Moving Abroad? Here’s What to Know About Your Estate Plan, Taxes & Investments
Images of moving abroad don’t usually include the less glamorous aspects of managing your financial life. Still, prudent planning up front can save you headaches, surprise tax bills, and messy estate complications down the road.
First, clarify the nature of your move. Is this a temporary stay, an open-ended relocation, or a permanent emigration? Your answer should shape how you structure your accounts, where you pay taxes, how to draft estate documents, and whether you maintain US residency ties (e.g., property, voter registration, business ownership).
We encourage clients to think in three layers:
- Lifestyle plan – How long will you be away? How often will you visit the US?
- Legal/tax residence – Where will you have tax residency?
- Legacy plan – Where do you want your assets to go, and under which country’s rules, if something happens to you?
Once you possess that context, you can tackle the technical pieces more confidently.
Estate planning
Most clients heading abroad already have a US will, medical directives and powers of attorney, and beneficiary designations on accounts. Many countries recognize foreign wills, but that doesn’t mean they operate cleanly in practice. Owning US accounts and property, and adding a home, business interests, or bank accounts overseas, creates a portfolio spread across multiple countries, each with its own rules and tax consequences.
In some cases, it’s wise to maintain your existing US will for US assets and create a local will in your new country for assets located there.
Forced heirship rules
Some countries (especially in Europe and parts of Asia/Latin America) have forced heirship laws. This means you cannot freely choose who inherits certain assets. A portion may be legally reserved for spouses or children, regardless of what your US will says. Inevitably, this can conflict with blended families, unmarried partners, or charitable bequests.
Powers of attorney and medical directives
There may be a conflict between a power of attorney agreement in the US and what is expected locally. What works in one place may not work in another. Drafting local versions simplifies the coordination between US and non-US agents.
US estate tax exposure
US estate and gift tax rules apply even if you live abroad. For wealthier clients, treaties and cross-border planning can help minimize double taxation or structural issues with multinational estates. Before you move, review your estate plan with professionals experienced in cross-border matters.
Tax planning
When Americans think about moving abroad, taxes often rank among the biggest unknowns. If you’re a U.S. citizen or long-term green card holder, worldwide income is generally taxed, no matter where you live. Moving to another country usually means you now have to navigate two tax systems. The real work becomes understanding how those systems interact.
Risks of double taxation
One of the first questions to explore is whether you’ll qualify for US tax relief while abroad. Many Americans use the Foreign Earned Income Exclusion, foreign tax credits, or, in some countries, totalization agreements that coordinate Social Security obligations. These tools may help reduce or even eliminate double taxation, but the rules are subtle, and you need to coordinate them with how your new country treats your income.
Earnings vs. investments
Tax treatment of earnings and investments varies around the world. Some countries tax worldwide income; others impose wealth or net worth taxes. Many even look at US retirement accounts or certain US funds differently from how the IRS treats them. In some places, gains that are tax‑deferred in the US may be taxed annually overseas.
Business ownership and cross-border taxes
If you own a business, a side gig, or a rental property, additional complexity emerges. The way your business is structured or the way your rental income flows can create a taxable presence abroad, additional filing requirements, or the risk of double taxation. These issues are solvable, but only if you plan for them before you relocate.
Living abroad also adds more reporting to your financial life. These filings don’t always result in more taxes, but you do have to maintain a paper trail of foreign bank accounts and other financial assets for future reference. The same goes for local reporting rules for US retirement accounts.
Investments
When you move abroad, one of the first financial questions is where your accounts should live. Many people end up with a combination of US-based accounts — brokerage accounts, IRAs, and 401(k)s — alongside employer plans in their new country and local bank or investment accounts overseas. You need to know which to keep and which to close. And, sometimes, which to open.
Global rules aren’t uniform. Some US custodians allow non-residents to maintain existing accounts but limit new trading activity or demand updated address documentation. In contrast, others don’t work with clients residing in certain countries at all. Also, your new country may impose higher taxes on US funds or ETFs or treat them as “offshore” investments.
This is where working with an advisor may be invaluable. An experienced guide can help you decide which U.S. accounts to keep, where you should — or must — open local accounts, and how to coordinate a global strategy that supports your long-term goals.
Currency risk and cash flow
A move abroad means adding currency risk management to your financial plan. We help clients start by identifying where their future spending will take place, which currency feels most natural as their financial “base,” and whether their income is in the same currency as their day-to-day expenses. This informs how much to allocate to US versus non-U.S. assets and how to plan retirement distributions.
Tax-efficient investing across borders
Some common cross-border investment issues to watch for:
- Mutual funds or ETFs that are tax-efficient in one country but not in another
- Treatments of capital gains (short vs long term)
- Different regimes for dividends and interest
- Local “wrapper” accounts (like ISAs, TFSAs, or pension schemes) that may or may not be tax-favored from a US perspective
Coordinate an evidence-based investment lineup with the tax rules of your new country.
Insurance, Social Security, and retirement benefits
A move abroad may remove the financial safety nets you’ve relied on. Start with your health insurance. Choose between a local healthcare system, private coverage, or an international expat plan based on how you plan to handle emergencies, routine care, and long-term medical needs.
Next, review your disability and life insurance. Many policies don’t carry over when you move abroad, and some stop providing benefits once you establish residency elsewhere. Confirm what remains in force, what doesn’t, and whether you’ll need additional coverage in your new country.
Give the same attention to your Social Security and pension benefits. In some countries, work may count toward local pension eligibility. Others have a totalization agreement with the US, which helps you coordinate Social Security credits and avoid double taxation. You should also understand how the U.S. taxes your Social Security benefits when you live overseas.
Practical steps before you move
Here’s a high-level checklist we often walk through with clients:
- Clarify your timeline and intentions
- Temporary vs long-term vs permanent move.
- Review your estate plan
- Update your will, powers of attorney, and medical directives.
- Consult with an estate attorney in your destination country to determine whether you need a local will or other documents.
- Engage a cross-border tax team
- Understand your future filing obligations in both countries.
- Plan around foreign earned income, foreign tax credits, and potential double taxation.
- Audit your investment lineup
- Confirm your custodians can work with you once you reside abroad.
- Understand how your host country will tax US accounts and funds.
- Coordinate a global allocation consistent with your extended objectives.
- Update beneficiary designations
- Retirement accounts, life insurance, HSAs, and taxable accounts (if using TOD/beneficiary designations).
- Revisit your risk management
- Health, life, disability, property, and liability coverage in both countries.
- Document everything and keep it organized
- Store key documents digitally and share access with trusted contacts (family, executor, advisor).
Your money story is moving, too
Yes, moving abroad is a financial and legal decision, but it’s also a life transition. We often see clients wrestle with guilt about leaving family or roots behind and anxiety about “starting over” financially. A mindful planning process can help provide greater understanding and assurance, not just financial security. You don’t have to figure it out alone. Working with a team familiar with cross-border considerations can help you navigate key financial decisions before you move — and adapt as your plans evolve.
About the author: Katy McDonald, CFP®, is a Lead Advisor at Brighton Jones. She helps high-income professionals and families design tax-efficient investment strategies and retirement plans aligned with their principles and future objectives.
Disclaimer: This material is provided for informational purposes only and is not intended to offer personalized investment, legal, tax, or financial advice. The information contained herein is derived from sources believed to be reliable but cannot be guaranteed. Brighton Jones makes no representation as to the accuracy or completeness of the information and accepts no liability for any loss arising from the use of this material. Brighton Jones is a registered investment adviser with the US Securities and Exchange Commission (“SEC”). Registration as an investment adviser does not imply a certain level of skill or training. The advisory services and fees offered by Brighton Jones are described in our Form ADV Part 2A Brochure, which is available at https://adviserinfo.sec.gov or upon request. Brighton Jones may only transact business in those jurisdictions where it is properly registered or exempt from registration. This communication does not constitute an offer to provide advisory services in any jurisdiction in which such offer would be unlawful. Any tax or legal information discussed is general in nature and should not be relied upon for the purpose of avoiding any tax penalties. Always consult with a qualified attorney, CPA, or other professional regarding your specific legal and tax circumstances. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. No guarantee or assurance is made that any investment strategy will achieve its objectives.
