What happen to your Bank Money /Investment when you Die

[mxherr5]

If you and your trusted person use email then you can
do what I did. I have google's inactive manager enabled.

You can specify if you have been inactive for x # of days
all of you're google drive's contents will be accessible
to whoever you want and they will receive an email notifying
them of such.

I have it set to be sent to my wife,brother,aunt and father
as they are the ones who really use email on a daily basis.

I use gmail on a daily basis as well so if I haven't been
able to login for 30 days, malamang wala na ako sa earth lol.

I have a document that lists all bank accounts and their
balance, etc, username, password. All insurance policies,
where the policies are located, etc.

"In case of death" document ko.

[aquacharly]

The transfer of  funds must be done  as quickly as possible -- within hours or within the day.

Be forewarned too: any massive/significant withdrawal automatically raises a red flag with the bank branch officers.   Death or ransom? Yan talaga they will ask outright.   Specially tricky since most big amounts are parked in at least 30-day placements.  So, there is the complication of pre-termination pa. 

1 way to minimize estate taxes is to withdraw & immediately convert to a foreign currency that you will telegraphic transfer out to your accounts abroad.   Insist with your bank branch that you will withdraw most  of it in cash --  so you will pay for the armor car/s  (minimum 5thou; more depending on distance -- which branch the money will come from... May be sourced from several branches).  Then you buy $cash from a forex trader -- they bring it in those duffle bags or wheeled carry-ons -- and the exchange happens in the privacy of the bank branch's conference room.  Gamitin pa nila  their bill counters.  These forex traders can handle huge amounts  --  but the bank manager & cashier must confirm both the buying and selling to make the exchange happen.  Kaya important who you bank with -- must have a really strong relationship with your bank manager.

All the time:  you will be scrutinized by the branch officers, if ransom yan -- they will freeze your account.
You then turn around & deposit the US$ cash in another account of yours & remit these out.
In buildings where there are several banks --  you can move your withdrawn funds around among several banks.  Assess the security of  physical movement between the banks. 

Or,  if you are relatively confident with an established forex trader -- and you know what documentation is involved:  you can convert your pesos to dollars without encashment  & physical deposit. 

Realistically, you will use a combination:  stuff cash in the bank SDB, in your office vault & maybe house safe, in trusted people's safekeeping; cash purchase of foreign currency, & peso-$ account deposit trade. 

Of course, this requires existing accounts in place already, for years. 
Hindi bale ma put ka on the AMLA list quesa BIR list. 

The bank will cooperate with you, kasi they know after a short while, you will bring back the money to them. You can't keep it abroad forever if negosyo mo and life based here. 

There is no escape from death taxes -- you can just do your best to minimize. 
When our father died --  the tax was 35% -- doon bumagsak ang cuenta.  If lahat na cuenta (which the corrupt do not want kasi mawalan sila ng corruption fee) -- it would have been 50 percent.  It is not just the tax rates, but also the valuation of assets that are included in the computation of the death tax liability. 

"Madugo" so better to  distribute your wealth (most, but not all) among your heirs. 

[mxherr5]

^
Wow sounds like you're from a whole different financial league 
I hope I will run into that kind of problem in the future 

[aquacharly]

 Have faith, you will. 

Whether you have insufficient,  sufficient or excessive  funds -- you will have concerns & issues.
Just of a different nature.  We are all the same.  .

[sachism]

Bottomline, it is best to build a good relationship with your bank. Kasi even if I leave blank withdrawal slips, blank checks, the bank will still call me to confirm because of the amount. Yes, even withdrawal slips, I have experienced that and I was like, what?! Well, maybe it was just for our own protection na baka nadoktor ang slips.

For me, I have left blank withdrawal and checks to my husband and I have also left my online banking passwords in the SDB where he also has the duplicate. But when it's the both of us, I gave my mother a key to the SDB as well. She can only help transfer those which have online access. But I guess not the TDs.

For joint accounts and only one dies, itatax pa din ba ni BIR?

Thanks for the tip aquacharly that it has to be done ASAP.

[ikaela]

For joint accounts, only the portion of the deceased person will be taxed.

I have heard of stories of banks being kind to the family of a deceased person, giving the family the full amount without any trouble. Humanity wins over greed sometimes.

[sachism]

Agree.

Would you know mga ilang % sis?

[ikaela]

^If two accounts holders in the joint account, 50% lang. If three, 33%, and so on. Wait, meron ba four or more account holders?

[honeybunny]

Grabe ngayon ko lang nalaman to.. Grabe naman ang government natin

[mxherr5]

Normal naman po ang estate taxes. hindi po yan Pinas-only na tax 

[ycel0612]

meron na ba rito nakaranas ng buong process ng pagcompute/ pagbayad ng estate tax? gaano katagal inabot? i've read somewhere na i freeze pa raw ng banks ang mga account nung namatay for two years just in case may mga lumitaw pa na heirs kahit may certification na from bir? totoo ba ito?

sa mga mutual fund/ uitf kaya gaano katagal ang process?

[ikaela]

^May kakilala ako, high net worth family pa with many fixed assets along with liquid investments like MFs and UITFs. I didn't ask all the details, but nagawa naman i-settle yung pagbayad ng estate tax within the six months time frame. And yes, frozen pa nga yung mga accounts kahit settled na yung estate tax because of the possibility of heirs. They had to go through extrajudicial settlement, had to publish an obituary in the newspapers, and all that jazz. Kaya ang advice nila sa akin: write your wills NOW while you are alive. It will save you a whole lot of trouble.

[j.adore]

What if the money is transferred online? Say, account of the deceased and the beneficiary is in one bank and the transfer is made immediately.

Would the bank go to the beneficiary and impose taxes etc?

[ikaela]

^I think that would be a case of whether BIR looks into the accounts or not.

I imagine if it's someone with considerable wealth, they would look into everything they could tax, including the bank accounts and see if any transfers were made after the account holder's death. It's not like the government would pass up a chance to get more money.

[yumi03]

May question din po ako... If a person is married without children can he/she leave the spouse out of the will and put other relatives as beneficiaries of his/her assets? Will the spouse be able to contest the will?

About estate tax? Do the beneficiaries have to pay for the estate tax first before they can claim? Can't they just deduct the estate tax from the inheritance? (Sorry if the question is stupid, I have absolutely no idea about taxes)

[PetiksPinayInvestor]

^ The whole estate of the deceased person is frozen. Real properties, savings, investments. All of it.

Cannot be touched by anyone unless estate taxes are paid

Estate tax should be paid in cash, and should not be part of the estate of the deceased

Kaya ang pambayad ng estate taxes ay
- pera na cash mula sa sariling bulsa ng mga naiwan
- or life insurance nung pumanaw

[rave21lala]

what are the requirements and steps to pay the estate tax?

[PetiksPinayInvestor]

^ Procedures

The heirs/authorized representative/administrator/executor shall file the estate tax return (BIR Form 1801) and pay the corresponding estate tax with the Authorized Agent Bank (AAB), Revenue Collection Officer (RCO) or duly authorized Treasurer of the city or municipality in the Revenue District Office having jurisdiction over the place of domicile of the decedent at the time of his death, pursuant to Section 90(D) of the Tax Code, as amended.

For complete info and requirements:

http://www.bir.gov.ph/index.php/tax-information/estate-tax.html

[PetiksPinayInvestor]

Want to share my friend's blog post about the subject matter:

http://burngutierrez.com/what-happens-to-your-stocks-if-you-die/

[salvage_me]

^ sis, thanks for sharing. gandang read nung sinulat ng friend mo. very informative and easy to understand ang pagkakasulat niya.