Estate Planning for Those Who Live Abroad

Estate planning can be further complicated when an individual lives in or owns property in a different country. Some governments have forced-heirship rules, requiring that certain portions of an estate go to certain family members. Further, expatriates are usually subject to local inheritance law with regard to local real estate. The will usually controls everything else.

Here are some tips for Americans living overseas:

• Execute a U.S. will as well as a local will drawn up by a local attorney
• Own as little property as possible in the country of temporary residence
• Use trusts (or the equivalent of a trust in other countries) to keep assets out of your estate, avoiding forced heirship
• Focus on the country where you have the most assets because sometimes you can’t perfect your estate plan

See Conrad De Aenlle, Estate Planning Step 1: Recognize You are Going to Die, N.Y. Times, July 15, 2010.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.