What cross-border estate-planning issues should globally mobile families address?
Globally mobile families should map tax residence, citizenship, domicile or long-term residence, and asset location for every family member. They should coordinate wills, trusts, beneficiary forms, powers of attorney, and business documents across countries. Keep records current, review reporting duties, and obtain advice from qualified professionals in each relevant jurisdiction.
Start with residence, citizenship, and asset location
Estate and inheritance taxes can depend on different connections. Countries may consider the deceased person's residence, domicile, nationality, or the location of property. The OECD reports that many systems tax worldwide assets of resident donors and local assets of nonresidents. OECD, Inheritance Taxation in OECD Countries
For each family member, list citizenships, tax residences, recent moves, permanent-home ties, and expected future moves. Then list homes, companies, private investments, bank accounts, pensions, insurance, digital assets, and personal property by country. A clear map helps advisers identify possible estate, inheritance, gift, income, and reporting obligations before a death or transfer.
Coordinate documents and succession rules
A will drafted in one country may not address property or formalities in another. Families should check whether separate local wills are useful, whether one document could revoke another, and which country's succession rules may apply. Review forced-heirship rules, marital rights, guardianship, executor powers, and probate requirements where family members or assets are located.
Trusts, foundations, holding companies, and family partnerships also need coordinated treatment. Their legal validity, tax classification, reporting, and control rules can differ by country. Beneficiary designations on retirement plans and insurance should match the wider plan and be updated after marriage, divorce, births, deaths, or a move.
Surprisingly a lot of families that come to us haven't updated their trust in estate plans for five or ten years or never sign the document. Someone else prepared it sounds crazy for someone that's worth 50 or 100 million to be in that situation, but we've found it's very common.
Plan for reporting, liquidity, and double taxation
U.S. citizens and resident aliens generally remain subject to U.S. tax on worldwide income while living abroad, and U.S. citizens can face U.S. estate tax on worldwide assets. IRS, U.S. citizens and resident aliens abroad IRS, Some nonresidents with U.S. assets must file estate tax returns
Foreign financial institutions may report accounts held by U.S. taxpayers under FATCA. U.S. Treasury, FATCA Families should maintain account statements, valuations, cost records, prior gifts, loans, and ownership documents in a shared system. Model taxes, debts, and administration costs in the currencies where they arise. Treaties may provide relief when two countries tax the same transfer, but eligibility and filing procedures vary. HMRC, Inheritance Tax double taxation relief
Related guides
- Cross-Border Families and Multifamily Offices: A Practical Guide
- Tax Coordination With a Multifamily Office: A Practical Guide for Real Estate Families
- Access to Alternatives Through an MFO: A Practical Guide for Families