Cross-Border Estate Planning for Vietnam Assets

When assets lie in multiple countries, the testator holds foreign nationality, or heirs reside abroad, estate planning is no longer the business of a single legal system. This article analyzes conflicts of laws in inheritance, the validity of wills made abroad, and cross-border planning strategies.

How Cross-Border Estate Planning Differs from Domestic Planning

Domestic planning only needs to answer: how to make a valid will and how to divide. Cross-border planning must additionally answer: which country’s law governs the inheritance, whether a will made abroad is recognized, and how estate administration proceeds in each country. With just one element — a foreign subject, a relationship established abroad, assets abroad — the inheritance relation is deemed to have foreign elements (Article 663 of the Civil Code 2015).

The common mistake is making a single will on one country’s template and assuming it is effective everywhere assets exist. In reality, each country has its own rules on will formalities, forced heirship portions and recognition procedures. For the general inheritance legal framework, see inheritance, wills and estate division.

Conflicts of Laws in Inheritance: What Article 680 of the Civil Code 2015 Says

With foreign elements, the first question is which law applies — Article 680 of the Civil Code 2015 provides two conflict rules. Clause 1: inheritance is determined under the law of the country of the decedent’s nationality immediately before death — covering issues such as heir classes, inheritance scope, time of opening, and heirs’ rights and obligations. Clause 2: exercise of inheritance rights over real estate is determined under the law of the country where the real estate is situated.

Example: a French citizen living with assets in Vietnam who dies without a will — who inherits and in which class is determined under French law; but for the house in Vietnam specifically, whether the heir may hold title follows Vietnamese law. Litigation procedures always follow the law of the country where the case is resolved.

Real Estate in Vietnam Always Follows Vietnamese Law

Clause 2 of Article 680 is an “immutable” rule: where real estate sits, that place’s law decides the exercise of inheritance rights. Vietnam recognizes foreigners’ right to enjoy estates, but whether they may hold title to houses and land is entirely governed by Vietnamese law (Land Law 2024, Housing Law 2023). Foreigners not eligible to own housing in Vietnam may only enjoy the monetary value.

Practical consequence: wherever a will is made, the real-estate portion in Vietnam must still pass through the filter of Vietnamese law. Therefore, for real estate in Vietnam there should be a separate will compliant with Vietnamese law, rather than relying on a will made abroad. Details at legal services for foreigners, overseas Vietnamese.

Is a Will Made Abroad Valid in Vietnam?

The answer depends on two layers: testamentary capacity and will formalities. Article 681 of the Civil Code 2015 provides that capacity to make, amend or revoke a will is determined under the law of the testator’s nationality at the time of making, amending or revoking. The form of the will follows the law of the country where the will is made.

Vietnamese law does not “fail” wills mechanically: if the form does not conform to the law of the place of making, the will is still recognized if it conforms to the law of one of the closely related countries (next section). However, the will’s content must also conform to the law governing inheritance under Article 680, particularly provisions on heirs independent of the will.

Four Legal Systems That Can “Save” a Will’s Form

Under Clause 2 of Article 681, a will’s form is recognized in Vietnam if it conforms to the law of one of the following countries: the country where the will is made; the country where the testator resided at the time of making or at death; the country of the testator’s nationality at the time of making or at death; the country where the real estate is situated if the estate is real estate. Satisfying just one of the four systems suffices.

This provision adopts the spirit of the 1961 Hague Convention on conflicts of laws relating to the form of wills. Example: a Vietnamese citizen residing in Japan who makes a will during a trip to Australia — the will is recognized if valid under Australian law (place of making), Vietnamese law (nationality) or Japanese law (residence). This flexibility is meaningful for wills made in emergency situations.

Vietnam and the 1961 Hague Convention: Understanding Correctly

Distinguish clearly: Vietnam absorbed the spirit of the 1961 Hague Convention into Article 681 of the Civil Code 2015, but is not a party to the Convention (just as it does not participate in the Apostille Convention). Consequently, all foreign documents — wills, death certificates, authorization instruments — must undergo full consular legalisation for use in Vietnam, with no simplified procedure.

Additionally, Vietnam has signed mutual legal assistance treaties with many countries, which may contain inheritance-related clauses (jurisdiction, document recognition). When planning for a person connected to a specific country, check the bilateral treaty, as it may provide rules differing from the Civil Code’s general provisions.

Consular Legalisation and Translation: Procedures That Cannot Be Skipped

A will made abroad to be considered by Vietnamese authorities must be consularly legalised: certified at the competent authority of the country of making, then legalised at Vietnam’s diplomatic representative office in that country. Afterwards, the entire document must be translated into Vietnamese with the translation notarized.

Legalise and translate right after making the will — don’t wait until inheritance arises, when supplementation and explanations become extremely difficult. Also keep a legalised copy in Vietnam (with a lawyer or trusted person).

Parallel Will Strategy for Assets in Multiple Countries

For assets in two or more countries, the internationally recommended solution is making separate wills for each country (“parallel wills”) rather than one common will. Each will complies with the law of the country where the assets sit, is drafted or reviewed by a lawyer in that country, and must contain a clause clearly stating it governs only assets in that country and does not revoke wills made for other countries.

The fatal mistake is making a second will while forgetting this clause — the later will may be read as revoking the earlier one, collapsing the entire plan. Content must also be synchronized across wills to avoid duplicate disposition of assets. For assets in Vietnam, the will should be notarized at a Vietnamese notarial practice organization.

Choosing Estate Administrators When Assets Span Countries

An estate administrator carries out your wishes after death: collecting assets, paying debts, distributing to heirs. With cross-border assets, designate separate administrators for each country — one person in Vietnam can hardly handle both house title transfers in Vietnam and bank accounts abroad.

Selection criteria: familiarity with the law and procedures of the country where assets sit, trustworthiness, financial management capability. Many families choose lawyers or law firms in each country — especially suitable when heirs are minors or dispersed across countries. Detailed rules at estate administrators and executors.

Mutual Legal Assistance Treaties: Support Channels When Disputes Arise

When cross-border inheritance disputes arise, the mutual legal assistance treaty between Vietnam and the relevant country (if any) is an important channel for serving procedural documents, collecting evidence and requesting judgment recognition. Judicial entrustment procedures go through the Ministry of Justice and usually take months — which is why foreign-element inheritance cases often drag on.

In planning, anticipate the worst case: if heirs abroad do not cooperate, which mechanism activates? Having a complete legal dossier ready, designating an authorized representative in Vietnam and having contingency plans in the will keeps estate administration from stalling. When disputes have arisen, see the analysis at cross-border inheritance disputes.

Taxes and Costs When Moving Assets Across Borders

Each time assets cross a legal border, taxes may arise. In Vietnam, inheritance recipients pay 10% personal income tax on the portion exceeding VND 10 million per receipt (except exempted cases among relatives). Many countries apply estate or inheritance taxes with very different rates and exemption thresholds.

Good planning must calculate the total tax burden in all relevant countries, avoiding the same asset being taxed twice without deduction mechanisms. Tools such as pre-death gifts, life insurance and ownership structuring through legal entities should be considered with tax expert advice in each country.

Frequently Asked Questions