Estate Management for a deceased family

Why is Estate Management an important topic for grief and bereavement..?

After the interment and funeral services and honoring the life of the deceased comes the most difficult part of sorting things out:  especially of the assets of the deceased more particularly the patriarch.  What hurts is the bite of govt taxes.

Thus we need the advice of tax experts accountants and lawyers on how to painlessly transfer the ownership of decadent estate to the living...

What is estate management?  It is the process of bequeathing the assets earned  by the decedent during the lifetime painlessly and with minimum of fuss and expenses to the heirs....

We have a free hand out here at the pages....as a guide...    Estate Planning from Holy Gardens Bests


A business partner whose husband just died is frantic because her husband died 30 days ago and the transfer of the property left intestate has not been fixed. What could be the solution?  He friends suggested a simulated sale,

We talked about simulated sale to save on estate taxes  which used to be up to 40% before.  Indeed what are the options.... All the three  options:  donations, estate tax, and sales are at 6%...

1.  The  donors tax and estate tax are now low at 6% under the Train Law

BIRR 12 2018  Estate Tax

Removed deduction funeral medical, legal and judicial expenses;

Cost of home up to P10 million  deduction is  allowed, P500,000 standard deduction

Estate of more than P2M to be filed by a CPA, estate tax can be paid within 2 years    From Tax Alerts

2.  Donors tax.  6%, P250,000 is exempt every year. Deduction and terms of payment are not available

2.  For simulated sale,  it also 6% but may be subject to VAT if capital goods (if say being sold as subdivision lots)  + 1.5 doc sci (lumilitaw na mas mahal)

and no deductions are allowed...

BETTER ANG TO GO BY WAY OF ESTATE TAX

3.  For sale

     It is also 6% but may be subject to vat (total of 18%)  if used as ordinary asset say lots for sale in a subdivision +  1.5% doc sci and this makes the simulated sale more expensive than estate tax payment

Ito kuwento re CGT for sale of properties:  (correction sa taas being sold as ordinary asset subject to VAT

For Sellers, the property to be sold should be a capital asset, and this includes assets that derive no rental income. Under this category, it’s the seller’s responsibility to cover the Capital Gains Tax of 6%.  If classified as an ordinary asset, a VAT will be imposed. More importantly, Creditable Withholding Tax is imposed for ordinary assets habitually sold by the seller.

For Buyers, it’s their responsibility to pay for the Documentary Stamp Tax (1.5%), the Transfer Tax (rates will vary depending on the location of the property), the registration fee, as well as other related fees like the notary fee.