Many foreign nationals own a house or apartment along with other assets in New York (foreign nationals are persons who are not U.S. citizens or residents (or, nonresident aliens)). They are referred to here as "foreigners."

Unpleasant surprises may be in store for a foreigner's family and beneficiaries when he/she dies owning real estate, a cooperative apartment, tangible personal property or financial accounts in New York. What steps must the family take to get access to the New York assets? Which country's law will be applied? Will the estate be required to pay federal estate taxes?

The purpose of this article is to alert practitioners to how easily a foreigner's New York estate can be compelled to bring a proceeding in a New York Surrogate's Court and owe federal (and sometimes state) estate taxes, all of which add significant expense and delays before beneficiaries can receive the New York property. Unfortunately, the most vulnerable people are foreigners with small estates who fail to plan for what happens to New York and other U.S. situs assets on their death.