For couples in international marriages—where one or both spouses hold citizenship, residency, or assets in different countries—estate planning becomes significantly more complex.
The convergence of multiple legal systems, tax codes, and inheritance rules demands a well-orchestrated strategy to avoid unnecessary taxation, legal hurdles, and unintended disinheritance.
At Peabody Law Firm, located in Southlake, TX, we recognize that today’s families often span borders. We help clients in Westlake, Trophy Club, Colleyville, Keller, and surrounding communities navigate estate planning issues that can arise in global marriages.
Understanding the Unique Challenges
When it comes to estate planning in international marriages, there’s rarely a one-size-fits-all solution. Instead, we work with families to address several important and often overlapping concerns:
- Differing Inheritance Laws: Civil law countries often have “forced heirship” rules that limit a person’s ability to distribute assets freely through a will or trust. This can create significant problems if one spouse is not a citizen of the country where the property is held.
- Conflicting Marital Property Rules: Community property states in the U.S. (like Texas) and other countries may treat jointly earned assets differently than separate property. This can affect the tax burden and distribution strategy.
- Tax Complications: The U.S. estate tax exemption does not apply as generously to non-citizen spouses. Special planning tools such as Qualified Domestic Trusts (QDOTs) may be necessary to defer estate taxes.
- Currency and Real Property Issues: Property held in another country may be subject to local probate and inheritance taxes. Currency conversion and cross-border asset transfers can also create liquidity and timing issues.
- Immigration Status: If one spouse is a non-resident alien (NRA), they may not benefit from the unlimited marital deduction typically available to U.S. citizen spouses.
What Good Planning Looks Like
There’s no singular blueprint for these situations, but a strong international estate plan may include some or all of the following:
- Wills Valid in Multiple Jurisdictions: We often recommend preparing local wills that comply with the legal requirements of each country involved, carefully coordinated to avoid contradictions.
- International Trusts: In some cases, establishing a trust can allow the couple to bypass problematic inheritance laws abroad and protect assets from double taxation.
- QDOTs for Non-Citizen Spouses: A QDOT defers estate taxes that would otherwise be due upon the death of a U.S. citizen spouse when assets pass to a non-citizen spouse.
- Marital Agreements: A prenup or postnup that outlines ownership of separate vs. joint assets across borders can go a long way in clarifying future expectations and tax planning.
- Beneficiary Designations and Titling Reviews: Every asset class should be reviewed to ensure it will transfer correctly under the couple’s overall plan—this includes life insurance, retirement accounts, and jointly held real estate.
Real-World Scenarios We See Often
- A U.S. citizen married to a British national with properties in both countries.
- A dual-resident couple with financial assets spread between Texas and Latin America.
- A green card holder whose spouse remains a citizen of a civil law country with mandatory inheritance rights.
In each of these cases, failure to proactively plan often leads to court delays, double taxation, and unintended heirs gaining control of key assets.
Why You Need the Right Legal Partner
Coordinating estate plans across jurisdictions involves not just understanding domestic law, but collaborating with foreign counsel when necessary.
At Peabody Law Firm, we partner with international legal and tax professionals when a global scope is required—helping clients in Southlake and the surrounding communities stay compliant, secure, and confident in their cross-border estate plans.
Legal Disclaimer:
This article is for general educational purposes and should not be considered legal advice. Estate planning laws vary by jurisdiction and are subject to change. Always consult a qualified estate planning attorney and tax advisor before making legal or financial decisions involving international estate planning.