By James G. Burns, Esq. · Updated October 13, 2026

A California trust can name the right beneficiaries and still leave your family struggling to administer a house, account, or business in another country. The question is who can control the asset, which law governs its transfer, and what tax and reporting obligations follow.

International assets require a coordinated review of ownership, nationality, residence, local succession rules, financial access, and liquidity. Buying a second home abroad or moving across a border should trigger that review before another document is signed.

Start With an Asset and Authority Map

List each asset by country, legal owner, approximate value, debt, intended recipient, and person expected to administer it. Obtain the actual deed, account registration, beneficiary form, or company record. Identify where the original documents and institutional contacts can be found.

For each asset, ask whether the proposed trustee or executor will be recognized locally and what evidence will be required. Do not assume that a California trust, financial power of attorney, or court appointment will be accepted unchanged by a foreign institution.

Separate Inheritance Law From Tax Law

The rules deciding who inherits are not necessarily the rules deciding who owes tax. A beneficiary may be entitled to property while the estate still faces filings, valuation questions, or institutional restrictions.

The IRS explains that U.S. citizens are subject to federal estate taxation on worldwide assets even when living abroad. For a nonresident who is not a U.S. citizen, U.S.-situated assets and applicable treaty provisions require separate analysis. Citizenship, residence, and the location or classification of the property must be established rather than inferred from a mailing address.

A move abroad does not by itself settle U.S. tax exposure. Have qualified advisers in the relevant jurisdictions examine the applicable taxes, treaty relief, valuation, and filing responsibilities before a gift, sale, restructuring, or distribution.

Do Not Assume One Will Solves Every Country

Local inheritance rules can affect a spouse's or child's rights, document formalities, and the administration process. Adding a foreign will without coordination can also create conflicting instructions or an unintended revocation of earlier documents.

Under the EU succession framework, a valid choice of the law of nationality may be available. The rules do not apply uniformly everywhere: Denmark and Ireland do not participate, and public-policy exceptions can matter. The framework also does not determine inheritance taxes or the matrimonial property regime.

Ask local counsel to determine whether a choice of law is available and effective for your circumstances. Have counsel coordinate the documents' scope, revocation language, execution, and administration. A clause should have a defined purpose rather than serve as a substitute for country-specific analysis.

Check Foreign Trust and Gift Reporting

Receiving property from abroad or using a foreign trust can produce information-reporting obligations even when the family assumes no immediate tax is due.

The IRS foreign-trust guidance identifies potential reporting on Forms 3520 and 3520-A, Form 8938, and FBAR, depending on the transaction, ownership, and facts. Certain large foreign gifts or bequests can also require Form 3520. Exceptions and separate filing rules require review; these forms are not interchangeable.

Assign responsibility for obtaining records and making filings. A foreign trustee or bank may not supply the information a U.S. adviser needs without advance arrangements. Do not transfer assets into a foreign structure based only on its marketing description.

Plan for Access, Currency, and Administration Costs

A valuable foreign property may not provide cash when the family needs to pay expenses. Prepare for maintenance, debt service, professional fees, translations, institutional documentation, and the time required to establish authority.

Identify the currency in which each expense will be paid. Exchange-rate changes can affect available funds, but there is no universal percentage loss or universally suitable hedge. Investment and currency decisions should fit the family's actual payment obligations and risk tolerance.

Keep a secure record of accounts and digital-access procedures. Knowing a password does not establish legal authority. Our bank-access and incapacity guide explains the ownership and authority questions to test at home as well.

A Hypothetical Family With Property in Two Countries

Consider an Orange County couple with a California home, an apartment in Italy, and children living in different countries. Their trust describes the intended shares. Before relying on that plan, the family should review the Italian title, applicable succession rules, the recognition of their proposed fiduciary, tax and reporting obligations, and the cash required during administration.

The review should also address what happens if either spouse becomes incapacitated while abroad. This is a hypothetical illustration of the coordination questions, not a client result or a conclusion about Italian law.

Build the Plan Around the Actual Countries

Risk Exposure Mapping begins with the assets, people, and decisions that must work together. The resulting plan may require coordinated U.S. and local counsel, tax advisers, institutional confirmations, and implementation records.

From Aliso Viejo, the Law Office of James Burns serves Orange County families, including Newport Beach, Laguna Beach, and Laguna Niguel. Our estate-planning services address the domestic plan; foreign-law questions require the appropriate local advisers. Request a Situation Readiness Briefing to identify the countries, assets, authority, and reporting issues before choosing structures.

Disclaimer

This article provides general legal education, not legal, tax, investment, or foreign-law advice for a particular family. Applicable law and individual facts require review by qualified advisers in the relevant jurisdictions. No result is guaranteed. Reading this article does not create an attorney-client relationship; representation requires a signed engagement agreement.

IP Disclosure

Original commentary and organization © 2026 Law Office of James Burns. Government sources and third-party materials are identified for reference. No ownership is claimed in those materials, and no affiliation or endorsement is implied.