If you think that being an heir or an heiress is all glitz and glamor, think again. While it can be argued that the likes of Paris Hilton and Prince Charles may indeed be facing problems of their own, the fact is, inheriting property is not as simple as it seems. Especially for us mere mortals.
We all grew up watching movies and soap operas that show inheritance as a golden ticket to the high life, that one simply walks into fortune when a relative dies. These stories may have given us unrealistic expectations because for starters, there is such a thing as the estate tax. Settling this is very crucial because if not, one cannot have the title transferred to their name.
Consequences of Not Settling Estate Tax
It is tempting to just sit back and to not do anything about it, but the consequences of ignoring these legal duties can get frustrating. Here are the ways it can be a huge headache when you fail to do the paperwork:
- You won’t be able to maximize the asset. As mentioned, without the settlement of estate tax, the land title won’t be transferred under your name. It will prevent you from developing the property, since you cannot apply for a building permit. Moreover, because you cannot prove ownership, you will find it very difficult to sell. You cannot even use it as loan collateral nor as part of the requirements when applying for a visa. We can perhaps compare this to an unsigned cheque, which is something potentially valuable but in the meantime, utterly useless. In fact, a recent online ad humorously captures this feeling.
- You could face piles of penalties. Tolerating and prolonging this situation is more harmful than you may realize. This is because the penalties will keep on piling. When you finally decide to resolve it, the dues may have already reached an exorbitant amount that may even exceed the value of the property itself.
- You worry over the untapped asset. It is bad enough to lose a parent, aunt or any relative for that matter, but not being able to claim and put to good use the legacy they had left you is a waste, which no one can really afford these days. This may even cause so much anxiety especially since we are living in times of uncertainty.
Solution for Unsettled Estate Tax
The good news is that the Philippine Government is offering amnesty for estate tax. This means that if you had inherited property like land on or before December 31, 2017, and still haven’t paid the taxes, you have the chance to settle it at 6% without penalties. You should take advantage of this now as the extension is only effective for two more years.
Furthermore, you don’t have to do this alone. The truth is, the process can get discouraging at times, and the legal steps and requirements can get overwhelming. Getting professional help is the most practical way to accomplish the matter. Consider partnering with firms such as Conveyance Realty Services, which handle different concerns related to land titles.
They can arrange for you the paperwork for real estate property tax, title transfer, extra-judicial settlement of estate of property title, and verification of property location.
Live your best life as an heir or heiress by settling your estate tax now. To get a more detailed explanation about this subject, reach out to Conveyance Realty Services through email email@example.com or mobile number 0917-1266839.
About Hardy Lipana
Hardy is the President and CEO of Conveyance Realty Services, Inc., a company offering full range of services for land title transfer including title verification, advisory on modes of property transfer (sale, donation and inheritance), determination of transfer costs and securing new titles for the property transferred. A professional licensed real estate broker, Hardy has more than 15 years of experience in the land title transfer services business. He is well versed with the dynamics of government procedures and compliance requirements for registration of properties. Hardy has been featured on Philippine Realty TV and recently served as mentor on the show’s The Final Pitch aired by CNN Philippines. He is also a frequent resource speaker for Land Title topics in seminars and forums organized by various real estate organizations. Among his advocacies is to help educate property owners and real estate brokers on the different property laws and regulations.
Hardy completed his MBA at the Ateneo De Manila Graduate School of Business and obtained a diploma in Entrepreneurship at the Asian Institute of Management. He graduated with a bachelor’s degree in Business Administration major in Computer Applications from De La Salle University-College of Saint Benilde.