WHAT IS AN ESTATE PLAN?

Estate Plan is to take account of what you own. What’s included in your estate, types of ownership and how that impacts the calculation of your estate’s net value.

  • Consider the nature of ownership as it affects your net value.
  • Your total assets form the gross value of your estate.
  • Net value is the sum used to distribute your estate.
  • Others for consideration

YOUR ASSETS?

Think about what you have that’s valuable — your money, property, precious metal, land and other possessions. These are the assets that form your estate.

Types of assets include:

  • Liquid assets: Cash, Savings, Fixed Deposits, Current Accounts, Time Deposits, Currency Deposits
  • Investments: Mutual Funds, Shares, Bonds and Investment Property
  • Personal assets: Cars, Jewellery, Home, Club Membership, Antiques, Collectibles (Watches, Stamps and etc)
  • Insurance Plans: Endowment, Whole Life, Term, VUL, Group Term Life Plans and PilHealth
  • Social Security System: Retirement Plan & Pension

WHAT ARE THE BENEFITS OF SSS? (For Information Purpose)

Sickness Benefit

If you suddenly got sick or injured, you can get a daily cash allowance for the number of days you’re unable to work. To avail of sickness benefits, you should be confined at home or in a hospital for at least four days and have at least three months’ worth of contributions within the last 12 months.

Maternity Benefit

Female SSS members who recently gave birth or had a miscarriage can avail of maternity benefits in the form of daily cash allowances. Again, you should have at least three months’ worth of SSS contributions within the last 12 months to receive this benefit.

Disability Benefit

SSS members who became either partially or totally disabled may apply for the disability benefit. It can be given either as a monthly pension or a lump sum amount, depending on your monthly contributions. If you paid at least 36 monthly contributions, you qualify for a monthly disability pension. If not, you are granted a lump sum amount.

Retirement Benefit

Also given either as a monthly pension or lump sum amount, the retirement benefit is given to SSS members who can no longer work due to old age. Those who are no longer working at 60 years old and contributed at least 120 monthly contributions before the semester of retirement can apply for a retirement benefit. It is automatically given to those who reach mandatory retirement at 65 years old, regardless of employment status.

Death Benefit

You get a monthly death pension if you’re the primary beneficiary (spouse and dependent children) of a deceased SSS member who had at least 36 monthly contributions. If the contributions are lower than that, you get a lump sum. If there are no primary beneficiaries, the secondary beneficiaries or dependent parents receive the lump sum.

Funeral Benefit

If you paid the burial expenses of a deceased SSS member, you could apply to receive funeral benefits from the SSS. The only requirement is to have at least one monthly contribution as a voluntary, self-employed, or OFW member.

Salary Loan

The SSS salary loan is a cash loan granted to any SSS member – including voluntary ones – to help them meet their short-term credit needs. It has an interest rate of 10% per annum, and the length of loan payment depends on how many contributions you’ve made. To qualify for a salary loan, you should have posted at least six monthly contributions in the last 12 months before filing your loan application. You also shouldn’t have any existing loans with the SSS.

Being a voluntary SSS member sure has lots of perks, but you have to make sure that you comply with your monthly contributions to take advantage of them. You also need to take a look at your liabilities. This includes everything you owe, such as your home and car loans, credit card debts, and other family debts.

DO YOU HAVE JOINT OWNERSHIP?

If you own your property with someone else, it’s important to look at the nature of ownership. It will determine the portion of the asset you’re legally able to transfer.

There are three types of ownership:

  • Sole ownership – You have the authority and the right to decide how the asset can be transferred.
  • Tenancy-in-common – You have the right to transfer only the portion of the asset owned by you. The remaining portion of the asset remains with the joint owner.
  • Joint tenancy – Ownership and control of the asset are automatically transferred to the surviving owner. You therefore cannot will your share of the property to another person.

WHAT IS THE NET VALUE?

Your liquid assets, investments and insurance plans, and personal assets all add up to make the gross value of your estate. The net value of your estate takes into account your assets, liabilities, fees and expenses, and the nature of ownership. Liabilities include credit card arrears, housing, car, and education loans; plus funeral expenses, probate fees, income taxes and family needs.

SO WHAT IS ESTATE PLANNING?

An estate plan gives instructions on how you want your money and savings distributed after your death. Why it’s important if you have dependants?

  • Planning your estate before anything happens makes it easier when something does.
  • Delay in planning means a delay in the transfer of the estate to loved ones.
  • Without a Will, your estate may not be distributed according to your wishes.

Estate planning is about how you want your estate—the money and savings you worked hard for—distributed after your death. It is about making sure that the people and causes you care about receive what you want to give them.

If you have young or disabled children, or elderly parents who rely on you financially, estate planning is vitally important. A thorough plan could help ensure that your family’s needs are provided for.

Estate planning helps you work out:

  • What you’re worth?
  • Who gets what after your death?
  • Who you want as your children’s guardian?
  • How you want your assets managed?
  • Who to trust to carry out your estate plan?

WHY MANY IGNORE ESTATE PLANNING?

Many people are too busy living to think about end-of-life planning. Some common reasons are:

  • It’s an omen. I don’t want to think about it.
  • I’m still young. I have plenty of time to give final instructions.
  • It’s too much work and takes up too much of my time.
  • Not interested.
  • I’ve nothing much to plan or give away.
  • I am poor I have nothing

IT’S NOT A EASY SUBJECT TO TALK ABOUT; LET’S GET REAL!!

Here are three things that could happen:

  • Delay – A delay in distribution means that your family can’t get the money when they need it most.
  • Disputes – Tensions may arise if it’s not clear who receives what.
  • Intestacy – Without a Will, the estate may not be distributed as you wish.

PERSONAL OBSERVATION

  • I have seen family fight because of estate
  • Husband dies and the wife takes everything ignoring the husband family
  • Children fighting for their share with the survivor
  • Many more…

YOU NEED A FINANCIAL ADVISER TO:

  • Calculating the Net Value
  • Deciding who gets what?
  • Decision on how to transfer?
  • Yearly Review dates established
  • Structuring the Will
  • Establishing a Trust
  • Probate Requirement &
  • Power of Attorney

You will be surprise how easy it is when you seat down with an Financial Adviser to structure your estate plan. Financial Advisers are trained to take all information and custom it to your heart desire.

CALL YOUR FINANCIAL ADVISER TODAY!! 

Article by: Ashok MBA – Strategic Coach & Mentor for MDRT/COT/TOT

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