This document provides advice on estate management and protecting assets. It recommends organizing important documents, having insurance, avoiding taxes when possible, and hiring professionals. The document stresses preparing for transferring assets to heirs through incorporating, donations, or living trusts to reduce estate taxes and hassle. Proper planning while living can help assets pass to heirs smoothly instead of being subject to high taxes if someone dies without a will. Overall, the key message is the importance of estate planning to protect what you've built and pass it down efficiently.

1. How to protect the assets that you built

2. Planning means
preparing, anticipating
 Do not let events overtake you and give you head
aches
 Anticipate what could go wrong;
 Everybody is after the assets your parents, or you
worked so hard for, just like vultures waiting for
carreon of dead animals

3. Better be prepared than sorry!

4. Building your assets, keeping track
of them protecting them, and
transferring them to the heirs are
important estate management
activities

5. Some important advice on estate
management:
 Organize your records; pay taxes when ever due
 Have insurance
 Devise strategies to avoid (not evade taxes)
 Hire consult competent estate planner, lawyer,
financial consultant

6. Organizing your records
Have the following ready to be accessed by your heirs in
a file:
1. TIN SSS
2. Certificate of Time Deposits, Stocks Bond number,
Passbooks, CCs
3. Valid IDs
4. Articles of Incorporation
5. Birth and marriage certificates

7. Steps in building your estate
 Know what you want; how much estate you want to
build up - millions, billions
 Write down your goal and plan
 Devise your strategies:
l. Have your own business
2. Be in a fast growing business;
3, Be in tax exempt business or where there are
incentives

8. First step:
 Have your own house; do not mortgage whatever
happens
 Invest in insurance
 Protect your capacity to earn

9. Put or do not put all your eggs in
one basket?
 Astute investors put their investments in few stocks
they know (Zurich axiom, Warren Buffet)
 But you lessen and spread your risk if you put your
stocks in various industries;
 Your minimum spreading of risks in your portfolio:
stocks, bonds, cash, insurance, jewelry, real estate

10. Transferring your estate to heirs
 Incorporate; put up a holding company
 Donate your assets to a foundation that you control;
donors, donees tax is 0
 Go public; taxes are only l/4 of 1% instead of the usual
10% on the first P100,000 and 20% on the next

11. Other means of transferring
 Tax exempt donation to your heirs - you can donate
P100,000 a year to your heirs without tax yearly
 Simulated sale - 7.5% capital gains tax
 Deed of donation (you pay donors tax and donees tax)
 Have a living trust executed so that the trustee will
transfer the fruits of the estate to the heirs while the
estate is still in your name

12. What to do in case somebody dies
intestate
 Notify the bank (or you must not) in case the relative has
debt and amortizations are due
 Go to the records and notify the insurance companies
 Look for the debts of the deceased which must be settled;
inventory the assets that need to be partitioned
 Settle the estate: divide (judicially or extrajudicially) pay
the estate taxes after making the publication, and divide
the estate as agreed upon

13. You must prepare the assets to be
settled prior to death to save on
estate taxes and all the hassle

14. An intestate property is slapped
huge taxes
 For instance, if your parents have one million in
deposits, and the bank learns that the owner of the
deposit is deceased:
1. you can not withdraw the deposit without the estate
settlement which includes the payment of estate tax
2. the estate tax could be as high as 40% or even more

15. You must encourage the ill
principal to transfer the assets
while he can; implement slide # 9

16. We are Filipinos and it is an
emotional thing to do the transfer
when somebody is ill; but would
you just let the govt devour your
estate?

17. That is why we should have estate
planning

18. Credits:
 Prepared by: Prof Jorge Entrep
 Follow Profjorge:
 www.profjorge.entrep-ateneo.blogspot.com
 www.cheapcures.blogspot.com
 www.jorgeusbiker.blogspot.com
 www.angonochronicles.blogspot.com