Inheritance laws in Philippines and Joint Account concerns
I do not really have any links, but below are just a few excerpts I saved and bunched together on one page that came from a group forum discussion a few years ago. So take it for what it's worth:
Yes, well the banks will never tell you nothing about accounts here, not like
U.S. where they give you a handout on your accounts that explain everything
regarding various types of accounts. No real estate involved anymore with us,
we liquidated 2 houses in California and one in Manila already, so that money is
in the states in Joint Accounts (with survivor-ship), treasury bonds in both our
names, so with our life insurance. So going to Attorney tomorrow to have Last
Will done, I suggested a joint will, which I have the form for, but only problem
with those, is once one dies, they can never be changed. So will get two wills
done, mainly for Philippines. None of our things in Nevada require a will, as
all held jointly, but as you know here in Philippines does not really mean
jointly. Will also retain my attorney here to speed my friends sister in states
account along, whose brother passed away one year ago, Metro dragging their feet
on that. The sister has forwarded everything to Metro, his will, her power of
attorney, IDs, but her being in states, they keep saying the case is pending and
now they are saying she must have a Surety Bond in force before they release his Dollar Account to her
That is exactly what my attorney told me when my wife and I did our wills.
Thanks for the information on this. It appears that there is a lot of confusion
on how bank accounts are handled if one account holder dies. Another thing to
think about is that your wife or partner could die before you. The ex-pat could
also run into problems getting funds from the bank. Also if the Filipino partner
owns property the ex-pat could end up with nothing. Something to think about and plan for.
The best answer I have received with my ongoing investigation into bank
accounts here came from BIR, and not the banks, banks know absolutely nothing about what happens generally to your accounts when one spouse dies. Consumer protection in Philippines far as banks go, is non-existent. The BIR told me that to avoid putting a hold on any bank account is to keep the amount at P200,000 or below either type of account singular, joint, dollar, peso, etc. This makes sense to me also and I was thinking the same thing when I talked to the BIR, the chart plainly shows no tax on P200,000 and below. So if you want your spouse to avoid getting a hold on accounts, keep them below P200,000, I guess, that could change next week.
Same with BDO
At the bottom of a BPI ATM receipt: "FOR JOINT ACCOUNTS, YOU DECALARE UNDER THE PENALTY
OF PERJURY THAT YOUR CO-DEPOSITOR IS STILL LIVING".
Not when it is done electronically over the internet as BPI allows.
True but on the withdrawal form ay BDO (I did not check other banks) you
are required to state or affirm √ā on joint accounts the other√ā person is still
True, however with an or account the survivor can withdraw funds before the bank is notified of the death.
In regards to Sec. 97 of the National Internal Revenue Code (or Republic
Act No. 8424
In case of death of one of the parties of a joint account, the surviving
party cannot legally withdraw funds from the joint account until
authorization from the Commissioner of Internal Revenue. In connection
with this law as it pertains to death of one of the joint account holders,
there is no distinction between and/or joint accounts.
By way of consolation though, the law allows the administrator of the
estate or any one of the heirs to withdraw from the account not more than
P20,000 even without such certification on condition that the Commissioner
authorizes him to do so. The article below indicates that some bank
manager will look the other way, and allow more funds to be withdrawn, but don't count on it. Here's a pretty good article explaining joint accounts can be found here: http://business.inquirer.net/45999/joint-bank-accounts
Just a note on joint accounts.
Make sure it is John or Jane Doe NOT John and Jane Doe on the account.
This way either of you can withdraw money without needing the others signature....And if you don't trust your wife enough to list the account this way then you should not be married at all.
Do not know if everyone has knowledge of this or not, I did not until I got to researching a case for a High School Friend;s sister who is claiming his dollar account here recently. General Johnny passed away in Cebu last year and his sister in states is having one hell of a time getting his proceeds from his dollar account here, even though she has his will and power of attorney. They evidently even tax a Joint Account for married couple and also insurance proceeds here. Limited funds here is the answer far as I am concerned until I find more about this matter.