My condo title will be ready soon and I will be paying the final balance due and transferring the title into my name. I am wondering if there is any way to avoid the extra inheritance tax for foreigners by adding my only daughter (a US citizen) to the title so that when I die, the property automatically goes to her. It will go to her anyway and she would have to have to put the title in her name, which I assume would mean the 3% tax but I hate for her to have to pay the additional 1.5% if I can get around it. I suppose that my name would have to be removed from the title either way in order to sell it so it might not be less expensive anyway. But I'm wondering if that would also make it easier for her.... Anyone else tried this approach or has anyone been in a similar circumstance and worked out an easier solution for a survivor. I do not know if having a will would help. She is my only child and I am not married so there is no one else to inherit. I would like to make it as easy for her as possible. Any ideas?
- Thread starter judypdr
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Avoiding Inheritance Problems
My condo title will be ready soon and I will be paying the final balance due and transferring the title into my name. I am wondering if there is any way to avoid the extra inheritance tax for foreigners by adding my only daughter (a US citizen) to the title so that when I die, the property automatically goes to her. It will go to her anyway and she would have to have to put the title in her name, which I assume would mean the 3% tax but I hate for her to have to pay the additional 1.5% if I can get around it. I suppose that my name would have to be removed from the title either way in order to sell it so it might not be less expensive anyway. But I'm wondering if that would also make it easier for her.... Anyone else tried this approach or has anyone been in a similar circumstance and worked out an easier solution for a survivor. I do not know if having a will would help. She is my only child and I am not married so there is no one else to inherit. I would like to make it as easy for her as possible. Any ideas?
Well if you just put the title in your daughter's name only, then you would have to pay another 3% Transfer tax again. I believe that for her to put her name on the title through the inheritance tax would involve a 3% tax, but no additional transfer tax.
In the States it's called Joint Tenancy. "Survivorship" dictates ownership, and no probate to transfer. I think I've discussed with a DR atty and they have something similar.
So it can be two or several owners, if one passes away the remaining owner(s) are automatically the legal owners of the property. There is no transfer of anything.
To me, it's makes sense to do it this way as no headaches for the kids later.
So it can be two or several owners, if one passes away the remaining owner(s) are automatically the legal owners of the property. There is no transfer of anything.
To me, it's makes sense to do it this way as no headaches for the kids later.
Well if you just put the title in your daughter's name only, then you would have to pay another 3% Transfer tax again. .
If I understand what you mean, it could be only one transfer directly to her daughter. Judy could be a renter, or could have a "life tenancy" in her own house. Not having a mortgage makes it easyof course.
The legal concept of “joint tenants with right of survivorship” does not exist under Dominican law.
Putting the title in the name of your daughter may have unforseen consequences.
Consult a reputable estate planning attorney.
Putting the title in the name of your daughter may have unforseen consequences.
Consult a reputable estate planning attorney.
The legal concept of “joint tenants with right of survivorship” does not exist under Dominican law.
Putting the title in the name of your daughter may have unforseen consequences.
Consult a reputable estate planning attorney.
Putting the title in the name of your daughter may have unforseen consequences.
Consult a reputable estate planning attorney.
For me it is necessary to make a will.
A good idea, but make sure it agrees with Dominican inheritance laws or that will could be null and void in the DR. As Dr Guzman pointed out, concepts of law familiar to those in the US and Canada , like Joint Tenancy with rights of survivorship, do not necessarily apply in the DR. Inheritance is one of those areas.
Would not placing the condo into a corporation solve the problem?
Good question. Inheritance laws regarding corporations might circumvent some issues. Dominican lawyers love to create corporations.