Family wealth transfer into a living trust

Hello: Creating a living trust in the Philippines is a wise estate-planning tool to ensure your family wealth is efficiently managed and transferred to your chosen beneficiaries without going through a lengthy probate process. Under Philippine law, a trust is recognized under the Civil Code of the Philippines (Articles 1440 to 1457) and can cover both real and personal properties, including real estate, bank deposits, investments, and even digital assets like cryptocurrency. To set this up properly, you would: a) Prepare a Trust Agreement (sometimes called a Deed of Trust or Living Trust), which identifies you as the trustor, the trustee (the one who will manage the assets), and the beneficiaries (the persons who will inherit or benefit). You may appoint an individual or an institution as trustee. b) Clearly list all your assets in the trust, such as real properties, vehicles, business interests, bank accounts, and crypto wallets, with details on how each is to be managed or distributed upon your death or incapacity. c) Register real properties in the name of the trustee in trust for you, and for digital assets like crypto, assign wallet access and recovery instructions within the trust deed, ensuring compliance with existing data privacy and financial regulations. d) Consider tax implications. While the Philippines has no “trust tax” per se, the transfer of assets to and from a trust may have donor’s or estate tax implications depending on the timing and nature of the transfer. Proper planning and documentation can minimize tax exposure. e) The trust can be revocable or irrevocable, depending on whether you want to retain control over the assets during your lifetime. A revocable living trust allows you to amend or revoke it at any time, while an irrevocable trust cannot be altered once executed. If you wish, our firm can assist you in drafting a customized Living Trust Agreement that includes your real properties, bank accounts, and cryptocurrency, and ensure that your trustees can seamlessly take over upon your passing. We can also help you designate online trustees and coordinate with your banks, registries, and crypto custodians for compliance. Our law offices are located across Luzon, Visayas, and Mindanao, and we can schedule a consultation via Google Meet/Zoom or in person. Sincerely, ATTY. JOFRE B. RECOSOSA; Owner/Managing Partner; Recososa Law Firm