Yes, you can include foreign property in your California estate plan, but it requires specialized planning to address multiple jurisdictions' laws, tax implications, and potential conflicts between different legal systems.
Challenges of International Estate Planning
When your estate plan covers multiple jurisdictions in the United States as well as different countries' legal systems, you need to ensure your estate plan accounts for the law everywhere it may come into play.
Common challenges include:
- Conflicting inheritance laws between countries
- Double taxation issues
- Currency fluctuation risks
- Complex probate procedures in multiple jurisdictions
- Language and documentation requirements
Key Planning Considerations
An estate plan covering assets in different countries must be tailored to the rules, laws, and expectations of probate courts in each country. Depending on the countries involved, you may not need to change your plan substantially, or your estate planning may require significant coordination.
Important Factors to Address:
- Tax treaties between the United States and foreign countries
- Foreign inheritance and estate tax obligations
- Reporting requirements for foreign assets (FATCA, FBAR)
- Trust structures that work across multiple jurisdictions
- Currency and investment considerations
Estate Planning Strategies for Foreign Assets
Several strategies can help manage foreign property in your California estate plan:
International Trust Structures
Properly structured trusts can provide unified management of both domestic and foreign assets while addressing tax and legal compliance in multiple jurisdictions.
Foreign LLCs or Corporations
Sometimes holding foreign real estate through a foreign entity can simplify estate administration and provide liability protection.
Joint Ownership Arrangements
Strategic joint ownership with family members can facilitate property transfer while addressing local legal requirements.
Professional Coordination Required
Your estate planning attorney may need to coordinate with overseas legal and tax experts to ensure your legacy is protected from excess taxation or conflicting statutes.
This coordination typically involves:
- Foreign attorneys familiar with local inheritance laws
- International tax specialists
- Currency and investment advisors
- Local property management professionals
An international estate planning firm can help you determine the best course of action for your specific situation. At Kavesh, Minor & Otis, our experienced estate planning attorneys work with international specialists to create comprehensive plans that protect your global assets while ensuring compliance with all applicable laws.
Contact us today to discuss how we can help you integrate your foreign property into a comprehensive California estate plan.
