In the Philippines, a will, while more commonplace, often accrues more cost, either in taxes or possible court proceedings due to its need for probation. A PMT, on the other hand, can be seen as “an agreement between a Trustor and Trustee whereby the latter manages the assets of the former which will later be distributed in favour of the former’s beneficiary/ies. The time and conditions for release may be specifically provided in the agreement”, Camalig adds. It is often a good option for those looking for a more cost-efficient process to divvy up assets and establish trustees while still alive. Camalig also drives home an important point: “Properties under [a] PMT no longer form part of the estate of the deceased; as such, they may no longer be contested by heirs or creditors as long as the disposition is not inofficious or not in violation of the Civil Code.” A useful tip, especially for those who want to avoid familial disputes with succession plans.

Whichever tool you avail of, there are five key elements to a good and well-rounded estate plan, according to Carmela T Lim, SAVP, head of Sales and Client Acquisition for Security Bank. First, it should have an accurate and complete inventory of the trustor’s assets. Second, a clear preference [or direction] with regards to the management of said assets. Third, instructions and conditions for distribution of said assets must be specific and concise. Fourth, the list of beneficiaries must be certain. And lastly, a survivorship option must be available should one’s initial beneficiary fail.

Wealth management may be intimidating to some, but both Camalig and Lim voiced out that it only takes the right partner to walk you through the process. Whether you’re setting up a will, looking to create a PMT, or simply availing of your first insurance policy, the key is to find a seasoned expert you can rely on and fits your needs and investment goals.

There’s no certainty when the pandemic will truly come to an end, but if the past two years are anything to learn from, being prepared and keeping one’s ducks in a row have proven more beneficial than ever. As the slogan goes, “make your money work for you”—understanding one’s fiscal needs has been pushed to the forefront alongside a renewed importance for health and family. And there’s no better time than now to lean into fiscal responsibility and estate integrity. “Prepare for the worst and hope for the best” rings eerily true in the backdrop of our pandemic lives. While we don’t know what tomorrow holds for any of us, we can at least know what we have in store for tomorrow and the years to come.

Estate planning is only for the elderly.

Anyone who has assets and wants to preserve them, ensure their orderly distribution to specific beneficiaries and avoid unnecessary expenses and costs may benefit from estate planning regardless of age.

Estate planning is only for high-net-worth individuals.

There are different estate planning tools, which are recommended to every asset size and budget. One does not have to be extremely affluent to preserve his assets.

Only blood relatives may benefit from a person’s estate.

There are estate planning tools, like a PMT, which allow non-compulsory heirs to benefit from the estate of an individual.

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