Estate planning webinar notes
~ Monday, March 27, 2023 Blog Post ~
Estate planning webinar notes — July 22, 2021
Speaker: Atty. Jules Riego
“How COVID-19 Should Have You Thinking about Estate Planning”
1. Planning for good things
> Buy real estate property
> Invest in a business
2. Planning ahead
> Having plans for the future gives us assurance that we are prepared for financial uncertainties.
3. You can actually prepare for uncertainties. It can and it should be done.
4. Making healthier choices and staying active. Exercise more.
5. Online banking, using QR codes
6. Planning and making life better for my family
7. Times may change, but opportunities abound.
8. Valued Ayala Rewards Circle members
9. As we support our economy’s recovery
10. Key points that you may find valuable to you as you map out your financial future, both immediate future as well as your long-term future
a) Preparing your legacy
> Begin your wealth planning already
> The right of a legitimate child is different from an illegitimate child.
> It’s never too late to plan financially.
> More prayerful
> All the more that there is a need to plan
11. Estate planning — Why should you consider it?
a. Achieve personal goals
b. Protect and preserve assets
c. Prepare for retirement
d. Preserve harmony within the family
e. Minimize incidence of transfer taxes
12. Very expensive hobby: Collection of very expensive vintage watches
13. How are you going to fund that?
14. Innocuous or harmless; God bless your life!
15. A million is a million. It’s really worth saving that amount of money if you can do something about it.
16. Estate planning to preserve your legacy:
a. The orderly arrangement of one’s material assets to achieve the objective one sets for himself and his family;
b. Peaceful transition of wealth to the next generation; the moral obligation to make sure that our heirs are aware of the purpose for which that wealth should be used for
c. Education of the family members; succession
17. 3 PARTS OF THE ESTATE PLANNING STRATEGY
a. CREATION — I want to grow my wealth — my money, investments, properties, and business.
b. CONSERVATION — I want to preserve my estate for my future generation.
c. DISTRIBUTION — I want to distribute my wealth according to the proportions I want.
18. To sustain the family’s lifestyle; If anything happens to the husband, the plan must be sufficient
19. Consider or factor in the 3% or 5% inflation every year.
20. Then, how much should the estate be earning on a yearly basis? How much should it be growing on a yearly basis to be able to preserve that value over the years?
21. Conservation or preservation of wealth — death, annulment, divorce
22. If we don’t want those assets to cross family lines, therefore, we should plan.
23. Distribution of the wealth — You should have some degree of control over the distribution of assets.
24. Trust structure; will; video message; Explain why the partition is that way.
25. Legitimate, forced heirship rules; Compulsory heirs (children, spouse); Civil law from Spain
26. Disinheritance, state legal grounds
27. Capital of surviving spouse
28. Intestate
29. With a will: Equal distribution to children and wife
30. Without a last will and testament: Everything will be divided by the number of compulsory heirs
31. In real life, in most cases that I’m seeing
32. Can encroach on legitimate children’s
33. Less than half share — Illegitimate children
34. Notarial will — Written, dated, and signed by the testator
35. He’s actually quite wealthy already.
36. Question regarding its authenticity; 3 witnesses
37. Probate proceeding in court; Costly because you have to hire lawyers
38. Intended beneficiaries
39. Cash can be a tool for equalization.
40. We copied our estate taxation from the US and globally.
41. Family constitution; rule of conduct; family squabble
42. Siblings are not compulsory heirs under the law.
43. Common-law partnerships — Living together without the benefit of marriage
44. Very abreast; Testator
45. Around US$3.5 million estate (Dolphy)
46. Multiple trusts; We still have a lot more to learn.
47. We can find better things to do with our time.
48. Do an inventory of your assets. Make sure that you have a good record mangement system or file system.
> Passbook, land titles, how many bank accounts, account numbers
49. Combination of the tools
50. Fully digitalized
51. Life insurance policy is beyond the reach of creditors.
52. Pass on wealth that is completely tax-free. Advance the money. Live comfortably.
53. US$1 = P50.29 = Is getting twice as much
54. You can procure a life insurance policy and institute an irrevocable trust.
55. Settler/Trustor
Bank Trustee — Trust — Beneficiary
TRUST — Owns the holding company (Investments, insurance policies, financial assets, other properties)
56. A day-to-day operations of the company
57. Never make a mistake of . . . .
58. It’s only half as useful.
59. Pre-nuptial agreement; Layman’s insurance for each shareholder
60. Buy-sell agreement — between the holding company and shareholders
61. Capital gains, documentary stamp tax
62. Exponential increase in real estate value; Zonal value vs. market value (higher)
63. Third tax reform package
64. Direct donation to the children; If the real property is a capital asset, direct donation is better.
65. Have the capacity to buy; The BIR might question how they got the funds.
66. Sustain the kind of lifestyle
67. Good surprise; State in the trust agreement what’s going to happen.
68. A very touchy subject matter; If it can be helped
69. Legally adopted children have the same rights as the legitimate children.
70. Legally possible; favorite charity; Provide for them; Continue your philanthropic work.
71. Regular disbursement of money
72. UNDERSTAND THE PURPOSE OF YOUR WEALTH BEYOND ENJOYING THAT WEALTH.
73. Inheritance is a process.
74. Everyday we take risks. Let us have that financial peace of mind, knowing we are prepared for whatever happens.
75. There is no such thing as a risk-free life. We retain or transfer the risk.
76. Feedback is everything.
77. A well-planned life
For the next Estate Planning event, which of these topics do you prefer?
1. Family Enterprise Succession Planning
2. Foreign Tax Compliance Act (FATCA) and Commn Reporting Standard (CRS)
3. Passive Income and Financial Intermediary Taxation Act (PIFITA) Bill
4. Putting Estate into a Trust
