Does your estate plan still work when a child moves abroad?

In this quarter’s issue, Dave Jones, JD, LLM, CFP®, Director of Estate Strategy, explains what a child’s move abroad can mean for a U.S. estate plan, and when a plan is worth revisiting. Paul Meyer, 2026 summer intern, contributed to the research and writing.

At Bailard, we’ve noticed a growing trend among the families we work with. More parents have children who are exploring opportunities overseas through education, careers, marriage, or simply by keeping the option of living in another country someday. These are exciting possibilities, but they can also raise estate planning questions that go unnoticed until much later.

Many estate plans were designed with the expectation that children would continue living in the United States. Today, that expectation is becoming less certain. When a child moves abroad, even if the move is expected to be temporary, another country’s legal and tax system may become relevant to your estate plan. Local laws may govern tax residency, trusts, inheritances, and other wealth transfers in ways that differ from the United States. That doesn’t necessarily mean your estate plan needs to change, but it does provide a good reason to revisit the assumptions behind it.

When does a move abroad become a planning issue?
The planning conversation typically begins when your child is no longer viewed as simply visiting another country but instead becomes a resident under that country’s laws. This often occurs when they accept employment, establish a home, or otherwise meet the country’s residency requirements. Once that happens, another country’s legal and tax system may begin applying to important aspects of your child’s financial life.

The key question is whether the planning strategies that work well in the United States, particularly trusts and other estate planning structures, will be treated the same way in your child’s new country of residence.

How other countries may view your estate plan
The answer depends on the laws of the country where your child resides. While many countries share legal concepts that are familiar to U.S. practitioners, they may apply very different rules to trusts, inheritances, gifts, and other wealth transfers.

For example, countries such as the United Kingdom, Canada, and Australia share a common law tradition with the United States, yet they may still apply different tax or reporting rules to trusts and other estate planning structures. In many civil law countries, including France, Germany, Italy, and Spain, trusts are not recognized or treated in the same way they are under U.S. law.

As a result, determining how a U.S. trust will be taxed or administered can be considerably more complex. Local inheritance laws, including forced heirship rules in some jurisdictions, may affect how assets ultimately pass to beneficiaries. It’s also important to note that not all foreign countries recognize the tax-free wrapper of a Roth IRA. Account owners and beneficiaries may be subject to local income or capital gains taxes on withdrawals. When combined with the U.S. 10-year rule for account depletion, this could create a significant, unexpected tax liability for both traditional and Roth IRAs.

The practical impact turns on that country’s laws, the structure of your estate plan, and your family’s particular circumstances. What works as intended under U.S. law may be treated differently in another jurisdiction.

Another factor to consider is whether the United States has entered into an estate and gift tax treaty with the country where your child resides. These treaties are intended to coordinate certain cross-border estate and gift tax issues, but they exist with only a limited number of countries and typically address only part of the overall planning picture. Whether or not a treaty applies, local rules on trusts, inheritances, and gifts still deserve careful consideration.

Several countries come up repeatedly in these conversations. The table, “Estate planning considerations for selected countries,” compares the key considerations for each.

If your child has moved abroad, start the conversation
If your child or another beneficiary has established residency in another country, now is a good time to learn more about how that country’s laws may affect your estate plan. In many cases, no changes will be necessary. The important step is understanding whether your existing planning continues to work as intended under a different legal and tax system.

Cross-border estate planning often requires more than one perspective. Your advisor may recommend coordinating with local attorneys or tax professionals who understand the laws of the country where your child now resides, while also working with your U.S. estate planning team. Together, they can help determine whether your trusts and other planning strategies continue to accomplish your family’s goals.

At Bailard, we believe good estate planning evolves as families evolve. As more families become international, estate planning increasingly requires a broader perspective. Starting the conversation early can help ensure your plan continues to reflect your intentions, wherever life takes the next generation.

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This material is provided for educational purposes only. Neither Bailard nor any of its employees can provide tax or legal advice. Please consult your tax advisor regarding your particular situation.