Estate Planning for Multinational Residents

 Posted on November 06, 2024 in Business Law

Florida is home to a large community of international individuals and families who often have assets abroad. Likewise, expats living outside the United States often have both financial and personal ties to the country. International investors and residents in Florida should consider estate planning with Florida state laws in mind. For these global and international families, there are special legal, personal, and financial considerations to take into account when making their estate plans.

Failure to take into account international estate planning considerations could lead to negative consequences, such as assets going to the wrong beneficiary and unnecessary taxes. Multinational residents should speak to an international attorney with experience working on cross-border issues when crafting an estate plan.

There are a number of scenarios where international estate planning issues arise, including:

• Estate planning for U.S. citizens with non-U.S. citizen spouses

• Estate planning to investors in U.S. assets 

• Estate planning for expats

• Estate planning for U.S. residents with international family members

Legal Differences

International estate planning often involves navigating laws pertaining to estate planning in different jurisdictions. It is important to consider the potential effect of inheritance and tax laws in different jurisdictions. For instance, laws around the world differ on who may inherit assets when a person dies. International estate planning individuals should understand what may apply to their estate plan in order to avoid disputes and comply with state, federal, and international laws and regulations.

International Estate Tax Considerations

Tax law is one of the most important areas where estate planning needs to take special account of laws affecting international residents. U.S. citizens enjoy estate and gift tax exemptions, but the laws pertaining to taxation for citizens with non-citizen spouses have different provisions.

International clients also face different taxation requirements abroad, depending on the jurisdiction. For example, some countries impose an inheritance tax, which means that the person who receives the assets after the decedent’s death is taxed, rather than the estate. This necessitates special estate planning considerations to minimize taxes on family members inheriting abroad.  

The U.S. also has entered into estate and gift tax treaties with other foreign countries, which changes how state and gift taxes are applied to an estate plan. The effect of these treaties can vary based on the treaty’s terms and on how it applies to a U.S. versus non-U.S. citizen.

International Wills 

Perhaps the first aspect of international estate planning is creating a will that will be recognized in the jurisdictions where the family has connections such as assets or heirs, or where the decedent (the person who has died) resided or is planning to reside at the time of death.

If this happens in Florida, foreign wills must be executed under Florida estate planning law. To ensure that a will or trust can be properly validated in a Florida probate proceeding, it should be drafted so that it complies with Florida estate planning law.

International Considerations for Trusts

Part of making a comprehensive estate plan is setting up the best methods for protecting assets. Certain international trusts can make it more difficult for domestic creditors to reach assets in foreign jurisdictions.

It is also important to review trusts when making or revising an estate plan. Some countries do not recognize trusts. Other countries tax trusts differently than the United States

Contact an Oakland Park, FL Estate Planning Lawyer 

Families with an international background may often have assets located globally. Likewise, there may be potential family members who may inherit from an estate living abroad. The cross-border nature of international estate planning puts into play multiple international legal considerations. Speak to a Broward County, FL estate planning attorney who can advise you on the estate planning strategies for internationals. At The Elliot Legal Group, P.A. we understand that individuals with roots abroad need an experienced attorney to craft an estate plan. Schedule a consultation by calling 754-332-2101 today.