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Thread: Death tax

  1. #1
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    Default Death tax

    hopefully someone might have an answer to this:
    I live in NY, my mother and I have an old joint savings account in banco BHD, my mother past away a few years back and I just left the account alone with some small amount of money going in from a property rental. last year I decided to closed the account and open a money market account, but I was asked where the second person in the account was and of course I said she past away, but I have the death certificate.
    to make the story a little short, I provided the bank with all the documents that they asked for and the last thing was that I needed to pay the taxes to the government (death tax); i am currently in NY and will be going to DR in a week or so to finish the paperwork, but my question is if the payment is made to the government directly or is it taken out of the amount that is in the bank and how much is the percentage that is taken.
    thanks in advance for any information.

  2. #2
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    Ok unless I am hugely mistaken a joint account is owned by you both. On the death of one it passes to the second automatically and there are no estate taxes payable. Double check with a tax attorney here.

  3. #3
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    Thats the way it should work......... but ???

    Thats why people should establish joint accounts w/ spouses or parents.
    It avoids taxes, probate, etc and provides a seamless transition.

    Also handy if the elder owner gets sick..... the account can pay for the healthcosts.

  4. #4
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    Maybe the word 'death tax' was misused.
    The death must be registered, sothat the account would be changed to the name of a 'sole owmner'.
    That death registration and the paper work to change the name had to be notarized and that should be the only costs.
    I hope that is what the bank means.

  5. #5
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    and if it is jointly owned, just empty it and close it. Simpler.

  6. #6
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    Most civil law jurisdictions, including the Dominican Republic, do not recognize property held "with right of survivorship" (joint tenancies). Therefore, Joint Accounts with Right of Survivorship do not exist in the Dominican Republic. When on the persons whose name shows on the account dies, inheritance taxes must be paid on the portion of the account belonging to the deceased. If there are only two account holders, it is assumed that each account holder owns 50% of the account.
    Fabio J. Guzman
    Guzman Ariza
    Attorneys-at-Law
    Sosúa, Santo Domingo, San Francisco de Macorís, Cabrera
    Las Terrenas, Samaná, Bávaro (Punta Cana) and La Romana
    Dominican Republic


    [email protected]


    Website

    The opinion above should not be construed to be formal legal advice and was given without reviewing the facts and documents pertinent to the case. The reader should NOT act based upon this opinion without seeking professional counsel.

  7. #7
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    Once again you learn something new every single day. So, Dr. Guzman what is stopping one of the people on ownership from simply withdrawing all the money?

  8. #8
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    Questions:
    Does the heirs of the 'dear departed' entitled to a percentage of what is in the account?
    Who determines how much of the amount in the accountbelongs to whom?
    What if the survivor doesn't report the death and simply withdraws most of the funds?

  9. #9
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    Quote Originally Posted by DMV123 View Post
    Once again you learn something new every single day. So, Dr. Guzman what is stopping one of the people on ownership from simply withdrawing all the money?
    Nothing, but they made the mistake of telling the bank about the death. The best thing would have been not to close it, but take out almost all of it and forget about the few dollars you leave in it.

  10. #10
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    Quote Originally Posted by Fabio J. Guzman View Post
    Most civil law jurisdictions, including the Dominican Republic, do not recognize property held "with right of survivorship" (joint tenancies). Therefore, Joint Accounts with Right of Survivorship do not exist in the Dominican Republic. When on the persons whose name shows on the account dies, inheritance taxes must be paid on the portion of the account belonging to the deceased. If there are only two account holders, it is assumed that each account holder owns 50% of the account.
    Thank you for the answer, unfortunately I did not know if I did I would have just taken the money out little by little. It is what it is and just live and learn.
    Dr Guzman, is the money that needs to be paid taken out of the amount that it's in the bank or must I pay it out of pocket....thank you

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