When Death Crosses Borders: Navigating the Complex World of International Probate for Assets Outside the United States

In today’s interconnected world, it’s increasingly common for individuals to own assets across multiple countries. Whether it’s a vacation home in Tuscany, investment accounts in London, or business interests in Canada, international assets have become a standard part of many estates. However, when death occurs, these foreign holdings can create significant legal challenges that require specialized expertise to navigate properly.

Understanding International Probate

International probate procedures can be considerably complex, specifically because probate processes depend on where the assets are located and the legal requirements where probate takes place. Every estate will have a primary probate proceeding conducted by a personal representative known as an executor—this process should take place at the location where the deceased individual resided at the time of their death and presumably where the majority of their assets are located. However, an estate executor will also have to conduct an additional proceeding at any place where assets like property or investment accounts were located, often referred to as an ancillary probate.

Ancillary probate arises when multiple probate proceedings occur across multiple jurisdictions. This becomes necessary when a person owns property in a different state or country than where he or she died. This means that if you own a home in Florida but also have real estate in France, your estate may need to go through probate in both jurisdictions.

Key Challenges in International Probate

Will Recognition and Validity

One of the primary challenges in international probate is ensuring that your U.S. will is recognized abroad. Generally speaking, for a U.S. will to be valid in a foreign country, it must be formally valid under the laws of that jurisdiction. Some foreign jurisdictions, however, will not recognize a will drafted in the United States under any circumstance or will recognize the U.S. will only under certain unique circumstances.

Fortunately, there are two international conventions on wills that would enable a foreign country to recognize your US will as valid. Together, these conventions cover about 70 countries. If you live in one of these countries, your US will may work abroad, subject to the limitations described below.

Forced Heirship Laws

Many foreign countries operate under different inheritance systems than the United States. Many foreign countries have “forced heirship” laws that require a certain portion of assets to go to children or a surviving spouse, regardless of what the will states. This is common in civil law countries like France, Italy, Brazil, and various others. These laws can significantly impact how your assets are distributed, potentially overriding your stated wishes in your will.

Tax Implications

If you’re a U.S. citizen, you’re subject to federal gift and estate taxes on all your worldwide assets, regardless of where you live or where your assets are located. So, if you own assets in other countries, there’s a risk of double taxation if the assets are subject to estate, inheritance or other death taxes in those countries. This can result in significant financial burdens for your beneficiaries.

Practical Steps for Managing International Assets

Professional Guidance is Essential

Given the complexity of international probate, working with experienced legal counsel is crucial. When advising a client with foreign property and preparing appropriate estate planning documents, a general rule of thumb is that consultation with an attorney in the jurisdiction where the client owns property is desirable in order to consider local laws of succession and tax ramifications. It is always best to address these issues during estate planning rather than going through the difficult and expensive process of dealing with them after death through the probate process.

If you’re dealing with international assets, consulting with a probate attorney near me who understands cross-border estate issues is your first step toward protecting your family’s interests.

Consider Multiple Wills

Depending on where the foreign assets are located, it may be best to have two wills, one disposing of the foreign property and a second disposing of your U.S. assets. It is important that your U.S. attorney and your foreign counsel coordinate on drafting the wills. You don’t want a will in one jurisdiction to cancel out a will in another jurisdiction.

International Will Option

One of the best ways to prepare for death while owning property in a foreign country is to execute an international will and meet the list of requirements. An international will is valid in any jurisdiction that has signed or enacted the Washington Convention, also known as the Uniform International Wills Act.

Planning Ahead: The Key to Success

While inheriting foreign assets can provide financial opportunities, it also presents complex reporting requirements and tax implications that must be properly handled. Understanding the cross-border nuances is crucial, as even small mistakes can become costly penalties.

Proper and comprehensive estate planning can help eliminate some of the complexity. By the time an estate has made it to probate, consulting a team of experienced, professional probate administration attorneys will make this process even smoother. Understanding how to deal with international assets will help facilitate a seamless distribution of assets from the estate to its beneficiaries.

Why Choose Fratello Law for International Probate Matters

Fratello Law, with offices located in Smithtown and Syosset, New York, brings a unique combination of experience and compassion to complex probate matters. Trusted Elder Law and Trusts & Estates attorneys. Planning peace of mind with experience and compassion. Every client is unique and we take the time to understand our clients’ individual needs.

The Long Island based law firm of Fratello Law, P.C. was founded in 2012 by attorney Cheryl L. Fratello. With offices located in Nassau County and Suffolk County, our attorneys are privileged to serve clients in Long Island, Queens, Brooklyn and Manhattan. Our firm takes pride in focusing on each client’s individual needs and taking the time to understand those specific needs.

When dealing with international probate matters, you need attorneys who understand both the emotional and legal complexities involved. At Fratello Law, we love building lasting relationships with clients that span generations! At Fratello Law, we love building lasting relationships with clients that span generations! This long-term perspective is particularly valuable when managing complex international estates that may affect multiple generations.

Conclusion

International probate presents unique challenges that require careful planning and expert guidance. From navigating foreign legal systems to managing tax implications and ensuring proper asset distribution, the complexities can be overwhelming for families already dealing with loss. However, with proper estate planning and the right legal team, these challenges can be successfully managed.

Don’t wait until it’s too late to address international assets in your estate plan. The time to act is now, while you can still make informed decisions about how your worldwide assets will be handled. Remember, it is always best to address these issues during estate planning rather than going through the difficult and expensive process of dealing with them after death through the probate process.