As many of you know, I invest directly and indirectly in the stock market.
Directly, I choose the companies to buy, when to buy and when to sell through the largest online stockbroker in the Philippines, COL Financial. It acts as the middle man for my transactions.
Indirectly, managing my cash is done by my most trusted fund managers of Insular Life. It is the First and Largest Filipino-owned insurance company backed up with 100+ years of industry expertise. During the time of Yolanda, Insular Life was the very first insurance company to open and resume business in order to aid its policyholders.
Investment-wise, Insular Life has the highest return in their equity-based funds compared to other insurance companies.
I have money invested in Insular Life's Equity Fund (44 actively managed companies in the PSE), Select Equities Fund (Top 10 companies in the PSE) and Guardian Fund (Top 11 to 20 companies in the PSE). These fund managers decide what to buy, when to buy and when to sell.
Why I Do Both?
Personally, this is what I do. I grow my money through COL Financial -- and then I create more money and conserve my money through Insular Life, because it has insurance.
Last week, I came through a post on the Internet about the documents required and procedures in case of death of a COL Financial account holder. Because the post was written in 2003, I felt the need to email COL Financial myself for an updated answer to my inquiry.
Let me share with you their reply sent yesterday, dated September 13, 2016:
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Dear Joan Veronica S. Trojillo,
COL Accounts do not have a beneficiary like bank accounts. Trading accounts are considered assets much like real estate, and are subject to taxes and other legal requirements before ownership can be transferred.
In the unfortunate event of the account holder’s demise, the following are the documents to be submitted by the surviving spouse/heir:
DOCUMENTS NEEDED
- Death Certificate (original must be presented)
- Quitclaim (COL free & clear from any action, claim or liability from third parties re account closing and release of proceeds)
- Proof of payment of estate tax/ BIR Certification of exemption
- IDs of surviving heirs (1 gov’t issued ID w/ picture & signature)
- Proof of filiation of surviving heirs (birth cert, marriage cert)
Either:
- Situation 1: Court Proceeding: Order appointing executor/administrator w/ authority to close account & collect proceeds
- Situation 2: No Proceeding; 1 Heir - Documents needed are as follows:
- Affidavit of Self-Adjudication
- Proof of filing of affidavit with Register of Deeds (RD)
- Situation 3: No Proceeding; More than 1 Heir - Documents needed are as follows:
- Deed of Extra-judicial Settlement of Estate
- Proof of filing of Deed of Extra-judicial Settlement w/ RD
- Proof of publication (once a week for 3 consecutive weeks newspaper of general circulation)
Proof of filiation will be as follows:
Heir
|
Document
|
Parent
|
Birth certificate of decedent
|
Child
|
Birth certificate of child
|
Spouse
|
Marriage certificate of spouse and decedent
|
Siblings
|
Birth certificate of decedent, Birth certificate of siblings
|
Surviving heirs may then open an account with us to transfer all stock and cash positions from the deceased client’s account to the surviving heirs’ account. Surviving heirs will have to submit identification documents and accomplish account opening forms.
Okay, Now What?
Honestly, for someone like me who do not like doing admin stuff, I saw "toxicity" just looking at the documents and procedures required.
It is a good thing that my young kids already have COL accounts. But what about those account holders' kids who do not have an account with them yet?
And yes, it is subject to Estate Tax, because it forms part of your estate. One of my insurance policies (I have more than one) can take care of the estate tax. But what about those account holders who do not have insurance yet?
Bear this in mind: "If you do not have a plan for your money, the government does."
The Simple Purpose of Investment
I invest to enjoy my wealth while I am still alive. But in case of its untimely arrival, which we don't know when, my family will be faced with that burden of needing to pay for taxes FIRST before they can make a claim.
I am not telling you to stop growing your money through COL Financial. Like I said, I invest directly in the stock market through them. And this need to pay for Estate Tax does not apply to COL Financial alone. The same is with other online stockbrokers, mutual funds, UITFs, and even your bank accounts.
COL Financial is an option. And there are other options.
And this is where my Insular Life VUL plays an important role. It answers my need for investment and insurance.
Preparation is Key
Investment is my preparation if I grow too old.
Insurance is my preparation if I die too young.
So, I am printing their reply, and keeping the copy with my insurance policies, just in case.
P.S. I hope you find this post helpful. Kindly click the SHARE buttons so that others may also be made aware. Thank you very much.
