Getting Prepared For The Philippines > Laws, Regulations, Taxes as Applied to Foreigners

Being prepared for your passing on...

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http://www.globalpropertyguide.com/Asia/Philippines/Inheritance

Are you wondering about Philippine Inheritance Taxes and Laws?

Billy

mupsuit:

This post is possibly one of the the most important I have seen in ANY forum .. so thanks for this .. it has been on my mind for some time and will be of great help in understanding the legal issues to be addressed

I am divorced and remarried -  adult children from the first marriage and another with my Filipina bride ..  my focus in on my wife who is younger than I as I want to make sure that she is protected to the maximum extent the law allows  - your post will help me work my way round these issues

If anyone has a \'snapshot\' summary of the arrangements they have in place I would be interested to read their suggestions/pitfalls to be avoided etc 

old40ford:
I understand that we all will most likely leave something to our family, but, if we are not allowed to actually own property or business why would they consider it an inheritance? Most other stuff, clothes, some cash, furnishings,ect. could easily be not reported. I am just a little confused, but, nowadays it doesn\'t take much.

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--- Quote from: old40ford on February 17, 2008, 06:47:09 AM ---I understand that we all will most likely leave something to our family, but, if we are not allowed to actually own property or business why would they consider it an inheritance? Most other stuff, clothes, some cash, furnishings,ect. could easily be not reported. I am just a little confused, but, nowadays it doesn\'t take much.


--- End quote ---


This article doesn\'t cover things from the Expat/foreigner point of view but does explain in simple terms how having a will works here:

Inheritance law 101

KAT’S EYE    
By KATRINA LEGARDA
   

Upon your death, only the testimony of witnesses who know your handwriting well will be needed. Imagine how simple you can make your life?

        

I thought it would be fun to write about succession today. You know it as the laws on inheritance, or mana. Let us be precise, so you will know. Testate and intestate succession is one of the ways ownership to property is transferred. Testate means that the person who died left a will; intestate means that he died without leaving a will. Simple, right? The dead person is called the decedent. The testator is a person who makes a will. An heir is a person who can inherit from a dead person. An heir can be compulsory, that means that he has an absolute right, by law, to inherit from the dead person; or voluntary, which means that a friend, a relative, or even a dog is given part of the estate of the dead person by way of a will. You may also see the words devisee – which means that a person was given a gift of real property in a will; and legatee – which means that a person was given the gift of personal property (like a car, jewelry, shares of stock, cash) in a will. Legatees and devisees exist only if there is a will.

The other important thing you must know about succession is the legitime. The legitime is that part of the dead person’s estate that he cannot dispose of because the law has reserved it for his compulsory heirs. The purpose of the legitime is to protect the surviving spouse and the children of the deceased. How many of you have heard your parents tell you: I will disinherit you if you go to De La Salle University or such like threats! Well, your parent cannot disinherit you except for cause recognized by the law. Maybe this is a whole other column, so I will not discuss the grounds now.

What does all this mean? Let us take a specific case, and let us call the dead person Filomena. Filomena died leaving a surviving spouse (let us call him Benito) and no children. She has two surviving brothers (let us call them Jake and John), and some nephews and nieces. If she died without leaving a will, her surviving spouse, Benito, gets half of her estate, and her brothers, Jake and John, get the other half of the estate. This is because under the law of INTESTATE SUCCESSION, brothers and sisters are compulsory heirs under certain circumstances. Let us complicate things a little bit and let us pretend that John died before Filomena. His children, Filomena’s nephews and nieces, can inherit from Filomena in representation of John, their father.

If, however, Filomena decided to make a will, her only compulsory heir is her surviving spouse. Nobody else can claim a right to inherit. Filomena, in her will, can decide to leave her whole estate to her spouse. Or, Filomena can decide to leave only half of her estate to her surviving spouse (as that is his legitime under the law), and the other half of her estate she can leave to her favorite dog home, if that is what she wants.

And while I do not want to mention any names lest I be sued for whatever, it seems to me that the news we read in the papers about a family now in court over the will of a decedent has a long road ahead of them. Why? Because it looks to me that the person complaining intends to have the will invalidated. Wow. On technicalities? On whether or not the decedent was of sound mind when she made the will? Actually, these formal wills are open to all sorts of problems, particularly if a lawyer is not obsessive-compulsive on details. This is why I always recommend that a person just make a holographic will. What is this? It is a will that is entirely written, dated, and signed by the testator. There is no need for notarization, and no need for witnesses. And, you do not need to pay a lawyer to get it done, because the law says that there is no form required for such a will. Upon your death, only the testimony of witnesses who know your handwriting well will be needed. Imagine how simple you can make your life?

http://www.abs-cbnnews.com/storyPage.aspx?storyId=117395

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