Inheritance

[fred]

Have you ever heard of anybody being taxed the 20%? Ive asked a few Filipinos who inherited land, properties and businesses worth a few bob and there answer was 'no'.

To be honest I have never asked anyone.. The law is still the law though and if the heirs don't file in 6 months they will begin to incur large fines and penalties.
We are seriously thinking of setting up either a family cooperation or buying a death insurance policy to cover their inheritance tax expenses.
The cooperation route still costs quite a bit as the property has to be transferred to it either by a sale or a donation..Thus a sale or donation tax.

[jake]

To be honest I have never asked anyone.. The law is still the law though and if the heirs don't file in 6 months they will begin to incur large fines and penalties.
We are seriously thinking of setting up either a family cooperation or buying a death insurance policy to cover their inheritance tax expenses.
The cooperation route still costs quite a bit as the property has to be transferred to it either by a sale or a donation..Thus a sale or donation tax.

Would be interesting to know which route you take Fred.
How about selling the land to the kids at a low price? Anybody who owns property here, knows that land is nearly always undervalued

[fred]

Would be interesting to know which route you take Fred.
How about selling the land to the kids at a low price? Anybody who owns property here, knows that land is nearly always undervalued

Jake .. It depends where or what type of property..
Most Filipino`s rarely used to pay inheritance tax when their parents died.. Years down the line,if they found a buyer,they would ask the buyer to help them in regards the sale price declaration.. Sometimes 10% of the total..
Problem now is that lots of cities here have been creating new zonal values that seem to be updated quite regularly... That`s now how they calculate estate taxes..
They have even started implementing this in the provinces where they can.
Its not looking good.
Pretty sure you cant just sell at low price to kids because zonal values often apply.. Only other way is to donate the land to them and pay donation tax..Still not cheap.