Estate Planning Basics for Filipinos

Why you need an estate plan now

Most Filipinos think estate planning is only for the wealthy. It's not. If you own any property, have savings, or have dependents, you need a basic estate plan. Without one, your assets get tied up in courts for years, family disputes arise, and the government takes 6% estate tax before your heirs see a peso.

The basics: will types in the Philippines

Philippine law recognizes two types of wills:

• •Notarial will: Typed or printed, signed by you and 3 witnesses, notarized. Most common and safest option. Cost: P3,000–P8,000 with a lawyer.
• •Holographic will: Entirely handwritten by you, dated, and signed. No witnesses or notarization needed. Free but can be contested more easily.

Estate tax: the 6% rule

The estate tax in the Philippines is a flat 6% of the net estate (total assets minus deductions like debts, funeral expenses, and the standard deduction of P5,000,000). The estate tax return must be filed within 1 year of death. Failure to file incurs 25% surcharge + 12% annual interest.

Action items you can do today

Estate planning doesn't require a lawyer on day one. Start with these steps:

• •Update all beneficiaries: SSS (Form E-4), Pag-IBIG (MDF), bank accounts, insurance policies
• •Create an asset inventory: List all bank accounts, investments, properties, and valuable items
• •Organize documents: Keep titles, insurance policies, and financial records in one secure place
• •Tell a trusted person: At minimum, one family member should know where your documents are
• •Consider a holographic will: It's free, legally valid, and takes 30 minutes to write