Estate Planning for Dual Citizens: Navigating Two Countries' Tax and Succession Laws
Why dual citizenship creates estate planning complexity
Dual citizenship can be an enormous personal and professional asset — but from an estate planning perspective, it introduces a layer of complexity that catches many families unprepared. A dual citizen is subject to the laws of both countries, and those laws frequently conflict. Tax obligations, forced heirship rules, recognition of trusts, and the treatment of foreign assets can all differ dramatically between jurisdictions, and coordinating a plan that works under both legal systems simultaneously requires careful, cross-border analysis.
The U.S. taxes its citizens worldwide — regardless of where they live
The United States is one of only two countries in the world (along with Eritrea) that taxes its citizens on worldwide income and assets regardless of where they reside. This means a dual U.S.-French citizen living in Paris is subject to U.S. estate and gift tax on their worldwide assets at death or upon making large lifetime gifts — just as if they lived in New York. The U.S. estate tax exemption (approximately $13.61 million per person in 2024, subject to sunset after 2025) applies, but so does the full reporting and compliance apparatus of U.S. tax law.
The other country of citizenship may impose its own inheritance or estate tax — or it may not. France, for example, imposes inheritance tax on transfers of French-situs assets and on transfers by French residents. Germany, the United Kingdom, Japan, and many other countries have their own regimes. A dual citizen may face tax exposure in both jurisdictions on the same transfer.
Forced heirship: when you cannot freely choose your heirs
Many civil law countries — including France, Germany, Spain, and most of Latin America — impose forced heirship rules that guarantee certain heirs (typically children and sometimes spouses) a minimum share of the estate, regardless of what a will says. These rules can directly conflict with a U.S.-style estate plan that directs assets into trusts, bypasses certain family members, or makes large charitable bequests.
The EU Succession Regulation (Brussels IV) allows EU residents to elect the law of their nationality to govern their succession — a provision that can be useful for U.S.-EU dual citizens who want U.S. freedom of testation to apply to their European assets. But the election must be expressly made in the will, and its interaction with U.S. law requires careful coordination.
Treaty protection — and the gaps
The United States has estate and gift tax treaties with a limited number of countries, including the United Kingdom, France, Germany, Japan, and Australia, among others. These treaties can reduce or eliminate double taxation on specific asset categories and may expand the exemption available to non-domiciliary citizens. However, many countries with which dual citizens have strong connections — Canada, India, China, Israel, and most of Latin America — have no estate tax treaty with the United States. In those cases, double taxation must be addressed through foreign tax credits and careful asset structuring rather than treaty relief.
Key planning strategies for dual citizens
• Identify which country's law governs each asset class and where potential double taxation exists
• Use applicable estate and gift tax treaties to eliminate or reduce overlapping tax exposure
• Make nationality elections under EU or other applicable succession law where beneficial
• Structure assets to minimize situs exposure in high-tax jurisdictions
• Coordinate the timing of gifts and wealth transfers across both legal systems
• Review beneficiary designations, titling, and trust structures for compatibility with both countries' laws
Estate planning for dual citizens requires attorneys who understand both U.S. and international law — and how they interact. Our firm works with dual citizen families across multiple jurisdictions to build coordinated, legally sound plans. Contact us to start the conversation.
