my grandparents passed away in the late 80's in the philippines. They left a titled property under their names as husband and wife but without a will to my parents or my aunt's and uncles. My cousins living in the said property have been paying the estate taxes since my grandparents passed away. My mother ( the 3rd of 6 children ) who has passed away in 2007 and all of her siblings except for the youngest, passed away before her. The property titles was never transferred to our parents name but we all continue to pay taxes on the property. We all have decided to apportion the property into individual titles to our names. Do we have to pay inheritance tax based on the market value of the property or will it include arrears from the time of my grandparents death ?
2 Answers from Attorneys
You will have to ask a lawyer in the Philippines. U.S. law and taxes have nothing to do with people who die in another country owning property in that country.
You have a lot in your post that is confusing. First of all, if the property is in the Philippines, you need to be speaking and talking to a lawyer in the Philippines.
If the property is here in California, then you are in the right category, but your post is still confusing. For example, you state that there was no will, but that is was to go to your parents or your aunts and uncles. If there is no will, then how are we supposed to know where it was to go.
Inheritance taxes are paid when property passes through probate. Are you talking about property taxes? If so, then you have other problems, such as adverse possession, and need to be consulting with an attorney today.