New York's immigrant and multinational families often have beneficiaries scattered across several countries. That's not a barrier to a good estate plan, but it does introduce practical questions a purely domestic plan doesn't have to answer — from who can serve as executor to how money actually gets to someone on another continent.
Can a foreign resident serve as executor?
New York does not categorically bar a nonresident from serving as executor, but under SCPA 707(1)(c) a non-citizen who lives outside New York is ineligible to serve alone; the court may, in its discretion, allow that person to serve as co-executor alongside a New York-domiciled co-fiduciary. In practice, this means a beneficiary who lives abroad and is not a U.S. citizen cannot serve as your sole executor, even if they're your obvious first choice as, say, your only child. Many families in this situation name a New York co-executor to serve with the foreign heir, or an alternate who can act if the primary choice is disqualified or simply finds it impractical to administer a New York estate from overseas.
Getting assets to a beneficiary overseas
Distributing an inheritance to someone abroad is usually possible but takes longer and involves more paperwork: wire transfer authorizations, foreign bank verification, and sometimes currency conversion issues. Real property abroad owned by you, or being left to a beneficiary who will hold it abroad, may also be subject to that country's own inheritance rules regardless of what your New York will says — some countries have forced heirship rules that override a foreign will's terms for property located there.
Tax reporting considerations
A U.S. citizen or resident who receives a large gift or inheritance from a foreign person may have IRS reporting obligations (such as Form 3520), even though the inheritance itself is typically not taxed as income. Conversely, your beneficiary's foreign status does not change your own estate tax: as a U.S. citizen your entire worldwide estate remains subject to federal estate tax, and as a New York domiciliary your estate (other than real estate and tangible property located outside New York) remains subject to New York estate tax; your estate plan should account for that with your accountant's input alongside your attorney's.
- Confirm whether a nonresident beneficiary can also serve as executor, or name a qualified alternate
- Document precise legal names, addresses, and identifying information for foreign beneficiaries to avoid delays in Surrogate's Court
- Coordinate with counsel in any country where you or your heirs own real property
- Loop in your advisors early if significant assets will cross borders
- Keep a durable power of attorney current in case you need someone to act for you while traveling or living part-time abroad
Plan for the logistics, not just the intent
The substance of your wishes — who gets what — is often the easy part. The logistics of an international estate are where delays and disputes creep in. Our wills and estate planning team regularly works with New York families whose heirs live overseas, and can coordinate with foreign counsel where needed.
If your family spans borders, call +1 212 518 3868 or schedule a free consultation to build a plan that actually works across them.
