As families become increasingly global, estate planning grows more complex. This reality was highlighted at the 60th Annual Heckerling Institute on Estate Planning, where Michelle B. Graham of Greenberg Traurig LLP presented Worldly Wealth: Tax and Estate Planning for U.S. Persons with Global Investments. Her presentation underscored a central truth: once assets cross borders, traditional estate planning assumptions often break down.
Many U.S. families assume that a properly drafted will or trust controls everything they own, regardless of where the property is located. That assumption feels reasonable, but it is frequently incorrect. Different countries operate under different legal systems, and those systems may override or distort U.S. estate planning documents in ways families do not anticipate.
In the United States and other common law countries, individuals generally enjoy broad freedom to decide who inherits their property and under what conditions. Trusts are widely recognized and frequently used to manage assets, protect beneficiaries, and avoid probate.
Many civil law countries impose mandatory inheritance rules. These laws require that certain family members, most commonly spouses and children, receive fixed portions of an estate, regardless of a will. In some jurisdictions, religious law further governs succession. When U.S. persons own property in these countries, local law often controls how that property passes at death, particularly real estate.
As Graham explained, the law of the country where an asset is located often carries more weight than the law of the owner’s residence. A U.S. estate plan may be respected in part, ignored in part, or applied in unexpected ways abroad.
Trusts remain a cornerstone of U.S. estate planning, but their effectiveness diminishes outside common law jurisdictions. Some countries do not recognize trusts. Others recognize them conceptually but impose legal, administrative, or tax barriers that make them difficult to use in practice.
In certain countries, transferring assets into a trust triggers immediate transfer taxes or ongoing wealth taxes. In others, local banks, land registries, or notaries refuse to interact with trustees, forcing families into unfamiliar court processes. A structure that works smoothly in the United States may become cumbersome or counterproductive elsewhere.
The key lesson is not to avoid trusts, but to evaluate carefully whether a Trust is appropriate for each foreign asset and jurisdiction.
Another misconception addressed in the presentation was the belief that a single U.S. will can govern worldwide assets. Many countries impose strict requirements regarding how wills must be written, executed, and authenticated. Some require original documents to be produced locally, even if those documents are already lodged with a U.S. probate court.
To address these issues, planners often recommend multiple, carefully coordinated wills, each designed to operate within a specific legal system. When properly coordinated, this approach can simplify administration and reduce delays. When poorly executed, it can lead to accidental revocation or conflicting instructions.
U.S. citizens and residents remain subject to U.S. estate tax on their worldwide assets. At the same time, foreign countries may impose estate taxes, inheritance taxes, or asset-based taxes on property within their borders. Without planning, families may face taxation from multiple jurisdictions on the same assets.
In addition, U.S. law imposes extensive reporting requirements for foreign accounts, trusts, and entities. These rules are technical, easy to overlook, and carry significant penalties if missed.
Michelle Graham’s presentation clarified that international estate planning cannot be handled piecemeal. Effective planning requires coordination among U.S. attorneys, foreign counsel, and tax advisors. Ownership structures, estate planning documents, and ongoing compliance obligations must be evaluated together, with careful attention to how different legal systems interact.
Altman and Associates understand these complexities. Our firm routinely works with clients who own assets in multiple countries, who are considering acquiring property abroad, or with heirs living outside the United States. We regularly advise families to navigate differing inheritance laws, cross-border tax exposure, and the practical challenges of administering an estate across multiple jurisdictions.
When estate plans reflect this global reality, families gain clarity, continuity, and protection. When they do not, the consequences are often costly and irreversible. Our role is to help clients plan with foresight, so borders do not become barriers for the people they care about most.
Call the attorneys at Altman & Associates at 301-468-3220 or visit altmanassociates.net.
