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Intestate Probate - What Happens When there is no Will?One of the things clients should know, before deciding whether or not they need a will to cover assets which they might have in Panama is what the Panamanian Civil Code provides regarding intestate probate. What will happen if you do not have a Last Will and Testament in place? As in many other countries, Panamanian law provides for the spouse, children and parents. We have outlined how this works, through a couple of examples. The general rules are the following:Direct decendents inherit per stripes (i.e. children). Panamanian law recognises the legitimacy of children born out of wedlock, although if the parent (father) has not formally recognised the child, then it will be necessary to provide proof of the relationship. If a child is deceased, but had children, then the grandchildren will have the right to inherit in representation of their parent, sharing in equal portions that part which their parent would have inherited. Where the deceased has a spouse, who is neither divorced nor legally separated from them, then the spouse will have the right to inherit in equal parts with the children. For example:Grandfather Bob (aged 63) is married to Joan (aged 57), and they had three children: Jane (deceased), Sam (aged 36) & Lila (aged 32). Jane died aged 20, leaving a son Simon (now 5 years old). Grandfather Bob also has a child from a previous marriage, Harry (aged 43). The Estate is comprised of the following assets: a small 1-bedroom apartment in Panama City, a bank account of $20,000, and a house on the farm (20 hectares) in the country. Should Grandfather Bob pass away, without having left a will, the following division of the Estate will apply: Lawyers - 20-30% Joan 1/5th of the remainder Simon 1/5th of the remainder, taking Jane's place - which will be administered by his legal guardian Sam 1/5th of the remainder Lila 1/5th of the remainder Harry 1/5th of the remainder If Grandfather Bob had intended for Joan to have received half of the Estate or a right of survivorship, this would not be recognised under Panamanian law. Furthermore, if Joan is meant to be able to live in the house on the farm for the rest of her life, this would depend on the good nature of the children. Harry, should he so decide, can force the sale of the farm or require that his interest in the farm be bought out by the others. Likewise, the lawyers can require that the Estate be liquidated to take care of their legal fees in the intestate probate. No children:If there are no children, then the court will look at whether or not the deceased's parents are still living. Once again, the spouse will have the right to inherit in equal parts with the parents. For example:Joan and Bob are married and in their late 20s. They have recently established a small business together and have purchased an apartment. Bob passes away unexpectedly, when his car is hit by a Diablo Rojo (unfortunately, the brakes failed). Bob's mother and father are still alive. Bob's estate will be divided in equal shares (1/3 each) between Bob's mother, father and Joan, after the lawyers have taken their portion. Friends and charities are obviously not covered by any means in the case of intestate probate. Should the court fail to find a close relative, then the Estate will be passed to the State. No heirs or Successors sIf there is no Last Will and Testament, and no heirs or Successors are found, then the City Council (municipio) will inherit the assets of the deceased. This is the City Council where the deceased was last domiciled, not where the assets are actually physically located.
For advice regarding your particular situation or for more information regarding our services, please do not hesitate to contact us. Last modified 26-Sep-2007 17:38 -0400 |
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Copyright - Disclaimers - Privacy Statement Copyright © 2000 - 2007, Beth Anne Gray J. For questions or comments, please write to the webmaster Last modified 26-Sep-2007 17:37 -0400 |
