RICH PEOPLE PROBLEMS: HOW DO YOU MANAGE YOUR ESTATE LAND HOLDINGS?
Today, we take a peek at the life of multi-millionaires who own several landed properties and how these should be properly managed as part of one’s asset. From billionaire tycoons, all the way to any property owner in the Philippines, we too should learn how to manage our estate while we are still alive and capable.
In one article that was published, the author learned their lesson the hard way on estate planning because they were not able to prepare. According to the author, “Overall, the exercise felt like a cold formality. Still in mourning, my siblings and I chose not to act upon my father’s instructions until years after. That led to complications including headaches from penalties on unpaid estate taxes, and even some family tensions over documentation issues. Lesson learned.”
This situation is something that is avoidable and manageable.
There are many ways of doing estate planning, one of which is thru DONATION. With a lower donor’s tax rate of 6% under the TRAIN Law, you can now easily transfer the title of your properties to your children.
Here are some of the advantages or benefits of doing the transfer of your properties now.
Avoids possible disputes over distribution of estate
If the properties are already divided and under the names of the legal heirs/children, there will no longer be conflicts of ownership on the properties. There are some cases, wherein the estate cannot be properly distributed among heirs because some heirs do not want to sign the Extra Judicial Settlement of estate because they wanted to have a bigger share on the estate. If the titles of the properties are already under the names of the children, they can no longer claim their rights over the other properties of their other siblings.
Eliminates financial burden from the heirs for payment of Estate Tax
By law, the legal heirs cannot transfer the title of their inherited properties without paying the estate taxes of the decedent. The estate tax is an unplanned expense on the part of the heirs. And this can be a prove to be a financial burden to the heirs especially if the deceased persons own many properties. Due to high market value of the properties, they might not be able to settle the estate taxes and in effect they [cannot enjoy the benefits of their property inheritance.
Cost savings on Transfer Taxes
The tax on the transfer of properties for donation or inheritance will be based on the Zonal Value or Market Value of the properties whichever is higher at the time of donation or time of death of property owner. We all know that the value of real estate properties tends to appreciate in value over time. Especially with real estate boom right now, prices of properties have skyrocketed. A P10 Million property in BGC today can be worth P20 Million in the next 5 years. By transferring the title of properties now you will be paying lower transfer tax cost compared to transfer cost 10 years from now.
If you need assistance on the transfer of title of your properties now, Conveyance can help you.
CONVEYANCE REALTY SERVICES INC. assists in solving a wide range of land and property issues including defective titles, lost titles, transfer of ownership, unlocated properties and unpaid property taxes.
Our expertise covers the full range of real estate services of from Title Verification and Due diligence, to Title Transfer, to Assistance in Re-issuance of Lost Titles, Assistance in Verification of Property Location and Payment of Unpaid Real Property Taxes, among others.
You may call reach us at 0917-1-266839 (CONVEY) or visit us at Unit 414-B VGP Center, 6772 Ayala Avenue, Makati City. You can also inquire thru our website at www.conveyance.com.ph
