Post on Estate Planning PDF file

Link to PDF file on Estate Planning

Click this link so that you will see/read the entire document on Estate Planning

Holy Gardens Estate Planning Guide pdf

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   Even our little money in the bank cant be withdrawn.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

Every family must have estate planning manual to avoid inconvenience in getting assets during hour of grief

The #memorial experts

Rizal Philippines
January 4 2015

Example of Estate Planning at Docslide (US version)


Will Crafter


We were on the wake of of former classmate who left huge deposit in at least 3 banks. From what we know, the decedent could not withdraw this unless the corresponding estate tax which amounts to at least 30% have been paid.  Not to mention that there will be delay in the withdrawal of the deposit.  The bank will only allow withdrawal of the amount to be paid to funeral services and some small debts.  Otherwise the following will have to be done:    extrajudicial or judicial settlement of estate, publication, and payment of the corresponding estate taxes.  Quite a long process that may take at least 3 months or longer.

The sisters were frantic on how to get the money so that the chemo drugs running into 6 numbers and the funeral expenses too can be paid.  Imagine the govt taking big chunk of what you worked so hard for and making it difficult to spend in your hour of grief.

It brings back to my mind, that one of the services wed did for our financing and lending companies was to to publish a estate planning handbook/manual.


It calls for the following:

1.  Organize, list and file all personal records:   birth certificate, marriage license, SSS, GSIS, Pag Ibig policy number, passbook, time deposit and insurance policies

2.   Execute a will and testament in case something happens to you.

3.   Execute a living trust. This involves the trustor, the trustee (an administrator who could be a person or a trust bank and your intended beneficiary.  The assets will be transferred to the beneficiary in case of death

4.   Execute blank deed of sale or withdrawal slip as the case may be.  These may be help you avoid payment of estate tax.

5.  Being mum/avoid publishing obituaries of the death of a loved one.

We will resume sending copies or CD of this to our customers.

Or you can request download of PDF file.  Please e mail us a holygardens.group@gmail.com should you want to have a copy.