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other options beside a will for land...

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  • ray_raza2003
    Recently I attended a seminar on wills here in CR. The attorney recommended a separate US will for US financial assets.Re land in CR I was wondering if anyone
    Message 1 of 4 , Jun 25, 2014
      Recently I attended a seminar on wills here in CR. The attorney recommended a separate US will for US financial assets.Re land in CR I was wondering if anyone is knowledgeable about various options besides a will. Thanks.





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    • Kerry Dressler
      Our lawyer recommended that we hold our homes in a Sociedad Anomina. one of us is a voting officer in the SA and the two other voting positions are held by
      Message 2 of 4 , Jun 25, 2014
        Our lawyer recommended that we hold our homes in a Sociedad Anomina. one of us is a voting officer in the SA and the two other voting positions are held by our children . In this way we hope to pass the homes on to them and give them the option of living in them or selling them. Yes, it costs us the Tax for the SA per year, but it seems like a good insurance policy to me.
      • rpioso
        I have another option for those on this topic who have no issues in the US and who are US persons The problem with an individual(s) owning the CR SA that holds
        Message 3 of 4 , Jun 25, 2014
          I have another option for those on this topic who have no issues in the US and who are US persons

          The problem with an individual(s) owning the CR SA that holds the real property is that in the event of death, the ownership is still owned by them. Even if you have children or others as officers, they are not the legal owners. Additionally, they most likely are bound by any limits written into the company constitution. So, you may be able to operate the company, but the transfer of ownership is still the problem. Here is a work around.


          Step 1: Form a US corporation. Any state will do...If you reside in the US, pick your home state. If you live outside the US pick Delaware (low cost with asset protection). The point here is pick a low cost state - do not pick California...any state will do, I personally like Delaware and Wyoming. Low cost.


          Step 2: Transfer the ownership from the individuals to the US corporation. There should be no US tax issues as you will transfer the asset at you tax basis (assuming the fair market value of the asset is approximately the same as the cost - if,not, there is a possible gain consideration)


          Step 3 - The officers should be yourselves and anybody else you want. In the event of death, nothing changes. The CR SA is still owned by the US corporation. The US corporation is part of your US estate and your US will covers it. The new owners of the US company can then make any changes to the board/officers in CR and have the power to sell or dispose of the asset without dealing with CR laws pertaining to death or disability.


          Costs
          Forming Corporation - based on each state - example, Delaware is $139
          Engage registered agent - necessary to have a legal biz address - cost is free if you use your home state that you live in, others will vary - $99 to $250 per year
          Filing a US tax return - must file a US return for the ownership. But, a very easy return. Costs can be around $225 or so per year.
          Paying CR attorney to make the changes to the corporate books.


          This solution avoids dealing with asset transfer issues in Costa Rica and ultimately may save lots of aggravation and future monies to be spent.



          If anybody needs specific help on this or other tax planning or compliance issues, please contact me at robert@...


          Thanks for reading and I hope it helps


          Robert










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        • jrnut Paul
          ... Our SA has family members (the ones we want to inherit) as officers on the board...we issued stock (to the president and vice )...the board has the power
          Message 4 of 4 , Jun 26, 2014
            On Wed, Jun 25, 2014 at 11:37 AM, robert wrote:

            > The problem with an individual(s) owning the CR SA that holds the real
            > property is that in the event of death, the ownership is still owned by
            > them. Even if you have children or others as officers, they are not the
            > legal owners. 


            Our SA has family members (the ones we want to inherit) as officers on the
            board...we issued stock (to the president and vice )...the board has the
            power to re-issue the stock to another member or members should the current
            stockholder die. The owner of the stock is the owner of the company and
            therefore, the land and houses. This is recorded in the books, it works
            for us.

            Paul in Perez


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