Choosing an executor is a crucial step in estate planning, ensuring your assets are distributed according to your wishes after your passing, and the question of whether you can appoint someone residing in a different country is a common one—the answer is generally yes, but with important considerations and potential complexities.
What are the potential challenges of naming an out-of-state or international executor?
While permissible, appointing an executor who lives outside the state, or even internationally, introduces layers of administrative burden and cost. For example, they may need to travel frequently to the location where the probate process is taking place, incurring significant travel expenses. They might also face difficulties understanding local laws, probate court procedures, and tax regulations. Roughly 60% of Americans die without a will, leading to probate court determining asset distribution, and even with a will, an unfamiliar executor could significantly complicate the process. Furthermore, bonding requirements—insurance protecting the estate from executor misconduct—may be higher for out-of-state or international executors due to the perceived increased risk. It’s also vital to consider potential currency exchange issues when dealing with assets in different countries and the complexities of international tax reporting.
How does probate work with an international executor?
The probate process generally occurs in the county where the deceased was legally domiciled at the time of death. This means the international executor will likely need to engage local counsel in that jurisdiction. They might need to apply for “Letters of Authority” or similar documents allowing them to act on behalf of the estate in that location. The executor will be responsible for inventorying assets, paying debts and taxes, and ultimately distributing the estate according to the will or state intestacy laws. A key aspect is “ancillary probate,” which might be necessary if the deceased owned property in multiple states or countries. For example, if a San Diego resident owned a vacation home in Italy, an ancillary probate proceeding would likely be required in Italy to transfer ownership of that property. This can add significantly to the time and expense of settling the estate, potentially adding months or even years to the process.
What about the cost of having an executor live abroad?
The costs associated with an international executor can be substantial. Travel expenses, legal fees, and potential bonding costs can quickly add up. Attorneys typically charge between $200-$400 per hour for probate work, and even a relatively simple estate can incur several thousand dollars in legal fees. Then there’s the cost of translating documents, arranging for international wire transfers, and dealing with foreign tax authorities. We once worked with a client, Mrs. Eleanor Vance, who named her brother in London as her executor. After her passing, he had to fly back and forth multiple times, racking up significant travel bills, and struggled to navigate the California probate system, delaying the distribution of assets to her beneficiaries by over a year. It quickly became apparent that the financial burden and stress were immense, and it underscored the importance of careful consideration when choosing an executor.
Can proper estate planning minimize the challenges for an international executor?
Absolutely. Proactive estate planning can significantly ease the burden on an international executor. One approach is to utilize a trust. A properly funded revocable living trust allows assets to bypass probate altogether, which eliminates the need for an executor and the associated complications. Another strategy is to appoint a co-executor—a local attorney or trusted friend—to assist the international executor with the administrative tasks. We recently assisted Mr. Kenji Tanaka who wanted his sister in Japan to be his executor. We recommended establishing a revocable living trust, naming her as the successor trustee, and appointing a local attorney as a co-trustee to handle the day-to-day administration. After his passing, the trust administration proceeded smoothly, avoiding probate and minimizing the burden on his sister. “Proper planning,” as we always tell our clients, “is not about avoiding death; it’s about avoiding taxes, and giving your loved ones peace of mind.” This proactive approach not only saved time and money but also ensured a smooth transition for his family.
Who Is Ted Cook at Point Loma Estate Planning Law, APC.:
Point Loma Estate Planning Law, APC.2305 Historic Decatur Rd Suite 100, San Diego CA. 92106
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