Two countries, one estate plan: Cross-border estate planning for US and Australian wills

Estate planning is about making sure your intentions are clear, your loved ones are protected, and your assets are passed on efficiently. But when your financial life spans both Australia and the United States, the process is more complex and needs careful consideration.

For US/Australian expats, a will is rarely just a domestic document. It sits within a wider framework of tax, succession law, probate procedures, superannuation, trusts and cross-border family arrangements. A plan that works perfectly well in one country can create delays, confusion or unintended outcomes in the other if it has not been drafted with both jurisdictions in mind.

The key is not just having a will, but crafting an estate plan in which your US and Australian documents, structures and advisers are working together.

One global estate, two legal systems

Many expats assume that once they have signed a valid will, their estate planning is effectively done. In practice, the more relevant question is whether that will is likely to be recognised, interpreted and administered properly in every country where assets are held.

A will that is valid in Australia may not be the most effective document for dealing with US assets, and a US will may not neatly address Australian legal concepts such as superannuation death benefit nominations, or the way certain trust and estate arrangements are administered here. That does not mean a single will never work across borders, but it does mean cross-border estate planning needs to account for jurisdiction-specific issues from the outset.

Should you have one will or separate wills?

For many US/Australian expats, this is the starting question. Broadly, there are two options for international estate planning: a single international will covering assets in both countries, or concurrent wills covering assets in each jurisdiction.

While an international will may be recognised in both countries, separate wills are often the better solution, as they can reduce interpretive issues and make administration more efficient if drafted carefully. The critical point is coordination. If separate wills are used, they must be drafted so that one does not accidentally revoke or undermine the other, and all advisers involved need full visibility of the overall structure.

Probate can be slower when assets are spread across borders

Even where the documents themselves are valid, the administration of the estate can become significantly more cumbersome when assets are held in multiple countries. Probate may be required in more than one jurisdiction, and the process for recognising a foreign grant can vary depending on where the asset is located and how it is held.

This is where the practical side of cross-border estate planning becomes just as important as the legal side. Well-crafted documents, clearly identified executors, accurate asset registers and aligned beneficiary arrangements can all reduce delays, legal costs and stress for family members already dealing with a difficult period.

Wills do not control everything

One of the most important estate planning issues for Australian expats is understanding that not every asset passes under the will. Superannuation often sits outside the estate, and the eventual recipient may depend on the fund rules, any binding death benefit nomination in place, and the tax status of the beneficiary.

Trusts add another layer. In Australia, assets held in discretionary or family trusts may not form part of the personal estate in the same way as assets held in an individual name, and succession may instead depend on control of the trust rather than the terms of the will. For US-linked families, this is especially important because trust treatment can have very different tax implications for US citizens, green card holders or US-resident beneficiaries.

US estate tax can change the planning conversation

Australia does not currently impose a formal estate or inheritance tax, but the US can. For US citizens and, in estate tax terms, US-domiciled individuals, US estate and gift tax can apply to worldwide assets. However, non-US persons may still face US estate tax exposure on US situs assets, such as US real estate and shares in US corporations.

That distinction matters for expats because the tax exposure may turn not only on citizenship, but also on domicile, asset location and treaty position. The Australia-US estate tax treaty can provide important relief in some cases, particularly for Australian residents who are not US citizens or US domiciliaries but hold US assets. However, treaty relief should not be assumed without seeking technical advice.

Beneficiary design can create unintended outcomes

Estate planning is not just about who receives what. It is also about how, where and with what tax consequences. A beneficiary living in a different country may face very different outcomes depending on whether they inherit superannuation, Australian property, US securities or an interest connected to a trust.

This means cross-border wills should be reviewed alongside beneficiary nominations, account ownership, trust control arrangements and powers of attorney. In some cases, it may be sensible to direct certain assets to certain beneficiaries based not only on family objectives, but also on residency, tax exposure and administrative practicality.

Executor choice matters more than many people realise

Choosing an executor is always important, but for expats it can also have tax and administrative consequences. Your executor may need to deal with institutions in both countries, obtain probate in more than one jurisdiction, liaise with lawyers and tax advisers across time zones and manage assets subject to different rules.

Residency can also matter. If none of the executors are Australian residents, the estate may risk being treated as a non-resident trust in some circumstances. This can create a less favourable Australian tax outcome. Including at least one appropriately located and capable executor can be a practical way to support smoother administration.

Estate planning is broader than the will itself

For US/Australian expats, the will is only one part of the estate planning framework. It should sit alongside enduring powers of attorney, healthcare directives, super death benefit nominations, trust succession arrangements, ownership structures and a coordinated understanding of likely tax outcomes.

This is why cross-border estate planning works best when it’s approached holistically, rather than as a stand-alone legal task. The right outcome usually depends on how all the moving parts interact: your residency, your citizenship, your family circumstances, your succession intentions, the nature of your assets and the jurisdictions in which they are held.

A coordinated approach creates clarity

When wills in the US and Australia are designed in isolation, the risks are easy to miss. One document may unintentionally revoke another. An executor may lack authority where it is needed most. A family may discover too late that an asset passes outside the estate or that tax applies in ways no one anticipated.

A coordinated approach helps avoid those outcomes. It gives expat families a clearer roadmap, reduces the risk of delay and conflict, and helps ensure that wealth passes in a way that is consistent with both personal wishes and the realities of operating across two very different legal and tax systems.

International estate planning: A path forward for US/Australian families

Estate planning for expats with ties to both Australia and the United States requires more than having the right documents in place.It is about ensuring those documents work together, that non-estate assets are properly addressed, and that cross-border tax and succession issues are considered before they lead to delays, disputes or unexpected tax consequences for family members.

At Apt Wealth Partners, that means looking beyond the will itself and treating estate planning as one part of a broader, globally integrated wealth strategy. If your estate plan spans Australia and the United States, speaking with an Apt adviser early is the best way to make sure the documents you have in place will actually do what you intend them to.

General Advice Warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs.  It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Group of Companies which includes Apt Wealth Partners (AFSL and ACL 436121), Apt Wealth Finance (a Trading name of Apt Wealth Partners), Acceptance Finance (ACL 391715) and Acceptance Finance Australia Pty Ltd (a Corporate Credit Representative of Acceptance Finance - Credit Representative Number 580562) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.

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