Learn how estate planning changes with U.S. residency and why tools like QDOTs and dual wills are essential for EB-5 investors.
Estate Planning for Green Card Holders: QDOTs, Dual Wills & Other Must-Do Moves
When EB-5 investors plan their immigration journey, estate planning rarely tops the list. But as Paul Fegan from Navis Wealth explains in Part 4 of our CanAm x Navis series, establishing U.S. residency can dramatically change how your wealth is taxed, transferred, and protected.
Catch up on Part 1, Part 2, and Part 3
Full webinar recap also available here
U.S. Estate Tax Rules Are Different—And They Start at Residency
One of the most important but overlooked transitions in the EB-5 process is becoming subject to U.S. estate and gift tax laws. These rules don’t just apply to U.S. citizens—they apply to green card holders as well.
Key points:
- U.S. citizens and green card holders receive a lifetime estate and gift tax exemption (currently over $13 million, but scheduled to drop by 2026)
- Non-citizen spouses are not entitled to the unlimited marital deduction unless special planning is done
- U.S. residency can expose your global estate to U.S. tax—unless action is taken early
“Moving to the U.S. changes your estate tax footprint overnight,” Fegan notes. “If you want to preserve family wealth, you need a new plan.”
What Is a QDOT—and Why Might You Need One?
A QDOT, or Qualified Domestic Trust, allows a non-U.S. citizen spouse to defer U.S. estate taxes on inherited assets from a deceased U.S. spouse.
Without a QDOT, the IRS may impose estate taxes immediately on the death of the first spouse, even if everything is left to the surviving partner.
QDOT benefits:
- Delays estate tax until distributions are made
- Allows the surviving spouse to remain in control of assets
- Preserves liquidity and family planning flexibility
“Think of QDOTs as a bridge,” Fegan says. “They allow cross-border families time to plan, adapt, and preserve wealth across generations.”
Dual Wills: One Country Isn’t Enough
If you own assets in more than one country, a U.S. will alone may not be sufficient. That’s where dual wills come in—one governing assets located in the U.S., and one in your country of origin.
Advantages of dual wills:
- Faster probate process in each country
- Reduces the risk of conflicting inheritance laws
- Ensures culturally or legally appropriate distribution of property
But beware: the two wills must be coordinated to avoid overlap or contradiction.
Cross-Border Estate Planning Checklist for EB-5 Investors
- Identify whether your spouse is a U.S. citizen or green card holder
- Evaluate your need for a QDOT or spousal gifting strategies
- Review asset location and determine if dual wills are needed
- Model estate tax exposure under current and future exemption levels
- Coordinate U.S. planning with foreign inheritance law advisors
FAQ: Estate Planning for EB-5 Families
Q: Does the U.S. estate tax apply to non-citizens?
Yes—green card holders are treated like citizens for estate tax purposes, including global assets.
Q: Do I still need an estate plan if I have a will in my home country?
Yes. U.S. courts may not honor foreign wills without extensive legal review. Dual planning is often essential.
Q: What happens if I don’t use a QDOT for a non-citizen spouse?
Estate taxes could be due immediately upon the death of the first spouse, reducing inheritance significantly.
Conclusion: Protecting What You’ve Built
EB-5 investors spend years planning for U.S. residency—but too few spend time planning what happens after. Estate planning is about more than distributing assets—it’s about protecting your family’s future.
As Paul Fegan explains in this clip, the combination of residency status, tax exposure, and cross-border wealth requires a fresh approach—and the right team to guide you.
Coming Up Next:
In Part 5, we look at what happens after arrival: setting up U.S. bank accounts, building credit, and assembling your local financial team.
