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Purchasing Property for a Child


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rainymike

Okay, expat experts. Clue me in on this area of my personal cluelessness.

 

I've read tons of posts about foreigners buying property in the name of their wife.

 

However, my preference is to purchase property in the name of my 2 year old rather than my partner. I'd like to see a concentration of wealth being accumulated when my time is up rather than it being be subdivided into nothingness. I have other 'adopted' kids who are now being sent to the best private schools I can afford. That is my legacy to them.

 

But, unless I strike it rich with the lotto or Ed McMahon gives me 10 million (USD) here in the Philippines, I believe that the next generation will be best off with my tiny wealth concentrated in the name of one child.

 

Can this be done? 

 

What are your opinions? Good idea or bad?

 

 

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A_Simple_Man

Property in name of child, marital separation, filipina wife has custody of child and guardianship of property in child's name.  May as well put it direct in the mother's name and save the hassle.

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SkyMan

You can do that in 16 years.  Live long and prosper.

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rainymike

You can do that in 16 years.  Live long and prosper.

 

LOL ... I suspected as much.

 

Perhaps a trust fund is an alternative? I'm not sure I'd be confident setting up a trust in this country. Back home maybe. Any opinions here?

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Headshot

You can put your assets in your child's name, but you do need to realize that if you die, your wife will have legal custody of the child, and can sell any assets that she needs to until your child turns 18. I think that as long as you make sure that your wife is also provided for long-term, then she will likely abide by your wishes to keep the property in your child's name. However, if she finds herself in a financial bind, then all bets are off. I think that what you are contemplating has the greatest likelihood of success if you want your child to inherit your assets. If you put property in your wife's name, and she has other descendants, then when she dies, her properties will be split evenly between all of her children...regardless of where the money came from. You do need to remember, though, that your plan only has a chance of working if you leave your wife financially stable. If you don't leave her financially stable, then she may be forced to do things to keep the family afloat...and they may not be what you wanted. She may not do what you want anyway, but at least there is a chance as long as she isn't left in a bind. You need to remember that after you are gone, there will be a lot of people telling her that she should sell the assets so the proceeds are in her name...and you won't be there to tell her that it is wrong.

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Headshot

Even if you set up a trust fund, your wife will be custodian of the trust (unless there is somebody that you trust more than your wife to have your child's best interests at heart), so I'm not sure what advantage there would be. And...if you don't trust your wife, then all is lost anyway.

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JamesMusslewhite

Our farm since it was purchased while my wife was living in the US on a Green card was only allowed to have 3 hectors in her name and the other 3-1/2 hectors had to be in a relative's name, this was in 2001. When we moved here in 2008 we started the process to get the final survey and formal title. The local Land Dar explained that the old system had caused too much problem as too many fights and deaths had occurred and that the land portion even though was already in her father's name, could if she chose have the person of the 3-1/2 hectors changed. She could have simply put it all in her name, but we decided to put it in or Son's name who was only 14 years of age at the time. We also had it in the paper work that in advent of her death the portion of the land in her name would go to our son. If something were to happen to my wife and myself the farm would remain solely in my son's name. This also helps protects him as family members can not try to take a portion of the land as could have been the case being in a family member's name. All we own and have will be his when we die so it only seems logical to place it in his name. My son likes it as he being only 18 owns a farm.

 

It would seem that provisions can be placed in a Will that assets in a child's name could not be sold or liquidated except by the child upon reaching legal age. I am only assuming as I am a poor novice at best in matters of Filipino law.

Edited by JamesMusslewhite
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You would be better off consulting with an attorney, and particularly a knowledgeable attorney about inheritance. I have no advice where to find one.

 

I know for certain attorneys can screw up the best intentions. It not exactly incompetence, but a combination of lack of knowledge and a family expressing wishes that are unclear.

 

You have very limited rights to determine the distribution of land as long as the laws remain the way they are today. You can express your wishes, and a holographic will can do that for you quite nicely. However, your wishes and the laws of inheritance may present your heirs a problem.

 

I have a variety of land in various forms of deeded, tax declared and such. Only one parcel MAY have title if we can ever complete the endless series of steps to take. However, ALL of this land is in my wife's name. That is the way we prefer it.

 

If we were both to perish, our children would inherit property, including land according to our desires in wills.

 

My wife's father, like many others of his era, want land to remain in the family, not to be sold to any one not in the family. Unfortunately, that may not be what actually happens unless the land is deeded to the family member prior to his death.

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A_Simple_Man

 

 

You would be better off consulting with an attorney, and particularly a knowledgeable attorney about inheritance.

In this country?  They will tell you what you want to hear and charge you what they think you can pay.  You would be better off consulting with people who have actually tried it and I suspect that is why you are asking on this forum.  All of the people who have been here and had friends for a long time know someone who has tried it, I expect.  As Headshot said, it can work when a trust fund is set up and someone other than the wife has care of it.

 

Hyaku . . what about your wife . .  did not her ex husband set up a trust fund so her child can inherit their property on the beach?  Fill us in on the details if its not too personal.

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Okay, expat experts. Clue me in on this area of my personal cluelessness.

 

I've read tons of posts about foreigners buying property in the name of their wife.

 

However, my preference is to purchase property in the name of my 2 year old rather than my partner. I'd like to see a concentration of wealth being accumulated when my time is up rather than it being be subdivided into nothingness. I have other 'adopted' kids who are now being sent to the best private schools I can afford. That is my legacy to them.

 

But, unless I strike it rich with the lotto or Ed McMahon gives me 10 million (USD) here in the Philippines, I believe that the next generation will be best off with my tiny wealth concentrated in the name of one child.

 

Can this be done? 

 

What are your opinions? Good idea or bad?

Are you married to the child's mother?

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rainymike

To answer some questions.

 

1. My partner and I are not married.

 

2. I trust my partner and she's grown quite capable with our monthly budget. But it's not her that I'm worried about. I know she'll have the best interests of the children at heart. But I fully expect a full court press from other family members who will crawl out of the woodwork once I'm gone.

 

3. I would like to make this decision for them in advance. If some relative needs money for an operation today (or whatever other legitimate reason), the funds are not to be used for that. Cold, yes, but my body will be cold as can be by then ... lol. The resources are to be used for the future of my family. To build on, or if the worst happens, to provide financial needs for my kids and partner.

 

LOL ... they can put this on my gravestone,

 

"The damn foreigner was a bastard when he was alive, now he's twice the bastard when dead."

 

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A_Simple_Man

IMHO, no amount of logic, intelligence, or legal finagling will work to allow a dead foreigner to continue to control his money in Philippines.  Its my opinion you are flogging a dead horse there.

 

BUT, if it makes you feel better to do it, then do it.

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SkyMan

 

 

She could have simply put it all in her name, but we decided to put it in or Son's name who was only 14 years of age at the time.
Every title I've seen lists the owner as "so and so, Filipino of legal age..."
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rainymike

IMHO, no amount of logic, intelligence, or legal finagling will work to allow a dead foreigner to continue to control his money in Philippines.  Its my opinion you are flogging a dead horse there.

 

BUT, if it makes you feel better to do it, then do it.

You may be right about that. I suspect it is so, but it's not worth my time to do the intensive research on it. So I wanted some quick and dirty opinions from people with experience on the matter.

 

Probably would have to do a split kind of plan. The kid's social security would be under the control of her mother. That's fine. It's not a huge amount but quite adequate for a decent lifestyle. Might also give in on the property as well, keep it small, decent and manageable - with low incentives to sell off under pressure. So, the family would be minimally taken care of for 16 years with some SS income and a rent free home.

 

The bulk of the assets that remain would be put elsewhere though. Might be worth my time to research setting something up stateside though. Or in other countries with more stable legal systems. Haven't quite figured that out yet.

 

As for flogging a dead horse ... lol ... in my life I've learned to squeeze blood from a stone and had to do it for many years. Gotta believe.

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fred42

Another thing to consider is inheritance tax.. Around 20% of the total value..

From what I think i know and remember..The tax is due even before the property is sold and there is a due date.. Miss the payment date and the fines start accruing. 

If Im wrong then hopefully a member here will correct me a provide links to genuine info.

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