For a Turkish national who owns a home, an investment account, or company shares in the United States, estate planning is not a routine formality but a necessity that shields the family from a heavy tax and court burden. For someone treated as US-domiciled, up to 15 million dollars passes free of estate tax in 2026; for a non-domiciled foreign national, the same exemption on US-sourced assets is only 60,000 dollars, with amounts above it taxed at up to 40 percent. That gap is the most expensive risk most Turkish families with US assets are unaware of. Yellow Law Group, headquartered in Plano (Texas) with partner offices in Chicago (Illinois), Irvine (California), Alpharetta (Georgia), and Fairfield (New Jersey), guides Turkish clients through estate planning, backed by an attorney team with more than 10 years of collective practice. This guide compares the three core tools (a will, a trust, and a power of attorney) and explains who needs which.
Why Turks With US Assets Need an Estate Plan
The first question in estate planning is not tax but legal status: are you US-domiciled or not? Domicile is separate from a residence permit; it means being present in the US with intent to remain indefinitely. A green card holder is generally treated as domiciled and taxed on worldwide assets, but benefits from the 15 million dollar exemption. Someone who lives in Turkey and holds only a vacation home or investment account in the US is not domiciled; only their US-sourced (US-situs) assets are taxed, but the exemption is just 60,000 dollars.
US-situs assets are led by US real estate and shares in US companies; shares count as US-situs even when held in an account abroad. An 800,000 dollar apartment in New Jersey or a stock portfolio held at a US brokerage, for example, can generate a tax of up to 40 percent on the portion above 60,000 dollars at the owner's death. Planning aims to reduce that burden lawfully by changing how those assets are held (individually, in a trust, or through a company).
The IRS resource on estate tax for nonresidents shows the threshold above which US-sourced assets require a filing. The filing obligation for nonresident asset holders above that threshold is detailed in the IRS resource on nonresidents who must file. Tax is only one dimension of planning; the second is controlling who your assets pass to and how, whether during your life or at your death. This is where the three core tools come in.
The Three Core Tools: Will, Trust, and Power of Attorney
Estate planning is not a single document but a set of complementary tools. Each answers a different question: who your assets go to at death (will and trust), whether the process gets stuck in court (trust), and who acts on your behalf if you become unable to decide (power of attorney).
| Tool | What It Does | When It Takes Effect |
|---|---|---|
| Will | Determines who receives assets at death; names a guardian for minor children | After death, with court approval (probate) |
| Living Trust | Passes assets to heirs without getting stuck in court; provides privacy and control | The moment it is created; takes effect at death without court |
| Power of Attorney | Names someone to make financial and medical decisions while you cannot | During life, upon incapacity |
A common misconception is "I have a will, the rest is unnecessary." A will covers only death and asset distribution; it does not protect you when an accident or illness leaves you unable to decide, and a power of attorney fills that gap. Another misconception is that a will avoids court; on the contrary, a will requires court approval (probate). The tool for those who want to avoid the court process is a trust. How the three tools are structured together depends on the individual situation.
The Will and Probate
A will is the core document that determines who your assets pass to at death. If you have minor children, it is the only way to name a guardian; for most families, this is the will's most critical function. Without a will, assets are distributed under the intestacy rules of the state, and the outcome may differ from what you wanted.
The limit of a will is the probate process. At death, the will is validated in the state's court through a process called probate: the court confirms the document's validity, oversees payment of debts, and authorizes distribution of assets. The process can take months depending on the state, is public, and generates court costs. For heirs living in Turkey, it also brings foreign-document, translation, and representation issues. How a will is prepared and state validity rules are covered in our US wills service.
The Living Trust: Skipping Court and Protecting Assets
A living trust lets you skip the court process entirely at death by transferring your assets into a structure you create during life. Assets moved into the trust are technically held in the trust's name rather than yours; at your death, they pass directly to the people you designated with no need for court approval. The result: a faster, private (not public), and lower-cost process.
The trust's second value for Turkish clients is asset protection. A properly structured trust lets you control on what condition and when assets pass to heirs; it suits minor children, family members who need protection, or situations that call for gradual transfer. For non-domiciled foreign nationals holding US real estate, foreign trusts and company layers, which are separate structures, are assessed to lawfully reduce the estate tax burden. Another key point is a non-citizen spouse: US law does not grant the unlimited spousal exemption when the surviving spouse is not a US citizen, so a special structure such as a qualified domestic trust (QDOT) is needed to defer the tax. Trust types and asset-protection structuring are explained in our US trust and asset protection service.
The Power of Attorney: Protection While You Are Alive
A will and a trust plan for death; a power of attorney plans for the period when you are alive but unable to decide. In the event of an accident, serious illness, or loss of consciousness, if you have not set up a power of attorney in advance, your family must ask a court for guardianship to handle your financial affairs or make medical decisions; that process is long, costly, and stressful.
Two types of power of attorney are fundamental. A durable financial power of attorney remains valid even if you lose capacity and lets the person you name handle your financial affairs. A healthcare directive authorizes a person to make medical decisions and documents your treatment preferences. For clients who have assets in the US but spend part of their time in Turkey, a power of attorney is especially important; it lets financial and legal affairs in the US be handled while you are abroad. Power of attorney types and scope are covered in our US power of attorney service.
Where to Start: Priority by Situation
The right plan varies by individual situation. The priority below shows the starting point for most Turkish clients.
| Situation | Priority Tool |
|---|---|
| Family with minor children | Will (naming a guardian) + durable power of attorney |
| Holding US real estate or significant investments | Trust (to manage probate and the $60,000 trap) + will |
| Having a non-citizen spouse | QDOT assessment + trust + will |
| Spending part of the time in Turkey | Durable and healthcare power of attorney + will |
Estate planning is part of the whole of your legal presence in the US; assessing it together with company formation, investment, or immigration status produces the healthiest outcome. Yellow Law Group's five-state office structure puts legal support near the region where your assets sit: the Plano (Texas) headquarters, Chicago (Illinois), Irvine (California), Alpharetta (Georgia), and the Fairfield (New Jersey) partner office. The handshake in our logo symbolizes the foundation of the partnership built with the client; our attorney team's 10 years of collective practice carry the same approach. To build the plan that fits your situation, you can work with our Texas Bar licensed attorneys and schedule a 30-minute free initial consultation through our contact page.
