^ Yeah, understandable naman Sis
I think I need to share this to you too, kasi it will benefit you all. Hindi niyo kasi ito matatakasan e when the time comes.
You mentioned na your Tita is 72 yrs old.
8 yrs na lang and she's 80. 18 yrs and she's 90.
That's still a lot of time
However, with her age I think it goes without saying that her health is more at risk than when she's younger.
To manage the risk on her investment, I think it should be taken into consideration yung value ng investment na ipapasok niya sa COL. Because these too are subject to estate taxes.
Simply put, that means these investments are subject to freeze when the inevitable happens, along with her other assets (real and liquid(savings, etc)) and her beneficiaries won't be able to use/liquidate/withdraw them until estate taxes are paid
Para simple, just compute 20% of total investment niya and dapat ang insurance niya ay macocover ito.
For example, if your Tita is investing 1 million, then dapat may insurance siya na worth at least 200k. That's just for her COL investment.
Bakit insurance? Kasi insurance is good as cash for payment and BIR requires cash to pay estate taxes. Estate tax is the obligation and insurance is the payment to that obligation. Estate taxes and insurance are both triggered by one thing.
pwede naman ding walang insurance si Tita, basta ba mababayaran ng kanyang beneficiaries ang estate taxes niya. Ang kagandahan lang ng insurance is hindi kailangang bayaran ang buong value, just a portion of it. Example, for a 10 million worth of coverage you only pay a portion of it called the premium. Pero pag kinailangan naman, the 10 million is available at the right time.
Sana'y naintindihan mo ang gusto ko iparating--I wanted to be as direct yet as simple and courteous as possible. Medyo off topic pero sana makatulong.
Here is the tax rate table from BIR website regarding estate taxes:
http://www.bir.gov.ph/index.php/tax-information/estate-tax.htmlfor your reference
