Non-U.S. citizens can create estate plans in California, but different tax rules, documentation requirements, and cross-border considerations may apply. Your immigration status, where your assets are located, and whether your beneficiaries are U.S. citizens all affect how your estate is handled.
If you live in California or own property here, state law allows you to use wills, trusts, and other planning tools. However, federal tax exposure and international issues often require a more tailored approach.
Can Non-U.S. Citizens Have a Will or Trust in California?
Yes. California law does not restrict estate planning based on citizenship. You can create a valid will or revocable living trust as long as you meet basic legal requirements, including capacity and proper execution.
A revocable living trust is often used to:
- Avoid probate in California
- Maintain privacy
- Provide ongoing management of assets
We often recommend trusts when you own California real estate or want to simplify asset transfers, especially if your family members live in different countries.
How Do Federal Estate Taxes Affect Non-U.S. Citizens?
Federal estate tax rules are one of the biggest differences for non-U.S. citizens.
While U.S. citizens benefit from a large estate tax exemption, non-citizens who are not considered domiciled in the U.S. (nonresident, non-domiciled individuals) may have a much lower exemption, often around $60,000 for U.S.-situs assets such as real estate or certain investments.
This means:
- California property owned by a non-citizen may be subject to federal estate tax
- U.S.-based accounts and investments can also be included
- Tax treaties between the U.S. and certain countries may change how these rules apply
Careful planning can reduce or avoid unnecessary tax exposure.
What Is a Qualified Domestic Trust (QDOT)?
If a U.S. citizen leaves assets to a non-U.S. citizen spouse, a Qualified Domestic Trust (QDOT) may allow those assets to pass without immediate estate tax if the U.S. citizen spouse dies first.
A QDOT allows:
- Deferral of estate taxes on assets left to a non-citizen spouse
- Structured distributions that comply with federal rules
- Continued financial support for a surviving spouse
It is important to understand that a QDOT defers estate taxes rather than eliminating them. Assets remaining in the trust at the surviving spouse’s death are generally still subject to estate tax. If the surviving spouse becomes a U.S. citizen and meets certain IRS requirements, the QDOT restrictions typically no longer apply.
Without a QDOT, the unlimited marital deduction generally does not apply, and transfers to a non-citizen spouse may be subject to estate tax at the first spouse’s death.
How Does Residency or Immigration Status Impact Planning?
Your immigration status can influence how your estate is treated, particularly for tax purposes.
Key distinctions include:
- U.S. domiciliaries: May qualify for higher federal estate tax exemptions
- Non-domiciliaries: Typically subject to stricter tax rules on U.S.-based assets
Domicile is based on intent and ties to the United States, not just visa status. We look at factors such as how long you have lived in the U.S., where your primary home is, and your long-term plans.
What Happens If You Own Property in Multiple Countries?
Owning assets in more than one country adds complexity to your estate plan.
You may need to account for:
- Different inheritance laws across jurisdictions
- Potential double taxation
- Conflicts between foreign and U.S. estate documents
In some cases, separate estate planning documents may be appropriate for assets held abroad. International assets may require additional counsel outside California.
How Can You Protect Beneficiaries Who Live Outside the U.S.?
If your beneficiaries are not U.S. citizens or live abroad, distribution planning becomes more detailed.
Considerations may include:
- Currency and transfer restrictions
- Foreign tax implications for recipients
- Ongoing trust management for minors or dependents abroad
Using a trust can help control how and when assets are distributed, especially when beneficiaries are in different legal systems.
Do Non-U.S. Citizens Need a Different Estate Plan?
In many cases, yes. While the same core documents apply, the structure often changes to address tax exposure and cross-border issues.
A well-structured plan may include:
- A revocable living trust for California assets
- Tax planning strategies for U.S.-situs property
- Coordination with foreign legal and tax professionals
- Clear beneficiary designations that align with your overall plan
We focus on building a plan that reflects both your life in California and your connections abroad.
Create a Plan That Works Across Borders
At OC Wills & Trust Attorneys, we work with individuals and families with cross-border ties to create plans that comply with California law while accounting for global factors. If you own property in California or are planning for family members in other countries, we can help you put a structure in place to support your goals. Contact us to discuss your situation and next steps.
