Do Wills Have Passports? Managing Assets Abroad

Planning for your estate when everything you own is in the U.S. can be complicated enough! What about homes, bank accounts, or property in other countries? Owning assets in another country adds a level of complexity to your estate planning. While your will or trust is a vital tool for managing your United States assets, international assets often require special consideration to ensure they are properly accounted for and transferred according to your wishes.

Wills and Foreign Assets

A will can cover foreign assets, but its enforceability depends on the laws of the country where the assets are located. Some countries recognize foreign wills, while others require a separate will that complies with local laws. For example, countries like France or Spain often impose forced heirship rules, which dictate how property must be distributed regardless of your wishes.

To minimize complications, consider creating a separate will specifically for your foreign assets. Collaborate with an estate planning attorney to ensure your wills are legally compatible and do not conflict with each other’s laws. Finally, connect with legal professionals in the country where your assets are located to effectively navigate local laws and requirements.

Using Trusts to Protect Foreign Assets

Trusts can also be used to manage international assets. A trust is a legal arrangement where one person gives another person or entity the authority to manage assets for the benefit of a third party. Their effectiveness depends, however, on whether the foreign country recognizes trusts. Common law jurisdictions like the United States, the UK, and Canada generally accept trusts, while civil law countries like France may not. If the country where your assets are located does not recognize your trust, additional planning may be needed.

Protect Your International Assets

If you own international assets and want to safeguard them with a comprehensive estate plan, schedule a Peace of Mind Planning Session to explore your options. This session, typically priced at $275, is offered free of charge when you mention this blog. Take the first step today! BOOK HERE!