Death tax

M

milleniunthug

Member
Jul 2, 2006
45
0
6
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.
 
D

DMV123

Bronze
Mar 31, 2010
1,211
114
0
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.
 
W

william webster

Platinum
Jan 16, 2009
30,247
4,330
113
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.
 
H

Hpluv

New member
Feb 24, 2009
13
0
0
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.
 
F

Fabio J. Guzman

DR1 Expert
Jan 1, 2002
2,359
252
83
www.drlawyer.com
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.
 
D

DMV123

Bronze
Mar 31, 2010
1,211
114
0
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?
 
H

Hpluv

New member
Feb 24, 2009
13
0
0
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?
 
S

SKY

Gold
Apr 11, 2004
13,500
3,631
113
DMV123 said:
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?
Click to expand...

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.
 
M

milleniunthug

Member
Jul 2, 2006
45
0
6
Fabio J. Guzman said:
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.
Click to expand...
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
 
A

AndyGriffith

New member
Mar 11, 2010
326
15
0
Fabio J. Guzman said:
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.
Click to expand...

DR law determining a deceased to have a taxable event on property that holds dual ownership with at least one owner living seems a bit circumspect.
 
You must log in or register to reply here.
Top Bottom