Joint bank accounts and inheritance

[Expat-in-Cabarete]

My husband and I visited a couple of banks yesterday with the hope of opening a joint checking account. We want to make sure that if anything happens to either one of us, funds are available to pay for medical bills, funeral expenses, etc. as well as to continue running our business. My husband is a DR resident, but I'm not. We're both US citizens.

The answer we got is that even if the account is joint, when one of the owners of the account passes, the funds are frozen and inheritance law kicks in.

This is quite surprising to us since in the US, a joint account means that the funds are owned by both parties, and thus if one dies, the other has survivorship rights.

Could anyone confirm that what we were told in these two banks is correct?

Thanks

[Hillbilly]

That doesn't sound right....it's y/o on the account....so what you say should be the correct proceedure.

Of course, if you don't tell the bank that one has deceased, and you clean out the account, they can't protest, can they???

HB

[Fabio J. Guzman]

Joint property with rights of survivorship does not exist under Dominican law.

[Expat-in-Cabarete]

Thank you Dr. Guzman. Therefore, we have to expect 100% of the funds in such a bank account to be fronzen in the event of one death, or would the survivor have access to 50% as co-owners of the account?

[The Virginian]

This concerned me so I stopped by our bank this morning and was told that as both my wife and I are on the same account that this does not apply as long as the account allows each of us access to the account and not BOTH of us at the same time. Should both of us die our wil states that the kids get everything. The bank said that is honored here and they have up to 10 years to get it. If the kids fail to get it within the 10 years the DR gets it. Any one agree, disagree?

[Expat-in-Cabarete]

Did you ask what happens if one dies? Will they freeze 50%? BTW, which bank is that? Thanks

[Denmay565]

We asked this same question when we were at the Bank because we knew that with real estate, joint ownership with rights of survivorship doesn't apply in the DR. We were told the following:

With a joint account titled husband OR wife, if one spouse dies, that person who died half of the monies would pass on to the children and therefore the surviving spouse would only own 50% of the monies in the account. However, the simplest way around this is upon the passing of a spouse, the surviving spouse in a husband or wife account can and should close out the joint account and open a new account in just the surviving spouse's name. In other words, don't volunteer that one spouse passed on.

[NotLurking]

Originally Posted by Denmay565

However, the simplest way around this is upon the passing of a spouse, the surviving spouse in a husband or wife account can and should close out the joint account and open a new account in just the surviving spouse's name. In other words, don't volunteer that one spouse passed on.

I think this is technically fraud and does not in any way diminish the rights of inheritance granted by law to the offspring of the deceased. If an heir of the deceased spouse knows of the existence of the joint account he/she can request and is entitled by law ot his/her share. The second someone dies inheritance law come into effect there really isn't any way around this. Perhaps, the spouse of a terminally ill person could BEFORE the person dies close out the account. This may be seen as unjust by an heir of the deceased but it isn't illegal nor fraud.

NotLurking

[Expat-in-Cabarete]

I can't imagine how a bank will allow just one of the parties when presumably are both alive to close the account.

I also don't see myself (if it were my case) lying to the bank and withdraw everything. I live in Cabarete. This is a small town. How long will it take if one of us passes to reach the bank manager? It can't take very long. If you're a business owner, people know you and they talk. Well, anyway, even if they didn't know I don't see myself doing something illegal.

Basically I posted my question because it occurred to us that if something would happen to my husband, I won't have immediate access to 50% the balance in his bank account, won't have money to cover any funeral expenses, and no working capital to continue running his business (I'm succeeding him as President of his corporation if he passes) but the assets go to his estate (heirs include children and other family members, not me). Although I don't know if a will wrote up in the US will be valid here.

Anyone knows what happens in the bank account is a corporate account and one of the two or three people in the account passes? Does inheritance laws also come into play and the funds are also frozen?

Thanks