Best way for proprerty inheritance 🏡

Taiwan Living in Taiwan
1

A few generations of inheritance can split ownership to many people. I heard many stories how property in Taiwan can sit unoccupied for years because many owners who inherited the property can not come to an agreement. In the end there might be conflict of who can live on it, some want to sell, etc. In most cases the legal solution comes down to selling the property and paying out the owner’s shares.

I watched a piece on VICE how such a ownership structure can be exploited by external agents buying out some of the owners and forcing a sale under value to grab the whole property for a bargain.

What is the best way to avoid conflict between owners? And how to protect it from external agents.
A will is definitely necessary.

I am thinking like putting the property in a trust. The shares in the trust can only be sold to other trust beneficiaries.
The occupants pay rent to the trust and from that money maintenance and taxes are paid. The rest is paid out to the owners shares.
If there is a majority for a sale, then trust beneficiaries have preferential buying rights.

How is inheritance tax and other taxes applicable to such a structure?

Obviously you will need some legal help to set it up. I am just wondering if anyone has already went through this to get a general idea what is possible in Taiwan.

2

I’m not so trusting when it comes to trusts… the person who manages it is the one benefiting the most in my opinion.
I know of a case where a trust was set up to take care of a disabled person (parents setting one up to take care of their autistic son after they pass) and their lawyer just siphoned the money to himself.
unless you are uber rich, I think a will is enough for most cases.

3

Agree. Trust is over the top unless you can afford so much legal overhead.

Anyone set up a will to address possible inheritance conflicts and Taiwanese legislation?
I am interested in general points that should be included/addressed.

  • If a partial owner wants to sell, other owners have the right to buy it before it can be sold to a third party
  • Partial owners can demand their fair share of rent (e.g. if there are two owners and one is occupying the property, then the other one is entitled to 50% of rent after taxes and maintenance deductions)