Estate Planning Across Borders: How to Protect Your Family Without Breaking Jurisdictions

Most people think estate planning is about assets. It’s not. It’s about control — over your wealth, your family’s future, and how decisions get made when you’re no longer around to make them.

For internationally mobile families, control can slip away fast.

One child lives in Singapore. Another in the U.S. Your investments are held through a company in Hong Kong. Your home is in Vietnam. You’re healthy, successful — and unprepared.

Why? Because most estate plans fall apart at borders.


The Problem with Local Thinking in a Global Life

Traditional estate plans — even ones drafted by excellent lawyers — often assume your life fits neatly into one jurisdiction. One set of laws. One tax system.

But for expats and international families, that’s rarely true. Here’s what that creates:

  • Double taxation risks, especially with U.S. or UK exposure
  • Invalid wills, when the legal system doesn’t recognize your documents
  • Delayed or frozen assets, due to probate conflicts between countries
  • Unintended heirs, when local forced heirship rules override your wishes

A generic will from your home country isn’t enough. And an “expat will” that doesn’t coordinate across systems can do more harm than good.

Jurisdictional Clashes: Real-World Consequences

We’ve seen cases where:

  • A British entrepreneur living in Vietnam left his UK will unchanged after moving. When he passed, Vietnamese authorities didn’t recognize it. Local accounts and a business was frozen for years.
  • An American family held assets in Singapore and Vietnam. The U.S. estate tax kicked in at death — even on non-U.S. assets — and the children had to sell shares in the family business to pay it.
  • A European//Vietnamese couple living in HCMC assumed their Vietnamese home would pass to each other automatically. They were wrong. Local inheritance laws required redistribution, and children from a previous marriage got involved.

These aren’t mistakes you can afford to fix after the fact. The structure must work while you’re alive — and stay strong when you’re not.

5 steps to successful expat estate planning guide

Start with Jurisdictional Awareness

An effective international estate plan starts with clarity. You need to know:

  1. Your domicile and residency — for tax and legal purposes. These are not the same.
  2. Where your assets are located — including bank accounts, companies, properties, and policies.
  3. Which laws apply — inheritance laws, tax laws, and marital property rules.
  4. What you want — your goals for legacy, support, philanthropy, or asset protection.

This clarity shapes everything that follows.

Core Tools of Cross-Border Estate Planning

Here’s how international families protect their legacies:

1. Multiple Wills – Coordinated, Not Conflicting

It can be appropriate to have a separate will in each country where major assets are held. But they must be drafted carefully — each should:

  • Specify which jurisdiction it covers
  • Explicitly state it does not revoke other wills
  • Use language that local courts recognize

A poorly written second will can override your first without meaning to.

2. Use of Holding Structures

Sometimes, owning assets directly invites tax and legal risk. Alternatives include:

  • Trusts — common for UK or Commonwealth families, but complex under Vietnamese law.
  • Private investment companies — often used in Singapore or Hong Kong for holding shares, property, or insurance.
  • Foundations — especially relevant for European clients with philanthropic goals.

These vehicles can help manage succession, reduce taxes, and simplify inheritance — if properly structured.

3. Offshore Life Insurance

Life insurance held by a properly structured offshore trust or company can provide:

  • Liquidity for heirs without triggering estate tax
  • Privacy
  • Simpler distribution — bypassing probate entirely

It’s not just about risk protection — it’s a financial planning tool.

4. Powers of Attorney and Health Directives

Most estate plans focus on what happens when you die. But incapacity planning matters just as much.

If you’re in Vietnam and your medical power of attorney is only recognized in Australia, what happens if you’re unconscious after a motorbike accident?

Every jurisdiction where you spend time should have a local, valid directive — ideally translated and recognized.

Planning for Children Across Borders

If your children are citizens or residents of different countries, the complexity increases. You may face:

  • Conflicting inheritance tax systems
  • Currency and repatriation issues
  • Guardianship limitations in countries where you’re not a resident

Key actions to take:

  1. Align your estate plan with your children’s tax exposure. A gift that’s tax-free in your country might create tax headaches in theirs.
  2. Specify guardianship plans clearly. Don’t assume local courts will follow your wishes unless they’re legally documented and locally valid.
  3. Use neutral jurisdictions for holding assets, where appropriate — especially for family businesses or shared properties.

Your plan should not just pass assets down. It should pass control and clarity.


Watch for Traps Around Forced Heirship and Community Property

Many countries (Vietnam included) have forced heirship rules — laws that require a portion of your estate to go to certain heirs, regardless of your will. These can override your intentions.

In civil law countries like France or Spain, for example, children may be entitled to a set share — you can’t disinherit them.

Similarly, in community property regimes, what you think of as “yours” might be legally considered “ours” with your spouse.

This becomes especially tricky with second marriages or blended families.

Solution: Consider prenuptial or postnuptial agreements where legally valid, and use structuring to separate personal and joint assets.

Vietnamese-Specific Considerations

Vietnam’s laws are evolving, but there are critical points to understand:

  • Wills must meet specific local requirements — especially if they involve real estate.
  • Foreigners can inherit property, but transferring or selling it may require approvals or repatriation rules.
  • Probate is not automatic. Even with a will, a court process is usually required — and that process may stall if the will isn’t in Vietnamese or notarized properly.

For Vietnamese nationals or Việt Kiều families, estate planning often also touches on land use rights, business ownership restrictions, and tax treatment on inherited assets held abroad.

A bilingual, jurisdictionally aligned plan is critical.

Tax Efficiency and Treaty Awareness

High-net-worth individuals often face estate or inheritance taxes in more than one jurisdiction. For example:

  • U.S. citizens are taxed on worldwide assets, even if they haven’t lived in the U.S. for decades.
  • U.K. domiciled individuals face inheritance tax regardless of where they live.
  • Double tax treaties may reduce this burden — but only if your plan is set up accordingly.

Some countries offer step-up in basis on death (like the U.S.), while others apply flat inheritance taxes (like Japan or Korea).

Get this wrong, and your estate might be taxed twice — once in the source country, and again where your heirs reside.

Don’t Just Plan for Death — Plan for Control

Legacy isn’t just about money. It’s about clarity, relationships, and long-term stewardship.

That’s why we often recommend:

  • Letters of wishes, guiding trustees or executors with your intentions
  • Family meetings, to reduce surprises and build understanding
  • Succession frameworks, especially for family businesses or foundations
  • Trustee and director planning, so control doesn’t pass accidentally to the wrong hands

Good estate planning isn’t about legal documents. It’s about outcomes.

Cross-Border Estate Planning Is a Process — Not a One-Time Event

If you’ve lived in multiple countries, hold assets globally, or have family members with different citizenships, you need more than a will. You need a strategy that respects the legal and cultural complexity of your life — without adding unnecessary risk or delay.

This is about protecting your family from uncertainty. Not just when you’re gone — but while you’re still here to make the decisions.

If this is something you’re dealing with, we’re available for a confidential conversation.

FAQs

Q: What is international estate planning?

A: It’s the process of coordinating your estate plan across multiple countries — including your will, tax strategy, and asset structures — to protect your family and legacy.

Q: Do I need more than one will as an expat?

A: Possibly. If you hold assets in multiple countries, separate wills — one per jurisdiction — may help, but they must be carefully coordinated to avoid conflict.

Q: Is my foreign will valid in Vietnam?

A: Often not automatically. Vietnam has strict requirements for recognizing foreign wills, especially regarding real estate. Local legal advice is critical.

Q: How does a U.S. citizen living in Asia avoid estate tax?

A: U.S. citizens are taxed on worldwide assets. Planning tools like offshore life insurance or foreign grantor trusts may help mitigate exposure — if structured correctly.

Q: What is an “expat will”?

A: An expat will is a legal document tailored to international lifestyles. It accounts for multiple jurisdictions, local laws, and the complexity of cross-border assets and heirs.

Sources:

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