How to plan for your estate and protect yourself from taxes jonherrera@mac.com

2. I Am + Limitless Coaches is a
character building & learning
experience organization which
focuses in developing Life &
Wealth coaches through
personal growth, health and
fitness, spirituality, productivity
& mindfulness
Founded in May 2016 by Jon
Herrera & Russ Juson.
Who We Are

7. #CoachRussJuson Financial Freedom

8. #CoachRussJuson Financial Freedom
“I am building a Money Machine and
its purpose is to give me income for
life without working!”
Estate Conservation/
Distribution Through
Estate Tax Planning

9. #CoachRussJuson Financial Freedom
“I am building a Money Machine and
its purpose is to give me income for
life without working!”
WHAT IS ESTATE
PLANNING?

10. #CoachRussJuson Financial Freedom
“I am building a Money Machine and
its purpose is to give me income for
life without working!”
ESTATE PLANNING
• is the process of anticipating and arranging,
during a person's life, for the disposal of their
estate.
• can be used to eliminate uncertainties over
the administration of a probate and to
maximize the value of the estate by reducing
taxes and other expenses.

11. #CoachRussJuson Financial Freedom
- Secure the future of the Family
- Protect state from depletion due to Taxes
CITY HALL
- For Proper and legal portioning of properties
- Protect the Owner from losing his properties
- To make your estate grow even after passing away
REASONS WHY WE NEED ESTATE
PLANNING

12. #CoachRussJuson Financial Freedom
Fernwood Gardens Businessman and his family
Lisa, a 24 year-old daughter of a
businessman who was left with almost
nothing. She enjoyed a comfortable life
and studied in an exclusive school for
girls in high school where I met her.
When her father died, they had to sell
some of their belongings and drop their
lifestyle. Their houses and cars – mostly
on credit – were taken by banks. The
same thing happened to John
Gokongwei and to many other children
of parents who weren’t able to prepare.
P35M unpaid taxes
(Including surcharges and interest)
Gross Estate P54M
ESTATE TAX
STORIES

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In article on Philippine Star dated November 1, 2013 – under the leadership of BIR
Commissioner Kim Henares, the BIR eyes more taxes from heirs of the dead,
particularly the rich.
KIM HENARES

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80%
20% goes to BIR of
every peso in
excess of P10M
taxable estate
20%
INTESTATE
SUCCESSION
BIR

15. #CoachRussJuson Financial Freedom
20
%80
%
20% goes to BIR of
every peso in
excess of P10M
taxable estate
• If not, the estate tax will be computed with 25% surcharge and 20%
interest per year.
• All real properties of deceased persons whose inheritance taxes have
not yet been paid by their heirs can be foreclosed and sold through
public auction.
• Cash in Banks and Jewelry can be garnished in favor of the
government.
Heirs must pay to the BIR within 6 months.
INTESTATE
SUCCESSION
BIR

16. #CoachRussJuson Financial Freedom
An Estate is any asset of value:
WHAT COMPRISE AN ESTATE?
FIXED
ASSETS
LIQUID
ASSETS
BUSINESS
ASSETS
TAX - SHELTERED
ASSETS
• HOUSE
• LOTS
• CONDOS
• RIGHTS
• PAINTINGS
• FURNITUR
E
• ANTIQUES
• JEWELRIE
S
• CARS
• PROPRIETORSHI
P
• PARTNERSHIP
• SHARES
• SHARES OF
STOCKS IN A
CORPORATION
• FRANCHISES
OWNED
• SAVINGS
• CURRENT ACOUNTS
• CERTIFICATES OF
DEPOSITS
• SECURITY
INVESTMENTS
(MUTUAL FUNDS,
UITF, REVOCABLE
SINGLE PREMIUM
VARIABLE LIFE
POLICIES
• PROPERLY
ARRANGED /
IRREVOCABLE
SINGLE PREMIUM
• VARIABLE LIFE
POLICY

17. #CoachRussJuson Financial Freedom
ESTATE CONSERVATION
PLANNING
Three legal ways to transfer an asset and their corresponding transfer taxes
3 Ways to
Transfer
Transferring while
Alive
Transferring after
Death
Deed
Capital Gain’s Tax
6%
Sell Assets
—
Donation Donor’s Tax —
Succession — Estate Tax

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Description
Capital Gains Tax is a tax imposed on the gains
presumed to have been realized by the seller
from the sale, exchange, or other disposition of
capital assets located in the Philippines, including
pacto de retro sales and other forms of
conditional sale
Tax Rates
For real property - 6%.
Deadline
Within 30 days after each sale, exchange, transfer or
other disposition of real property

19. #CoachRussJuson Financial Freedom
ESTATE CONSERVATION
PLANNING
Three legal ways to transfer an asset and their corresponding transfer taxes
3 Ways to
Transfer
Transferring while
Alive
Transferring after
Death
Deed
Capital Gain’s Tax
6%
Sell Assets
—
Donation
Donor’s Tax
2% to 15%
Donate Assets
—
Succession — Estate Tax

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Description
Donor’s Tax is a tax on a donation or gift, and is
imposed on the gratuitous transfer of property
between two or more persons who are living at
the time of the transfer. It shall apply whether the
transfer is in trust or otherwise, whether the gift
is direct or indirect and whether the property is
real or personal, tangible or intangible.

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22. #CoachRussJuson Financial Freedom
ESTATE CONSERVATION
PLANNING
Three legal ways to transfer an asset and their corresponding transfer taxes
3 Ways to
Transfer
Transferring while
Alive
Transferring after
Death
Deed
Capital Gain’s Tax
6%
Sell Assets
—
Donation
Donor’s Tax
2% to 15%
Donate Assets
—
Succession —
Estate Tax
20%

23. #CoachRussJuson Financial Freedom
Description
Estate Tax is a tax on the right of the deceased
person to transmit his/her estate to his/her lawful
heirs and beneficiaries at the time of death and on
certain transfers, which are made by law as
equivalent to testamentary disposition. It is not a
tax on property. It is a tax imposed on the privilege
of transmitting property upon the death of the
owner. The Estate Tax is based on the laws in force
at the time of death notwithstanding the
postponement of the actual possession or
enjoyment of the estate by the beneficiary.

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25. #CoachRussJuson Financial Freedom
Tax Evasion (Illegal)
• Anti-Dating (Blank Deed of Sale)
• Under the Table (Bribery)
Tax Avoidance (Legal)
• Incorporation
• Asset Distribution
• Asset Diversification
• Asset Allocation
• Asset Creation
ESTATE CONSERVATION
PLANNING

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Conserve an Estate Through
Asset Distribution Avoidance Method
3 Simple Steps
1. Distribute absolutely all assets intended to pass on to your heirs while alive and liquify
assets needed to hold on
2 .Transfer all liquified assets into Tax-sheltered Investment Assets using Single Premium
Variable Life Policies
3. Make yourself as owner and designate legal age beneficiary as irrevocable
(two party arrangement)
PROS: You hold no asset under your name so nothing is subject to estate tax when
you die.
CONS: You lost control of your assets and transferring your assets to your heirs is
just transferring the risk
APPLICATION: Recommendable to estate owners old enough to manage their estate
and willing to distribute their assets to heirs while alive.
WAYS TO CONSERVE AN ESTATE

27. #CoachRussJuson Financial Freedom
Conserve an Estate Through
Asset Diversification Avoidance Method
1. DIVERSIFY 50% of your assets by converting idle assets first into a tax-Sheltered Investment Assets
2. Using Single Premium Variable Life as Tax-Sheltered Investment Asset, you create 25% free
insurance estate enough to pay the estate tax of the remaining 50% taxable assets.
3. Make yourself as owner and designate legal age beneficiary as irrevocable
(two party arrangement)
PROS: Only 50% of your estate is being taxed but paid by the 25% free insurance of
your tax-sheltered investment asset.
CONS: A large amount of asset is being converted into liquid asset that may affect
some of your income producing assets.
APPLICATION: Recommended for estate owners in good health willing to convert idle
assets into tax-sheltered investment asset
WAYS TO CONSERVE AN ESTATE
3 Simple Steps

28. #CoachRussJuson Financial Freedom
Conserve an Estate Through
Asset Allocation Avoidance Method
1. ALLOCATE approximately 10% of you assets into a tax-Sheltered Investment Assets
2. Using regular Premium Variable Life Policy with face amount equal to your estate tax
as Tax-Sheltered Investment Assets and place an amount (Premium / Assumed
Interest Rate) as top-up.
.
3. Make yourself as owner and designate legal age beneficiary as
irrevocable
(two party arrangement)
PROS: Hassle free Tax-Sheltered Investment Asset that create another estate enough
to pay your estate tax.
CONS: There is no disadvantage on this method if you have assets that is not working
for you.
APPLICATION: Recommendable to estate owners in good health WITHOUT liquidity
problem.
WAYS TO CONSERVE AN ESTATE
3 Simple Steps

29. #CoachRussJuson Financial Freedom
Conserve an Estate Through
Asset Creation Avoidance Method
1. CREATE an Estate equal to your estate tax by transferring liquid assets annually into a
tax-Sheltered Investment Assets
2. Using regular Premium Variable Life Policy as Tax-Sheltered Investment Assets, you
create an insurance estate enough to pay your Estate tax.
3. Make yourself as owner and designate legal age beneficiary as
irrevocable
(two party arrangement)
PROS: It Creates liquid asset instantly at death enough to pay your Estate tax.
CONS: The diligent installment transfer of assets annually at least for the next 10 years.
APPLICATION: Recommendable to estate owners in good health WITH liquidity problem.
WAYS TO CONSERVE AN ESTATE
3 Simple Steps

30. #CoachRussJuson Financial Freedom