Because when your wealth goes international, your legacy protection strategy should, too.
The Bottom Line:
- Can global market downturns ever actually help my estate plan? Yes. Volatility can create opportunities to transfer wealth at lower valuations, which may potentially save significant estate taxes.
- How does estate planning work if I own assets in multiple countries? Different jurisdictions have conflicting laws about inheritance, ownership structures, and taxation, which can make professional coordination across borders essential.
- Do I need to worry about currencies when planning my legacy on a global scale? Absolutely. Currency fluctuations can affect everything from daily expenses abroad to your estate’s eventual settlement.
The Full Story:
You have a vacation home on the French Riviera, a business operating across three continents, and your estate attorney just asked: “Where exactly are all your international accounts domiciled?”
This can be the reality of cross-border wealth, where success unlocks even greater financial complexities—and opportunities—in your legacy planning.
Whether you own international investments, are planning a retirement abroad, or are already navigating wealth across multiple countries, the need for strategic coordination remains the same.
As your Chief Strategy Officer, we help identify these variables before they become problems, and structure your wealth so you’re positioned to act when opportunity windows open. If you or your wealth has gone global (or you’re planning a move that will take it there), we’re here to help ensure your legacy protection is aligned appropriately across borders as strategically as you are.
Navigating Global Market Volatility: How International Downturns Can Become Gifting Opportunities
When people see global markets drop 30-40%, many feel anxiety about their portfolio—and that’s completely normal.
But, depending on the situation, we may see an opportunity to transfer international assets to the next generation, potentially at significantly lower valuations and tax costs.
Let’s say you’re worth $100 million, with assets spread across U.S. markets, European real estate, and international holdings. You’ve determined you need about $30 million for your lifestyle and security. Suddenly, global markets drop 40%, and your portfolio sits at $60 million. You’re understandably unsettled.
But look at what just became possible: You could transfer $10 million in assets (perhaps that French property or your international investment portfolio) to your children or grandchildren right now. Because your total estate is temporarily valued lower, that $10 million gift represents roughly 17% of your estate moving to the next generation. If you make that same $10 million gift at the higher valuation, it only represents 10% of your estate.
Finding Your Window of Opportunity
It’s important to note that this strategy only works if we’ve already discussed it before markets drop and if we’ve structured your international assets to allow clean transfers.
When global markets plummet, many people freeze. That’s completely human. But if we haven’t already walked through projections showing you’ll still have more than enough, coordinated with your international tax specialists, and structured your overseas holdings appropriately, the moment passes. You stay frozen until markets recover, and the opportunity closes.
This is why legacy protection for global wealth isn’t static. We need to know where your assets are, how they’re structured across jurisdictions, and what you want to accomplish—well before opportunity windows open.
Related: Why Financial Plans (Not Market Headlines) Should Drive Asset Allocation
Living Abroad: What Makes Cross-Border Estate Planning Different?
Beyond timing market opportunities, the structural differences in how countries handle estates create another layer of complexity, one that catches many people off guard.
Unfortunately, international estate planning doesn’t always transfer smoothly. Different jurisdictions have fundamentally different rules about who inherits what, how assets can be owned, and what taxes apply:
| Inheritance laws can override your wishes. For example, forced-heirship laws in France often dictate that property goes directly to children regardless of what your U.S. will specifies. Your intent doesn’t automatically travel with your assets. | Ownership structure shapes your options. How you hold an overseas home or bank account affects both taxes and inheritance. The structure you choose (individual ownership versus holding assets through an entity) raises different questions about coordination with your overall estate plan. |
| Banking regulations vary by jurisdiction. Access, reporting requirements, and estate settlement processes differ across regions, which can create friction when your family needs funds or when settling your estate. | Tax treaties are specific, not universal. Some protect you from double taxation, others don’t. It depends on the countries involved and the type of asset. |
How We Approach It
When you’re moving assets across borders, we start by mapping what’s actually changing. Your 401(k) stays put—it doesn’t travel well, and it passes outside your estate with listed beneficiaries anyway. But property purchases abroad or new international bank accounts need additional planning.
Take that vacation home in France, for instance. Individual ownership means French inheritance law applies, and French law has opinions about who inherits property, regardless of what your U.S. will says. Setting up an entity to hold the property might give you more control and cleaner estate administration. But which entity? Formed where? And how does it coordinate with your existing U.S. estate plan and tax situation?
We coordinate with your network of specialists, including U.S.-based CPAs and estate attorneys, international tax professionals, and local experts in your destination countries, to answer these questions. Together, we can orchestrate how all these pieces interact to best meet your goals.
The Currency Question Most People Don’t Think to Ask
Once we’ve sorted the legal and tax structures, there’s a practical element that affects your day-to-day life abroad, and eventually, your estate settlement. If you’re living in Spain but most of your wealth is in U.S. dollars, how do you pay for healthcare or property taxes without constantly losing money to exchange rates?
Currency markets operate around the clock, constantly shifting, and the practical questions matter:
- Which currencies should you hold based on where you’re spending money and where your assets are invested?
- Where should you bank to minimize conversion fees and maximize accessibility?
- How do you handle everyday expenses without watching exchange rates erode your purchasing power?
These decisions affect both your daily life and your estate’s eventual settlement. If your beneficiaries need to access funds held in multiple currencies across different countries, poor planning can mean significant losses during an already difficult time.
We help you think through which currencies to hold, where to maintain accounts, and how to structure things so your family isn’t navigating currency conversion logistics while settling your estate.
Looking Ahead: What’s Changing (and What’s Not)
The variables we’ve walked through (market conditions, international regulations, ownership structures, currency fluctuations) won’t stay static. That’s not a flaw in the planning; it’s the reality of managing wealth that crosses borders.
Markets may create new volatility and new opportunity. Countries will adjust their estate and tax laws. Digital assets will continue evolving, with governments still figuring out how crypto and other holdings move across borders and what reporting will be required.
Related: The Strategic Questions Every Sophisticated Investor Should Ask Right Now
This is why legacy protection for global wealth is an ongoing partnership, not a one-time plan. Your wealth is dynamic. The regulations governing it are dynamic. Having someone who sees how these pieces interact and when they matter to you specifically means you don’t carry that complexity yourself.
Working Together on Cross-Border Complexity
International considerations and market volatility add complexity to estate planning, but they also create opportunities. The key is having a partner who sees both and who can help you act on opportunities while avoiding pitfalls.
If this raised any new questions about your estate planning or global wealth strategies, we’re always here to talk. We can review your current structure, so you have a clearer understanding of how your financial plan is structured.
If you’re not yet working with us but want guidance on managing wealth across borders, we welcome a conversation. Reach out to learn more about the Waddell & Associates Difference, and how we serve as your Chief Strategy Officer for every aspect of your financial life.
This content is for informational purposes only and should not be considered legal, tax, or investment advice. Opinions are those of the author and may change. Waddell & Associates is an SEC-registered investment adviser. Registration does not imply a certain level of skill. Past performance is not indicative of future results. Please consult your professional advisors before making financial decisions.
