The Manila Times

Providing long after you’re gone

- INSURANCE INSIGHTS ANAGEL “JAY” LEDESMA

The things you do for yourself are gone when you are gone, but the things you do for others remain as your legacy. – Kalu Ndukwe Kalu

DEATH is one thing that we can neither avoid nor escape. We just don’t know where, when and how, but it will surely come to all of us. Death brings so much grief and sadness to those who were left behind, especially to the family members. But death can also cause a messy “financial” situation when there is no proper planning.

The recent YouTube interview of Eric Quizon, one of the 18 children of the late ace comedian Dolphy, drew attention to how Dolphy made sure that he was able to financiall­y provide for all his children and their mothers long after he was gone. As Eric said, “My dad’s been gone for 11 years, but he’s still [financiall­y] providing for all of us. Every month, me and my siblings continue to receive something.” Listening to Eric’s sharing, we can say that Dolphy prepared well when he was still alive and made sure that his family would be financiall­y taken care of even if he was no longer around.

I believe this is the wish of every parent, of every breadwinne­r. So, like Dolphy, how can we make sure that we still provide for our loved ones beyond our lifetime?

Have yourself adequately insured. Not everyone has the capacity to acquire hectares of land or several houses, which can be a financial source for their heirs later on. But we can still posthumous­ly provide for our loved ones through life insurance. We need life insurance not because we must die but because our family should live. Life insurance will not only help us shoulder the funeral costs but is also essential so that our loved ones may continue to live the lifestyle they are used to. Oftentimes, after the passing of a family member, especially the breadwinne­r, those who are left behind have to face several issues associated with finances. They cannot properly grieve as they are already thinking of the financial problems they have to face. But with life insurance proceeds, they need not worry about losing their house or car, transferri­ng their children to other schools, paying bills, etc.

Life insurance can also be used for the settlement of estate tax, which often surprises the heirs. Most are not familiar with the required estate tax (the amount depending on the value of the estate) before they can have access to the inheritanc­e. We cannot say, with certainty, whether Dolphy has substantia­l insurance coverage or not. But hearing how his heirs were able to keep his estate, we can safely assume that life insurance was a big part of his preparatio­n.

Have an estate plan. Estate planning is deciding who will inherit the assets after you’re gone. Without a proper estate plan, dealing with your estate, which may include your assets, money, property and even debts, can be a difficult task for your grieving family. Regardless of the size of your estate, its distributi­on, if not properly outlined, often leads to squabbles among family members. Who gets the TV, microwave, jewelry, car, house, land, etc? Will the properties be kept or sold?

Estate planning is also important to protect your intended beneficiar­ies. In the course of the interview, Eric mentioned that following the law, Nicole, the legally adopted daughter of Dolphy and Zsa Zsa Padilla, was supposed to inherit 50 percent of Dolphy’s estate. Being the only legitimate child, she gets half while the rest of the siblings (who were sired without the benefit of marriage) would share the remaining half among themselves. They were just happy that Nicole did not assert her right and agreed to divide the estate equally with her siblings, which we can presume was also the wish of Dolphy. A proper estate plan would have addressed these legalities and kept you in control of the distributi­on of your assets, even after you’re out of the picture.

Prepare a will. An important part of estate planning is writing down your wishes in what we call a will. It is a legal document that describes how you would like your assets to be distribute­d after your passing. Depending on the size of your assets, writing a will can be a simple or complicate­d, affordable or expensive exercise. Regardless, you need a will. Unless you are OK with having the court decide and rule on how your assets will be distribute­d.

In addition to having a will, it is also suggested to have a final letter of instructio­ns prepared for your family. It really has no legal bearing other than simply allowing you to express your final wishes and desires. It is said that when a person leaves a letter of instructio­ns, it is more likely that their loved ones will carry out the wishes.

In his interview, Eric said that what really kept them in peace and avoided major disputes among the 18 siblings was the final instructio­n of Dolphy to all of them: ”Ayokong mag-aaway-away kayong lahat (I don’t want you to be fighting with each other).” Presumably, over the estate. So, these instructio­ns from Dolphy stuck in their minds, and even if there were some misunderst­andings, they would always end up agreeing to a solution.

Identify an executor or administra­tor. After making your will, you need to choose/elect an executor for your estate, whose main responsibi­lity is to carry out your instructio­ns. Usually, it’s one of the heirs. It helps that the elected executor is capable, responsibl­e, trusted and respected by the other heirs. The tasks of an executor involve managing the estate, filing tax returns, and distributi­ng property and proceeds.

In his role as the designated executor of Dolphy’s estate, Eric said that he takes the lead role in managing and developing the estate, negotiatin­g for the sale of the property, and distributi­ng shares to his siblings and their mothers. But he also makes sure that he involves his siblings in the decision-making. For the past 11 years, Dolphy’s estate has been managed well by Eric and has been providing for all of them.

There are still other items that may be added to this list, but this can be a good start. You may wish to talk to a financial advisor or an estate lawyer to help you get started.

Let’s be mindful that while it is essential for you to set your goals and plans while you are still alive, it is equally important to already plan for that time when you are no longer around. We cannot do anything about the pain and agony experience­d by our loved ones with our passing. But we can make their coping with it easier, faster and smoother by ensuring that we put everything in order and continue to provide for them long after we are gone.

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