Many American citizens choose to live abroad. Some plan to retire abroad since the U.S. dollar can provide a better quality of life in many other countries. Regardless of your reason to leave the U.S., it is important to get all of your legal affairs in order. There are several issues that may arise around your estate planning documents if you move abroad without consulting an experienced estate planning attorney prior to the relocation.
The first issue to consider is whether your new country of residence will recognize your will as valid. If the country where you reside has adopted the International Will Convention then as long as your will complies with the requirements set forth under the convention, your will stands to be recognized as valid. The state of Maryland has ratified the convention and adopted the annex into its state code. *See the list below to see if your country of residence has adopted the convention.
Forty-two countries honor the Hague Convention Relating to the Form of Testamentary Dispositions which states that a will is valid if it complies with the laws of the place where the testator created it. If you live in a country that has not adopted either of these two conventions, you should consult an attorney where you now reside for assistance in redrafting your estate plan to be in compliance with the laws of your current residence.
A few more estate planning tips before moving abroad:
- Take the time to review your current estate plan with a local attorney. As a U.S. citizen you will continue to be subject to taxation by the IRS. The estate planning attorney can help you determine whether you need to make any changes prior to moving. This may involve keeping your “domicile” status in the U.S. A person can have only one domicile status, but multiple legal residences. Your domicile status may invoke implications on taxes as well as validity of estate planning documents.
- Plan ahead to prevent double taxation. Understand what jurisdictions can claim your estate owes estate taxes at your death.
Do not move abroad without first researching the laws in that country as they pertain to estate distribution. There are still countries operating under principles of forced heirship. This means the laws determine who get your assets, not you or any documents you create. This is not a situation you want to find yourself in when it is too late to do anything about it. Planning ahead is key. Contact the experienced estate planning attorneys at Stouffer Legal in the Greater Baltimore are to discuss your plans to move abroad. They can help you determine what steps to take in your estate planning to ensure your goals are realized, here and abroad. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
*Countries that adopted the International Will Convention Include: Albania, Antigua, Barbuda, Armenia, Australia, Belgium, Bosnia, Botswana, Brunei Darassalam, China, Croatia, Denmark, Estonia, Fiji, Finland, Macedonia, France, Germany, Greece, Grenada, Ireland, Israel, Italy, Japan, Lesotho, Luxembourg, Maritius, Montenegro, Netherlands, Norway, Poland, Portugal, Moldova, Serbia, Slovenia, South Africa, Spain, Swaziland, Switzerland, Tonga, Turkey, Ukraine, United Kingdom, United States.
