Dilemma between trust and ownership: what to choose?

Stay in Trust or Become Landowner?

As a law student, you are facing a dilemma regarding land ownership abroad. Your father purchased the land for you, but due to being a minor, you have not been included in the ownership process. The situation is further complicated by the property’s value and concerns about family and tax consequences. What should you do in such a situation?

Become the Owner or Remain in Trust?

One option to consider is formally taking over the ownership of the land from your father. However, this may lead to a family conflict since your father clearly threatened to disinherit you if the property is sold. On the other hand, by merely being the de facto owner of the land, you allow your father to continue managing it and avoid family conflicts.

Taxation and Sale of the Land

If you consider selling the land for a value exceeding 150,000, you are required to report this transaction. The decision on how to transfer the funds (e.g., through cryptocurrencies) may stem from a lack of trust in banks in the respective country, but it is crucial to remember the necessity of later tax settlement.

What Steps to Take?

Before making the final decision, it is advisable to consult with a lawyer specializing in international matters and tax law. Legal advice will help you understand the legal and tax consequences of both options: becoming the landowner or staying in your father’s trust. Remember that clear communication with your family is crucial to avoid misunderstandings and conflicts in the future.

The ultimate decision is yours – it is important to consider both legal and family aspects, ensuring the well-being and harmony in your relationships with your loved ones.