Hard times are caused by many different events. Because we do not want to think of them at all, we usually do not plan for them until they come and then we realize, it's too late. Although it is not in our culture to think of these bad times, it is but practical, even helpful, to plan for them when we are still in control of circumstances.

There is good reason to prepare for hard times. Statistics compiled by the Social Security System and the Government Service Insurance System show that at any one time, around 2.2 males out of 1,000 males aged 35 will be struck by a disability lasting 3 months of more. In general, the rate of males and females being struck with a disability rises with age.

When hard times do come, it's natural to feel angry, frustrated and even a little hopeless. Remember, however, that the key to maintaining financial control is to act quickly. Don't take a wait-and-see attitude. Be proactive, seek solutions, ask for help and remember that you are not alone in your problem.


The loss of a loved one can be a painful experience. Dealing with your emotions as you settle that person's estate can make the job even more difficult.

Closing an estate of any size requires time and effort. Here are some ways to make the job easier.

Step 1: Get professional help if you need it
If things are pretty complex, or if you've been named the administrator or executor of the will, seek advice from a lawyer, an accountant tax specialist or financial planner, depending on the issues at hand.

Fees for these advisors are generally high. To reduce costs, shop around for prices and do as much background work as you can on your own (For example, a lawyer may charge you P2,000 to hand-deliver papers you could pick up yourself.). Agree on a charge, know what it covers and get it in writing.

Step 2: Collect all documents

  • Death, birth and marriage certificates
  • Social Security number
  • Income tax returns
  • Insurance policies
  • Bankbooks
  • Bank statements
  • Credit cards and statements
  • Stock certificates
  • Real estate titles
Unless you are the executor of the will, you'll need a lawyer to help you retrieve these important documents if they are kept in a safe deposit box. Once you've gathered everything together, start a written record and keep track of your progress.

Note: Complete this step as quickly as possible. Some items, like Social Security benefits, have filing deadlines. Also, don't throw anything away. Insurance policies, for example, may still be active, even if premiums haven't been paid recently.

Step 3: Make copies of legal certificates
Death certificates are required for life insurance, Social Security and other claims. Ask the funeral director for at least 12 certified copies. Birth and marriage certificates are required for Social Security benefits, etc.

You may also obtain a copy of your loved one's death certificate from the National Statistics Office. Call 737-1111, the 24-hour help line that allows you to request for these certificates to be delivered to you for a minimal fee.

Step 4: Contact the following organizations

  • Local courts: Some property dispositions must go through a court, even if the deceased had a will. If you're the executor of the estate, make arrangements within 30 days of death. You must bring certain information to court, so ask a lawyer what you will need.

  • Social Security: You may qualify for death benefits and funeral assistance. Contact the Social Security System (SSS) if you're a private employee or the Government Service Insurance System (GSIS) if you're a government employee to find out what to do.

    Remember to act quickly. The SSS grants a death benefit, which may be given to the deceased beneficiaries either in lump sum or in monthly pensions, depending on how many contributions he had made. In general, those who have made 36 or more monthly contributions before the semester of contingency could qualify for the monthly pensions, while those who have paid less will be given a lump sum payment. The GSIS has the same rules.

    In addition, both the SSS and the GSIS provide funeral assistance in the form of cash. The SSS may be contacted through (632) 920-6401 or 920-6446 while the GSIS may be contacted through (632) 891-6161.

  • The deceased's health insurer: There may be outstanding medical claims to file.

  • The deceased's life insurer: If the deceased had life insurance, you must file a claim to collect benefits. Call the company's claim office for details. Benefits are usually paid in one lump sum payment. Check for his pension plans as well. You may collect his pension in one lump sum or over a given period of time, depending on the terms of the deceased's pension plan.

  • The deceased's employer: Inquire about group insurance, pension funds, back vacation pay, etc. Most employers will help you with the paperwork. Pay close attention to health coverage. Spouses and dependents may still qualify after the death of the insured. Beneficiaries of deceased members of the SSS, for instance, continue to receive Medicare benefits.

  • Credit card companies: Call the customer service number to find out if the deceased purchased credit life insurance, which may pay off the account balance if the customer is deceased. Citibank, for instance, offers CreditShield on its credit cards for such purposes.

  • Banks: If you had joint bank accounts with the deceased, you will need to submit required documents, which will allow you to withdraw funds. Banks usually stop payment on checks as soon as a death notice is made public. Call the bank to verify that this has been done.

  • Public services: Contact utility companies, the post office, newspaper delivery services etc., and notify them of the death.
Step 5: Transfer titles
  • Real estate: If the deceased was a joint owner of property, consult a lawyer on how to remove his or her name from the title. Check the will first for special instructions about the property. You will have to deal with inheritance taxes in this case. Talk to your lawyer about this.
Step 6: Taxes
  • Income taxes: Following the death of a loved one, there could be changes in your income tax payments. Find out how the demise of your loved one affects your status as an income tax payor. It may mean changes in the exemptions that you claim each year. To illustrate, only one spouse can claim tax exemptions for their children. If your spouse passes away, this means your tax status will change and you will have to claim a different exemption. Talk to an accountant about this. You may also ask for help from a lawyer or from the Bureau of Internal Revenue.

  • Property taxes: Property taxes needs to be paid. After the property title has been transferred, the new owner must pay the appropriate taxes.

 

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