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Do you own assets or have residences in multiple countries? If so, you may wonder whether you need wills in each country. An experienced estate planning lawyer can walk you through the complexities of handling cross-border estate planning.
Understanding Cross-Border Estate Planning
Cross-border estate planning is often necessary for those who own assets in multiple countries, have legal residency in a country other than their country of citizenship, or hold citizenship in more than one country. A person can have ties to more than one country if they:
- Own real estate in multiple countries
- Have bank accounts in more than one country
- Own businesses or investments in more than one country
- Have citizenship or legal residency in various countries
People frequently undertake cross-border estate planning when they become expats (that is, when they live or work in a country other than the one in which they hold citizenship), hold dual or triple citizenship, or own vacation homes abroad.
Do You Need a Will in Each Country?
Every country has different legal requirements governing the validity and enforcement of wills, different probate processes, and distinct tax laws. As such, you may need wills in multiple countries if you own substantial assets in multiple countries, such as real estate, business ownership interests, or other investments. Having a will that complies with the laws of one country does not guarantee that another country will recognize its validity and effectiveness.
Furthermore, having “local” wills for each country in which you own assets can help facilitate the administration of your estate assets in that country, as the personal representative administering your estate will need to open probate proceedings in each country where you own assets. The courts of your home country have no authority to direct the disposition of assets located in another country.
Conversely, relying on a single will to apply across borders can lead to challenges such as language barriers, incompatibility with local laws, and extended litigation to admit the will to probate in each country.
How Multiple Wills Work Together
Those who own substantial property in multiple countries often have a “primary” will in their home country or the country of their primary residence and “secondary” wills for each country in which they own assets. The “secondary” wills can help the administrator or executor of an estate initiate ancillary probate proceedings in each country where a decedent owned assets.
Anyone who creates multiple wills for cross-border estate planning should ensure that the wills do not contradict or revoke each other. In some jurisdictions, writing a will after having already executed another can have the legal effect of revoking that prior will. As a result, parties who make multiple wills to comply with the legal requirements of different jurisdictions should expressly include language clarifying that the wills do not revoke each other. Individuals and families can protect themselves by working with an experienced attorney who can draft a will that meets local requirements and does not inadvertently revoke other wills or documents in the global estate plan.
Key Legal Considerations
Other legal considerations for cross-border estate planning include:
- The effect of applicable probate laws
- Whether a country has forced heirship rules
- The effect of treaties between one’s home country and a country where they own foreign assets
- The accuracy of translations into the local language, given the complexity of legal terminology
Contact an Estate Planning Attorney Today
If you own assets or hold citizenship in multiple countries, you need experienced legal counsel to help you develop a comprehensive estate plan that protects your hard-won wealth. Contact Sverdlov Law today for an initial consultation with an estate planning lawyer to learn more about the complexities of cross-border estate planning and how we can help you handle your assets across the world.