Panama Inheritance Laws The inheritance is the set of goods and obligations that a person leaves when He/She dies.
If the obligations overcome the value of the goods, the inheritors do not have to pay this difference with their patrimony.
Whatever one receives upon the death of a relative due to the laws of descent and distribution, when there is no will. However, inheritance has come to mean anything received from the estate of a person who has died, whether by the laws of descent or as a beneficiary of a will or trust.
Inheritance taxes in Panama have been completely abolished.
Despite this, taxes on gifts (inter vivos) of properties located in Panama are in effect, and the rate depends on the degree of relationship between the donor and the donee. This does not apply to property owned anywhere outside Panama.
There are two systems to designate inheritors:
One system establishes that the inheritors are those that the deceased person designates in life, and does it through a manifestation of his will that is called a testament.
Another system is the one that establishes the law, which indicates who will be the inheritors, Not allowing any modifications through a testament.
According to Civil Code of the Republic of Panama. If the deceased has left testament, the best thing to do is to contact an attorney in order to beging testate succession process.The paperwork must been done in the corresponding court:
If is of minor quantity, it will be in the municipal courts; and if is of major quantity, or, superior to 5 thousand dollars, the process must be begun in the Circuit courts. It is necessary to Issue an edict in a period of at least three days just in case some one else appears beliving He has rights on the goods tested.
This is just in case there is someone else who possesses a posterior testament that replaces the one already presented or that complements the previous document.
After doing the inventory of goods, and checking those who are the legitimate inheritors, it becomes necessary at the time that the holders of the inheritance change. For example, if it is a vehicle, it is necessary to change the name of the owner in the Municipality; if it is a land or a house the change must be done in the Public Register.
This process, can take four to six months. Certainly, there are guidelines that must be follow in the tested inheritances, according to the Civil Code.
The only ones that cannot do a testament are the minors and those who do not posses complete judgment. In the same way, if the testament is forced, it will be annulled. Panama Law & Legal Services
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