Cross-Border Estate Planning

One Estate. Two Countries. One Expert

As a German attorney (Rechtsanwältin) based in the U.S., Nicola S. Casper-Hoesl specializes in navigating the legal complexities of cross-border inheritance

— so your estate is protected on both sides of the Atlantic.

International estates are never straightforward. Different inheritance systems, forced heirship rules, and probate procedures collide, often resulting in unnecessary costs and disputes. With the right strategy, however, you can prevent cross-border conflicts and ensure that your heirs receive what you intended.

Why International Estate Planning Matters

Cross-border estate planning goes far beyond writing a simple will. It ensures your estate is recognized in all relevant jurisdictions and protects your family against:

• Double taxation (German inheritance tax and U.S. estate tax)
• Non-recognition of wills or trusts abroad
• Forced heirship claims under German law (Pflichtteil)
• Frozen assets such as real estate or bank accounts

How Different Legal Systems Affect Your Estate

Germany and the U.S. apply fundamentally different inheritance rules:

• Forced Heirship in Germany: Close relatives may be entitled to a compulsory share, regardless of your will.
• Trusts in the U.S.: Common estate planning tools in America are often not recognized under German law, leading to unexpected tax consequences.
• Probate Differences: German probate courts and U.S. state probate systems operate under different timelines, executor powers, and document requirements.

Understanding and reconciling these differences is critical to avoid disputes and ensure a smooth transition of assets.

International Complications: Split Succession

In certain cases, different parts of the estate fall under different legal systems. For example:

A U.S. citizen living in Germany dies owning real estate in Florida and bank accounts in Munich. German law may apply to the bank accounts, while Florida probate rules govern the real estate.

This “split succession” creates complexity and often requires parallel procedures in both countries.

International Forced Heirship Rules

Not every country treats heirs equally. Key differences include:

• Germany: Compulsory share is a monetary claim by close relatives.
• France, Italy: Heirs may have a direct property interest in the estate.
• U.S.: Most states allow near-complete freedom of testation, with limited spousal protections.

These differences matter — your choice of residence or citizenship can directly impact whether forced heirship applies.

Recognition of Foreign Wills

A will is generally valid if it complies with the law of:

• The country where it was executed,
• The testator’s nationality, or
• The testator’s last habitual residence.

⚠️ But not all forms are accepted abroad. For example, German “Berliner Testaments” (joint wills) may be invalid in countries like Italy or Greece, as they are seen as against public policy.

The European Certificate of Succession (EU Certificate of Inheritance)

For estates within the EU, the European Certificate of Succession allows heirs to prove their rights across member states without needing separate local probate proceedings. It streamlines estate administration, but it is not recognized in the U.S.

Taxation: Double and Multiple Taxation

Even if one unified inheritance law applies, taxation remains separate. Germany’s inheritance tax and the U.S. estate tax can both apply, creating the risk of double taxation.

Germany has inheritance tax treaties with only a few countries — including the United States. Proper planning can make use of these treaties, exemptions, and credits to reduce or avoid double taxation.

Frequently Asked Questions (FAQs)

Top 5 Tips

1. Elect applicable law early
2. Keep asset inventories updated across all countries
3. Coordinate wills to ensure recognition in both Germany and the U.S.
4. Plan for taxes with advisors in both jurisdictions
5. Appoint an executor with authority and access in both countries

Conclusion

Cross-border estate planning is never one-size-fits-all. It requires careful alignment of laws, tax regimes, and probate procedures across borders. With the right planning, you can protect your legacy, minimize taxes, and give your heirs clarity and security.

German Attorney Nicola S. Casper-Hoesl provides dual-jurisdiction expertise, ensuring your estate is recognized, respected, and smoothly transferred in Germany.

Important notice regarding U.S. law: Nicola S. Casper-Hoesl is admitted to practice law in Germany (Rechtsanwältin, Rechtsanwaltskammer München) and registered as a Foreign Legal Consultant in Colorado (Reg. No. 57176). She is not admitted to the Colorado bar or the bar of any other U.S. jurisdiction and does not advise on U.S. federal or state law, including U.S. tax law. Where a matter involves U.S. legal or tax questions, these are coordinated with U.S.-licensed attorneys and CPAs. The information on this page is general information, not legal advice.