Living in The Philippines > RA 9225, Citizenship Retention and Re-acquisition

Philippine Citizenship

<< < (2/2)

suzukig1:

--- Quote from: Frosty on January 26, 2014, 12:09:12 AM ---

Would a Will that is written and recorded in the U.S. or any other country be legal in the Phil?

--- End quote ---

I only know about U.S. citizens.  Basically for a U.S. citizen living in the Phl, assets that you have outside of the Phl will follow U.S. inheritance laws and assets that you have in the Phl will most likely follow Phl inheritance laws.

It's important to plan this carefully.  5M USD is exempt from estate taxes in the U.S.  In the Phl only about P1M is exempt from Phl estate taxes.  (Top estate tax rate in the Phl is 20%.)

Lee2:
Also while on the subject of wills, I have been told by Philippine bank managers that joint accounts will be locked if one partner dies thus making it hard for the other partner to get money if needed. While I have no idea why that would be true on joint accounts with right of survivorship, I have to wonder what a wife or husband would do if they needed money right away if their joint accounts ended up locked?

In the US all a wife or husband after a death has to do on a joint account is bring a death certificate to get the title of the account changed whereas I wonder how long it might take to get access to the funds in the same situation in the Philippines with their always lengthy complicated paperwork system   :-\

Would the wife having Joint or Philippine citizenship make it easier or harder to do?

medic3500:
That's why if one or the other dies on a joint account the first thing to do is have a list of things must do immediately. On the top of that should be clean out the bank accounts over the course of a few days and open an account in another bank in your name only.
 

suzukig1:

--- Quote from: Lee on January 26, 2014, 04:56:17 PM ---Also while on the subject of wills, I have been told by Philippine bank managers that joint accounts will be locked if one partner dies thus making it hard for the other partner to get money if needed. While I have no idea why that would be true on joint accounts with right of survivorship...

--- End quote ---


I was told by a Phl attorney that the bank has to lock the account until they get notification from the BIR that the estate taxes, if any are owed, have been paid.  If they didn't lock joint accounts the account might be emptied before any estate taxes that are owed are paid.

The Phl doesn't treat right of survivorship the same as the U.S.  The deceased person's half goes into the deceased person's estate and goes through probate and gets taxed. 

Article 130 of the Family Code of the Philippines:  "Upon the termination of the marriage by death, the conjugal partnership property shall be liquidated in the same proceeding for the settlement of the estate of the deceased."  http://www.chanrobles.com/executiveorderno209.htm#.UIJ5j8WsiSo


I'm still trying to find out if assets other than land even if only in my wife's name are still community property and half will get taxed when I die.  (If so, then I would leave most of it in the U.S. where 5M USD can pass tax free.)  (Note: land is definitely not part of community property when a foreign spouse is involved.  This has been verified by the Phl Supreme Court.  http://www.lawphil.net/judjuris/juri1991/jan1991/gr_74833_1991.html)

Art, just a re(tired) Fil-Am:
A simple solution would be, that your wife have accounts only in her name in the U.S. and in the Philippines that are not associated with any of your joint accounts!
Long ago when our Mom passed away in the U.S. and I was associated with her U.S. bank accounts, my own personal accounts especially my U.S. government pensions were affected too and was closed out! That really put me in predicament where all of my U.S government pension direct deposit accounts were sitting in limbo and had nowhere to go until my own accounts were reinstated! Luckily I got it all sorted out without too much problems, but back then we didn't yet have internet or our own home phone and had to use international long distance phone calls and they weren't cheap since there were no such things as discounted calling cards or promos!   

Navigation

[0] Message Index

[*] Previous page

Go to full version