Estate Planning with non-US Assets

For families with assets in several countries or non-US citizenships, comprehensive estate planning is essential to ensure that the planned transfer of all assets works well under the laws of the affected countries and the various components of the estate plan do not counteract each other.

Regarding the laws of other countries, we partner with competent advisers in these other jurisdictions to coordinate clients’ estate plans. Clients with assets or expected inheritances in Germany please visit our dedicated website GermanInheritance.com.

Estate planning in the case of international persons or assets is extremely complex. The following is an attempt to provide a very brief overview of the complexities involved. It is for information purposes only and should not be considered legal advice. Feel free to contact us for a consultation in your particular situation.

THE LAWS OF WHICH JURISDICTION APPLY TO MY ESTATE?

From the US point of view, it is possible for assets in different countries (even in different US states) to pass according to different laws. For example, for a person domiciled in Virginia the winter home in Florida passes according to Florida law, whereas the house in Southern France might pass according to French law.

This splitting is not the law in the European Union. EU residents may select in their will the law that should govern their entire estate, regardless of where the assets are located. They may choose either the law of the country of their citizenship or the law of the country of their domicile. This applies also to US citizens who live in the European Union.

HOW SHOULD I INCLUDE MY NON-US ASSETS IN MY ESTATE PLAN?

Assets in civil-law countries (continental Europe, South America, etc.) should not be placed in US trusts. In many cases it is best to set up a local will. That will should be drafted very carefully in order not to undermine the US estate plan.