Key takeaways
- Under the TRAIN Law, estate tax is a flat 6% — but early, deliberate planning is what lowers the bill your heirs actually face.
- Deductions like the ₱5M standard deduction and up to ₱10M for the family home can sharply shrink the taxable estate.
- Assets are often frozen at death; liquidity — commonly through life insurance — keeps your family funded while the estate is settled.
- A clear, documented plan prevents disputes and the delays that keep wealth from reaching the next generation.
Estate & Succession Planning
Don’t let your life’s work be diminished by avoidable taxes or family conflict. Strategic estate planning Philippines and succession planning Philippines is the only way to ensure a seamless transition of wealth. As a CPA and CTEP® (Chartered Trust and Estate Planner), Sarah Songalia engineers custom estate structures that protect your heirs and preserve your wealth for generations.
Who This Estate Planning Service Is For
Estate planning is more than a legal formality — it’s a proactive act of love for your family. This service is designed for individuals and families who want clarity, protection, and peace of mind.
Business Owners & Entrepreneurs
Founders who need a clear succession roadmap so the business survives — and thrives — beyond them.
Families with Real Property
Families holding real estate, multiple bank accounts, or investments who want to avoid frozen assets and probate delays.
Parents & Grandparents
Anyone who wants their wishes honored exactly as intended and their heirs prepared for the responsibilities of inheritance.
OFWs & Overseas Filipinos
Filipinos abroad who need a Philippine-based plan that protects assets at home while they’re working overseas.
Navigating Estate Planning Under the TRAIN Law
Effective legacy preservation begins with understanding the current Philippine tax environment. Under Republic Act No. 10963 (TRAIN Law), the estate tax system has been simplified to a flat rate of 6% on the net estate. However, simplicity does not mean immunity from risk — without a bespoke estate planning Philippines strategy, your heirs could face significant liquidity crises. We help families maximize legal deductions to reduce the taxable base, including:
Standard Deduction
A non-substantiated ₱5 Million deduction from the gross estate.
Family Home Exemption
A deduction of up to ₱10 Million, provided the property is the decedent’s certified family residence.
Estate Tax Amnesty
For unsettled estates of those who passed away on or before May 31, 2022, the amnesty has been extended until June 14, 2025, allowing heirs to settle obligations without hefty penalties.
Our 7-Step Approach to Estate & Succession Planning
We don’t just draft documents; we engineer outcomes. Our process ensures that your financial, legal, and relational goals are perfectly aligned.
01
Asset Inventory & Global Audit
A comprehensive deep-dive into real estate, liquid assets, and cross-border business interests.
02
Tax Liability Sensitivity
Projecting exact tax duties to avoid “blind spots” during the transfer process.
03
Liquidity Engineering
Strategizing insurance or liquid asset allocations so heirs can pay estate taxes without forced property sales.
04
Succession Roadmap
Creating a legal “Constitution” for family businesses to ensure leadership continuity.
05
Trust & Holding Design
Utilizing specialized legal vehicles to shield assets from creditors and excessive probate.
06
Heir Preparedness & Mentoring
Coaching the next generation to handle the responsibilities of significant wealth.
07
Dynamic Stewardship
Regular reviews to adjust your plan for new BIR rulings or family changes.
The Benefits of Professional Succession Planning
Estate planning is more than a legal formality — it’s a proactive act of love for your family. By working with a succession & estate planning expert in the Philippines, you gain:
- Peace of Mind: Confidence that your wishes will be honored exactly as intended.
- Asset Protection: Safeguarding your wealth from legal disputes and 25% late-filing surcharges.
- Family Harmony: Preventing the conflict that often arises when instructions are unclear.
- Tax Efficiency: Utilizing every legal avenue to keep more of your wealth within the family.
Estate Planning Philippines: Frequently Asked Questions
Why is estate planning important in the Philippines?
In the Philippines, the transfer of property is frozen upon death until estate taxes are paid. Without a plan, your family cannot access bank accounts or sell property to cover immediate needs. Estate planning Philippines ensures liquidity is available when it’s needed most.
What documents are needed for estate planning?
Beyond a Last Will and Testament, a complete plan includes an Inventory of Assets, Titles, Stock Certificates, and specialized Trust agreements if applicable.
Can estate planning avoid probate in the Philippines?
While a Will must go through probate, certain structures like Living Trusts or joint ownership can allow assets to bypass the long and expensive court process entirely.
Who should get estate planning?
Anyone with assets, property, or family responsibilities should consider estate planning, not just the wealthy.
Curious How Much Estate Tax You Would Owe?
Before your consultation, get a quick estimate of the estate tax your heirs may need to pay with our free Estate Tax Calculator.
Ready to Plan Your Legacy?
Estate planning is more than just a legal requirement; it is a final act of stewardship for the people you love most. In the Philippines, an unplanned estate can lead to frozen assets, unnecessary legal battles, and a significant loss of wealth due to avoidable tax penalties. Book a confidential consultation with Sarah Songalia, CPA CMC CTEP FChFP, CMC, to begin building a plan that protects both your wealth and your relationships.
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Sarah Songalia is a Certified Public Accountant (CPA), Certified Management Consultant (CMC), Chartered Trust and Estate Planner (CTEP), and Fellow Chartered Financial Practitioner (FChFP) — a transformation consultant with deep experience in family-business governance, succession planning, financial strategy, and organizational continuity.
Through Saavedra Songalia & Associates, she works with business owners and families to bring clarity to complex financial and governance decisions, strengthen the structures behind their enterprises, and prepare their businesses for sustainable growth across generations.
Her work is grounded in a simple belief: a lasting business is built not only through strong numbers, but through clear decisions, responsible stewardship, and relationships that are protected along the way.
This article provides general information for Philippine business owners and families as of July 2026. It is not a substitute for legal, tax, accounting, insurance, investment, or financial advice based on your specific circumstances. Tax rules, regulatory requirements, valuations, and administrative procedures may change. Consult qualified professional advisers before implementing an estate, succession, transfer, insurance, or restructuring plan.