Maybe. If you own property in California and property in another country, one estate planning document may not be enough.
Many people assume that a California estate plan covers everything they own, wherever it is located. That may be true for some assets, but international property often requires additional coordination. The issue is not just whether a California will or trust says who should receive the property. The issue is whether the country where the property is located will recognize that document and allow it to control the transfer.
For anyone with real estate, accounts, business interests, or family connections in more than one country, the estate plan should be built with both legal systems in mind.
Does My California Trust Cover Property Abroad?
A revocable living trust is often the foundation of a California estate plan. For California assets, a properly funded trust can help avoid probate, provide continuity during incapacity, and make administration more private and efficient.
However, a trust only controls assets that are actually transferred into it or otherwise connected to it. Foreign real estate often cannot and often should not be titled in a California trust. Sometimes the foreign country does not recognize trusts in the same way California does. Sometimes transferring the property into the trust could create tax, registration, or title issues abroad. Sometimes the transfer simply never happened.
That creates a gap. If the foreign property is not governed by the trust, it may need to be handled under the law of the country where it is located.
What Happens When Someone Dies Owning Property in California and Abroad?
When a person dies owning property in more than one country, the estate may need to be administered in more than one place. California law may apply to California assets, while the foreign country’s law may apply to property located there.
This is where problems often arise. Common issues include:
- Whether the foreign court recognizes the California trust or will;
- Whether certified translations are required;
- Whether documents need an apostille or consular authentication;
- Whether a local probate or succession process is required;
- Whether local tax filings are triggered;
- Whether forced heirship rules apply;
- Whether the California document accidentally conflicts with a foreign document; and
- Whether family members know where the documents and property records are located.
The delay is often practical as much as legal. Families may be dealing with different languages, different court systems, unfamiliar tax rules, and institutions that will not act until the correct local documents are provided.
Do I Need a Separate Will in Another Country?
Possibly. In many cross-border estates, a local will for foreign property can be helpful. For example, if someone owns real estate in another country, a will prepared under that country’s law may make the local transfer process easier.
But a second will must be drafted carefully. Many wills include language revoking all prior wills. If a foreign will is signed without coordination, it could unintentionally revoke the California will or disrupt the broader estate plan.
The better approach is usually not “one will everywhere” or “separate wills everywhere” by default. The better approach is coordinated planning. Each document should state what property it covers and confirm that it does not revoke the other documents unless that is intended.
Will a Foreign Country Follow My California Wishes?
Not always.
In California, people generally have broad freedom to decide who receives their property. That is not true everywhere. Some countries have forced heirship rules, which require certain assets to pass to a spouse, children, or other close relatives, regardless of what a will or trust says.
Forced heirship rules vary widely by country. They are common in many civil law jurisdictions, including parts of Europe, Latin America, and the Middle East. Countries such as France, Spain, Italy, Switzerland, and others have succession rules that may reserve portions of an estate for certain heirs, although the details differ significantly.
This means a California document may clearly express a person’s wishes, but a foreign court may still apply local inheritance law to property located there.
What Is the Most Common Cross-Border Estate Planning Mistake?
One of the most common mistakes is assuming that a California trust or will automatically controls foreign property.
Another common mistake is creating a foreign will without coordinating it with the California estate plan. This can cause conflicting instructions, accidental revocation, delays, and increased expense for the family.
A third common mistake is failing to discuss foreign property early. International assets can affect not only who receives property, but also taxes, probate strategy, trust funding, reporting obligations, and the practical administration of the estate.
What Should a Cross-Border Estate Plan Address?
A cross-border estate plan should answer these questions:
- What property is located in California?
- What property is located outside the United States?
- Which law applies to each asset?
- Is the California trust funded properly?
- Is a local foreign will needed?
- Do the wills and trust work together?
- Are there forced heirship rules?
- Are there foreign tax or reporting issues?
- Who will administer assets in each country?
- Can family members locate the necessary documents?
This type of planning is not necessarily about making the estate plan longer. It is about making the plan work in the places where the property actually exists.
If You Own Property in More Than One Country, Start Early
If you own property abroad, have foreign accounts, inherited family property overseas, or are married to a non-U.S. citizen, raise those facts at the beginning of the estate planning process. International issues can change the structure of the plan, not just the paperwork.
Final Answer
Do you need a will in every country where you own property? Sometimes. If you own property in California and abroad, your estate plan should be coordinated so your trust, California will, and any foreign documents work together. The goal is to avoid conflicting documents, reduce delays, and make the process easier for the people responsible for carrying out your wishes.
Not sure where to start? Schedule a consultation to review how your California estate plan should address property in more than one country.