International Inheritance Laws: What US Residents Need to Know

Estate planning can be complicated enough when all your assets (accounts and property) and loved ones are located within one country. But for US residents with international connections, whether through property, citizenship, residency, business interests, or loved ones living abroad, it can become significantly more complex navigating international inheritance laws.

Different countries have different rules about who inherits, how much they inherit, and the taxes and formalities involved. Do not assume that a US-based estate plan will cover your overseas assets. Extra planning steps are often required both at home and abroad to harmonize your plan across borders and avoid any unexpected inheritance or tax issues.

When International Inheritance Laws Can Affect You

A US resident’s estate can be affected by international inheritance laws when they own real estate or investments abroad. International inheritance laws may also apply if you meet any of the following criteria:

• Own assets, including tangible property such as vehicles, artwork, or other personal effects, located outside the United States
  
  
• Hold dual citizenship or maintain foreign residency
  
  
• Have heirs, spouses, or business partners living in another country
  
  
• Own business interests or cross-border financial accounts—such as bank accounts, brokerage accounts, or stocks—in a foreign jurisdiction

Failing to account for international inheritance laws can result in your assets passing to unintended heirs, unexpected tax consequences, and complex probate proceedings that span multiple countries. Proper cross-border estate planning—ideally with an attorney familiar with both US and foreign laws—is essential. In many cases, collaboration with a local attorney in the country where your assets or loved ones are located will also be necessary to ensure that your wishes are honored.

Understanding Assets Across Borders

When planning an estate that spans multiple countries, it is important to understand how different types of assets are treated.

• Tangible property. Real estate, vehicles, personal effects, and other physical assets are often subject to local probate or inheritance laws in the country where they are located.
• Real estate. Real property is typically governed by the laws of the country in which it is located, regardless of where the owner resides.
• Financial and intangible assets. The treatment and reporting requirements for bank accounts, stocks, bonds, retirement accounts, and other nonphysical assets vary widely by jurisdiction depending on where the asset is held, where the owner resides, and their citizenship.

Why You Need to Know Which Laws Apply

When it comes to estate planning, knowing which laws apply is not just a technical detail—for many reasons, it is the foundation of getting your plan right.

• Family or assets in multiple countries
  • If heirs or beneficiaries live abroad, the way they inherit may differ significantly from what you expect.
• Conflict of laws
  • A key challenge in cross-border estate planning is determining which country’s law applies: the country of your nationality, your residence, or where the asset is located. Getting this wrong can lead to unintended results. For example, in Spain, expats can choose their nationality’s law via EU regulation, but only if done right.^[1] If additional steps are not taken, Spanish forced heirship kicks in.
  • Ignoring regional variations or failing to comply with formal will requirements could mean that your wishes are not legally enforceable.
  • Which law governs matters: Real estate is governed by the law of where the property is located, while intangible assets (like stocks) may be governed by where the company is incorporated.
• Validity of estate planning documents

• A US-based will or trust may not be recognized—or could be overridden—by foreign law. Administering an estate abroad often involves complex and time-consuming procedures, such as obtaining local death certificates, registering property, providing certified translations, and meeting notarial or authentication requirements. These steps can be costly, slow, and prone to misunderstanding. In some cases, heirs may discover too late that the will or trust created in the United States does not effectively control assets located overseas.
• Different rules on testamentary freedom
  • Common law countries (like the US and UK) generally allow greater flexibility in distributing property. But many civil law countries (e.g., France, Germany, Spain, Dominican Republic, Thailand) impose forced heirship rulesthat mandate a share for children, spouses, or other family members. US residents used to testamentary freedom can run into limits abroad.
• Peace of mind
  • Ultimately, people want certainty that their wishes will be respected and their loved ones will not be left with a legal mess. Even if your loved ones ultimately inherit, multinational probate can be slow and expensive if not planned for in advance.

Country Highlights

Inheritance laws vary widely across countries. The following country-by-country comparison highlights popular destinations and illustrates differences in inheritance laws.

United Kingdom. English-speaking, common law, and popular with retirees and second-home buyers

• Legal system/inheritance law: Common law^[2]
• Forced heirship/testamentary freedom: In England and Wales, there is no forced heirship.^[3] People can leave their money and property to whomever they choose under their last will and testament.^[4] Joint ownership and beneficiary nominations are also available for passing on accounts and property.^[5] However, dependents can challenge the last will and testament.^[6] If someone dies without a will, the inheritance is divided according to statute, which is based on the overall value of the deceased’s estate.^[7]

Portugal. Southern European retirement hotspot known for scenic coastal properties and favorable climate

• Legal system/inheritance law: Civil law^[8]
• Forced heirship/testamentary freedom: Portugal has forced heirship rules for children and spouses (and, in some cases, parents if there are no children). The legítima—a reserved portion of the estate—must go to these heirs, while the remaining disposable portion may be freely distributed according to the decedent’s wishes.^[9]

United Arab Emirates (UAE). Represents the Middle East with residency-by-investment options

• Legal system/inheritance law: Depends on the religion and nationality of the person. Muslims follow Sharia (Islamic) inheritance law, while non-Muslims generally follow civil law principles.^[10] 
• Sharia law/forced heirship: Under Sharia law, certain heirs (for example, children and spouses) are guaranteed fixed shares of the estate, and male relatives often receive larger portions than female relatives. The spouse may not automatically inherit the entire estate, and other family members may be entitled to a portion.^[11]
• Civil law/testamentary freedom: Non-Muslims may make a will and distribute their money and property as they see fit.^[12] If there is no will, civil law principles generally apply—typically, half of the inheritance will go to the surviving spouse, and the other half is divided equally among children.^[13] If there are no children, the parents may inherit instead.^[14] Expatriates can request that their will be governed by the inheritance law of their home country if the will is properly registered in the UAE.^[15]

Panama. Central American destination popular with retirees due to favorable cost of living and retiree benefits

• Legal system/inheritance law: Civil law^[16]
• Forced heirship/testamentary freedom: Panama generally allows for full testamentary freedom, allowing flexibility in distributing property and financial assets.^[17] If there is no will, children of the decedent and their descendants receive their inheritance in equal parts.^[18] If there are no descendants, the deceased’s ancestors will inherit.^[19] A surviving spouse inherits equally with each of the previously mentioned classes.^[20]

Dominican Republic. Caribbean retirement and vacation home hotspot for US buyers

• Legal system/inheritance law: Civil law with forced heirship^[21]
• Forced heirship/testamentary freedom: In the Dominican Republic, there are statutorily required shares for children and spouses; remaining property can be freely allocated. If the deceased leaves children, two-thirds of the estate must be reserved and divided among them equally.^[22] If there is a surviving spouse, they are entitled to one-half.^[23]

Thailand. Southeast Asian destination attracting retirees seeking a tropical climate and a lower cost of living

• Legal system/inheritance law: Civil law with restrictions on who can own Thai land^[24]
• Forced heirship/testamentary freedom: In Thailand, you are free to create a will and dictate who will receive an inheritance from you. However, there are some restrictions regarding the ownership of real property.^[25] Absent a will, Thai law dictates who will inherit.^[26] The order of priority is descendants (children or grandchildren), parents, full-blood siblings, half-blood siblings, grandparents, and aunts and uncles.^[27] The share a surviving spouse receives will depend on what other heirs are living.^[28]

Working with an Attorney at Home and Abroad to Navigate International Inheritance Laws

Coordinating an estate across multiple countries can add complexity to your plans, but working with a foreign attorney who understands the local legal system and administration requirements can help make your plan more manageable and effective.

Your US-based attorney can help identify qualified foreign counsel and ensure compliance with both US and foreign laws. Here are some key considerations when hiring a foreign attorney:

• Jurisdiction expertise. Familiarity with local inheritance and property laws for both tangible and financial assets
• Language and communication. Clear communication in a language you understand; proper translation of wills or contracts
• Tax planning coordination. Address potential taxes on the estate for owners and beneficiaries
• Cross-border coordination. Collaboration between US and foreign counsel to ensure that wills, trusts, or estate documents are effective in each jurisdiction

Careful planning and coordination with experienced counsel in both countries set the foundation for an estate plan that respects your wishes while protecting your loved ones, no matter where in the world your assets are located. If you find yourself with assets or loved ones abroad and need an estate plan that addresses your unique situation, call Andre O. McDonald, a knowledgeable Howard County, Montgomery County and District of Columbia estate planning, special-needs planning and Medicaid planning attorney at (443) 741-1088; (301) 941-7809 or (202) 640-2133; or use the following link: https://www.mcdonaldesq.com/#contactWrapper to schedule a consultation.

DISCLAIMER: THE INFORMATION POSTED ON THIS BLOG IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND IS NOT INTENDED TO CONVEY LEGAL, INSURANCE OR TAX ADVICE.

^[1] European Parliament and Council Regulation 650/2012, art. 22, 2012, https://www.legislation.gov.uk/eur/2012/650/article/22.

^[2] United Kingdom Law: Legal System, Bodleian Librs. (Oct. 21, 2025), https://libguides.bodleian.ox.ac.uk/law-uklaw/legalsystem.

^[3] Gary Buswell, Inheritance Law and Estate Taxes in the UK, Expatica (June 11, 2025), https://www.expatica.com/uk/finance/taxes/inheritance-tax-uk-1040799/#laws.

^[4] Id.

^[5] Neil Quantick, UK Will–Assets Abroad?, QLaw (Apr. 6, 2024), https://qlaw.co.uk/wills/uk-will-assets-abroad.

^[6] Inheritance (Provision for Family and Dependants) Act 1975, ch. 63 (UK), https://www.legislation.gov.uk/ukpga/1975/63.

^[7] Law of Intestacy: What Are the Rules of Intestacy Law?, Nat’l Bereavement Serv., https://thenbs.org/practical-support/intestacy#1 (last visited Oct. 28, 2025).

^[8] João Vitor, Portuguese Inheritance Law: Everything You Need to Know, Glob. Citizen Sols. (Oct. 10, 2025), https://www.globalcitizensolutions.com/portuguese-inheritance-law.

^[9] Id.

^[10] Hassan Elhais, Inheritance Law and the Disposal of Assets in the UAE, JD Supra (July 7, 2025), https://www.jdsupra.com/legalnews/inheritance-law-and-the-disposal-of-3472828.

^[11] Jane Jablan, UAE Inheritance Law for Expats, MHG Wealth, https://mhgwealth.com/insights/uae-inheritance-law-for-expats (last visited Oct. 28, 2025).

^[12] Federal Decree-Law No. 41 of 2022 on the Civil Personal Status (UAE), https://uaelegislation.gov.ae/en/legislations/1586/download.

^[13] Id.

^[14] Id.

^[15] Elhais, supra note 10.

^[16] Panama: International Team Project: Foreign Law, Nw. Pritzker School L. (Dec. 13, 2024), https://library.law.northwestern.edu/c.php?g=1367591&p=10103880.

^[17] Code Civ. bk. 3, tit. 3, ch. 1 (Pan. 1916), https://webfiles-sc1.blackbaud.com/files/support/helpfiles/npoconnect/content/resources/attachments/panama-law-2-1916-civil-code.pdf.

^[18] Lombardi Aguilar Grp., Individual Tax & Priv. Client Comm., Panama: International Estate Planning Guide (Sept. 2021), https://www.ibanet.org/internationalestateplanningguides (select “Panama”).

^[19] Id.

^[20] Id.

^[21] Inheritance Laws in Dominican Republic, Law Gratis (Mar. 4, 2025), https://www.lawgratis.com/blog-detail/inheritance-laws-in-dominican-republic.

^[22] Id.

^[23] Id.

^[24] Thai Inheritance Laws, Samui for Sale, https://www.samuiforsale.com/knowledge/inheritance-laws-thailand.html (last visited Oct. 28, 2025).

^[25] Id.

^[26] Mikhail, Last Will and Testament in Thailand: A Practical Guide for Foreigners, Aim Bangkok (Oct. 21, 2025), https://aimbangkok.com/thai-will-and-testament-guide-for-foreigners/#Inheritance_Rules_Without_a_Will.

^[27] Id.

^[28] Id.