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Thursday, October 23, 2014

If A Person Is Missing For Several Years When Is He Presumed Dead For Inheritance Purposes?

If A Person Is Missing For Several Years When Is He Presumed Dead For Inheritance Purposes?

by: Mark Joseph T. Fernandez, CPA, RFC, MDRT
Financial Advisor



One of my favorite movies, Taken will be out by January 9, 2015. The movie shows how Liam Neeson who is an ex-secret agent tries to track down his daughter and wife who were kidnapped (taken).

Question popped out of my mind. What if someone gets missing for several years? Does the law provide for a presumption of death if the person is missing for several years? Here is what the Civil Code Provides regarding presumption of death:

Title XIV. – ABSENCE
CHAPTER 4 > PRESUMPTION OF DEATH
Art. 390. After an absence of seven years, it being unknown whether or not the absentee still lives, he shall be presumed dead for all purposes, except for those of succession.
The absentee shall not be presumed dead for the purpose of opening his succession till after an absence of ten years. If he disappeared after the age of seventy-five years, an absence of five years shall be sufficient in order that his succession may be opened. (n)
Art. 391. The following shall be presumed dead for all purposes, including the division of the estate among the heirs:
(1) A person on board a vessel lost during a sea voyage, or an aeroplane which is missing, who has not been heard of for four years since the loss of the vessel or aeroplane;
(2) A person in the armed forces who has taken part in war, and has been missing for four years;
(3) A person who has been in danger of death under other circumstances and his existence has not been known for four years. (n)
Art. 392. If the absentee appears, or without appearing his existence is proved, he shall recover his property in the condition in which it may be found, and the price of any property that may have been alienated or the property acquired therewith; but he cannot claim either fruits or rents. (194)
Source: Philippine Civil Code
Thus, for inheritance purposes you should remember 10, 5 or 4 years. After these number of years the person is presumed dead depending on the how the person disappeared.

Monday, October 20, 2014

Why You Should Not Invest in New San Jose Builders



Who wouldn't be enticed with the AD above?

In 2011, when I was age 21, I was approached by a sales agent from New San Jose Builders offerring about Victoria De Makati. I was enticed by the low monthly payments that I could own a condominium and stop paying rent.

With this in mind, I went back after a few days with 2 friends and asked for their ideas and eventually decided to buy in with the agent's recommendation that I buy a condominium so I won't be able to pay rent. The agent told me that I could move in early 2013. So I issued the cheques and complied with the requirements.

When 2013 came, I was surprised that I couldn't be able to move in. But despite that I said to myself I will give them a chance to fulfill their promise by 2014.

When 2014 came, I received news that it was moved to 2015 and then when I called them again its now 2016.

Imagine the frustration that I had. I was supposed to move in by 2013 and stop paying rent by then. Now I have to continue paying and still pay my rent till 2016.

But who would believe in a company who has promised for 2013 and now promised for 2016? What is the chance that they will really fulfill their promise for 2016 when they have already broken several promises?

Thus in February 2014, I decided to finally send a demand letter asking for full refund plus interest because that is the remedy provided by us according to law.

Initially I was denied for my request for refund. But eventually they approved it but with no interest. This for me is unfair because had I invested it, I could have earned from it. Although P500k may not be a significant amount for most of you but for a 25 year old like me, it is very significant. And so I agreed to their terms even if I feel I was ripped off.

Ms Liezel "Ice" del Rosario promised me that the refund will be given within 6 months. But true enought to New San Jose Builder's reputation of being trustworthy, even after 6 months from February there was still no refund.

September came and now October but still nothing from New San Jose Builders.

As a financial advisor, my advise for those who are planning to invest in real estate properties, never ever invest in New San Jose Builders whatever the sales agents tell you.

References:
Pursuant to Section 23 of Presidential Decree No. 957 which reads:

Sec. 23. Non-Forfeiture of Payments. - No installment payment made by a buyer in a subdivision or condominium project for the lot or unit he contracted to buy shall be forfeited in favor of the owner or developer when the buyer, after due notice to the owner or developer, desists from further payment due to the failure of the owner or developer to develop the subdivision or condominium project according to the approved plans and within the time limit for complying with the same. Such buyer mayat his optionbe reimbursed the total amount paidincluding amortization interests but excluding delinquency interests, withinterest thereon at the legal rate.  (Emphasis and underscoring supplied),

Wednesday, October 15, 2014

Saving For Your Child's Education


SAVING FOR YOUR CHILD’S EDUCATION
By: Mica Austria



They say that education is the greatest inheritance that you can give to your children. How prepared are you for your child’s education? How much are you willing to sacrifice today to give your child a brighter future?

Although I am not yet parent, I have seen how the lack of education planning can cause your child’s future to be derailed. Thankfully, me and my three siblings were able to get scholarships. If not we simply can’t afford paying for our tuition fees.

But, what if we didn’t have scholarships? I’m pretty sure we wouldn’t be able to finish our schooling. I can’t even imagine where we will be by now had we not finished our studies. Even with the scholarship grant I had, it was hard still hard for me. There were other expenses that were not covered by my scholarship grant. Honestly my schooling was really a struggle that when I look back, I believe that it was only by the grace of God that I was able to finish schooling.

I believe every parent loves their child and wants them to see their dreams come to life. And any good parent will be willing to sacrifice even their own personal goals just to see their children achieve their dreams. Here a few steps that you can do to start planning for your child’s education:
  • Know which university you would want your child to go to college
  • Project the possible tuition fee at the time he will go to college
  • Start investing (Plan A)
  • Start protecting (Plan B)


 To illustrate, let’s say I have a child who is 3 month old. I would want my child to graduate from De la Salle University. As of today the range of tuition fee in this school is P177,000 to P210,000. Let’s get started:
  • De la Salle University
  • Let’s Say The Average Tuition fee per year is P193,500=((177,000+210,000)/2)
  • Average Tuition increase=9.03%*
  • Future Value after 16 years, just in time for my child’s college education:

Year 1
   P    917,295.34
Year 2
      1,000,127.11
Year 3
      1,090,438.59
Year 4
      1,188,905.19
Total
  P 4,196,766.22

After 16 years, I would need to have around P4.2Million. That’s a large amount of money right! And if you don’t start saving for it now, then you will be having a hard time reaching such goal.

Insular Life offers a product that would help parents prepare for their child’s education. This is what we call, Wealth Secure/ Assure Education. The following are the features of this product:
a.        Flexible Payment terms. You have the option to pay quarterly, semi-annually or annually. Further, the amount that you would invest will depend on the amount you need in the future or the amount that you can invest at the moment.
b.       High rate of return. As of October 15, 2014, equity fund of Insular Life has a 23.38% annual rate of return.
c.        Contingency in case of loss (Plan B). In case something happened to parent, I am insured by P4Million in which my child will get should something happen to me. Hence, even in my death I am assured that my child would achieve his goals.
d.       Very affordable premiums. You can start saving for your child’s education for as low as P20,000 per year.

Based on the illustration above, in order to be prepared with the education of my child I need to save P200,000.00 per year for a minimum of 10 years.  Here are the details:

Details

Premium payment
P200,000.00
No. of years to pay
10 years

Investment value at age 18 at 8% return on investment
P4,663,098.61
Less: Amount of education fund need
4,196,766.22
Excess
P    466,332.39
Insurance Coverage**
P4,200,000.00

*The excess amount can be used for other purposes beneficial for the child.
** In case something happened to parent, I am insured by P4Million in which my child will get should something happen to me. Hence, even in my death I am assured that my child would achieve his goals. (Plan B)

As a parent who loves his child, it is always wise to start saving early to secure the education of your child. After all, its your greatest inheritance to them.

Start saving early and reap abundant rewards. LOVE COMPELS ACTION.


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