Nobody wants to think about this. That’s understandable. But there’s an enormous difference between not wanting to think about it and doing nothing about it, because when there’s no estate plan, it’s your heirs who pay the price. And in the U.S., that price can be high.
A Latin American investor who buys a property in Florida in their personal name and dies without estate planning can leave their children with a legal process lasting 12 to 18 months, probate costs of $10,000 to $30,000, and potential exposure to the American estate tax on 40% of the asset’s value. None of those three outcomes is inevitable. All can be avoided with a correct structure put in place before it becomes necessary.
The probate problem for foreigners
Probate is the judicial process through which an American court validates a deceased person’s will and supervises the transfer of their assets to heirs. In Florida, formal probate can take between 6 months and 2 years.
For an American citizen with all their assets in the U.S., probate is a known and relatively manageable process. For the heirs of a foreigner living in Colombia, Mexico, Venezuela, or any other Latin American country, American probate is a logistical nightmare. It requires hiring an attorney in Florida, having legal representation in the state, obtaining apostilled documents from multiple countries, and in many cases traveling to the U.S. several times during the process.
All of that has a real cost. And while probate lasts, the property can’t be sold, can’t be transferred, and may continue generating expenses (HOA, insurance, taxes) that the heirs must cover out of pocket.
The American estate tax: the risk most people ignore
For non-resident foreigners, the American estate tax exemption threshold is only $60,000. Everything above that amount in American assets can be subject to a tax of up to 40%.
Compared to the threshold for American citizens and residents (more than $13 million in 2024), the difference is enormous.
If you have a $500,000 property in Florida in your personal name as a non-resident foreigner, and you die, the theoretical calculation would be:
- Value subject to estate tax: $500,000 – $60,000 = $440,000
- Estimated tax at 40%: $176,000
That amount must be paid to the IRS before heirs can receive the property. If they don’t have the funds available, it can force a sale under unfavorable conditions.
It must be clarified that the actual calculation depends on tax treaties between the U.S. and the deceased’s country of residence, the total value of American assets, and the legal structure used. But the exposure exists and is real for most Latin American investors.
| Country | Tax treaty with U.S. on estate tax |
|---|---|
| Colombia | No |
| Mexico | Yes (partial) |
| Venezuela | No |
| Peru | No |
| Ecuador | No |
| Chile | No |
| Argentina | No |
Tools for an orderly succession
Revocable Living Trust
The most used and cleanest mechanism for transferring a Florida property to heirs without going through probate.
How it works: you transfer the property from your personal name to the trust. You act as trustee while alive, with full control over the asset. Upon death, the successor trustee (whom you designated in the trust document) transfers the property directly to the beneficiaries according to the trust’s instructions, without judicial intervention.
The revocable trust avoids American probate but doesn’t reduce estate tax exposure. For an investor with one or two moderate-value properties, it may be sufficient if the main goal is to simplify succession.
LLC with succession operating agreement
If the property is already in an LLC, the operating agreement can include clear instructions about what happens to LLC membership interests when the member dies. Heirs inherit the company’s membership interests (not the property directly), which can avoid probate on the real estate asset.
The LLC alone doesn’t resolve the estate tax problem, but with a correct multi-layer structure (LLC inside a trust, for example), exposure can be reduced.
Irrevocable trust
Unlike the revocable trust, the irrevocable trust cannot be modified once formed. By transferring assets to an irrevocable trust, those assets are no longer part of your personal estate, which can reduce or eliminate American estate tax exposure.
The price of that protection is loss of control: you can’t withdraw assets from the trust or change beneficiaries easily. It’s a tool for significant estates with long-term planning, not for every investor profile.
Will with apostille
A will drafted in the investor’s country of residence can be recognized in Florida if it meets state requirements and is properly apostilled. However, having a will doesn’t avoid probate — it only indicates how to distribute assets within the probate process. This is significantly worse than a well-structured trust or LLC.
Practical strategy by asset value
Not all investors need the same structure. Complexity (and cost) should be proportional to the estate being protected.
First property, value up to $300,000: An LLC with a clear operating agreement and an apostilled will may be sufficient for a first property. The cost of advanced protection may not be justified at this level.
One or two properties, total value $300,000–$800,000: Revocable trust that owns the LLC memberships. Avoids probate and simplifies succession. Estate tax exposure exists but can be managed with American life insurance (which can be taken out by foreigners and whose benefit is exempt from estate tax).
Portfolio over $800,000: More sophisticated structure with irrevocable trust, possibly a foreign LLC, and tax advisory in both countries. The savings on estate tax and probate costs more than justify the structuring fees.
| Asset value | Recommended structure | Estimated structuring cost |
|---|---|---|
| Up to $300,000 | LLC + apostilled will | $500–$1,500 |
| $300,000–$800,000 | LLC + revocable trust | $3,000–$6,000 |
| Over $800,000 | Irrevocable trust + LLC + binational tax advisory | $8,000–$20,000+ |
Timing matters: why it’s better to do it now
Estate planning has a temporal logic: it’s easier, cheaper, and more effective when done before it’s needed.
If you wait until you’re ill to form a trust, there are legal restrictions on what assets you can transfer. If you wait until the property has risen significantly in value, the transfer to the trust can generate tax implications that wouldn’t exist if it had been done from the beginning.
The best time to plan the succession of a Florida property is when you buy it. The second best time is now.
To understand how an LLC created specifically for investment in Florida can be the first step of a well-built succession structure, there’s detailed information worth reviewing before speaking with an attorney.
Frequently asked questions
Does my will from Colombia/Mexico/Venezuela apply in Florida?
A foreign will can be recognized in Florida if it’s properly apostilled and meets the state’s formal requirements. However, having a will doesn’t avoid American probate — it only guides how to distribute assets within that process. To avoid probate, you need a trust or proper LLC structure.
Do my children have to be in the U.S. to inherit the property?
No. Heirs can be in any country. What they do need is legal representation in Florida to manage the inheritance, especially if there’s probate. With a well-structured trust, that process can be handled remotely.
Does the revocable trust have an annual maintenance cost?
In general, no. Once formed, the revocable trust doesn’t require additional annual payments. Costs are primarily the attorney fees for its formation and any eventual modifications.
Can I add properties to the trust after forming it?
Yes. You can transfer additional properties to the trust at any time via a quitclaim deed. Many investors form the trust with the first property and add assets as the portfolio grows.
Does life insurance help with estate tax?
Yes. An American life insurance policy with a designated beneficiary doesn’t pass through the American estate and the benefit reaches heirs directly. Some investors use that benefit specifically to pay the estate tax on properties, without needing to sell assets.
If you own properties in Florida or are planning to buy, and want to understand how to structure succession correctly for your specific situation, talk to our legal and estate advisor. The initial consultation has no cost and can save your heirs tens of thousands of dollars.
