Itís Your Money > Securing Your Family's Financial Future

PHL laws to be aware of regarding wealth

<< < (2/3) > >>

suzukig1:

--- Quote from: suzukig1 on May 12, 2016, 07:11:33 AM ---There is no spousal exemption on estate taxes in the Phl like in the U.S.

In the U.S. when one spouse dies everything can pass to the surviving spouse without paying estate taxes at that time.  Estate taxes will be collected when the "surviving" spouse dies.

In the Phl community property ceases to exist when one spouse dies.  Estate taxes are due on the deceased spouse's estate at that time which includes the deceased spouse's share of community property.

The good news is that if you are not a Phl citizen, Phl inheritance laws only apply to assets held within the Phl.  Assets held outside the Phl are governed by inheritance laws of your country of citizenship or the country where the assets are held, whichever applies.


--- End quote ---

Apparently the above statement in red is wrong.  Resident aliens are liable for PHL estate taxes on assets "wherever located".

https://www.bir.gov.ph/index.php/tax-information/estate-tax.html

2. What are included in gross estate?

For resident alien decedents/citizens:

a) Real or immovable property, wherever located

b) Tangible personal property, wherever located

c) Intangible personal property, wherever located

For non-resident decedent/non-citizens:

a) Real or immovable property located in the Philippines

b) Tangible personal property located in the Philippines

c) Intangible personal property - with a situs in the Philippines

iamjames:
I came here to relax in my retirement. All the above refer to possessions, property, children, wives. I have none here so no stress or worry.  This is not a country to do business if you are a foreigner.

Art, just a re(tired) Fil-Am:

--- Quote from: Lee2 on May 11, 2016, 08:10:42 PM ---I am not sure how many people might know this, or not, but joint ownership in the Philippines does not mean no taxes upon a death, as it may in your home country. I do not know about in all countries but in the US, money in bank accounts jointly owned is insured up to one million US dollars, not that most of us would have to worry about that, and upon death the joint owner automatically gets the money tax free under most circumstances, no so from what I have been told by bank representatives in the Philippines. I have been told, and even ATM slips show it, that upon death of one owner of an account, the account would be locked if the bank was aware of the death and under penalty of law, it would be unlawful to withdraw any money from your joint accounts until the inheritance taxes are paid, even if the money belongs to both of you.

Then on property, same deal, if one owner dies, I was told that inheritance taxes would need to be paid before the title could be changed, best to check that out for yourself.

Then last, I was made aware that if a property is sold, then there is a 6% capital gains tax on the sale, that is even if no profit was made or even if there was a loss when sold, just another thing to be aware of.

So all, check with your home country and with your banks and lawyers in the PHL to make sure all that is correct and think about keeping any money you may have in your home country, or have separate accounts in the Philippines and even then, that too might be a problem if one party dies.

--- End quote ---
Below is a comment made on another forum mostly made up of military retirees, but I couldn't understand what the poster meant by it. Anyone have a clue?

Descendant Affairs with most married couples is often an over-looked subject, but if proper preparation is taken there should be an orderly manner with this also.

 When my wife passed on now over 3 years ago, both of us discussed the matter and had all joint accounts in both Philippine Banks and U.S. Banks.  I had very few problems with BIR and hardly zero problems with banks in U.S.  My advice if you can fill out a simple form, do not just run to some attorney unless you want to pay an inordinate amount out to facilitate the orderly flow of the estate.  I got figures from P100,000 to P250, 000 to handle the situation.  I declined and did it all myself and never spent probably P2,000 pesos from start to finish, mostly in mails and telephone charges, few small other fees at City Hall etc. 

Read your Descendant Affairs procedures in both countries, they are FREE on the internet with a little search engine work

bigrod:

--- Quote from: Art, just a re(tired) Fil-Am on June 18, 2017, 06:11:24 AM ---Below is a comment made on another forum mostly made up of military retirees, but I couldn't understand what the poster meant by it. Anyone have a clue?

Descendant Affairs with most married couples is often an over-looked subject, but if proper preparation is taken there should be an orderly manner with this also.

 When my wife passed on now over 3 years ago, both of us discussed the matter and had all joint accounts in both Philippine Banks and U.S. Banks.  I had very few problems with BIR and hardly zero problems with banks in U.S.  My advice if you can fill out a simple form, do not just run to some attorney unless you want to pay an inordinate amount out to facilitate the orderly flow of the estate.  I got figures from P100,000 to P250, 000 to handle the situation.  I declined and did it all myself and never spent probably P2,000 pesos from start to finish, mostly in mails and telephone charges, few small other fees at City Hall etc. 

Read your Descendant Affairs procedures in both countries, they are FREE on the internet with a little search engine work

--- End quote ---

I being a member of the other forum too have seen the post.  He basically said do not waste your money using a lawyer to get your money from joint accounts.  The individual like you and I has joint accounts both in the USA and here.  He gave copies of the death certificate to banks in the USA and filled out forms to change the status of the accounts.  Here he contacted BIR to unfreeze the accounts by paying any taxes due under Philippine law and changed the status of the accounts.  This individual like us was not worried about the frozen accounts here to survive, like most Filipinos would be. since he still had funds in the USA he could utilize.

Chuck

Art, just a re(tired) Fil-Am:

--- Quote from: bigrod on June 18, 2017, 07:29:30 AM ---I being a member of the other forum too have seen the post.  He basically said do not waste your money using a lawyer to get your money from joint accounts.  The individual like you and I has joint accounts both in the USA and here.  He gave copies of the death certificate to banks in the USA and filled out forms to change the status of the accounts.  Here he contacted BIR to unfreeze the accounts by paying any taxes due under Philippine law and changed the status of the accounts.  This individual like us was not worried about the frozen accounts here to survive, like most Filipinos would be. since he still had funds in the USA he could utilize.

Chuck

--- End quote ---
So does it mean that a surviving spouse can avoid going thru a probate court upon a member's demise? It would seem so, if all the taxes due were paid to clear all the frozen joint accounts and community property estate and or inheritance taxes.

Navigation

[0] Message Index

[#] Next page

[*] Previous page

Go to full version