Money & Power

5 Reasons Why You Should Consider Inheritance Planning

No matter how young you are, protect your legacy by planning ahead.
IMAGE WIKIMEDIA COMMONS/ pexels.com
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Money and death are two topics that make many people uncomfortable. Throw family into the mix and you’ve got the ultimate trinity of taboos. Sadly, this is why many families have trouble discussing estate planning. Others may think their assets are not large enough to make a fuss about. And then there are those who are unaware that it's something they need to do.

There are many options you may take to prepare for the dreaded estate tax but one that’s rising in popularity is the insurance route. Here are the reasons why:

1. Preparation is key.

A common scenario for many is the grim confrontation with reality after a parent’s passing. Without an estate plan you’re forced to deal with multiple legalities when going through a difficult time, an experience we do not recommend. Life insurance specifically tailored to estate taxes take the heavy load off by providing beneficiaries the proceeds to settle payments.

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2. Avoiding a mess.

Unpaid estate taxes have a delicate time limit. According to the Bureau of Internal Revenue, the heir should, "file the return within six (6) months from decedent's death. However, the Commissioner may, in meritorious cases, grant extension not exceeding thirty (30) days.”

If you’re unable to pay within the six month period after the death of a loved one, taxes undergo a 20 percent interest increase plus a 25 percent surcharge. Not to mention, frozen assets if the taxes aren’t settled ultimately.

3. Sparing your heirs.

Having an estate plan makes sure your family has a financially secure future, no matter what happens. Insurance companies like Sun Life provide a double life insurance that will cover policyholders until they're 100 years old. On top of this, its insurance plan covers living benefits in the event of an emergency. Additionally, it has an extra protection plan against accidents, disability, and illnesses as an add-on.

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4. Insurance benefits

One of the biggest benefits of getting life insurance is that proceeds are excluded from taxation. Many insurance companies also provide a swift and trouble-free transfer of proceeds to the beneficiaries in the event of a passing.

5. Live worry-free

Now that you’ve taken care of the worst, you can rest easy. An estate plan makes sure your assets--properties, investments, and heirlooms are protected--thereby cementing a secure legacy for your heirs.

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About The Author
Paolo Chua
Staff Writer
Paolo Chua is a style writer based in Manila. He writes about everything fashion related for Town & Country Philippines and is a fan of French style, period dramas, and all things preppy.
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