On this article, we will tackle important and practical guide on addressing many concerns about conjugal properties including: possible and compulsory heirs including absence of prenuptial agreement, rules governing conjugal partnership of gains and debts and obligations contracted by both parties.
During a webinar, Estate planning expert Atty. Nicasio Cabaneiro, an authority in the practice of taxation and commercial law with 40 years of teaching experience, said “the moment a person got married not only marital relationship is established but also property relationship. When a person marries, part or all of their property becomes conjugal property.”
Atty. Nic also highlighted how properties are transmitted by succession. "Properties may be transferred to the heirs either by testamentary or testate succession (by executing a will) or intestate succession (no will or "do nothing attitude").
It is more prudent and advisable to go for testate succession where there is a free portion, giving property owner more flexibility to give more to favored heirs.
This is not possible in intestate succession since succession is determined by law and there is no free portion.” He also discussed the reasons couples entered a prenuptial agreement.
“Prenuptial agreements are entered when there
is significant age disparity between parties, when there is wide difference in
wealth or indebtedness, and when one party has been married before and there is
a desire to protect children from former marriage.”
In closing, Atty. Nic stressed the importance of smartly handling one’s hard-earned assets by planning for the future. “With a proper estate plan, estate tax may be reduced or avoided, you control and determine the future of your financial accounts and investments and ensure that your assets will go to the rightful heirs and beneficiaries.”
We cater estate planning services daily. If interested, you may reach out through glifestyleph@gmail.com or call +63 9983352857.