Navigating the Complex World of Cross-Border Estate Planning: Your Guide to Protecting Assets Across Multiple Jurisdictions

In today’s interconnected world, more families than ever before find themselves with assets, properties, and beneficiaries spread across multiple states and countries. Whether you’re a U.S. citizen living abroad, a foreign national with American assets, or someone with property in multiple states, cross-border estate planning is the process of creating a comprehensive legal and financial strategy to manage and protect assets held in multiple countries by addressing varied tax laws, legal requirements, and jurisdictional differences.

Why Cross-Border Estate Planning Matters More Than Ever

International estate planning is important for cross border families because of the legal challenges and tax implications associated with living in multiple countries. The challenge is that the laws surrounding inheritances, probate, and gift taxes are specific to each country. Without proper planning, families can face devastating consequences including unplanned excessive taxation, among other difficulties.

Consider the tax implications alone: France assesses fees on inheritances over €100,000 at rates up to 60%. Japan’s inheritance taxation policy requires asset holders to pay up to 55% on estates over ¥600 million. Without proper planning, your estate could face even higher taxation rates when multiple countries claim taxation rights.

Key Challenges in Multi-Jurisdictional Estate Planning

A coordinated international estate plan is essential for families that face the possibility of a foreign-located decedent, beneficiaries in multiple countries, or assets located in different jurisdictions. Several critical challenges emerge:

• Forced Heirship Laws: Country-specific laws on estate planning can also prevent individuals from choosing who to pass their assets down to; regulations that are typically referred to as “forced heirship”. Many civil law countries, including most of the countries in Europe, South America, and Asia, place restrictions on who may receive assets at death. This may be referred to as “forced heirship.”
• Trust Recognition Issues: Many countries do not recognize trusts, including most continental European countries. A revocable trust that works perfectly for your US assets could be disregarded by countries like France or Spain who practice civil law.
• Multiple Probate Proceedings: “Each country has its own probate laws, which means heirs often need to go through separate legal proceedings in each jurisdiction,” leading to “significant delays and expenses.”

Current U.S. Estate Tax Landscape for 2025

Understanding current exemption levels is crucial for effective planning. In addition, the estate and gift tax exemption will be $13.99 million per individual for 2025 gifts and deaths, up from $13.61 million in 2024. This increase means that a married couple can shield a total of $27.98 million without having to pay any federal estate or gift tax.

However, international families must be aware that Many states and foreign countries also have an estate tax, and their exemption levels are generally lower than the federal level, so lifetime gifting can provide additional opportunities as well as complexities in estate tax planning. It’s crucial to address the state, federal and international impact of estate and gift planning.

Essential Strategies for Cross-Border Families

Multiple Wills Strategy

Some international estate planning experts suggest multiple “situs” wills, with each will governing the distribution of property in the country for which the will is executed. Drafting a valid will for each jurisdiction where you hold assets can ensure your estate is distributed according to your wishes while adhering to local inheritance laws.

Cross-Border Trusts

The benefit of this arrangement is that it can help cross border families avoid double taxation on their property. You can create a Cross-Border Trust with the help of an estate planning lawyer, provided the establishment of the Trust is done within the regulations of CBTs.

Tax Treaty Utilization

As of 2025 the United States has Estate & Gift Tax Treaties: Australia, Austria, Denmark, France, Germany, Japan, and the United Kingdom and Estate Tax (only) Treaties: Canada, Finland, Greece, Ireland, Italy, the Netherlands, South Africa and Switzerland. These treaties serve several important roles in determining the transfer tax consequences of assets held within the cross-border estate and may provide a meaningful reduction in the estate taxes by mitigating double taxation and discriminatory tax treatment while allowing for reciprocal administration.

The Importance of Professional Guidance

Estate planning across borders is a complex game that can cost millions in unnecessary taxes and legal headaches if not done correctly. U.S. expats need to be aware that standard U.S. estate planning techniques will likely fail to protect wealth in cross-border situations and may even produce unintended, counter-productive results.

Working with an experienced estate planning lawyer who understands international complexities is essential. Seek out professionals who regularly help families with cross-border estate planning and have relationships with counsel abroad. These advisors coordinate with local counsel in each relevant country to confirm your plan’s effectiveness from every angle.

Why Choose Fratello Law for Your Estate Planning Needs

Based in Long Island, New York, Fratello Law has built a reputation for excellence in estate planning and elder law. At Fratello Law, we love building lasting relationships with clients that span generations! Our firm takes pride in focusing on each client’s individual needs and taking the time to understand those specific needs.

With offices located in Smithtown and Syosset, New York, the firm serves clients in Long Island, Queens, Brooklyn and Manhattan. There is never a fee for an initial consultation at Fratello Law.

The firm’s comprehensive approach includes Estate Planning, Wills, Trusts, Power of Attorney, Medicaid, Medicaid Applications, Guardianship, Probate, Estate Administration, Estate Tax Planning, Health Care Proxy, and Special Needs planning services.

Taking Action: Your Next Steps

When it comes to international estate planning, in particular, families need to think ahead and address how they want to manage their future financial affairs. Start by making a complete list of all assets held inside and outside the United States, then list all intended beneficiaries by country of residence. Consult a Texas estate planning attorney with cross-border experience for tailored next steps.

Failing to take these into consideration can leave your Estate vulnerable to lengthy court proceedings, incorrect inheritances, and high tax requirements — in some cases across multiple countries. The complexity of cross-border estate planning demands immediate attention, especially given the current favorable estate tax exemption levels that may not last indefinitely.

Don’t let jurisdictional complexities compromise your family’s financial security. With proper planning and professional guidance, you can create a comprehensive strategy that protects your assets, minimizes tax burdens, and ensures your wishes are honored across all jurisdictions where you hold assets or have beneficiaries.