Transfering House From Business To 30 Year Lease

[anonymouse]

Purchased my house and started up a business around five years ago and put the house in the company name with myself as director. The company went down the pan during the recession and I now want to close the business and transfer the house over to my wife with myself on a 30 year lease anybody out there know the best way of going about this and what I should be paying.

Cheers

[InterestedObserver]

1. Close business with all that entails.

2. Sell (transfer) land to wife, land office issues Chanote in wife's name.

3. Get a 30 year lease or usufruct for the land registered on the Chanote. Be sure to include the house in the lease or usufruct contract.

[anonymouse]

1. Close business with all that entails.

2. Sell (transfer) land to wife, land office issues Chanote in wife's name.

3. Get a 30 year lease or usufruct for the land registered on the Chanote. Be sure to include the house in the lease or usufruct contract.

Thanks for the Info IO - any idea how much all this is likely to cost?

[Khun Jean]

1. Close business with all that entails.

2. Sell (transfer) land to wife, land office issues Chanote in wife's name.

3. Get a 30 year lease or usufruct for the land registered on the Chanote. Be sure to include the house in the lease or usufruct contract.

Thanks for the Info IO - any idea how much all this is likely to cost?

Whatever the costs it will not give you security. Not sure if that is important to you, i just guessed it because you mentioned a lease or usufruct. A lease or usufruct is worthless when made with a spouse.

All in All it will cost you at least 100k in closing costs and taxes. Why not maintain the company as this seems the less costly option while still providing a bit more security, and maybe reuse it in better times.

Would it be possible to sell the company? You would probably make a loss, but that frees you from paying taxes. And you probably already lease the land and house from the company anyway. If there are no 'skeletons in the closet' it might be doable.

[InterestedObserver]

A lease or usufruct is worthless when made with a spouse.

Just make sure the lease or usufruct agreement includes a third person whose rights would be affected by any cancellation of said agreement. Any good lawyer should be able to draft a contract to nullify the wife's ability to cancel the agreement. That's the best you can do. There is no easy solution to the problem of your wife owning the land upon which your house sits.

[anonymouse]

1. Close business with all that entails.

2. Sell (transfer) land to wife, land office issues Chanote in wife's name.

3. Get a 30 year lease or usufruct for the land registered on the Chanote. Be sure to include the house in the lease or usufruct contract.

Thanks for the Info IO - any idea how much all this is likely to cost?

Whatever the costs it will not give you security. Not sure if that is important to you, i just guessed it because you mentioned a lease or usufruct. A lease or usufruct is worthless when made with a spouse.

All in All it will cost you at least 100k in closing costs and taxes. Why not maintain the company as this seems the less costly option while still providing a bit more security, and maybe reuse it in better times.

Would it be possible to sell the company? You would probably make a loss, but that frees you from paying taxes. And you probably already lease the land and house from the company anyway. If there are no 'skeletons in the closet' it might be doable.

Thanks Khun Jean, don't really fancy paying out 100k at the moment so I will probably mantain the company for now.

Maybe look at selling the company also - there's no skeletons

I was looking more at my wife and kids security than mine eg making it easier for her if anything happened to me.

Edited November 13, 2010 by anonymouse

[anonymouse]

A lease or usufruct is worthless when made with a spouse.

Just make sure the lease or usufruct agreement includes a third person whose rights would be affected by any cancellation of said agreement. Any good lawyer should be able to draft a contract to nullify the wife's ability to cancel the agreement. That's the best you can do. There is no easy solution to the problem of your wife owning the land upon which your house sits.

Thanks again IO, I'll consider my options and decide if to keep the business going or not.

[InterestedObserver]

How about:

1. Close the business with all that entails..

2. Gift the land to your minor child and register same with land office.

3. Land title (Chanote) is now in minor childs name and under court supervision.

[anonymouse]

How about:

1. Close the business with all that entails..

2. Gift the land to your minor child and register same with land office.

3. Land title (Chanote) is now in minor childs name and under court supervision.

Thanks, another option to look into, good advice from yourself and Khun Jean.