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Dual Citizen Father, American Mother and Kids - House and Lot Inheritance

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AlvinPH


Arresto Menor

My Father is a dual citizen while myself, my mom and my brother are Americans. I understand the only way for a foreigner to aquire property in his name is through interstate inheritance (meaning without a will). I don't understand this limitation though, what happens if he has a will? He cannot just leave it to me directly? I understand you guys have compulsory heirs here.

The way I understand it is that my mom already techinically owns 50% by community property so upon his death it would me 50% to Mom, 25% to Me, 25% to my brother. My mom and brother have never been the Philippines and have no desire to even visit. It's really my house paid with my money.

Can any one advise on how to make sure this property eventually ends up in my name when my Father passes? Will my mom and brother be able to quit their claim allowing me to take the title? BTW I don't think the Philippines has any idea that my brother exists. They know about my mom from the TCT says FATHERS NAME, FILIPINO, MARRIED TO "MOTHERS NAME" (AMERICAN)

I have read that maybe actually its the laws of where the will is executed (in would be in America) that apply? If that's the case he could just leave it directly to me?

I am not a Filipino yet, my father was already naturalized by the time of my birth, I hope to be naturalized in PH eventually (requires 10 years of being a resident, which is why I'm trying to lease the property to quality for the SRRV visa so I can start counting down the 10 years).

Can any one please help me to understand this and what I should do to protect my interests?

Lunkan


Reclusion Perpetua

With the lease solution the HOUSE is ONLY yours all the time.

Your mother get some MORE than half. (Roughly 50 % (by that's hers allready) plus same share as each child. In your case 50 % of 50 % divided by 2 = 12.5 %. By a will your father can give the last 12.5 % to anyone, if you bother about that. The LEASE FOLLOW the LAND UNDEPENING of who is owner.
Foreigners are allowed to INHERIT land, but if I have understood corect only allowed to keep it a few months to get chance to solve selling it.
So your mother and brother can claim their share of the LAND,
but NOT to the HOUSE as long as there is a lease contract.

If the land is worth much enough to bother, it's possible to ballance the inheritance share values by your father borrow money from you to buy the land with the land as collateral. (I'm not sure if that's allowed by the Anti-Dummy law. If not, it can be solved by anyone NOT related own the land, have a loan to you with the land as collateral. (Perhaps with a paragraph saying you have right to buy it for a predecided price. Allowed? To keep the profite of value raise.)

AlvinPH


Arresto Menor

Lunkan wrote:With the lease solution the HOUSE is ONLY yours all the time.

Your mother get some MORE than half. (Roughly 50 % (by that's hers allready) plus same share as each child. In your case 50 % of 50 % divided by 2 = 12.5 %.  By a will your father can give the last 12.5 % to anyone, if you bother about that. The LEASE FOLLOW the LAND UNDEPENING of who is owner.
Foreigners are allowed to INHERIT land, but if I have understood corect only allowed to keep it a few months to get chance to solve selling it.
So your mother and brother can claim their share of the LAND,
but NOT to the HOUSE as long as there is a lease contract.

If the land is worth much enough to bother, it's possible to ballance the inheritance share values by your father borrow money from you to buy the land  with the land as collateral.  (I'm not sure if that's allowed by the Anti-Dummy law. If not, it can be solved by anyone NOT related own the land, have a loan to you with the land as collateral. (Perhaps with a paragraph saying you have right to buy it for a predecided price. Allowed? To keep the profite of value raise.)

globalpropertyguide.com/Asia/Philippines/Inheritance

BTW - this house an lot was only about P3,000,000. I'm not sure if you consider that enough to bother or not.

It would seem as though it would have been better for my dad to stay a "former filipino" instead of a citizen. Because then US law would have decided where his assets go apparently. Since he's a Citizen again it seems compulsory heirs come in to play. I haven't been able to find anything that says we would only own it long enough to dispose of it though. Can any one provide the actualy civil code section for this? If that's the case it sounds like you are saying I'd have to sell my own house that I'm leasing to a Filipino just because my dad died. That would be crazy. But how about this what if my parents died and no one did anything about it? I just keep paying the taxes and enjoying my 50 year lease. The title stays the same in my dads name. That would likely work just fine?

The only problem is when/if I want to sell this place. But suppose that only at that time do we come forward to resolve the title issues, with the death certificates of my parents, (and they don't even know I have a brother) at that time, the title should be left to me right? (supposing you don't actually have to dispose of it, the consitituion does says we can own property through inheritance, doesn't mention having to sell it or antying). I might even be a Filipino citizen by the time I wish to do this.

I may just have to accept the fact that I'll never really own this place but should be able to make use of it for the rest of my useful life. I'm 34, + 50 year lease, not sure how much I'll care when I'm 84. The property was "only" 3,000,000 PHP and I'm young, I guess I'll just have to deal with not being able to profit on any appreciation.

More ideas guys?

My head hurts now.

Lunkan


Reclusion Perpetua

" this house an lot was only about P3,000,000. I'm not sure if you consider that enough to bother or not."
That's up to each person Smile to judge how much extra work/money it's worth to spend to get some extra protection.

"(supposing you don't actually have to dispose of it, the consitituion does says we can own property through inheritance, doesn't mention having to sell it or antying)"
I'm not sure. I have heared both can keep and have to sell.

" I haven't been able to find anything that says we would only own it long enough to dispose of it though."
I ment - if I have understood corect a foreigner can inherit but not own LAND. But if inherit land, then the foreigner get some time to sell it to someone who are allowed to own land in the Phillipines.

"If that's the case it sounds like you are saying I'd have to sell my own house that I'm leasing to a Filipino just because my dad died."
No. SEPARATE the ownership of the house and the land. (A disadvatage though is such houses can't be collateral for a loan.)
YOU own the whole HOUSE all the time.
Your FATHER own the LAND.
But you LEASE the LAND anyway, undepending of if the land is owned by your father or not.

"But how about this what if my parents died and no one did anything about it? I just keep paying the taxes and enjoying my 50 year lease. The title stays the same in my dads name. That would likely work just fine? "
Well. Then it will be owned by foreigners illegaly. It's another question if anyone notice and bother Smile
Not doing anything about it is common in the Philippines, BUT then the hiers are Filipinos, so it's legal owners still.
So I DON'T recomend that. It can be easier OR become a big mess... Better solve the ownership. Yes you can solve it by becoming Filipino citizen.

"The only problem is when/if I want to sell this place."
You can sell the house separate with a lease contract.
But then can't buyer get loan at the house, which make it much harder to sell.
Will you not keep it to your kids to inherit? Smile

"I may just have to accept the fact that I'll never really own this place but should be able to make use of it for the rest of my useful life. I'm 34, + 50 year lease"
As I wrote foreigners can own the HOUSE as long as having lease contract.
IF the land owner agree, you can extend after 50 years too.

AlvinPH


Arresto Menor

Thanks. One thing is that I don't think I'm going bother having my dad "sell" on the house to me. I think that will cause more complication for everything I'm trying to do, including the taxes on that sale.

I'm simply looking to have him lease the house AND lot to me for 25 years with auto renew for 25 years (which from what I can tell is the maximum, but investors can do 50 years + 25 extension). In my eyes, there is no seperating the house and lot both are useless without each other. It's in a subvision.

Lunkan


Reclusion Perpetua

Then your mother and brother will inherit MOST of the house... Smile

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