So, you’ve got U.S. investment accounts and you’ve filled out the beneficiary forms. Maybe you’ve even said, “I’m all set—this skips probate and makes life easier for the kids.” Sounds tidy, right?
But what if that neat little plan actually leads to months of delays, paperwork headaches, and frustrated family members in three different time zones?
This happens more often than you’d think—especially when you live in Israel and still manage money in the U.S.
Estate planning isn’t about checking a box. It’s about making sure the boxes talk to each other. And when your financial life crosses international borders, things get trickier than many people realize.
The Beneficiary Shortcut That Can Lead to a Detour
A Transfer-on-Death (T.O.D.) account lets you name someone to receive your assets when you pass away—without going through probate. It’s a popular strategy for Americans looking to keep things simple. But that kind of simplicity rarely holds up when cross-border rules come into play.
T.O.D. accounts were designed with domestic situations in mind. If your heirs live in the U.S., great. If they live in Haifa, London, or Johannesburg? Not so great. Now you’re adding legal systems, tax rules, and brokerage firm policies that don’t always play nicely with one another.
I’ve seen families in Israel wait months—sometimes longer—while trying to claim assets that were supposed to transfer automatically. Documents get stuck in bureaucratic limbo. Financial institutions demand U.S.-based accounts that heirs can’t open. And frequently, the IRS holds everything up because it’s slow to issue a transfer certificate.
Real People, Real Friction
One family thought they had planned well. They split their assets among three children, each named on a different T.O.D. account. But those accounts held different types of investments—stocks in one, cash in another, and municipal bonds in the third. Over time, the values drifted apart, and so did the siblings’ relationships. What started as an effort to be fair sparked arguments, resentment, and confusion.
Even worse? None of the children had seen the paperwork ahead of time. When questions arose, no one had answers. What was meant to be seamless turned out to be anything but.
As one estate attorney told me, “People think filling out a form is a plan. It’s not. It’s a tactic. Planning means coordination.” And that coordination becomes essential when the plan has to work across oceans, jurisdictions, and generations.
Don’t Let Good Intentions Get Lost in Translation
If you’re living in Israel and your financial life is still rooted in the U.S., here’s what you can do right now: check your beneficiary forms, your wills, and your account titles—and make sure they all tell the same story.
A Transfer On Death (T.O.D.) form might still have a place in your plan. But by itself? It may leave gaps you never intended. Depending on your situation, you might need a trust, an updated will, or simply a more thoughtful mix of accounts. These things aren’t just legal tools—they’re communication tools. They speak for you when you’re no longer around to clarify.
More importantly, speak to your family while you can. They don’t need to know dollar amounts, but they do need to understand the structure. The most common source of inheritance stress? Surprises.
You Can’t Fix It After You’re Gone
The right time to double-check your estate plan isn’t later—it’s now. If your money is in New York but your kids are in Jerusalem, you’ve got a cross-border challenge on your hands. That doesn’t mean things need to get complicated—it just means they need to be coordinated.
If you’d like to dig deeper into what that coordination looks like, check out this helpful guide: Understanding Cross-Border Inheritance: Tips for Trust Beneficiaries. It breaks down some of the most common issues and gives you a clearer sense of how to protect the people you care about.
Because a good estate plan doesn’t just pass on money—it passes on clarity, calm, and confidence.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of this website, Portfolio Resources Group, Inc. or its affiliates. Neither Profile nor Portfolio Resources Group, Inc. or its affiliates, provide tax or legal advice. Nothing in this article is intended to be investment, tax, or legal advice. Information in this article is gathered from sources considered reliable, but we cannot guarantee their accuracy. Past performance is no guarantee of future returns.
