The Tax Reform Act has certainly improved the estate tax situation for most. With the estate tax now at a low 6%, the common question many are asking is whether estate planning is necessary. There are a number of issues that may arise in the absence of a solid estate plan that can frustrate a decedent’s final wishes and potentially increase an estate’s tax exposure. An example, a commonly held notion is that since the estate, donor’s, and capital gains taxes are all 6%, there is no real reason for additional planning. But, the market value of property is likely going to continue increasing given a young growing population that needs more space. A likely response by the Bureau of Internal Revenue will make sure that the zonal values keep up with this growth. Those who have failed to plan appropriately will face higher taxes as their property continues increasing in value.
See Alex B. Cabrera, 5 Estate Tax Myths (and Why Death is Not the Fastest Draw), The Philippine Star, January 21, 2018.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.
