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The Final Chapter: Testamentary Instruments for Global Families

The Final Chapter: Testamentary Instruments for Global Families

As more families live, invest, and hold assets across multiple countries, estate planning increasingly requires coordination between legal systems that are not designed to work together. A foreign Will, alone, may not effectively administer U.S. assets, while a U.S. Will drafted in isolation can unintentionally disrupt an existing foreign estate plan. An important objective in cross-border estate planning is the creation of complementary structures that minimize probate friction, provide efficient tax planning for beneficiaries, and preserve the client’s intended dispositive scheme across jurisdictions. In her article, Allison Dolzani (i) explores several key cross-border testamentary planning considerations for global families with U.S. beneficiaries and U.S. assets and (ii) suggests planning, practical, and logistical guidance for U.S. estate administration of a foreign estate.

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Dynasty in the Details – U.S. Estate Planning Considerations for Global Families

Dynasty in the Details – U.S. Estate Planning Considerations for Global Families

In the United States, creating “dynasty trusts” has become common planning tool for many estate planners. A dynasty trust is a trust that may continue for generations. If done well, it provides a myriad of benefits for strategic income, estate and gift tax planning, creditor protection and ensuring family inheritance. Nonetheless, life choices have a way of interfering with preset plans. A beneficiary moves to a different country. A trustee who is a U.S. resident, but not a citizen decides to move home. A foreign parent of a U.S. spouse wishes to make a gift to the next generation of beneficiaries. These seemingly trivial details could unintentionally cause severe tax and other planning consequences in the U.S. and abroad. Based on her experience, Allison Dolzani leads the reader through a cycle of cross border issues that must be addressed as life progresses.

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