(UNITED STATES) Owning homes or land in more than one country adds real weight to your estate planning. The rules for probate, taxes, and inheritance often conflict. Without a clear plan, families face slow court processes, steep costs, and risk of double taxation.
Below is a step-by-step roadmap that shows how to prepare, how long each step may take, what you need to do, and what to expect from government authorities in each place you own property.
First Look: What You’re Solving For
Your main goals are simple:
– Keep assets moving to the right heirs with as little delay as possible
– Cut probate where you can
– Reduce tax exposure, including double taxation
– Respect local laws (including forced heirship rules) so your plan actually works
Most clients need a coordinated plan that covers:
– Wills or separate country-specific wills
– Cross-border trusts to avoid probate delays
– Clear title documents for property in each country
– Coverage for local inheritance rules (forced heirship)
– Tax filings, treaty planning, and compliance (FATCA and other reporting)
According to analysis by VisaVerge.com, families get into trouble when they assume a will valid in one country will control everything. In practice, many estates split into separate court processes in each country where property sits, which can drag on for months or even years if not matched with local legal requirements.
Big Picture Timeline
While every case differs, this is a realistic timeline for people with property in at least two countries:
- Weeks 1–4: Information gathering, fact-checking titles, and mapping all assets
- Months 2–3: Drafting country-specific wills or a master will with local wills, plus trust design if needed
- Months 3–6: Coordinating with lawyers and tax advisers in each country, syncing language to avoid conflicts
- Months 6–9: Final signings, property retitling (if using a trust or holding company), and beneficiary updates
- Ongoing: Annual compliance for foreign assets and trusts; updates after life events (marriage, divorce, birth, death, moves)
If a death occurs before planning is complete, families often face a multi-year settlement because each court runs its own probate rules and timelines.
Step 1: Build Your Cross-Border Asset Map (2–4 weeks)
What you do:
– Make a full list of assets in each country: properties, bank accounts, company interests, life insurance, and personal items that trigger local probate rules.
– Gather deeds and title records; list how each property is owned (sole, joint, community property, company, or trust).
– Note mortgages, liens, and homeowner association rules that could affect transfer.
– List heirs and backup heirs; include addresses and citizenships.
What to expect from authorities:
– Title offices may take 1–3 weeks to issue updated title records or confirm registration details.
– Some countries require notary-certified copies; expect extra time if you need apostilles.
Why this matters:
– Probate works differently depending on how you hold title.
– If your deed uses wording that doesn’t exist in the other country, your plan may stall when the court tries to interpret it.
Step 2: Decide on Your Will Strategy (4–8 weeks)
You have two main options.
Option A: One master will
– Works best when most assets and your main residence are in one country.
– Risk: The other country may not accept it without extra steps, translations, local legalization, and court delays.
– May trigger separate probate cases anyway.
Option B: Separate wills for each country
– Each will deals only with assets in that country.
– Easier for local probate courts; often faster.
– Must be drafted to avoid clashing or accidentally revoking the other will.
What you do:
– Hire lawyers in each country to draft wills that align.
– Include clear “governing law” language and non-revocation clauses so documents work together.
– Confirm witness and signing rules for each country; some require notarization or civil-law formalities.
What to expect from authorities:
– Local probate courts generally respect well-drafted local wills.
– Courts may demand certified translations and proof the will follows that country’s execution rules.
Key point for forced heirship:
In many civil-law countries, you must leave fixed shares to certain family members. If your will ignores this, heirs can challenge it and cause long delays.
- Ask your local lawyer if elective shares or clawback rules could hit lifetime gifts or trust transfers.
Step 3: Use Trusts or Other Vehicles to Reduce Probate (6–12 weeks)
Cross-border trusts can avoid probate, but they must be designed carefully.
What you do:
– Review whether a revocable living trust can hold your foreign property or whether a local land trust or company is safer.
– Consider a cross-border trust if you want a single control point for global assets.
– If a trust is used, retitle properties to the trust and update insurance.
What to expect from authorities:
– Property registries may take 4–12 weeks to process retitling.
– Some countries charge transfer taxes even for moves to a trust; check local law to avoid surprises.
– If a foreign trust is created, U.S. persons often must file annual reports like Form 3520 and Form 3520-A.
Forms to expect (if you are a U.S. person creating or receiving distributions from a foreign trust):
– Form 3520 (Annual Return To Report Transactions With Foreign Trusts): https://www.irs.gov/forms-pubs/about-form-3520
– Form 3520-A (Annual Information Return of Foreign Trust With a U.S. Owner): https://www.irs.gov/forms-pubs/about-form-3520-a
Practical tip:
– Some countries treat trusts poorly for tax purposes, so your adviser might suggest a local holding company instead. This can cut probate while avoiding trust tax traps.
Step 4: Plan for Taxes and Double Taxation (4–10 weeks to model, ongoing to maintain)
The risk of double taxation is real when two countries both claim the right to tax your estate or your heirs.
Core taxes to review:
– Estate tax on the total value of what you own at death
– Inheritance tax on the person receiving the gift
– Gift tax during life
– Capital gains tax on inherited property when later sold
Tax treaties can help:
– The United States has estate and gift tax treaties with a limited set of countries—about 15—which set rules on which country taxes first and how credits apply.
– For official treaty guidance, see the IRS’s estate and gift tax treaty page: https://www.irs.gov/individuals/international-taxpayers/estate-gift-tax-treaties
What you do:
– Ask a cross-border tax adviser to model your estate using treaty rules and local exemptions.
– Decide whether to hold foreign property directly or through a trust or company to ease tax administration.
– Consider lifetime gifts if local law allows and if it reduces estate tax and probate costs.
– Review how community property, marital deductions, and spousal exemptions work in each country.
What to expect from authorities:
– You or your executor may need to file estate and inheritance tax returns in more than one country.
– Authorities will require valuations (often by local appraisers) and proof of debts and mortgages.
– Treaty claims usually need extra forms and clear documentation of taxes paid elsewhere.
Forms to expect in the United States:
– Form 706 (United States Estate Tax Return): https://www.irs.gov/forms-pubs/about-form-706
– Form 709 (United States Gift Tax Return): https://www.irs.gov/forms-pubs/about-form-709
Step 5: Manage Reporting and Compliance (2–6 weeks to set up, then annual)
Laws like FATCA require reporting of foreign assets, including real estate, in some cases. Failure to file can mean large penalties.
What you do:
– Talk to your tax preparer about annual foreign asset reporting.
– If required, file Form 8938 (Statement of Specified Foreign Financial Assets): https://www.irs.gov/forms-pubs/about-form-8938
– If you hold foreign bank or financial accounts that hit the threshold, file the FBAR (FinCEN’s Form 114): https://www.fincen.gov/report-foreign-bank-and-financial-accounts
– Keep organized records: deeds, trust documents, valuations, rent rolls, and loan statements.
What to expect from authorities:
– The IRS and finance ministries in other countries exchange information.
– Expect follow-up letters if numbers don’t match between tax and information filings.
Step 6: Prepare for Probate in Each Country (Varies widely: 6 months to 2 years)
Probate is the court process that handles property transfer after death. It’s often slow when assets sit in more than one country.
What you do:
– Choose an executor who can handle international paperwork.
– Name a local representative in each country if allowed (lawyers often fill this role).
– Keep original wills and trust papers in safe but accessible locations; note where they are stored.
– Line up appraisers in each country to value real estate.
What to expect from authorities:
– Courts may require certified translations and apostilles for documents signed abroad.
– If your will is not aligned with local rules, the court can stall transfer until the conflict is fixed.
– In forced heirship countries, courts may reduce gifts that violate reserved shares.
– Timelines vary: a simple local probate may finish in 6–12 months, while cross-border probate can last longer than a year, especially if there are disputes.
Tip to reduce delays:
– Use title that passes outside probate where legal, such as trust ownership or valid forms of survivorship.
– Check local recognition of survivorship; not all countries accept it the same way.
Step 7: Coordinate Insurance, Debt, and Cash Flow (2–4 weeks)
What you do:
– Keep life insurance beneficiary designations current in both countries.
– Check for local estate debts, property taxes, and utilities that continue after death.
– If rental income supports the property, set up a plan so the executor can access funds to pay bills during probate.
What to expect from authorities:
– Some countries freeze accounts at death; ensure your executor can pay taxes and fees on time to avoid penalties.
– Expect local property tax bills to keep running; unpaid balances can block transfers.
Step 8: Update for Marriage, Divorce, Births, and Moves (1–3 weeks per update)
Cross-border estate planning is not “set it and forget it.” Laws and treaties change, and so do families.
What you do:
– Review your plan every 2–3 years, and after major life events.
– If you move countries, re-check residency rules and tax status.
– Update beneficiary designations for retirement plans and insurance to match your global plan.
What to expect from authorities:
– A move can shift tax residency, which may change how each country taxes your estate.
– Some countries apply exit taxes or later reclaim taxes on gifts made before a move.
How Double Taxation Hits in Real Life
A common scenario:
– You’re a U.S. citizen who owns a condo in Canada and a house in the United States.
– On death, the condo is subject to local probate and possible provincial fees; a deemed disposition may trigger capital gains.
– The U.S. may impose estate tax on your worldwide assets, including the condo.
– A treaty may allow credits so the same value isn’t taxed twice, but your executor must claim it correctly and on time.
What this means:
– Without a treaty claim and matching filings, heirs could lose tens of thousands of dollars to double taxation.
– Timing matters: returns filed late can reduce or cancel treaty benefits.
Forced Heirship: When Your Wishes Face Legal Limits
In many countries, a set share of your estate must pass to certain family members, regardless of your will. This can apply to:
– Spouses
– Children
– In some cases, parents
What you do:
– Ask your local lawyer if forced heirship applies to foreign owners.
– If so, consider lifetime gifts, trusts, or marital agreements that are recognized and enforceable in that country.
– Avoid plans that could be “clawed back” by the court to fund the forced shares.
What to expect from authorities:
– Courts can reduce gifts you made in recent years.
– Some registries will not record a property transfer that violates forced heirship without proof you met the rules.
Cross-Border Trusts: Benefits and Risks
Benefits:
– Can avoid or reduce probate delays
– Centralize management of global assets
– Can set up long-term control for young heirs or special needs
Risks:
– Some countries tax trusts at high rates
– Complex reporting for U.S. persons with foreign trusts (Form 3520 and Form 3520-A)
– If drafted poorly, courts may ignore trust terms for local law reasons
Best practice:
– Use lawyers in all relevant countries to draft trust terms that stand up under each legal system.
– Confirm how the trust affects capital gains, property taxes, and stamp duties at each stage.
Working With Two (or More) Legal Teams
You’ll need a small team:
– An estate planning lawyer in your home country
– A local property/estate lawyer in the country where the foreign property sits
– A cross-border tax adviser who knows treaty rules and reporting
– If you have a trust, counsel who handles trust tax filings every year
What you do:
– Set one person as the coordinator so drafts aren’t working at cross-purposes.
– Share full drafts between lawyers; don’t keep documents siloed.
– Keep a unified memo that lists how each asset passes and which document controls.
What to expect from authorities:
– Harmonized documents face fewer questions from probate judges.
– When treaty claims are needed, clean documentation speeds tax processing and refunds.
Estimated Costs and Fees to Plan For
Expect these common costs:
– Legal fees for wills and trusts in each country
– Translation and notarization fees
– Property retitling and registry fees
– Appraisals for tax filings
– Annual tax compliance for trusts and foreign asset reporting
– Court costs for probate in each country
Budget guide:
– Simple two-country plans can run a few thousand dollars.
– Complex estates with trust structures and business assets often cost more, but save far more in delayed probate and taxes over time.
Action Checklist for the Next 90 Days
Weeks 1–2
– Make your asset map with deeds and titles
– List all heirs and backup plans
– Book consultations with estate planning and tax advisers in each country
Weeks 3–6
– Decide on one master will versus separate local wills
– Draft wills with non-revocation language and clear governing law
– Choose whether a trust or holding company will help avoid probate
Weeks 7–10
– Retitle property if you’re using a trust or entity
– Update beneficiary designations to match the new plan
– Set up tax reporting systems and calendar deadlines
– Gather forms you’ll likely need:
– Form 706: https://www.irs.gov/forms-pubs/about-form-706
– Form 709: https://www.irs.gov/forms-pubs/about-form-709
– Form 8938: https://www.irs.gov/forms-pubs/about-form-8938
– Form 3520: https://www.irs.gov/forms-pubs/about-form-3520
– Form 3520-A: https://www.irs.gov/forms-pubs/about-form-3520-a
– FBAR Form 114: https://www.fincen.gov/report-foreign-bank-and-financial-accounts
What Your Heirs Should Expect After Death
Early days (first 1–4 weeks)
– Executors locate original wills and trust documents.
– Lawyers in each country open files and order certified translations if needed.
– Banks may freeze accounts pending proof of authority.
First 3–6 months
– Courts open probate files where required.
– Appraisers set property values.
– Tax advisers start estate, inheritance, or capital gains filings.
– Treaty claims are drafted to prevent or reduce double taxation.
Months 6–18
– Courts issue grants of probate or local authority documents.
– Properties transfer to heirs or to trusts, if set up that way.
– Tax authorities review returns; credits are applied under any applicable treaty.
Key warnings for heirs:
– Deadlines matter. Missing a filing can increase tax or block a treaty credit.
– Keep records for at least seven years in case of audits in either country.
Common Pitfalls and How to Avoid Them
- One will that accidentally revokes the other: Use careful non-revocation clauses.
- Trusts that trigger harsh taxes: Get local tax opinions before funding.
- Assuming joint tenancy avoids probate abroad: Confirm local recognition.
- No plan for local debts and ongoing bills: Give executors access to funds.
- Ignoring forced heirship: Build it into your plan so courts don’t unwind transfers.
- Overlooking compliance: Use checklists for
Form 8938, FBARForm 114, and trust filings.
Real-World Example: Smoother Path With Two Wills
A U.S. citizen owns an apartment in France and a house in the United States. She signs:
– A French will for the apartment, drafted under French law and compliant with forced heirship.
– A U.S. will for her American assets.
She also uses a revocable living trust for her U.S. house to avoid American probate. After her death, the French notaire processes the apartment under local rules, and the American trustee transfers the U.S. house without court delays. Her executor files Form 706 and claims credits under the treaty framework. This split approach shortens the timeline and reduces taxes.
Practical Guardrails for a Durable Cross-Border Plan
- Keep originals in a fire-safe and tell your executor how to access them.
- Store notarized translations with the originals.
- Track deadlines for estate, gift, and inheritance tax filings in each country.
- Maintain a master list of contacts: lawyers, tax preparers, bankers, and property managers.
- Update your plan when laws change or when you add or sell property.
When to Revisit Your Plan
- You buy or sell foreign property
- You move countries or change tax residency
- Marriage, divorce, birth, or death in the family
- Treaty changes or new tax rules in either country
Bottom Line on Estate Planning, Probate, and Double Taxation
Cross-border estates demand a proactive, step-by-step plan. A country-specific will (or set of wills), targeted use of trusts, and early tax modeling—especially under applicable treaties—help keep families out of long probate fights and protect your estate from double taxation.
With a synced team of lawyers and tax advisers in each country, you can create a plan that works in the real world, not just on paper.
This Article in a Nutshell
Cross-border estate planning requires deliberate coordination across jurisdictions to avoid protracted probate, high costs, and double taxation. Begin with a comprehensive asset map identifying ownership types, liens, and heirs. Choose between a master will or separate local wills, ensuring non-revocation and governing-law clauses. Use trusts or local holding companies to minimize probate where appropriate, but evaluate tax consequences and reporting obligations like Forms 3520/3520-A for U.S. persons. Model estate and inheritance taxes with a cross-border tax adviser and use treaties where available to claim credits. Coordinate local lawyers, retitle property as needed, maintain annual compliance (FATCA, FBAR, Form 8938), and update plans after major life events to keep the estate transferable and tax-efficient.
