CEA International Estate Considerations 5

Question 1

A client has dual US-Italian citizenship and dies domiciled in Italy. Which country has primary jurisdiction over the client's personal property for succession purposes?

Accepted Answer

Italy, because the client was domiciled there at death

Answer

For movable personal property, most countries (including Italy under EU Succession Regulation 650/2012) apply the law of the decedent's domicile at death.

Question 2

What is an 'apostille' and why is it important in international estate administration?

Accepted Answer

A certificate that authenticates a public document for use in a foreign country under the Hague Convention

Answer

An apostille is an international certification under the 1961 Hague Convention that authenticates the origin of a public document so it is accepted in other signatory countries.

Question 3

A US advisor discovers that a client's estate includes a foreign pension plan in Australia. How is a distribution from this plan to a US beneficiary generally treated for US income tax?

Accepted Answer

Potentially taxable as ordinary income, depending on the US-Australia tax treaty provisions

Answer

Foreign pension distributions to US beneficiaries are generally taxable as ordinary income, though treaty provisions may provide partial exclusions or reduced rates.

Question 4

Which principle in private international law determines the choice of law for succession of immovable (real) property across borders?

Accepted Answer

Lex situs — the law of the place where the property is located

Answer

Under the lex situs principle, succession to immovable property is governed by the law of the jurisdiction where the property is physically located.

Question 5

A non-US domiciliary dies leaving a will that was validly executed under the laws of their home country. For US probate purposes, what must typically occur for the will to be recognized?

Accepted Answer

The will must be 'proven' or 'authenticated' in a US probate court, often through ancillary probate

Answer

Foreign wills are not automatically recognized in US courts; they must be submitted to ancillary probate proceedings in the relevant US state to transfer US-situs assets.

(CEA) Certified Estate Advisor Practice Test

(CEA) Certified Estate Advisor Practice Test

CEA International Estate Considerations 5