Want a lasting legacy? Build on these six pillars of estate planning

You know the markets. You know how to make money. You know where to find investment opportunities.

But how do you preserve your wealth for your loved ones when you’re no longer around?

This is where an estate plan comes in. It is the quieter side of wealth management that doesn’t just look at returns. It’s all about continuity and stewardship.

Not all affluent Asians, including Filipinos, have or appreciate estate plans. After all, knowledge is not the same as taking action. Only about one-third of affluent Asians have a will or formal succession plan. In Southeast Asia, 41% are actively considering succession planning but execution is low.

Around 80% of Filipinos have no plans to protect or transfer assets. Are you part of the more far-sighted 20%?

If not, you can get started with these six pillars to move from knowledge or intent to action. These will give you something concrete you can work on with your financial adviser or consultant.

Pillar 1: Asset Inventory

The core goal is to know what you own and ensure that ownership is legally clear. Awareness is very important.

This will cover real estate titles, bank accounts, investments, insurance policies, business interests, jewelry, and even digital assets. Why? Because unclear ownership in the form of untitled land, joint accounts or undocumented shares is one of the biggest causes of estate settlement delays in the Philippines.

So you need to keep a updated statement of assets and liabilities and maintain proper titling and records.

Pillar 2: Legal Structure

The goal here is to establish the lawful transfer of assets. This is the legal expression of how your assets will be transferred and managed upon death or incapacity.

There are a number of tools that you can use to achieve this. They include your last will and testament, trust arrangements, and even powers of attorney. Powers of attorney are necessary because they ensure decisions can be made even if you are incapacitated. So you need to work with a qualified estate lawyer or a trust officer to ensure that your documents comply with Philippine succession and tax laws.

Pillar 3: Tax Planning and Liquidity Management

You would not want to burden your heirs. Why cause them headaches when you could make it easy for them?

Manage and rationalize estate taxes, fees, and liquidity issues. Prepare enough liquidity, possibly through insurance policies, to cover the 6% estate tax that must be settled in cash within one year from the death of the testator or the estate owner.

This will prevent distress selling when the time comes.

Pillar 4: Family Governance

For this pillar, the goal is to prevent conflict and ensure family members understand your intentions and wishes.

Estate planning is ideally not something that you do on your own. You need to have the buy-in of your heirs, your family. Otherwise, if they don’t like your plan, they may contest it or have it nullified when you’re no longer around.

So, for your peace of mind, and for the benefit of your loved ones, establish a family constitution that clearly specifies the details of the estate plan that you envision for your family.

Pillar 5: Protection

You need to guard against loss or risk that could erode your estate.

Protecting your wealth requires a proactive and vigilant strategy against potential loss or unforeseen risk. A sudden illness, a liability claim, or a downturn in market conditions can wreak havoc on and significantly erode the value of your estate, threatening your legacy.

Make use of life insurance, health insurance, and specific asset protection tools, especially if you have minors and vulnerable dependents. It is important that you plan for their future, establishing clear provisions for their care, education, and finances. By incorporating well-thought-out strategies, you ensure that the intended beneficiaries receive the full protection and support of your estate.

Pillar 6: Review and Update

Your goal here is to keep your plan relevant amid changes in your life and the laws that affect your ability to keep your wealth and pass it on.

The triggers for review may include marriage, birth, death in the family, acquisition or sale of major assets and tax changes such as the recently promulgated Capital Markets Efficiency Promotion Act (CMEPA).

And even without these triggers, it is advisable to review your estate plan every two to three years.

Starting the conversation

Now you have a concrete framework you can work on. Sophisticated estate planning often requires tools beyond simple wills. A trust is often necessary because it avoids probate, ensuring control over asset distribution and guarantees continuity in case of incapacity. We will cover trust in a future article.

It’s not just about passing on assets but about passing on values, discipline, generosity and foresight.

If you wish to have a deeper conversation about estate planning solutions, please talk to your financial adviser or go to any Metrobank branch to get started.

WANDA BELTRAN  is the Head of Account Management for Metrobank Trust with over 25 years of experience in providing estate planning solutions via Trust structures. She is also the Vice President and Director for Tax & Regulated Products of the Trust Officers Association of the Philippines or TOAP. A certified financial planner, Wanda is also a sought-after host and emcee.

(Metrobank Disclaimer: This is general investment information only and does not constitute an offer or guarantee, with all investment decisions made at your own risk. The bank takes no responsibility for any potential losses.)