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.

Meeting with Mr. Sto Tomas Dale Abenojar

The #memorial experts

December 13, 2017

 I met with Mr. Dale Abenojar at McDonalds Marcos Highway across Sta Lucia yesterday regarding the Bible donation.  He showed me a sample of the Good News bible from PBS which costs only P40.00

1. Regarding the Bible, he said that Philippine Bible Society ordinary sells this for P180.00 (which is all ready discounted)  But since Bible expedition is giving away the Bible for free, the Bible League which buys the Bible from the printer, subsidizes the difference from donations coming from Australia

Right now they are getting a lot of request for the free Bible.  With the a Bible, the flock can truly understand the teachings of the Lord.  He  said the Filipinos are denied the privilige of having a Bible by the Spanish friars so that they alone can preach.  And so that people will not get to be conscious of 2nd commandment, ie to have images and statues made by man as their idols.

We are good for 2,000 bibles for donation + 500 for our free distribution to our customers as token during interment. However he argues  that we need the eyeglasses as mandated by the Lord.  This will be implemented in 2018;  the donation being  available by 2nd week of January

If our finances allow it, we can be good  for 10,000 Bibles (that is about P400,000) for 2018. 2,000 Bibles every quarter as a goal...

Printed at the back of the Bible is


"MAGING BAHAGI NG PAGBABAGO ATING BANSA"

Truly if distribute more Bibles for people to read, we have more people understanding  and receiving Jesus Christ and His teachings, there will be less drug addicts, criminals;  robbers rapists, pickpockets people drivers with rough manners.  And these few Bibles will do more good than Rodys PNP anti drug killing spree.  Let us support this worthy project

The meaning of Second Commandment

2. Prior to 1995, he was not concerned  with this evangelization. But he underwent what he says Pastor Manny de Guzman said was what was termed as "translation"  nearly equal to transformation. He was unconscious for 18 hours and God talked to him about this calling.  God clearly told him where to have the mission:   island of Mindoro, Aurora, Cagayan and Isabela (the eastern seaboard)    Real, Infanta and Polillo Island.   That is a lot of bibles and evanagelization

  Even the  eyeglasses as a companion to the Bible is an missive from the Lord. What good is the Bible if they cant read this.So they bring along eyeglasses which have grado and fit this to the recipients until they get the perfect vision.  Even those who are not members of the  church line up for the free eyeglasses. And the BE gives to them free on one condition:   a 30 minute  talk about the Lord, and at the end gets the Bible after all.

3.  How do they conduct the mission

     1. They gather the required number of eyeglasses and Bible.  As for our proposed donation, Bible Expedition issues us a receipt which is BIR registered  as tax exempt donation;

    2. BE pays the Bible League and gets the Bibles

    3. Then they schedule a 2 week sojourn for the missionaries and they go to each town (there is a schedule) and gathers the 30 or so Christian churches (only INC is not included) and distributes the free Bible and eyeglasses.   The  ministers minister establish several lines to distribute the eyeglasses and Bibles

    4. As a donor, we can join and see for ourselves the Bible distribution.

4. Some of the teachings and insights from Dale: (the envangelist);  He engaged me on nearly two hour conversation about the teachings of the Lord

    1.  The moment he said that we thought of donating the Bible, God will bless the business behind this a hundred fold, if we gave it as an excess,and a thousand fold if it is still part of what we need;
We are mere vessels of the Lord for the giving back to the Lord what he bless us  with us.This is part of the missive of being a blessing to others than seeking merely to be blest.

2. The purpose of Evangelization is to bring Gods kingdom here on earth as it is in Heaven as is contained in the  Lords Prayer.

In this KIngdom, Gods spirit will come down from heaven and empower the believers to heal and further spread the word of God;   slay and stop the devil

3.   On sinning

     When we sin, and disobey the ten commandments and the New Law (Thou shalt love God above all, and thy neighbor as ourselves) we get separated from God, and since God is the light, we live in darkness.

4.  He evangelizes on emphasize the teaching of God, converts have receivers of word of God even in drinking sessions;   with goons and even prisoners  - nawawala kalasingann

     And sa burol.    I told about the possibility of Him conversing with our CSS 2 and CSS 3 to use Evangelization with the customers on death and 2nd coming

Let us support the Evangelization Program/Project of Bible Expedition

The #memorial experts


December 10, 2017

Invitation to join an Evangelization Program of Bible Expedition

12 important reasons why Evangelization is important

                                                     Why the Bible and eyeglasses go together


This post was invited several times all ready by  a friend in the past Dale Abenojar, sa 4x4 adventures to donate to an Evangelization program. As everybody knows, Dale was the first Filipino to scale Mt. Everest via the difficult traverse route... This would cost P40.00 for the full size Bible, and P15.00 for the reading glasses.  According to him they will donate

                             20,000 Bibles   x P40.00    =                P800,000

                             10,000 Reading glasses  x P15.00    =  P150,000

                                             Total                                      950,000

to 10 municipalities of Occidental Mindoro.

Why the large bible?   So that the elderly, those with poor eyesight can read?
Why the  eyeglasses ?  So that those with really poor eyesight  can read... They go together.

This is very low considering that the lowest priced bible of Philippine Bible Society is at P295.00 The new testament is P65.00

                                                          Full size Bible

I was thinking we could be good for 2,000 bibles for the project and we buy 500 Bibles as souvenirs for the family of the deceased.  That would cost us P100,000.   P80,000 for the  2,000 bible and P20,000 for 500 bibles as souvenirs for the deceased.

It is part of our mandate as Christians to spread the Word to be part of this Evangelization.

Dale said that Evangelization has been his calling since 2,000.   He founded the Bible Expedition Ministries and is a full time missionary and evangelist.  He is confirmed by Elizabeth Hawley as the first Filipino to summit Mt. Everest and at the difficult North Col.   He was 2,614th. Oracion was 2,740

                                                 Picture ni Dale sa Mt. Everest Summit

Estate Planning Guide for our Customers (new and updated)

The #memorial experts

Rizal Philippines
September 28, 2017



Rizal Philippines
September 28, 2017

Dear Customer

THANK YOU AND CONGRATULATIONS

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   _________________________

_______________________________________________________________

 From BIR

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