November 25, 20253 min read

International Inheritance Laws: What You Need to Know When Your Life or Assets Cross Borders

In a world where people move freely, invest globally, marry across cultures, and raise families in multiple countries, inheritance planning has become more complex than ever. If you own property abroad, have dual citizenship, live outside your home country, or have heirs in different countries, your estate may be affected by international inheritance laws — and they can dramatically change the outcome of your estate plan. Here’s what every global family needs to understand.

Faith Otutu
Faith Otutu
Author
International Inheritance Laws: What You Need to Know When Your Life or Assets Cross Borders

1. When Do International Inheritance Laws Apply?

Your estate may be subject to foreign laws if:

  • You own real estate in another country

  • You live abroad (residency or domicile)

  • You hold dual citizenship

  • Your spouse or children live overseas

  • You have international bank accounts or investments

  • You are part of a multinational or blended family

Once you cross borders, your home country’s rules may no longer control everything.


🌍 2. Different Countries Have Different Approaches to Inheritance

There are two major systems worldwide:

✓ Common Law System (U.S., U.K., Canada, Australia)

  • Will-based

  • Testamentary freedom — you choose who inherits

  • Trusts are widely recognized

✓ Civil Law System (Europe, Latin America, Asia, Middle East)

  • Forced heirship laws

  • Children or spouses must inherit certain shares

  • Trusts may not be recognized

If you have ties to both systems, your plan must account for differences.


🌍 3. Forced Heirship: A Major Issue for International Families

Many countries require that a portion of your estate be left to:

  • Children

  • Spouses

  • Sometimes parents

This can override your U.S. will or trust.

Countries with forced heirship include:
🇫🇷 France • 🇩🇪 Germany • 🇮🇹 Italy • 🇪🇸 Spain • 🇵🇹 Portugal • 🇯🇵 Japan • 🇨🇳 China • 🇧🇷 Brazil • many Middle Eastern nations

If you try to disinherit someone in one of these countries, your plan may be ignored.


🌍 4. Real Estate Is Governed by Local Law

One of the biggest traps:

Foreign property is controlled by the law of the country where it is located — not where you live.

This can affect:

  • Taxes

  • Probate

  • Ownership rules

  • Inheritance shares

Without planning, your U.S. family may need to hire foreign lawyers, translators, and navigate overseas courts.


🌍 5. International Taxes May Apply

Tax exposure can come from:

  • U.S. estate taxes

  • Foreign inheritance taxes

  • Double taxation

  • Transfer duty or stamp duty

  • Capital gains tax on inherited property

Tax treaties may help — but only with proper planning.


🌍 6. Your U.S. Will May Not Be Valid Abroad

Some countries require:

  • Specific witnessing rules

  • Local registration

  • Local language

  • Special formats

A U.S. will alone may fail overseas.
Many global families use:

✔ Multijurisdictional wills
✔ Separate foreign wills
✔ International trust structures


🌍 7. Trusts Are Not Recognized Everywhere

The biggest mistake international clients make is assuming the trust you set up in the U.S. will work globally.

Many countries:

  • Don’t recognize trusts

  • Treat them as tax shelters

  • Apply penalties or extra taxes

  • Require special reporting

Alternative structures may be needed depending on the jurisdiction.


🌍 8. U.S. Citizens Living Abroad Still Must Follow U.S. Tax Laws

Even if you live abroad for decades, the IRS still taxes worldwide assets.
Your estate plan must account for:

  • U.S. estate tax

  • Foreign estate / inheritance tax

  • FATCA reporting rules

  • Residency rules abroad


🌍 9. Cross-Border Marriage Complications

If your spouse is not a U.S. citizen, special rules apply.

You may need:

  • A QDOT trust (Qualified Domestic Trust)

  • International marital agreements

  • Special tax planning

Without this, a non-citizen spouse may owe large taxes on inheritance.


🌍 10. Why You Need a Global Estate Plan

An effective international estate plan coordinates:

  • U.S. laws

  • Foreign laws

  • Tax treaties

  • Family needs

  • Property location

  • Citizenship & residency

A cross-border attorney ensures that your plan holds up in every country that matters to you.

Final Thought: International Lives Need International Plans

If your assets, life, or family span more than one country, you need an estate plan that respects all the jurisdictions involved — not just one.
International inheritance laws can save your estate… or destroy your intentions if ignored.

Your legacy should travel across borders just as easily as you do.

Elder & Estate

Protecting your legacy, one plan at a time.

Elder and Estate is an online service providing legal forms and information. Elder and Estate is not a law firm and cannot provide legal advice. Elder and Estate is not a substitute for an attorney or law firm. Communications between you and Elder and Estate are protected by our Privacy Policy, not by attorney-client privilege. 2025 Elder and Estate, Inc.