Ladie wrote:Mdejess wrote:
2. He transfers all his real properties which are lands with or without improvements to his heirs while still alive and lucid, by the best way to transfer, donation or sale, etc., but he keeps the TCT's in his physical possession.
Are you saying that the transfers of his real properties will be in his heirs' names? If so, still he is obliged to pay donor's tax if donated, or capital gain tax if sold to his heirs' names. This is a requirement of the Registry of Deeds before he can register the properties in his heirs' names. Keeping the TCT in his possession will not SAVE HIM AT ALL ANY MONEY from your apparent "idea" of I quote "In this way, no more taxes as the government is kept out or in ignorance of the whole operation". Unquote.
3. He opens a bank account for his heirs which are all in an "and, and, and..." account, so that the heirs will have to work out how to divide his money among themselves satisfactorily for everyone, in the meantime prior to his earthly departure the heirs turn complete control even to the closing of the collective account to his exclusive and complete power; this means they will get their hands on the account on his earthly demise.
Are you saying the bank account will be opened in his name and his heirs' names as joint, co-depositors? If so, still his heirs cannot SAVE AT ALL ANY AMOUNT upon his demise even though he keeps the bank book in his very possession. His heirs still need to have a deed of settlement and payment of estate tax on bank deposits as now required by banks before withdrawing the money. I would say, your apparent "idea" is an indication of misleading viewers of this forum and this is evasion of the law on taxation.
I am not a lawyer neither a CPA, but just a plain individual sharing my opinion and knowledge.
You say, "I am not a lawyer neither a CPA, but just a plain individual sharing my opinion and knowledge."
That is very interesting! Neither am I.
As regards #2: you see, when a person dies there is still the estate tax to pay for his death, and other payments to the government, and also all kinds of hassles and money outlays before the heirs get into possession and control of the decedent's material resources.
As the decedent has already turned over completely to his successors by donation or absolute sale as to save most on taxes and charges from the government while still alive, and the government does not know he has passed away already when he did, so no more all kinds of taxes and charges from the government's offices and hassles -- just don't let the government know that he has passed away.
As regards #3, you open an account for your successors, preferably an atm account, and get them to draw up a power of attorney for you to exercise complete control over the account; then you transfer the money in your accounts to their account -- simple, even by just a telephone transfer. When you die, they just have to present the death certificate to the bank and take over their account -- that requires that their account and your accounts are in the same bank, and you don't let the government know that you have passed away.
Let me know what more difficulties you see with my diy estate planning.
Important thing is that you must make sure that your successors don't get to control at all your resources already in paper turned over to them while you still live, so that you will still live on these resources, and take them away from them if they turn out to be ingrates, or overly eager to get their hands on them.