Most Filipinos are not aware that their heirs will be burdened with estate taxes upon claiming their inherited properties, vehicles and/or investments. The load becomes heavier since the heirs shall file the returns (taxes) within six months from the time of death or else they will be encumbered with penalties accruing annually. Worst, aside from freezing the supposedly ‘blessings’, these ‘pamanas’ can be foreclosed due to penalties and interest charges that piled up.
Estate Tax Computation
Jenny del Mundo, Sun Life Financial Philippines Distribution Support Head shared three ways not to ‘experience the nightmare’ and remove that burden to the heirs:
- Through sale of assets
Selling the assets to legal heirs who has the capacity to pay (except husband).
- Through Donation
Donate the asset to legal heirs that doesn’t deliver the capability to pay.
- Get a life insurance policy that will protect the heirs and their inheritance.
Yes, as Sun Life launched its SUN Life Smarter Life offer, the policy holders will not only get the most of their hard-earned income but the security of their legacy as well. SUN Smarter Life is another Sun Life protection product that aims to provide double life insurance coverage until age 100, while the insured lives, thereby guaranteeing a secure future for the family whatever happens. Should the insured pass away, the insurance proceeds from the protection plan can be used by the beneficiaries to settle estate taxes. That is on top of the living benefits from any unfortunate event of terminal illness or emergencies. These supplementary benefits will be added to the plan for an extra protection against any uncertainties such as accidents, disability and illnesses for a minimal amount.
Sun Life Financial Philippines Chief Marketing Officer Mylene Daez-Lopa said:
A lot of Filipinos are not familiar that insurance can be a solution in estate planning. SUN Smarter life wants to ensure that whatever they worked on, they could pass it on to the next generation and to their loved ones. So that they can really preserve that treasures that they want to pass on. ”
Sun Life Financial Philippines Chief Marketing Officer Mylene Daez-Lopa as she introduced SUN Smarter Life to the press
Charo Santos-Concio, the renowned actress and producer known for her Maalala Mo Kaya show shared:
I get to face my fears, I’ve really become more daring and more adventurous on my perspective about life. I live every day and savor each day as if it were my last. And so, all the fruits of my hard work are really meant to be a legacy to my children, to my beloved sons and grandchildren. Gusto ko pong makita na komportable ang mga anak ko. Ang mga apo ko ko ay makapag-aral, makapagtapos ng pag-aaral, makamit nila ang kanilang mga pangarap. And I think, all the assets I’ve acquired through the years can best be enjoyed by my loved ones, if I plan about this efficiently. And it’s through SUN Smarter Life, that everything can do this.”
SUN Life Ambassador Ms. Charo Santos-Concio as she shares how important estate planning is during the Living and Leaving a Legacy SUN Smarter Life Press Conference
I never really thought about the issue of an heir acquiring those taxes after they inherit property. This is must have information for sure.
Excellent information to have! it’s things like this that you don’t necessarily think about!
Many people are unprepared for the burden of deceased estate taxes, as we were when my dad passed away 18 years ago. This is the case in many countries where the estate burden is high and it can cause unnecessary stress for families.
The tax laws in every country differ slightly. This was interesting to read though.
Every country has different laws about taxes for the deceased. This was interesting to read though.
I will share this with my Fillipino coworkers, it might help their families out!
Your post is interesting and well-written, never thought much about this topic before I read this post, thanks for sharing!
Great insights, everyone needs to be aware of estate taxes with their loved ones.
Oh wow, never thought about this before, but this is really important information. Thanks!
Some really cool tips. I think if you have something to leave for the heirs, then get a competent customized advise how to do it wiser.
I need to seriously look into this for my kids! This definitely can’t wait, I can’t agree with you.
Estate taxes are such a bummer already, but when you get hit with them and fines because you didn’t realize that is even worse! This is great information for people to be able to get things done right.
Thank you for sharing! I’ve never known a lot of this info before!
My family just lost someone important. It really gives you a firsthand lesson on what you should do when you pass. I am thinking of my options now.
I have been thinking of insurance lately. Someone close to me passed and it made me really question my own choices of insurance.
Here in the states, life insurance is a great solution for estate planning too. It isn’t that costly and will help cover estate taxes for heirs too. I think it’s great estate planning!
This was an interesting read, I didn’t know much about this before reading this post.
This was so interesting. Thanks for sharing the wisdom!
Great post, indeed a one that is needed by most of the citizens.
I had never thought of this before! Great article!