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For the USA this system makes sense, the country is gigantic and most Americans have their relatives all over the USA but still in the same country.
But for the rest of the world this may look drastically different, especially in regions with a lot of smaller countries like Europe or South America.
Not very well thought out.
But yeah it sucks if actual family members don't live in same country, which it's a shame, I think this is a double edge here, this does stop people trying to get free rides from other countires to just buy their own copy instead of harassing others to get access, but on other hand it make it pointless if family members not in same country to share from the start. I think 1 year cooldown is a major good change as deters a lot of people that trying to rent their accounts out, and stuff.