Moving Overseas? What Happens to Your Estate Plan?

I’ve been getting this question more and more lately. Clients and friends are increasingly choosing to spend part of their lives, or even retire entirely, outside the United States. Spain and Portugal come up a lot. So does Ecuador. The motivations vary, but the common thread is the same: better lifestyle, lower cost of living, or simply a desire for something different.

At some point in the conversation, the question shifts from lifestyle to logistics: “What happens to my estate plan if I’m living overseas?” It’s a great question, and the answer is not always intuitive.

Start with the Core Idea

Estate planning is not governed by just one set of laws. Instead, it is shaped by a combination of factors, including where you live, where your assets are located, and what type of assets you own.

That means your plan is not tied to a single place. It is more like a web that connects multiple jurisdictions.

The key concepts to keep in mind are: (1) Where you are domiciled (your legal home); (2) Where your assets are located; and (3) What type of assets those are. Once you understand those three things, most of the analysis falls into place.

Let’s look at a couple of examples. 

If You Have an Oregon Trust and Die in Spain

This is probably the most common version of the question.

If you have a properly drafted and funded Oregon revocable living trust, that trust does not suddenly stop working just because you are physically in Spain when you pass away. In general, your trust continues to govern the disposition of your assets, especially assets that are titled in the trust.

However, your physical presence in Spain can still matter. Spain may assert jurisdiction over certain aspects of your estate, particularly if you are considered a resident there or if you own assets located in Spain. Some countries also have forced heirship rules, which can override your preferred distribution plan in certain cases.

So the practical answer is: Your Oregon trust still works, but it may not be the only system in play.

What If You Create a Trust in Portugal but Own Property in Washington?

This is where things can get more complicated.

Different countries treat trusts very differently. Some countries, including Portugal, do not recognize trusts in the same way that U.S. law does. That does not mean planning is impossible, but it does mean the structure may look different.

If you create a planning structure in Portugal and still own real estate in Washington, the Washington property is still subject to Washington law. That means you could be dealing with a foreign planning structure on one side and U.S. property law on the other.

In many cases, this leads to what is called an ancillary probate, where a second legal process is required in the jurisdiction where the property is located.

The takeaway here is that: real estate tends to anchor your estate plan to its location.

What If You Sell Everything and Move to Ecuador?

This is where things can actually get simpler. If you sell your real estate and primarily hold financial assets such as investment accounts, those assets are generally governed by: (1) account titling; (2) beneficiary designations; and (3) the terms of your trust, if applicable.

If those accounts are held with U.S. institutions and properly coordinated with your estate plan, your U.S. planning framework can continue to work relatively smoothly, even if you are living abroad.

That said, your country of residence may still have local rules around tax and inheritance and reporting requirements. So while the asset structure is simpler, the legal overlay may still require attention.

What People Often Miss

The biggest risks in cross-border estate planning usually come from things that were never coordinated.

One common issue is assuming that a U.S. estate plan will automatically be respected everywhere. In reality, other countries may apply their own rules, especially around inheritance rights and taxation.

Another issue is failing to update documents after moving. Powers of attorney and health care directives are particularly sensitive to local law. A document that works perfectly in Oregon may not be recognized or practical to use in another country.

There is also the question of taxes. While the United States has a federal estate tax system, other countries may impose inheritance taxes, sometimes based on residency rather than citizenship. That can create unexpected exposure if it is not planned for.

Finally, financial institutions themselves can create friction. Some U.S. institutions become cautious or restrictive when account holders are living abroad, especially in certain countries. That can affect how easily assets are accessed or transferred.

My Practical Approach

When someone is living overseas or planning to, I try to simplify the framework.

First, we make sure there is a solid U.S. estate plan in place, usually centered around a revocable living trust. That continues to be the backbone for U.S. assets.

Second, we look at where the person is actually living and whether local law introduces any conflicts, particularly around inheritance rules or taxes.

Third, we focus on coordination. That means making sure:

1. Assets are properly titled

2. Beneficiary designations are aligned

3. Local advisors are involved where needed

In some cases, that may include working with a lawyer in the foreign country to create complementary documents or confirm how the U.S. plan will be treated.

Bottom Line

Living overseas does not break your estate plan, but it does add layers.

Your plan is no longer just about one state or one set of laws. It becomes a coordination exercise across jurisdictions. The goal is not to rebuild everything from scratch, but to make sure the pieces work together.

If you are considering a move abroad or already living outside the U.S., it is worth taking the time to review your plan with that lens.