Case Study
Henriette-Lucy is a French national who has been living in the United States for several years, where she has built a successful business and accumulated substantial assets.
At the same time, she maintains strong ties to France, including:
- Real estate holdings
- Financial assets
- Family connections and future heirs located in France
Her estate is international.
She has obligations in both countries.
She wants to:
- Preserve and transfer wealth efficiently
- Avoid unnecessary taxation
- Ensure that her estate plan functions seamlessly in both countries
On the surface, she already has planning in place.
But like many cross-border individuals, her current structure was built within one system, without coordination between the two.
At the same time, she maintains strong ties to France, including:
- Real estate holdings
- Financial assets
- Family connections and future heirs located in France
Her estate is international.
She has obligations in both countries.
She wants to:
- Preserve and transfer wealth efficiently
- Avoid unnecessary taxation
- Ensure that her estate plan functions seamlessly in both countries
On the surface, she already has planning in place.
But like many cross-border individuals, her current structure was built within one system, without coordination between the two.
The Challenge
If Henriette-Lucy were to proceed without restructuring, several issues would likely arise:
- Exposure to both U.S. and French tax systems without proper coordination, creating a risk of double taxation
- French forced heirship rules potentially overriding parts of her intended estate distribution
- Existing U.S. estate planning instruments not fully recognized or effective under French law
- Misalignment between asset location and ownership structure, leading to inefficiencies in taxation and transfer
- Gift and estate tax exposure in one or both jurisdictions not properly anticipated
- Ongoing reporting obligations not fully coordinated, increasing compliance risk
The issue is not that Henriette-Lucy lacks planning.
The issue is that her planning is not integrated across jurisdictions.
- Exposure to both U.S. and French tax systems without proper coordination, creating a risk of double taxation
- French forced heirship rules potentially overriding parts of her intended estate distribution
- Existing U.S. estate planning instruments not fully recognized or effective under French law
- Misalignment between asset location and ownership structure, leading to inefficiencies in taxation and transfer
- Gift and estate tax exposure in one or both jurisdictions not properly anticipated
- Ongoing reporting obligations not fully coordinated, increasing compliance risk
The issue is not that Henriette-Lucy lacks planning.
The issue is that her planning is not integrated across jurisdictions.
The Strategy
01
Cross-Border Residency and Exposure Analysis
We would begin by defining Henriette-Lucy's tax and legal exposure across both systems:
- Determine her tax residency and potential domicile status in the United States and France
- Identify which assets fall within the scope of each jurisdiction
- Assess how each country will assert taxing rights over income, assets, and transfers
This includes:
- Clarifying where Henriette-Lucy is exposed to income, estate, and gift taxation
- Anticipating overlapping jurisdictional claims
- Establishing the framework for all subsequent structuring decisions
- Determine her tax residency and potential domicile status in the United States and France
- Identify which assets fall within the scope of each jurisdiction
- Assess how each country will assert taxing rights over income, assets, and transfers
This includes:
- Clarifying where Henriette-Lucy is exposed to income, estate, and gift taxation
- Anticipating overlapping jurisdictional claims
- Establishing the framework for all subsequent structuring decisions
02
Coordinating U.S. and French Tax Treatment
We would structure the estate to ensure alignment between the two tax systems:
- Analyze how assets and entities are treated differently in the U.S. and France
- Evaluate the impact of the U.S.–France tax treaty on income, estate, and gift taxation
- Identify mismatches that could create unintended tax exposure
This includes:
- Structuring ownership to avoid double taxation or conflicting treatment
- Positioning assets to benefit from treaty protections where applicable
- Ensuring long-term tax efficiency across both jurisdictions
- Analyze how assets and entities are treated differently in the U.S. and France
- Evaluate the impact of the U.S.–France tax treaty on income, estate, and gift taxation
- Identify mismatches that could create unintended tax exposure
This includes:
- Structuring ownership to avoid double taxation or conflicting treatment
- Positioning assets to benefit from treaty protections where applicable
- Ensuring long-term tax efficiency across both jurisdictions
03
Aligning Estate Planning with French Succession Rules
We would review Henriette-Lucy’s estate plan to ensure that it functions properly under French succession rules, especially where heirs or assets located in France are involved:
- Analyze how French forced heirship rules may affect the intended distribution of assets
- Determine whether existing U.S. wills, trusts, or estate planning documents are effective in France
- Identify conflicts between the U.S. estate plan and French inheritance law
This includes:
- Coordinating French and U.S. estate planning documents so they do not contradict each other
- Structuring asset ownership to preserve flexibility while respecting mandatory succession rules
- Anticipating how heirs in France may be affected by the plan
The objective is to ensure that Henriette-Lucy’s estate plan is not only valid in one country but coherent and enforceable across both systems.
- Analyze how French forced heirship rules may affect the intended distribution of assets
- Determine whether existing U.S. wills, trusts, or estate planning documents are effective in France
- Identify conflicts between the U.S. estate plan and French inheritance law
This includes:
- Coordinating French and U.S. estate planning documents so they do not contradict each other
- Structuring asset ownership to preserve flexibility while respecting mandatory succession rules
- Anticipating how heirs in France may be affected by the plan
The objective is to ensure that Henriette-Lucy’s estate plan is not only valid in one country but coherent and enforceable across both systems.
04
Structuring Ownership and Asset Positioning
We would reorganize how Henriette-Lucy holds her assets to optimize both tax and succession outcomes:
- Evaluate direct ownership versus the use of entities or holding structures
- Align asset location with tax and estate objectives
- Structure ownership to facilitate transfer and long-term management
This includes:
- Reducing exposure to inefficient taxation
- Simplifying administration across jurisdictions
- Ensuring that ownership structures are recognized and effective in both systems
- Evaluate direct ownership versus the use of entities or holding structures
- Align asset location with tax and estate objectives
- Structure ownership to facilitate transfer and long-term management
This includes:
- Reducing exposure to inefficient taxation
- Simplifying administration across jurisdictions
- Ensuring that ownership structures are recognized and effective in both systems
05
Implementing and Coordinating Legal Structures
We would implement the structuring strategy across jurisdictions:
- Prepare and coordinate legal documentation required in both the U.S. and France
- Align estate planning instruments with cross-border objectives
- Ensure consistency between all elements of the structure
This includes:
- Avoiding fragmentation between advisors or jurisdictions
- Ensuring that documentation works together as a unified system
- Verifying that implementation matches the intended strategy
- Prepare and coordinate legal documentation required in both the U.S. and France
- Align estate planning instruments with cross-border objectives
- Ensure consistency between all elements of the structure
This includes:
- Avoiding fragmentation between advisors or jurisdictions
- Ensuring that documentation works together as a unified system
- Verifying that implementation matches the intended strategy
06
Long-Term Compliance and Succession Planning
We would guide Henriette-Lucy in maintaining and adapting the structure over time:
- Ensure ongoing compliance with reporting obligations in both jurisdictions
- Adjust the structure as residency, assets, or family circumstances evolve
- Prepare long-term wealth transfer strategies aligned with both systems
This includes:
- Anticipating future tax exposure or legal changes
- Preserving flexibility for future decisions
- Ensuring that the estate remains efficient across generations
- Ensure ongoing compliance with reporting obligations in both jurisdictions
- Adjust the structure as residency, assets, or family circumstances evolve
- Prepare long-term wealth transfer strategies aligned with both systems
This includes:
- Anticipating future tax exposure or legal changes
- Preserving flexibility for future decisions
- Ensuring that the estate remains efficient across generations
