.S. citizen or resident, review portability elections and marital deductions that may affect federal estate tax. Portability (making an estate tax return to elect surviving spouse’s unused exclusion) can preserve a deceased spouse’s federal exemption but must be timely filed—discuss with your tax advisor and attorney.

1. Keep records and appoint local counsel

• Obtain a certificate of law or local legal opinion from counsel in each jurisdiction setting out probate requirements and taxes. Keep certified copies of key documents and make them available to your executor and local counsel.

1. Use international will or choice-of-law clauses cautiously

• The Hague Convention on the Form of an International Will (1973) facilitates recognition of a single international will among parties to the convention, but not all countries are signatories. A carefully worded choice-of-law clause in estate documents can help, but some jurisdictions will not honor contracts that affect forced heirship rules.

1. Update plans regularly

• Laws, family circumstances, and asset locations change. Review your cross-border plan at least every 2–3 years or after major life events or moves.

Checklist for executors and heirs (what to expect)

• Locate wills and trusts, check beneficiary designations and account titles.
• Hire counsel in each country with probate or succession experience.
• Check if a small-estate summary procedure applies anywhere to save time and money.
• Determine tax filing obligations: estate tax returns, inheritance tax returns, and any income tax issues associated with estate administration.
• Collect local tax clearance certificates where required before transferring property.

For more on moving an estate from death to distribution, see our detailed guide: Estate Settlement Roadmap: From Death to Distribution.

How taxes typically interact across borders

Tax outcomes depend on multiple factors: the taxpayer’s residence or domicile, the asset’s location, bilateral tax treaties, and local exemptions. Common mechanisms to limit double taxation include:

• Foreign tax credits (crediting a foreign tax paid against a domestic tax liability).
• Treaty provisions allocating taxing rights.
• Residency-based exclusions or thresholds.

Because rules shift and thresholds change annually, consult the IRS and local tax authorities; U.S. taxpayers can find general federal guidance on estate taxes at the IRS website (https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax) and on estate tax portability guidance. The Consumer Financial Protection Bureau also offers consumer-focused estate planning resources (https://www.consumerfinance.gov).

Special topics to watch

• Forced heirship regimes: Some civil-law countries (e.g., France, parts of Latin America) reserve a portion of the estate for close relatives; you cannot fully disinherit certain heirs under local law.
• Pension and retirement plans: Non-U.S. retirement accounts may have different beneficiary tax treatment; check plan rules and local tax consequences.
• Digital assets and local access laws: Passwords, digital-wallet keys, and online accounts may require local procedure for transfer.
• Reporting obligations: U.S. persons with foreign assets may have significant reporting duties (e.g., FBAR, Form 8938) and foreign trusts have complex disclosure rules.

When to involve which professionals

• Cross-border estate attorney(s): one in your country of residence and counsel in each jurisdiction where you hold significant assets.
• International tax advisor: to model tax outcomes and treaty relief.
• Trust and estate accountant: for filing estate and inheritance tax returns and preparing liquidity for taxes and debts (see our article on Estate Liquidity Planning).
• Local notary or registrar: in civil-law jurisdictions, notaries often play a central role in succession matters.

Common mistakes to avoid

• Relying on a single will without checking foreign formalities.
• Leaving real estate titled in an individual’s name when a local probate could be avoided by different ownership.
• Neglecting beneficiary forms or failing to coordinate them with your will and trust documents.
• Assuming tax treaties eliminate all double taxation—many gaps remain and procedures vary.

Final action plan (next 90 days)

1. Create a jurisdictional inventory of assets and current documents.
2. Engage a U.S. estate attorney (if U.S. ties exist) and retain local counsel in each country holding assets.
3. Verify beneficiary designations and consider local wills for out-of-country real estate.
4. Ask advisors for a tax model showing potential estate/inheritance taxes and treaty relief.
5. Prepare an executor packet: certified copies, contact details for local counsel, and access instructions for digital assets.

Professional disclaimer: This article provides general educational information and is not legal, tax, or financial advice. Cross-border estate planning is fact-specific; consult qualified estate, tax, and trust counsel licensed in each relevant jurisdiction before making decisions.

Authoritative resources and further reading

• U.S. Internal Revenue Service — Estate Tax (https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax)
• Consumer Financial Protection Bureau — Estate planning and managing money for someone else (https://www.consumerfinance.gov)
• Hague Conference on Private International Law — Convention of 1973 on the Form of an International Will (details and list of contracting states)

Related topics on FinHelp.io: Cross-State Estate Issues: When Moving Changes Your Plan, Estate Settlement Roadmap: From Death to Distribution, Estate Liquidity Planning: Funding Taxes, Debts, and Immediate Needs.