Inheritance Taxes

Carlos Malagon

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Jun 26, 2002
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My mother is a Dominican citizen residing in Miami, Florida and married to a US citizen. She owns shares in a Dominican company and holds these shares in Miami, Florida.

Upon her death, will these shares be subject to Dominican inheritance taxes? If yes, is there anything we can do to avoid these taxes, such as an offshore trust?

If inheritance taxes are not due and she holds these shares in a trust prepared here in Florida, upon her death, will the Dominican company transfer the title of the shares to the heirs as stated in the trust upon presentation of the required documents?

Thanks for your answer.
 

Escott

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Jan 14, 2002
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www.escottinsosua.blogspot.com
Upon her death, will these shares be subject to Dominican inheritance taxes? If yes, is there anything we can do to avoid these taxes, such as an offshore trust?

Reply:

Why not change the owner of the shares to the people she wants to have them after she passes now?

There is no taxes due in the US (exemption under 375,000 dollars). I had done some estate planning when my mother was in the hospital for 6 months before she died last year. That was the attorneys recommendation then to us. Did the same with my fathers holdings also while he was still alive.
 

Fabio J. Guzman

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Jan 1, 2002
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Your mother's shares will be subject to Dominican estate taxes upon her death. "Changing" the owner of the shares by virtue of a gift or a sale also generates taxes. Putting the shares into a trust would be considered a gift under Dominican law and may cause problems later since trusts are an institution alien to our legal system.

As for most estate matters, especially when they involve different countries and legislations, I would strongly advise you to consult legal counsel.
 

Carlos Malagon

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Jun 26, 2002
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Dominican Inheritance Taxes

I have consulted legal counsel here in Florida and was advised that if the share certificates are held in Florida, they would be distributed according to US law because they are located here as opposed to real property located in the Dominican Republic. What I am looking for is confirmation from a lawyer in the Dominican Republic. Can you help and what would be the cost.
 

Ken

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Jan 1, 2002
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Carlos,

I'd recommend that you make direct contact with Fabio Guzman. His website is www.drlawyer.com. You can contact him through the website. Or, if you prefer, you can email him at info@drlawyer.com.

Ken
 
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