Rizal Philippines
September 28, 2017
Rizal Philippines
September 28, 2017
Dear Customer
THANK YOU AND CONGRATULATIONS
_______________ ___________ ________________
_______________ ___________ ________________
7. Debts and Liabilities
Thank you for purchasing a Holy Gardens Group Memorial Product (Plots, Plan, Interment Service) . You just have completed an important strategy in the preservation of your assets (estate) for the next generation. By buying the products and services needed for your memorialization, you have assured that the assets you leave for you heirs will not be diminished. You have also diminished their head aches and difficulties that accompany the loss of a loved one
You studied, had a family, worked hard to provide for your family. You accumulated assets so that later on you will leave your children and heirs with an estate (wealth) with financial asset so that they will not experience any difficulty and have a good life when you depart for good.
NO NEED TO LEAVE A LEGACY OF PROBLEMS AND HEADACHES
But what if there are accidents or the unexpected happen? Instead of leaving our families with financial security and peace of mind, we leave them with heart aches(with our demise) and head aches (with the debts, and legal and tax arrangement to put our assets in order
What happens upon death? Even our little money in the bank cant be withdrawn. they can be upon payment of estate tax. If our family does not have cash, they will not even have cash to pay for the food during the wake, nor pay for the funeral service, interment service, and the plots
MOST, MAJORITY OF FAMILIES DO NOT KNOW, or are ill prepared to handle this event.
ESTATE PLANNING
Thus we are furnishing you tips and other advise on estate planning.
What is your estate?
Your estate is the sum total of your valuable earthly possession: cash, receivables, investment (shares of stocks, club shares, business, real properties (house lots,) and personal properties (jewelry, shoes, bags, clothes) which can passed on to heirs
What is estate planning?
To be very blunt about it, estate planning is preparing for our death. It means making sure our assets are organized, and the arrangements are clear and in place upon our death; that the estate is preserved (rather than consumed by taxes and penalties) and escheat (the govt taking ownership of your estate)
STEPS AND STRATEGIES IN ESTATE PLANNING
Prior to any strategy or plan of preserving your estate, you have to organize your records and documents:
1. Your personal records:
Name______________________ Address ___________________
Birth date__________________ Birthplace ________________
TIN #______________________SSS/GSIS number ____________
Philhealth No ______________ HDMF #____________________
2. List of professionals who handle your estate:
Name Address Phone Number
Lawyer _________________ __________________ ______________
Accountant_____________ __________________ ______________
Insurance Agent _________ __________________ _____________
3. Bank Accounts
Bank/Branch Account type Account Number
___________________ _________________ __________________
___________________ _________________ ___________________
___________________ _________________ ___________________
4. Insurance
Company Type Amount Policy Number
_________________ __________ _____________ ____________
_________________ _________ _____________ ____________
_________________ _________ ______________ ____________
_________________ _________ ______________ ____________
5. Real Property
TCT Number Location Area Est. Market Value
____________ _________ _________ _______________
____________ _________ __________ ________________
____________ _________ _________ _______________
____________ _________ __________ ________________
____________ _________ __________ ________________
6. Shares of Stocks
Company Number Market Value (from PSE) as of
_______________ ___________ ________________
_______________ ___________ ________________
6. Motor Vehilces
Type Model Year CR Number Lto Branch Estd.Worth
_______ _____________ __________ ___________ ________
_______ _____________ __________ ___________ ________
_______ ____________ ___________ ___________ ________
7. Debts and Liabilities
Bank Lender Amount Date Incurred Status(Current/Arrears
______________ __________ ____________ ___________________
______________ __________ ____________ ___________________
______________ __________ ____________ ___________________
8. SALN (Statement Assets and Liabilities) As of ______________
Cash Other Near Cash Php _____________________
Receivables Php _____________________
Real Property Est Php _____________________
Shares of Stocks Est Php _____________________
Motor Vehicles Est Php ______________________
Other Personal Properties Est Php ______________________
TOTAL ASSETS Php _________________________
LIABILITIES AND NETWORTH
Liabilities
Bank Loans Php _______________________
Trade and other indebtedness Php _______________________
Networth
(Total Assets- Liabilities) Php _________________________
TOTAL Php _________________________
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A. Objectives:
The objective of your estate planning strategies are:
1. To give ease and convenience to your loved ones to use the assets you earned and saved for them upon your demise.
2. To save on the payment of estate tax which could be 20% of the total market value (zonal valuation of your property); and the transfer tax: 0,75% of 1%, doc sci- 1.5% of zonal valuation
Some strategies: (from Estate Planning 101)
1. Donation
You can donate in bulk or over a period of time to your heirs.It is zero rated for cash if the amount is P100,000 or less.Donors tax is 12% which is 8% lower than 20%
You can do a simulated sale to your children or other heirs to save further and you only pay 6% CGT + 1.5% doc sci stamps based on zonal valuation + 0,.75% of 1% of Land Transfer Tax or about 8.25% or 3.75% cheaper than donors tax.
However, if your heirs die ahead of you,you will still pay the estate tax.
2. Executing a last will and testament
The principal specifies the assets to specific heirs,thus lessening the squabbles and quarrels among heirs (as in the case of self adjudication). A probate court or an administrator is appointed to preserve the assets (as in the case of rental properties, where rents are collected and deposited in an account, repairs are made employees are paid their wages). However there is no savings in payment of estate tax.
3. Transferring the real properties in the name of corporation
The principal and the heirs to be establishes a real estate company where assets are exchanged for shares of stock A BIR approval is needed for tax free transaction (which takes time) However. this strategy costs only 8.25% of zonal valuation,11.75% less than estate tax, and 3.25% less than a donation. Xosts the same as a simulated sale
4. Executing a living trust
This is a little bit complicated and requires the services of an established law firm,(or non bank trust) or bank trust. A fee is charged by either a lawyer or the bank's trust department (between 3 to 5%)
Here a living trust document is executed by the Trustor (the principal) through a Trustee (the law firm or the bank) in favor the beneficiary (the heir).
A portion of the estate is sliced off, and sold to the trust which executes the will.
The principal who is still alive wills the said property to the beneficiary (the name of the asset may be transferred in favor of the beneficiary (to save on taxes) or not (this latter tactic is safe for the Trustor) While the property or asset has been willed unto the heir, the actual control and enjoyment of the fruits of the assets (as dividends and rental) remain with the Trustor
