Many New York residents may have purchased various assets outside of the country, or they may have a different country of origin and left some assets behind while building a new life in the United States. No matter the case, it is important that individuals remember their foreign assets while estate planning. If they do not, their families may have a difficult time accounting for and obtaining those assets later.
When creating an estate plan, it is important that all of a person's assets are disclosed. Some people may think that they do not need to address their foreign property in their estate plans because the property will not be handled according to U.S. laws, but that is not the case. Parties will still need to detail how that foreign property should pass on and to understand how that property may affect estate taxes.
When it comes to estate taxes, U.S. citizens do face taxation on their foreign property. However, some countries may have treaties that could lessen the amount of taxation. Still, it is important to discuss the possible tax implications and determine the best way to handle foreign property with experienced professionals.
Addressing foreign property when estate planning can prove immensely useful to family members when it comes time to probate the estate. It can answer many questions and make sure that foreign assets are not forgotten when it comes time to distribute property. It may prove wise for New York residents with foreign property to discuss their planning options and tools with attorneys knowledgeable in this area.