28/10/2025
β
CPA certification on estate tax delivered to a client from Bulacan.
Thank you dear client for the trust!
Background:
The client expects to settle only around P100,000-P200,000 estate tax but since BIR recently dropped some Zonal Value updates, and based on our calculations, it went up by at almost 5-times for the specific location area of the property.
It show a big gap between zonal values from the last 10 years.
Hereβs how to find current and historical zonal values
* Check the BIR website: The Bureau of Internal Revenue (BIR) makes zonal value updates available on its website.
* Visit your local RDO: Contact or visit the RDO that covers your specific area. They will have the most accurate and up-to-date official documents.
Seeing a client being imposed by almost P1,000,000 estate tax made me appreciate my role as a financial advisor aside from being a licensed accountant helping every client in the facilitation of their estate settlement.
π―if you are looking for a financial advisor and at the same time also looking for a certified public accountant as your trusted partner for estate tax computation/estate planning services, you may direct message me.
β
Hereβs some benefit of having a Life Insurance:
β
Estate liquidity and settlement facilitation
Estate planning involves the distribution of assets to heirs or beneficiaries. However, the process can become complicated, particularly if a significant portion of the estate comprises nonliquid assets such as real estate or business holdings. Life insurance serves as a vital source of liquidity in this scenario, ensuring that there is cash available to settle debts, pay estate taxes and distribute bequests without the need to sell valuable assets hastily.
β
Mitigating estate taxes
Estate taxes can pose a considerable challenge to heirs, potentially eroding a significant portion of the estateβs value. Life insurance can be an effective strategy to mitigate the impact of estate taxes. In the Philippines, the tax code imposes estate taxes on the net estate of a deceased individual. By naming beneficiaries and structuring the policy effectively, the proceeds from a life insurance policy can pass directly to heirs outside of the probate process, reducing the taxable value of the estate.
This not only facilitates a more efficient transfer of assets but also helps heirs avoid the burden of liquidating valuable assets to cover estate tax liabilities. The tax-free nature of life insurance proceeds is a valuable advantage that can significantly enhance the overall wealth transfer process.