California Probate - Law Offices of Janet Brewer Blog

When You Move Abroad, Do You Need to Change Your Trust?

If you move to another country from the United States, you may need to change your trust or your overall estate plan. You simply cannot count on laws applying to your trust in the same way when you change the place that you live.

What Are the Potential Consequences of Not Changing Your Trust?

The potential negative consequences of not changing your trust abound. For example:

• The trust may owe taxes when you obtain residency in the new country
• Property you intended to put in the trust may pass by forced heirship to children
• The new country may not recognize your trust at all

These consequences can vary significantly, depending on factors such as which country you move to and how long you stay there. The type of trust you formed and its exact language could have an impact too.

Do Other Countries Have Different Laws About Trusts?

Absolutely, other countries treat property ownership and trust law very differently than the United States does. For example, trusts may not have the same effect in countries with civil law or forced heirship laws. Distributions from a trust go to a chosen beneficiary, not necessarily to relatives. The intended distributions may conflict with gift and inheritance laws in some countries, which require a set portion of someone’s estate to go to relatives. As a result, the trust or the beneficiaries may have to pay expensive and unnecessary taxes.

Further, even relocation to non-civil law or non-forced heirship countries can affect trusts. Trust laws are different in other countries, and so those countries may not recognize a particular trust structure. In addition, other countries may impose taxes on unrealized gains or capital gains for trust investments. The U.K. or Canada, for example, could assess capital gains taxes if a resident trustee dies or if the trust holds local property.

The effects on a trust when you move to another country could vary widely, so you need to seek estate planning and tax advice first. Talk to an attorney with experience doing international planning for help.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.

When You Move Abroad, Do You Need to Change Your Will?

If you move to another country from the United States, you may need to change your will or your overall estate plan. You simply cannot count on laws applying to your will in the same way when you change the place that you live.

What Are the Potential Consequences of Not Changing Your Will?

There are many, many potential negative consequences of not changing your will. For example:

• Your will may be disregarded when your estate is distributed
• Your estate may be distributed very unequally depending on where property is located
• Someone important to you could be disinherited
• Your estate could owe expensive taxes

Different countries have very different laws on how estates of deceased people get distributed. As a result, your will may need to change if you move internationally.

What Kinds of Laws Do Other Countries Have About Inheritance?

Unlike most state laws in the United States, some countries’ laws require that citizens or residents distribute their estates to certain people. For example, countries with forced heirship regimes require that a portion of each person’s estate goes to their children, grandchildren, or spouse. France has a forced heirship regime, but it does allow the money remaining in the estate after the forced heirship distributions to go to people of your choice. As a result, you may need a new will that accounts for those distributions and passes on the rest of the estate to others.

Further, other countries have different laws about which wills are valid or invalid. For example, Germany recognizes handwritten wills signed without witnesses, while U.S. state laws generally require witnesses to the deceased’s signature on the will. While you might not have intended that your handwritten list of wishes take legal effect, it might do so in Germany. Other countries may have different laws that could invalidate your will that is perfectly legal in the United States.

As a result, you need to get legal advice about your will and your other estate planning before or soon after you move to a new country. Make sure you understand the inheritance and estate laws in the new country so that your property passes to the people of your choice with minimal expense and hassle.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.

How Do Succession and Forced Heirship Affect U.S. Estate Planning?

Some countries have succession or forced heirship regimes that can substantially affect U.S. estate planning for people with ties to both countries. First, you will need to understand how forced heirship works, and then understand how it can impact estate planning in the United States.

What Is Forced Heirship or Succession?

Forced heirship or succession refer to laws in some countries that require certain inheritances for children or spouses. In other words, your wishes about who receives which amount of property may be disregarded in favor of these laws. The inheritances passed to child or spouse cannot be conveyed to anyone else.

In France, forced heirship favors children. If you have one child, he or she must receive 50 percent of your assets after your death by law. If you have two children, they receive 66 percent of your assets (or 33 percent each). If you have three or more children, then they receive 75 percent of your assets shared equally among them.

There is no French requirement that your spouse receive part of the estate unless you have no children or grandchildren, in which case the spouse receives 25 percent of your assets. You can give the remainder of your assets after distribution to children, grandchildren, or spouse to anyone you choose.

How Does Forced Heirship Impact U.S. Estate Planning?

People with ties to countries with forced heirship laws must take care to understand the consequences for their estate planning. For example, people living in France may not realize that their United States real estate will not necessarily go to their children equally.

United States situs property (items physically located there or with other connections to the U.S.) may pass to relatives in accordance with U.S. laws. French property may pass to relatives in accordance with French laws. As a result, someone’s estate could be distributed in an unexpected way.

Further, a will or trust may not have the same effect in a forced heirship country as it might in the United States. French law disregards the contents of a will if it would violate forced heirship laws. Even if you think you have done estate planning, it simply may not work as you expected. Talking to an estate planning attorney with experience helping international clients can put you on the right path.

Planning your estate? Look to Janet Brewer, Esq. for thorough and thoughtful estate planning advice. Janet’s more than 20 years of legal experience will give you confidence and peace of mind. To schedule a “Get Acquainted” meeting, visit Janet's website or call her office at (650) 469-8206.

Forced Heirship and International Estate Planning

Should you have the ability to choose who inherits your assets, and whether or not to disinherit certain family members? Or should your closest family members have a right to some of your property in the event of your death? While the United States is a common law country that gives individuals the freedom to disinherit most family members, a surprising number of countries across the globe have laws that force some aspects of inheritance, regardless of a person’s wishes.

Forced Heirship Laws Across the Globe

Forced heirship, the concept that some family members should automatically have a stake in your property following your death, has a long and storied history around the world. In many countries, especially civil law countries and Islamic countries, forced heirship laws still exist today in a variety of forms:

• France
• Switzerland
• Germany
• Turkey
• Mexico
• Brazil
• Italy
• Spain
• Russia
• Japan
• Saudi Arabia
• Yemen
• Jordan
• Iran

Many forced heirship laws state that a person cannot specifically dictate who their estate is passed to in the event of their death. In many cases, children, grandchildren, and spouses are “protected heirs” who cannot be disinherited. In countries with very strict forced heirship laws, a person may have no options when it comes to their estate. In other countries, a person may have the freedom to leave specific portions of an estate to another designated person or to control other limited aspects of their estate after their death.

Forced Heirship as an Issue for International Estate Planning

If forced heirship isn’t an issue in the United States, why should you worry about the concept? For many of our international clients, who may own property abroad, forced heirship has the potential to seriously complicate their estate plans. If you own homes, land, or property in another country, it is vital that you understand their heirship laws clearly and that you know how they will affect you, your family, and your assets.

Our International estate planning attorneys can work with you to create a working solution if you have property abroad in a forced heirship country. We can also connect you with a qualified estate planner in the country containing your property. Working with this professional will be vital to creating a plan that is valid, legal, and appropriate.

Bay Area International Estate Planning Attorney

At the Law Offices of Janet Brewer, we are dedicated to helping clients planning their estate who may have property or assets abroad. We will make certain that your estate is protected after your death and that your wishes are met as closely as possible under the law. To learn more about international estate planning, or to schedule a private meeting, call our experienced California estate planning attorneys today: (650) 325-8276.

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