A client came to my office a few years ago. He had built a successful technology firm from his apartment in Manhattan after arriving in the U.S. on a work visa. He was a resident, paid his taxes, and had a standard will he’d downloaded online. He assumed his family was protected. He was mistaken.
He believed his estate would be covered by the multimillion-dollar federal estate tax exemption. But because he was not yet a U.S. citizen and his permanent home—his legal domicile—was still considered to be his country of origin, a different federal law applied. For non-resident aliens, the federal estate tax exemption is not over $13 million. It’s $60,000. Everything he had built above that $60,000 was at risk.
This is a scenario we see often. For individuals and families who are not U.S. citizens, standard estate planning advice can be more than ineffective—it can be destructive. Your immigration status is not just a federal matter; it has profound implications for your legacy, your assets, and the stewardship of your family’s future here in New York.
Who Can Be the Custodian of Your Legacy?
One of the most personal decisions in an estate plan is choosing an executor for your will or a trustee for your trust. This person—your fiduciary—is entrusted with immense responsibility. They must gather your assets, pay your debts, and distribute what remains according to your wishes. It requires prudence and integrity. But for non-citizens, it also involves a critical question of legal eligibility.
Many of my clients naturally want to name a sibling or a parent from their home country to serve in this role. It’s an understandable impulse. Yet, New York law places specific restrictions on who can serve. Under Surrogate’s Court Procedure Act § 707, a non-domiciliary alien—someone who is not a citizen and does not reside in the U.S.—is generally ineligible to serve as a fiduciary.
There are exceptions. A non-domiciliary alien might be permitted to serve alongside a co-fiduciary who is a New York resident. But failing to plan for this contingency can lead to a crisis. If your chosen executor is disqualified by the court, the court will appoint someone else to manage your affairs, potentially a complete stranger to your family. A deliberate plan accounts for these rules from the start.
The Two Federal Estate Tax Systems
The single greatest risk for many international families is the federal estate tax. There are effectively two different systems, and which one applies depends on your domicile—not just your residency status for immigration purposes. Domicile is a legal concept based on intent. It is the place you consider your permanent home, the one you intend to return to even when you are away.
For U.S. citizens and domiciled residents, the federal estate tax exemption is currently over $13 million per person. For a married couple, this can effectively shield over $26 million from federal tax. It’s a generous figure that protects the vast majority of American families.
For a non-citizen who is not domiciled in the U.S., that exemption plummets to just $60,000. This applies only to their U.S.-based assets, such as real estate in Brooklyn, stocks in U.S. companies, or funds in a U.S. bank account. For an entrepreneur, an executive, or any individual who has built a life and accumulated assets here, this can be a catastrophic difference. We have seen estates face unexpected seven-figure tax bills because this distinction was overlooked.
Proper planning can mitigate this exposure. Instruments like a Qualified Domestic Trust (QDOT) can be used when one spouse is not a U.S. citizen, allowing for the deferral of estate taxes. Other strategies involving trusts and ownership structures can also provide significant protection, but they must be put in place with intention.
A Plan for a Global Life
Stewardship is about more than just tax planning. For international families, it’s about creating a coherent plan for a life that often spans multiple countries. Your will in the United States may not be recognized in another country, and vice versa. Assets held abroad may be subject to different inheritance laws—or forced heirship rules—that conflict with your wishes.
A prudent estate plan must account for this reality. It involves coordinating with legal counsel in other jurisdictions and understanding the reach of international tax treaties. It also means creating clear contingencies for the guardianship of minor children, particularly if the parents have different citizenship or immigration statuses.
The goal is to create a structure that protects your family, preserves your assets, and honors your legacy, no matter where they are in the world. The work is complex, but far less so than the legal battles a family might face without a plan.
The first step is to gain clarity. If you are a non-U.S. citizen with assets in New York, I encourage you to schedule a confidential review of your holdings and residency status. We can map out your potential exposure to the federal estate tax and assess the legal eligibility of your chosen fiduciaries under state law.
