Managing an estate across multiple countries can transform a straightforward inheritance into an overwhelming legal and tax nightmare. For cross-border families—those with international marriages, investments in multiple countries, or assets scattered around the globe—estates become far more complicated. Variations in tax laws, inheritance systems, and legal frameworks governing estate distribution can lead to costly litigation, disputes, and unintentional tax penalties. These complexities are often overlooked but can create significant challenges for families after a loved one passes away.
In particular, U.S. expatriates face unique challenges when it comes to estate planning. U.S. citizens living abroad are still subject to U.S. estate taxes on their worldwide assets, even if they are residing in another country. This means that an American living in Germany with assets in both Germany and the U.S. may find their estate subjected to taxes in multiple jurisdictions. While tax treaties between the U.S. and other countries may offer some relief, they don’t completely eliminate the complexity of determining which country has the right to tax specific assets, often leading to double taxation and complicated legal battles.
The challenges are heightened by differences in legal systems. Common law countries, like the U.S. and the U.K., tend to allow individuals more flexibility in how they distribute their estates. However, many civil law countries, like France and Germany, operate under strict “forced heirship” rules, which dictate how a deceased person’s estate is divided. These legal frameworks can override a decedent’s wishes, leading to inheritance disputes when assets are located in multiple countries. Families may face challenges when the validity of a will is contested, especially when the distribution methods conflict with local laws.
The attorneys at Lord & Lindley have significant experience dealing with trust and estate litigation. If you need assistance with an estate issue, please give us a call at 704-457-1010 to find out how we may be able to help you. For more information regarding our firm, attorneys, and practice areas, please visit our website at www.lordlindley.com.