Legal processes such as estate planning can have nuances, with details changing for each case depending on what prospective planners want to achieve with their plan. Add international law to the mix and the complexity spikes. When people want to establish that their legacy persists and their property remains in the control of close relatives or chosen heirs, international estate planning lowers the hassle and confusion.
As the Washington Post notes about international estates, overseas inheritances can take months or even years to resolve. Here are some reasons for international estate planning.
Efficiency is a huge benefit considering the moving parts in an international estate — from navigating the laws and taxes of other countries to determining what needs reporting to the IRS. Property, for example, may fall under the radar if it is worth less than $100,000. But that number applies to private ownership. If the bequeathed property belongs to a corporation, that threshold of reporting drops to $16,000. Failure to report can lead to harsh penalties.
International estate planning may help provide family security ahead of time and, depending on the circumstances, useful leverage with the projected cash flow knowledge gained from the planning. As Forbes reports, children’s success in recovery (regarding mental health, substance abuse or otherwise) is directly related to how their access to the estate falls depending on their behavior.
Following foreign laws
Foreign governments all have their own estate and property laws that need consideration. For every overseas asset in a different country, families have a whole new set of rules to pick through. Doing the work ahead of time establishes comfort and security for clients and their families in knowing how to navigate these future complexities on the international stage.