When a foreign national dies while owning assets in the United States, their family often faces complex legal steps to claim them. From frozen bank accounts to property that cannot be transferred without probate, the process can be confusing and slow for heirs who live abroad. These challenges are especially common in states like New York, where probate laws must be followed carefully to access any U.S.-based holdings.
According to the IRS, nonresidents with more than $60,000 in U.S. assets are required to file an estate tax return using Form 706-NA (irs.gov). These estates may include real property, financial accounts, investments, and online funds. Each type involves a separate legal process.
This article will explain the five most common types of U.S. assets left by foreign nationals and how international heirs can legally recover them.
1. U.S. Bank Accounts
Bank accounts held by a foreign citizen in the U.S. are frozen after death. These may include savings or fixed deposit accounts. Banks will not release money unless they receive official proof of death and legal documents. A certified death certificate, probate orders, and ID from the heirs are usually required. This process can take time if the family is abroad or if the paperwork is incomplete.
Since banks follow U.S. laws, legal support is often necessary to avoid delays. Working with a qualified New York probate lawyer can help ensure the correct documents are submitted to the right court and financial institution. These lawyers understand how to manage cross-border paperwork, meet court deadlines, and communicate with banks. Their guidance often makes it easier for heirs to access funds that would otherwise remain stuck for months.
2. Real Estate and Property Holdings
If a foreign national owns a home, land, or other property in the U.S., that asset is controlled by the laws of the state where the property sits. Even if there is a will, heirs cannot claim or sell the property without going through a legal process called probate. This includes submitting paperwork to the court, getting approval to act on behalf of the estate, and then transferring the property.
Property transfers can take months if there are delays or missing forms. Heirs may need to update the property title, clear any taxes, and handle closing documents if they plan to sell. Some states have faster systems, while others require full court reviews. Having someone on the ground who can handle this process is very helpful, especially when the family lives far away.
3. Investment Portfolios and Retirement Accounts
Many people invest in markets through brokerage accounts, stocks, mutual funds, or retirement plans like IRAs or 401(k)s. These accounts are also frozen when the account holder dies. To access them, heirs must send legal documents to the broker or plan manager. Most firms need a death certificate, probate letters, and forms that show who has legal rights to the account.
Some accounts may have named beneficiaries, which means they pass directly without probate. But if there are no names listed, or if there is a dispute, the process becomes longer. Each company has its own process, and some will only accept original documents sent by mail. That’s why it helps to have legal support when dealing with large investment firms or cross-border issues.
4. Life Insurance Policies with Companies
Life insurance can be a major asset, especially when issued by a U.S. company. These policies often pay directly to the named person listed as the beneficiary. This avoids the court process. But if no name is listed, or the policy has not been updated in years, the claim must go through probate.
To claim the funds, heirs need to send the company a completed form, an official death certificate, and ID. If the paperwork does not match or the family is unsure how to file the claim, the process may be delayed. In cases where the company cannot reach the heirs or the policy has gone unclaimed, legal steps are needed to reopen the case. Insurance money can be held for years if the process is not started correctly.
5. Digital and Online Financial Assets
Digital wealth is now a growing part of many estates. This includes online-only bank accounts, cryptocurrency, PayPal balances, and stock trading apps. Unlike traditional accounts, digital assets are harder to track. Often, families don’t even know they exist unless someone shares access before death.
To recover these assets, heirs need proof of death and legal authority. They may also need a court order or access to login information. Each platform has its own rules. For example, some apps will only release funds after full legal review. Because these assets are not always listed in a will, many families miss them. A probate lawyer can help search for digital wealth, file the correct papers, and prevent these funds from being lost.
Final Thoughts
Heirs from other countries often face challenges when trying to access U.S. assets after a loved one dies. Each type of asset, whether it is a bank account, a home, investments, insurance, or digital funds, has its own process and legal rules. But with the right documents and the right support, international families can recover what belongs to them and avoid long delays.
