Estate planning [EU citizen living in Philippines]

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
daviddem
Posts: 275
Joined: Wed Jul 06, 2016 12:53 pm

Estate planning [EU citizen living in Philippines]

Post by daviddem »

I am a EU citizen living in the Philippines. Not married, no kids (at this point anyway).

Most of my assets are invested at IB in dividend yielding Irish ETFs.

Let's say that upon my death, I want my assets to remain invested as they are, and the dividend stream to be distributed to my heirs on a regular basis. Let's say that some of my heirs are in the Philippines (my girlfriend) and some reside in the EU (my nieces and nephews).

How would I go about setting this up? Obviously the IB account cannot remain in my name after I die, but I would also not want the account to be directly transferred to my girlfriend and managed by her since she has no knowledge of investing or money management. Do I need to set up a trust, or a company that will follow my instructions?
Valuethinker
Posts: 49035
Joined: Fri May 11, 2007 11:07 am

Re: Estate planning

Post by Valuethinker »

daviddem wrote: Sun Jun 04, 2023 10:50 pm I am a EU citizen living in the Philippines. Not married, no kids (at this point anyway).

Most of my assets are invested at IB in dividend yielding Irish ETFs.

Let's say that upon my death, I want my assets to remain invested as they are, and the dividend stream to be distributed to my heirs on a regular basis. Let's say that some of my heirs are in the Philippines (my girlfriend) and some reside in the EU (my nieces and nephews).

How would I go about setting this up? Obviously the IB account cannot remain in my name after I die, but I would also not want the account to be directly transferred to my girlfriend and managed by her since she has no knowledge of investing or money management. Do I need to set up a trust, or a company that will follow my instructions?
In my world one would go about setting up an offshore Trust in the likes of Jersey, Guernsey etc. Most likely. However the fees on these can be quite painful if you don't have say over £1m to invest (even then). Easy to lose 1-2% pa (or more) on trustee fees.

Civil Law countries have very different rules re inheritance than Common Law ones (UK, USA, Canada and I presume Australia and NZ).

If you die in France, the law sets out how your estate is divided between your spouse, any ex spouses, your children. I am not sure that you can overwrite that. Philippines was a Spanish colony so I imagine it is Civil Law?
Topic Author
daviddem
Posts: 275
Joined: Wed Jul 06, 2016 12:53 pm

Re: Estate planning

Post by daviddem »

Yes I think civil law. Many of the laws are similar to US law since they were also a US colony/protectorate after the Spanish era.

In Philippines law your spouse and children are entitled to half of your estate, and you can do what you want with the other half via a will. Amusingly (or not) illegitimate children are only entitled to half the share of legitimate children. In any case, that doesn't concern me at this point as I am not married and have no kids. Need to double check however whether I might be forced to give half of the estate to my surviving brother / sister / nieces / nephews.
Valuethinker
Posts: 49035
Joined: Fri May 11, 2007 11:07 am

Re: Estate planning

Post by Valuethinker »

daviddem wrote: Mon Jun 05, 2023 11:38 am Yes I think civil law. Many of the laws are similar to US law since they were also a US colony/protectorate after the Spanish era.

In Philippines law your spouse and children are entitled to half of your estate, and you can do what you want with the other half via a will. Amusingly (or not) illegitimate children are only entitled to half the share of legitimate children. In any case, that doesn't concern me at this point as I am not married and have no kids. Need to double check however whether I might be forced to give half of the estate to my surviving brother / sister / nieces / nephews.
Without some expensive trust, it's hard to see how you are going to be able to achieve your objectives.

Leave clear instructions for your Executor re disbursement of funds, and hope for the best. (shrug)
Topic Author
daviddem
Posts: 275
Joined: Wed Jul 06, 2016 12:53 pm

Re: Estate planning [EU citizen living in Philippines]

Post by daviddem »

Has anyone here changed their IB account from individual to joint?

Has anyone here set up a trust and transferred their individual account to the trust?

What were the requirements to do so?
Post Reply