| Helping You Plan for your Future

For a property to be transfered to the heirs of the deceased individual, its corresponding Estate Tax needs to be settled first to the Bureau of Internal Revenue. In addition to that, if the Estate includes Real Properties, the heirs needs to settle the local taxes due to the local government where the property is located. With so much intricacies, transfering of title maybe too complicated for the heirs to handle.

 

One very good example of this is when Helen Vela, a famous tv host in the 70's up to the 80's, died, her daughter, Princess Punzalan, had trouble in getting her fair share of the properties left behind by her TV host-mother. The reason being is that, she doesn't have enough funds to pay for the Estate Tax. In effect, she has to sell her properties in order to accumulate enough funds to pay for the transfer tax.
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Insurance is one of the best way in order to address Estate Tax and other related Transfer Taxes. When an insured dies, his beneficiaries can get the proceeds of the death benefit and use it in order to pay such taxes. In that way, the heirs will not be burdened to make a way for them to generate the necessary fund in order for them to receive their fair share of the inheritance.