Forced heirship
Many civil-law countries (Spain, Portugal, France, Italy, Mexico) have 'forced heirship' rules — certain percentages of an estate must go to children regardless of will provisions.
If you own property in those countries, local rules can override your US will. Common solutions: hold property in a US-based LLC (which is governed by US law), or write a country-specific will alongside your US will.
For US-only assets (US bank accounts, US brokerage, US real estate), your US will controls. The complication is foreign-located assets.
Dual wills
Some expats keep two wills: a US will for US assets and a separate will for assets in their country of residence. The wills must be carefully coordinated to not conflict.
Local lawyers in your country of residence draft the local will. This is a $1,000-$3,000 expense but avoids estate disputes.
US estate tax for expats
Federal estate tax exemption: $13.99M (2026) per individual, $27.98M per married couple. Most retirees are below this. State estate tax varies — Massachusetts, Oregon, New York have lower thresholds.
Living abroad doesn't reduce US federal estate tax. As a US citizen, your worldwide estate is subject to US estate tax.
If your country of residence also has an estate tax (most don't, but some do), tax treaties prevent double taxation.
Beneficiary designations
401(k), IRA, life insurance, and bank/brokerage TOD beneficiaries pass OUTSIDE your will. They go directly to the named beneficiary regardless of country.
This is GOOD for expats — bypassing local probate is faster and cleaner. Update beneficiaries before moving abroad to make sure they're current.
Foreign-born spouse caveat: if your spouse isn't a US citizen, the unlimited spousal exclusion for estate tax doesn't apply. The exclusion drops to $190K (2026 indexed) annually for foreign spouses. Plan accordingly with a CPA.
Healthcare directives and POA abroad
Your US healthcare directive (living will) and Power of Attorney are recognized in some countries but not all. Best practice: have a local-language equivalent drafted by a local lawyer.
In a medical emergency, having a local-language directive in the local hospital's hands is dramatically better than English-only US docs.
Cost: $300-$1,000 for local healthcare directive + POA from a country-of-residence lawyer.