Estate Planning With Assets in Multiple Countries

Yank bureaucracy’s teeth before it bites your heirs.

Few topics make otherwise rational adults bury their heads in the sand like estate planning. Add property in Portugal, a trading account in Singapore, and a Delaware LLC into the mix, and the average pulse rate resembles a techno track. Relax. Cross-border succession is complicated but it’s not unfathomable. With methodical preparation and the right advisors, you can spare your loved ones a years-long paper chase—and the tax bill that often comes with it.

In my practice, I’ve settled estates from five continents. Below is the no-nonsense roadmap I wish every globally minded client read before our first call.

What It Is—and Why It Matters

Think of international estate planning as jurisdictional choreography. Assets dance to different legal tunes depending on where they sit, who owns them, and which passport or residence permit you hold.

Key forces at play:

“Dying is easy; proving which jurisdiction gets first dibs on your portfolio is hard.”

The Building Blocks

You’ve heard of wills and trusts. Below are the big levers, plus why they matter internationally.

1. Multi-jurisdictional Will(s)

• One worldwide will is possible but risky.
• Best practice: a primary will in your domicile + local wills narrowly covering real property (immovables) abroad.
• Coordinate clauses to avoid revoking each other.

2. Revocable or Living Trusts

• Common for U.S. citizens; misunderstood elsewhere.
• Assets inside the trust avoid probate but not necessarily estate tax.
• Watch out for anti-avoidance rules in civil-law countries that treat foreign trusts as transparent.

3. Beneficiary Designations & POD/TOD Accounts

• Quick, cheap, often overlooked.
• Brokerage accounts in the U.S., Canada, Singapore allow transfer-on-death (TOD) instructions, bypassing probate entirely.

4. Corporate Wrappers

• Hold real estate via an SPV (Special Purpose Vehicle) in a tax-efficient jurisdiction.
• May convert immovable property into movable shares, sidestepping forced heirship.
• Costs and substance requirements have risen post-BEPS, so crunch the numbers.

5. Life Insurance

• Provides liquidity to pay foreign IHT without fire-selling assets.
• Evaluate local rules: some states ignore insurance proceeds when calculating tax; others don’t.

Step-by-Step Process

Below is the streamlined workflow I use with internationally mobile families. Follow it sequentially; skipping steps invites surprises.

Step 1: Map Your Asset & Heir Footprint

• List addresses, legal titles, account numbers, currencies, and estimated values.
• Identify heirs’ tax residencies—yes, your daughter’s new job in Berlin matters.

Step 2: Pinpoint Applicable Succession Laws

• Determine your domicile (often but not always the passport you hold).
• For assets: immovables follow local law; movables usually follow domicile.
• EU Succession Regulation (Brussels IV) lets you elect the law of nationality for estates in participating EU states—massive planning lever.

Step 3: Stress-Test Tax Exposure

• Run a projected IHT liability per jurisdiction.
• Overlay treaty benefits (rare) and unilateral credits.
• If you haven’t yet, skim our tax optimisation guide for tactics that also apply to estate tax.

Step 4: Choose Ownership Structures

• Decide whether to hold, gift, insure, or incorporate each asset.
• Match structures to the holding period, exit strategy, and cost of maintenance.

Step 5: Draft Coordinated Documents

• Engage counsel in each jurisdiction—do not copy-paste precedents off Google.
• Cross-refer definitions; the word “spouse” means different things from Utah to the UAE.
• Sign and store originals where they’re quickly locateable—digital scans help but many courts still demand wet ink.

Step 6: Secure Ancillary Instruments

• Powers of attorney, medical directives, shareholder agreements.
• Avoid frozen bank accounts: give executors limited authority letters ahead of time.

Step 7: Plan for Liquidity

• IHT deadlines rarely wait for probate.
• Arrange standby credit or life insurance denominated in the right currency.

Step 8: Review Every Two Years—or After Major Life Events

• Marriage, divorce, expatriation, IPO windfall, or that impulsive chalet in Verbier.
• Laws change too: Portugal killed its IHT in 2004; the UK’s regime is being debated yet again.

Costs and Timelines

Nobody likes open-ended legal bills. Below is a realistic range based on 2023 data from 40 client files.

Hidden expense: translations and legalisations (apostilles). Budget $50–$200 per document, more if you’re dealing with Japan or the UAE.

Common Mistakes to Avoid

1. Assuming One Will Fits All.
   You die, Spanish notary shrugs, “This English will is nice but irrelevant here.” Cue delays.

2. Ignoring Forced Heirship.
   France gives children a compulsory share. So does Portugal. Trusts won’t override it; corporate shares might—if structured early.

3. Overlooking Heirs’ Tax Residency.
   Your son moves to Australia: he pays up to 45 % on foreign inheritances. Early gifts or insurance could soften the blow.

4. DIY Translations.
   Courts reject wills because “certified translator” stamp is missing. Pay the $120.

5. Proof-of-Tax Residency Gaps.
   Heirs lose treaty relief when they can’t prove residency in a given year. File their certificates annually.

6. Naming a U.S. Citizen as Trustee Without FATCA Prep.
   Suddenly every foreign bank wants 50 pages of forms.

7. Over-funding a Foreign Company Without Substance.
   Post-BEPS, empty shell = attack vector. Directors, office rent, bookkeeping—budget or scrap the plan.

8. Stale Beneficiary Forms.
   Ex-spouse inheriting your brokerage account is a real, expensive, preventable story.

9. Not Coordinating Immigration Goals.
   Estate structures can clash with residence permits. The Austrian Red-White-Red Card demands clear economic ownership; hiding behind opaque trusts may sink your application.

10. Procrastination.
    The cheapest, smartest tactic—early action—keeps being deferred. Tomorrow becomes probate purgatory.

Mini Case Files

Case 1: The Berlin-Based Brit With Thai Villas

Problem
• UK-domiciled, German tax resident, villas titled in Thai personal name (not allowed for foreigners).
Solution
• Sold villas into a Thai company (Board of Investment approval).
• Wills: German will for EU assets; separate Thai will for shares.
• Net tax on estate projected: 4 % vs 22 % baseline.
Takeaway
Corporate wrapper + local will = forced heirship neutralised.

Case 2: Silicon Valley Expat in Dubai

Problem
• U.S. citizen, RSUs in a Delaware C-Corp, zero IHT in UAE but worldwide estate tax in U.S.
Solution
• Partial early gifting of RSUs to a Spousal Lifetime Access Trust (SLAT).
• UAE DIFC will covering local assets.
Impact
• Removed $10 m future appreciation from U.S. estate.
Takeaway
Use U.S. lifetime exemption while it’s still historically high.

Case 3: Retired French Couple in Portugal

Problem
• No IHT in Portugal, but French tax still applies to worldwide assets if they remain French tax residents.
Solution
• Officially relocated tax residency to Portugal under Non-Habitual Resident program.
• Adopted Brussels IV election for French law not to apply.
Outcome
• Heirs save ~30 % tax; plus couple enjoys 10-year NHR perks.
Takeaway
Place of death matters; sometimes the living benefit, too.

Bureaucracy Without Pain: My Personal Toolkit

• Dynamic asset map: Google Sheet feeds into a password manager note. Updated on the 1st of each quarter.
• Plain-language letter to executors: phone numbers, gate codes, “the wine cellar key is in drawer 2.”
• Digital vault: Encrypted PDF copies of passports, marriage certs, and wills accessible via 2FA.
• Annual family summit: One Sunday brunch a year to walk heirs through changes. Champagne helps.
• Advisor bench: Local counsel on retainer in each country; small annual fee avoids cold-start delays.

Feel free to steal any of the above—especially the champagne strategy.

Final Thoughts

Estate planning across borders is like flying a 747: 95 % is routine checklists, 5 % is turbulence. Finish the checklists now and your heirs will barely feel the bumps later.

Ready to put theory into action? Create your free relocation—and estate—plan with BorderPilot in less than five minutes. Your future self (and your heirs) will thank you.