What Happens If You Don’t Plan Ahead: Cross-Border Estate Planning Mistakes to Avoid

The Hidden Risk Behind Global Success

For high-net-worth individuals with international holdings, cross-border estate planning is not a luxury—it's a necessity. Assets in multiple countries mean multiple legal systems, tax codes, and potential heirs. The complexity increases exponentially when planning is postponed or done poorly.

At Infinity⁹, we’ve seen firsthand how even the most financially savvy investors can overlook key estate details. The consequences? Frozen accounts, family conflict, forced asset sales, and years of costly litigation. The good news is that most of these pitfalls are preventable.

Let’s walk through what can go wrong—and more importantly, how to do it right.

Mistake #1: Assuming Your Home Country’s Will Covers Everything

One of the most common misconceptions is that a single will drafted in your home country automatically governs all your global assets. Unfortunately, that’s rarely the case.

Different jurisdictions have different inheritance laws. For example, some countries apply forced heirship rules, which require certain portions of the estate to go to specific family members, regardless of your wishes. Others may not recognize foreign wills at all, triggering local intestacy laws.

What to do instead: Consider creating separate wills for each jurisdiction where you own significant assets. But do this carefully—wills must be coordinated to avoid contradicting each other.

Mistake #2: Ignoring Local Probate Procedures

Probate is the legal process of validating a will and distributing assets. When you own real estate or business interests abroad, those assets typically have to go through local probate. This can be time-consuming, expensive, and public.

In some countries, probate can take years. Meanwhile, your heirs may be unable to access funds or manage properties, even if they’re paying ongoing expenses like taxes or maintenance.

How Infinity⁹ helps: Our team designs estate plans with probate efficiency in mind, using legal structures like trusts or holding companies to keep assets out of probate entirely when possible.

Mistake #3: Overlooking Double Taxation Risks

Cross-border estates are often subject to estate or inheritance taxes in more than one country. For example, if you’re a U.S. citizen who owns property in Latin America, you could face U.S. estate tax and local inheritance tax—without the right structure.

Not all countries have treaties to avoid double taxation. Even when they do, documentation and compliance are critical to qualify.

Protective strategy: Use legal vehicles that provide tax deferral or exemption status across jurisdictions. Holding foreign property through a properly structured entity can make all the difference.

Mistake #4: Not Considering Currency and Transfer Restrictions

Some countries have currency controls or restrictions on repatriating funds. If your heirs live in the U.S. but inherit assets in a country with capital controls, they might struggle to access or transfer those funds.

Example: A Miami-based heir inherits an apartment in Buenos Aires. Without the right planning, they may not be able to sell it or convert proceeds into dollars without heavy taxes or delays.

Smart move: Plan with these restrictions in mind. Structures like offshore holding companies can give you more flexibility and control.

Mistake #5: Not Updating Your Plan When Life Changes

Estate plans aren’t "set and forget." Marriages, divorces, births, relocations, and regulatory changes all impact your plan’s effectiveness.

If your estate plan hasn’t been reviewed in the last 2–3 years, or if your portfolio has grown internationally, you may have serious gaps.

Infinity⁹ approach: We revisit estate structures regularly with our investors to make sure they continue to reflect their wishes and the realities of the law.

Why Private Structures Matter More Than Ever

Public investment vehicles, like REITs or mutual funds, often come with limited estate planning options. You’re subject to institutional processes, forced liquidation timelines, and little control.

Private investments, particularly those structured through entities like trusts or offshore companies, give you more control, privacy, and flexibility. At Infinity⁹, we build these structures into our capital framework from day one.

That means you don’t just invest smarter—you pass on wealth smarter too.

Your Legacy Shouldn’t Be Left to Chance

Planning ahead doesn’t just protect your assets. It protects your values, your vision, and your family from unnecessary pain. Cross-border estate planning is complex, but it doesn’t have to be overwhelming.

Infinity⁹ is built to handle complexity. Whether you’re an expat in the U.S., a Latin American entrepreneur, or a global investor with ties in multiple countries, our approach ensures your legacy travels as well as your capital.