In today’s globally-connected world, many people have ventured into acquisition of overseas assets, as a way to diversify their risks. For individuals or families with assets, businesses, or family members spread across multiple countries, a traditional estate plan may not be sufficient. Cross-border estate planning involves far more than drafting a will. It requires understanding the legal, tax, and cultural landscapes of multiple jurisdictions to ensure that your wealth transitions smoothly and safely to the next generation.

In this article, we’ll explore the essential components of an effective cross-border estate plan, common mistakes to avoid, and strategies that actually work.

1. The Complexity of Multi-Jurisdictional Estate Planning

Let’s start with the basics: no two countries treat inheritance, wills, or taxation the same way. Some countries recognize trusts, while others do not. Forced heirship rules in civil law countries (like France or Japan) can override your wishes, mandating how assets must be distributed regardless of your will. Meanwhile, common law countries like the U.S. or Singapore offer more flexibility but come with their own reporting and tax obligations.

An effective estate plan must coordinate these conflicting laws. Otherwise, your heirs may face legal disputes, excessive taxation, or frozen assets.

2. Key Considerations of a Cross-Border Estate Plan

A. Having Multiple Wills (Strategically Drafted) In some cases, it makes sense to have more than one will—one for each jurisdiction where major assets are held. These should be carefully coordinated to avoid revoking each other and to ensure that each complies with the local legal requirements.

B. Considering Tax Residency and Place of Domicile Your residency and domicile status affect whether your estate is taxed locally or globally. For instance, for some countries, the citizen is taxed on worldwide assets, even if they live abroad. You must understand how your status in each country affects estate and inheritance taxes.

C. Using Trusts and Holding Structures Trusts, foundations, and holding companies can offer asset protection and privacy, and streamline cross-border transfers. However, they must be structured with consideration of local tax laws to avoid being deemed tax-avoidance schemes.

D. Powers of Attorney, Lasting Power of Attorney and Advance Directives These documents must also be valid in each jurisdiction where you spend time or hold assets. They help ensure someone can act on your behalf during incapacity.

3. Common Mistakes to Avoid

✖ Assuming Your Local Will Covers Everything Many people assume their domestic will covers all assets abroad, but it often doesn’t. Foreign probate laws can delay or even deny execution if documents don’t meet local standards.

✖ Ignoring Forced Heirship Rules In places like the UAE, Spain, or Indonesia, local laws may force a portion of your estate to go to specific heirs, regardless of your preferences. You must plan around these laws if they apply.

✖ Overcomplicating Structures Trying to “hide” wealth using complex offshore vehicles can backfire. Governments are increasing transparency and information-sharing (e.g., CRS, FATCA). Simplicity and legality are better than secrecy.

4. Practical Steps to Get Started

✅ Step 1: Inventory Your Global Assets List all your real estate, investments, businesses, and bank accounts across countries. Identify the jurisdiction for each.

✅ Step 2: Map Out Legal Frameworks Work with professionals to understand the estate, tax, and inheritance rules for each country. Look at how they interact.

✅ Step 3: Assemble Your Cross-Border Team You need a team that includes an international estate planner, tax advisor, and legal counsel in each jurisdiction. This team should collaborate, not operate in silos.

✅ Step 4: Draft and Align Legal Documents Wills, trusts, POAs, and letters of wishes must be coherent across all countries. Use clear language and align dates and intentions.

✅ Step 5: Review Regularly Global laws change. Your estate plan should be reviewed at least every 2-3 years, or when there’s a major life event (like a move, marriage, or sale of property).

5. The Emotional Side: Communicate With Heirs

Finally, estate planning isn’t just about documents. It’s about people. If your heirs don’t understand your wishes, or worse—fight about them—your legacy could be tarnished. Consider holding a family meeting or sharing a letter of wishes that outlines your values, intentions, and vision for the wealth you’re passing on.

Conclusion: Peace of Mind Across Borders

Building a cross-border estate plan is one of the most profound ways to ensure your legacy endures. It takes foresight, coordination, and deep understanding of multiple legal systems. But when done right, it brings clarity and peace of mind to you and your loved ones.

If you’re navigating this complexity and want to create a plan that truly works, reach out to begin a confidential conversation.

Disclaimer:

The views and opinions expressed in this article are those of the author, and do not reflect the official position of any agency, organization, employer, or company. This content is for general knowledge only and does not constitute financial advice. Please consult a licensed financial advisor for personalised recommendations.

About the author:

Cammie currently holds a financial advisory license for distribution of insurance and collective investments scheme products. She also has an Estate Succession Practitioner certification. Trained as an Architect and being a brain tumour survivor, she identifies herself as The Resilience Planner in Personal Finance. Her approach to financial advisory is consultative. She encourages her clients to be participative and ask her questions. She believes that because Personal Finance is personal, she works with her clients to cater for tailored solutions to suit each individual’s needs and goals in life.