Many Americans dream of retiring overseas or splitting their time between the United States and another country. Whether you’re relocating permanently, becoming a dual resident or simply spending several months each year abroad, one important question often gets overlooked: If you still own property in the United States, do you still need a U.S. estate plan?
In almost every case, the answer is yes.
Owning a home, rental property, bank accounts, investment accounts or other assets in the United States means those assets remain subject to U.S. law. If you become incapacitated or pass away while living abroad, your loved ones may still need to deal with U.S. financial institutions, title companies and courts. Without proper planning, they could face unnecessary delays, additional expense and even probate proceedings.
A revocable living trust is often one of the best tools for individuals who own California real estate but live outside the country. If your California property is properly titled in the name of your trust, your successor trustee can generally manage or sell the property without going through California probate. This can save your family significant time and expense while allowing your affairs to be handled more efficiently from abroad.
A durable power of attorney is equally important. If you become incapacitated while living overseas, someone may need authority to manage your U.S. bank accounts, deal with government agencies, pay taxes, maintain or sell your property or sign documents on your behalf. Without a valid power of attorney, your family may have to petition a California court for a conservatorship before they can act for you.
Likewise, an Advance Healthcare Directive allows you to appoint someone to make medical decisions if you are unable to do so. While another country may have its own healthcare laws, having a properly prepared California directive remains valuable, particularly if you receive medical treatment in the United States or return home during an illness.
Living abroad also creates additional planning considerations. Your country of residence may have inheritance laws, forced heirship rules, estate taxes or succession procedures that differ significantly from California law. In some cases, you may need both a U.S. estate plan and a separate estate plan prepared by an attorney in the country where you reside. These plans should be coordinated to ensure they work together rather than conflict with one another.
If your estate plan was prepared years ago, it is also wise to review it before moving overseas. Your successor trustees, agents under your power of attorney, healthcare representatives and distribution provisions may need to be updated to reflect your new circumstances. Practical issues, such as time zones, international travel and access to documents, should also be considered when choosing the people who will assist you.
Moving abroad is an exciting new chapter, but it should not mean leaving your U.S. estate planning behind. If you continue to own assets in California or elsewhere in the United States, maintaining a current and properly coordinated estate plan can protect your property, simplify administration for your loved ones and provide peace of mind no matter where life takes you.
Send your questions to ccolan@colanlegal.com and use “Alpine Mountaineer estate planning question” as the subject. We’ll answer your questions in our upcoming issues. This article is provided by your local estate planning attorney, Corina Colan. The Law Office of Corina I. Colan / (909) 265-3315 / www.colanlegal.com
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