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Redbeard

Benefits of Real Estate in a Corporation in 2017?

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Thanks for that CRF. A shame that insurance here is not very good on a totaled car. If your experience and comments I've heard apply to most cases.

Edited by jamesofomaha

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Some more info re dissolving a corporation. A friend of mine said he found an attorney to do it for $120. Go figure. My attorney quoted me $1,000. Guess who won't be my attorney any more?

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Okay I'm not an attorney and I don't play one on TV nor the internet.

However, I am sharing with you what I've been told by 2 attorneys re corporations vs having property in your name. This is what I've been told:

"If you have your car or property in your own name, even if you have a will that is legal in Costa Rica, when you die that property will go into probate, it will take a long time to resolve who gets it after you die, and "the government vultures" (my attorneys' term) will charge you 10% or more OF THE VALUE OF YOUR ENTIRE PROPERTY for their "services"."

I was told therefore that having the property - such as a car or house or land - in a corporate name, (S.A. or SRL) will allow you to make someone such as your wife, son, daughter, whoever, the new owner of the property if you die, thus avoiding probate completely.

Also it prevents someone from taking your land from you in case someone is hurt badly on your property and they sue you and it's determined that it's your fault. If it's in an S.A. they can't come after you.

Again this is what I was told, that's all I know about it. I'm not an attorney!

Edited by jamesofomaha

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James, above you wrote, "Also it prevents someone from taking your land from you in case someone is hurt badly on your property and they sue you and it's determined that it's your fault. If it's in an S.A. they can't come after you."

I think you have that exactly backward. If your property is in a corporation and the corporation is successfully sued, the liability for damages is limited to the value of the assets held by that corporation. So if, for example, someone falls on your property and is seriously injured, they can sue the corporation and win its assets, the property, but they cannot sue you personally and take (say) your bank account if it's held in your own name. If that bank account is in the corporation's name, then it is an asset of the corporation and thus liable to seizure. 

That is why the traditional advice is to have separate corporations to own each parcel of real estate and each vehicle you may own. If in an accident your vehicle corporation is found to be at fault, the victim can seize the assets of that vehicle's corporation (the vehicle or whatever may be left of it), but they cannot seize your real estate because that's in a different corporation. Likewise, if someone is injured on your property owned by "Corporation A", they could not seize the real estate owned by "Corporation B". 

 

Edited by David C. Murray

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