Foreign real estate can present a challenging issue for estate planning.
Many countries have strict rules about who may inherit property. These rules are unlike anything in the U.S. Attorneys who practice in the foreign country should be consulted so any estate plan can take the foreign laws into account when dealing with that property. Inheritors also face other issues, according to the Washington Post in "Inheriting property overseas can be a dream come true, but it comes with challenges."
Among other things, income generated from the property in the foreign country must be reported to the IRS. Whether any tax is due depends on whether taxes on that income are paid to the foreign country and how much those taxes are. Finally, the use and sale of the land might be restricted by the foreign country, so local attorneys should be consulted on those issues.
An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances and that may include property in foreign lands.
Reference: Washington Post (May 29, 2018) "Inheriting property overseas can be a dream come true, but it comes with challenges."
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