Many people wish to pass on valuable property, including that which may be located in other countries, to their loved ones. But what happens when you inherit property overseas. It might initially seem like a dream come true but it could come with challenges.
Many Americans who inherit property overseas will have to navigate a very complicated foreign legal system and often in another language. The amount of paperwork associated with these international receipts of materials in and of itself can be overwhelming. There are accounts that must be transferred, expenses that must be paid, and other issues that may arise based on the type of property you inherit. Furthermore, there may be a legacy associated with the property that you receive, making it difficult to hold up to these expectations if you were not anticipating the receipt of such property. When an American inherits property overseas, it falls under foreign statutes.
This means that wherever the real estate is located, the laws of that country govern it. This makes it all the more important to ensure that if you have access to foreign property that you plan to pass onto your loved ones, that you set aside time to talk to estate planning professionals in that local area about what this might look like for your family and how to best avoid challenges for them in the future.