From Living to Leaving

BY ATTY. NICASIO C. CABANIERO, CPA

Presentation prepared by Amiel C. Saquisame

 CHAPTER 1
ESTATE PLANNING
 What is ESTATE PLANNING?
• Process of accumulating wealth, managing
it appropriately and disposing it in the
manner that the estate owner wishes.
• Involves the properly handling of assets
while alive, and systematically dealing with
these assets after death, so one can obtain
the maximum benefits from the assets
 Concepts in Estate Planning
• Manner of conserving the value of an individual’s real and personal properties upon
transmission to his heirs
• A plan by which he arranges to transfer his wealth at the appropriate times to parties
of his choice in order to fulfill his wishes & objectives

• The skillful administration of properties while managing properties while managing taxes
to the best possible extent

• An essential part of retirement and financial planning

 Guide in Estate Planning
1. Make a thorough inventory of what you have and may have

2. Determine what you want to do with the assets

3. Prepare liquidity so that loved ones will have adequate cash to pay for immediate
expenses such as medical fees, funeral costs, estate taxes & other payables at the
time of death

4. Arrange documents such as wills and deed of donations or set up a trust fund

5. Plan on how to manage or minimize taxes legally through assistance of tax experts

6. Regularly review & revise, if necessary the original estate plan to make it responsive
to your current needs
 CHAPTER 2
ESTATE PLANNING TERMS
 Definition of Terms

Estate – all properties that have specific monetary value a person

has accumulated over his lifetime. It comprises all the possessions that
can be measured in terms of money such as:
cash also known as:
bank accounts
stocks
bonds
insurance policies
real property
automobile
jewelry
collectibles
Definition of Terms
Monetary Value – market
value of the property of a
person

Net Worth – it is “everything

you own less than everything
you owe”
 Definition of Terms

Personal Property – Real Property – immovable Gift – voluntary transfer of

movable possessions such as possessions which include property by one to another
furniture, automobile, the land and anything without any consideration
jewelry & painting attached to it such as a
of compensation. Also
house or building
known as “donation”
 Definition of Terms

Decedent – a person Testator – a person who Legitime – part of

whose property is made a will before testator’s property which he
transmitted through death cannot dispose of because
succession, whether or the law has reserved it for
not he left a will his compulsory heirs. Also
known as “forced share”
 Definition of Terms
• Free Portion
• Inheritance • Succession –
– that part of testator’s property
– includes all property, rights, - mode of acquisition by which
which he can give to whomever
& obligations not extinguished property, rights & obligations to the
he likes, except those expressly
by death. It is the objective extent of the value of the inheritance
prohibited by law. This portion is
element of succession. of a person, are transmitted through
left after satisfying the legitime.
his death to another either by will or
Available only to those who left a
by operation of law.
will

Irrevocable beneficiary –
beneficiary designation made Revocable beneficiary –
by the trustor that cannot be beneficiary designation that can
Heir- a person legally
changed or revoked once the be changed anytime even after
entitled to receive
agreement is signed unless the agreement is signed before
property of the deceased
terminated the death of the trustor
 CHAPTER 3
PROBLEMS ENCOUNTERED
WHEN THERE IS NO PLAN
 Why plan ahead?

Family members do not know

where to look for titles of
properties, bank passbooks, Liquidity problem or no cash to If the breadwinner dies, source
stock or bond certificates, pay for taxes of income will suddenly stop
jewelry or any other assets of
value

In case there is no will, family Administration problems

members may fight over the especially if the estate owner left
ownership of the preferred businesses and properties which
assets need proper handling
 CHAPTER 4
OBJECTIVES OF
ESTATE PLANNING
 FINANCIAL
FAMILY
PLANNING
Saves you much more in terms of
taxes, legal fees, administrator or
executor’s fees, probate costs or fees
associated with court proceedings
and other expenses following death.
 “since you cannot take it with you, the next best thing is to plan
intelligently to whom you will leave your property”

TAX PLANNING ESTATE PLANNING

• Part of estate planning • Realize the desires of the estate owner

• Care for beneficiaries of the estate

• Legal means to reduce your
tax liability since your estate
will still have to pay proper
tax but it will be transmitted
to the beneficiaries at the least
possible cost.
• Reduce or avoid conflict
• Minimize tax & other expenses
• See the children enjoy the property while the donor
is alive
• Provide for guardians who will take care of minor
children & incapacitated
• Avoid probate court involvement
 CHAPTER 5
DEVELOP A SOUND
ESTATE PLAN
 Establish Analyze Formulate Implement
goals and current estate Develop an and update
financial planning estate plan the estate
objectives situation tools plan
 1. Establish your goals and objectives
examples of estate goals: Rank your objectives and
determine:
What do you
1. have adequate cash for taxes
want to do Who will be the recipients?
with your 2. keep emergency funds
How much will be given to them
assets? 3. earn passive income
How will beneficiaries receive their
4. arrange for business succession assets?

5. bestow gifts to non-heirs

6. Donate to charitable institutions

 2. Analyze your current financial situation
LIQUID ASSETS Assets which can be easily converted into
cash (ex bank deposit account, insurance
policy)
IMMOVABLE ASSETS Assets affixed to a land so these cannot be
Complete an removed or transferred such as real estate
ASSET INVENTORY
SHEET provided by MOVABLE ASSETS Assets which can be moved from one
Estate Planner place to another. (ex: motor vehicle,
jewelry)
BUSINESS ASSETS Assets which are used related to business
such as office equipment, sole
proprietorship or partnership interest,
shares in a corporation
INTELLECTUAL Include intangible assets such as patent,
PROPERTIES copyright and trademark
3. Formulate practical strategies by selecting suitable estate
planning tools
• In relation to CHAPTER 10, the ff are tools to properly manage and
dispose assets/ management tools in estate planning
1. Use of “AND/OR” in bank accounts
2. Will
3. Donation and Sale
4. Incorporation of family’s assets
5. Trust
6. Life insurance
 4. Develop an estate plan
Arranged by detailing the ff:
Summary of your financial
assets
Established goals and
objectives
Proposed action plan (selection
of appropriate estate tools)
Authorization to proceed with
the plan
Property composition - ALL properties, real or
personal under the name of
the estate owner
Family composition - To determine how the
MUST HAVE THE estate will be partitioned in
FF DISCLOSURES the future.
- This includes compulsory
heirs
Estate owner’s needs and - Write down wishes on how
objectives properties are to be utilized
 5. Implement and update estate plan
• Update will every now and then for revision when update
arises (i.e. new family member, newly acquired properties)
 CHAPTER 6
PROPERTY RELATIONS
 Properties can be classified into two

INCOME PRODUCING ASSET NON-INCOME PRODUCING ASSET

those that earn money and interests,
such as bank accounts, stocks, bonds
and at the same time include
properties that are for rent or sale
those that do not produce or earn income,
such as family car, furniture or jewelry
DEPRECIATING ASSETS – assets that
decrease in value over time
 Property Relations between Husband and Wife
CONJUGAL PARTNERSHIP
OF GAINS
The husband and the wife will
place in a COMMON FUND the
proceeds, products, fruits and
income of their separate properties
& those acquired by either or both
spouses through their efforts or by
chance, and upon dissolution of
the marriage or the partnership, the
net gains and benefits shall be
divided equally between them
unless otherwise agreed in the
marriage settlement
ABSOLUTE COMMUNITY
PROPERTY
The husband and the wife becomes
co-owners of all the properties
they bring into the marriage and
those acquired by either or both of
them during the marriage, except:
1. Property acquired during
marriage by virtue of
gratuitous title by either
spouse and their fruits and
income
2. Property for personal and
exclusive use of either spouse
except jewelry
3. Property acquired before the
marriage by either spouse who
has legitimate descendants by
a former marriage
COMPLETE SEPARATION
OF PROPERTY
The spouses maintain ownership
of their separate properties and
those obtained during the marriage
including its earnings. This is done
through MARRIAGE
SETTLEMENT or PRE-
NUPTIAL AGREEMENT.
- To each spouse shall belong all
earnings from his or her own
profession, business or industry
and all fruits, natural, industrial or
civil due and received during the
marriage from his or her separate
property
PROPERTY REGIME OF
UNIONS WITHOUT
MARRIAGE
Wages and salaries shall be owned
by them in equal shares and the
property acquired by both of them
through their work or industry
shall be governed by the rules on
co-ownership.
- In the absence of proof to the
contrary, properties acquires while
they live together shall be
presumed to have been obtained
by their joint efforts, work or
industry, and shall be owned by
them in equal shares.
 Relevance of Property Relations in
Payment of Estate Tax

• To determine if the properties are solely and exclusively owned by the husband or the
wife to know which assets will be included in the computation of their individual
gross estate in case one dies ahead of the other.
• If the property is part of the CONJUGAL ASSET of the deceased, then only half of
the value will be subject to estate tax & not the whole property
 CHAPTER 7
FAMILY COMPOSITION
 CLASSIFICATION OF CHILDREN
LEGITIMATE CHILDREN
Those conceived or born during
the marriage of parents
Children conceived as a result
of artificial insemination are
considered legitimate children
provided the husband and wife
authorized such insemination in
a written instrument.
ILLEGITIMATE CHILDREN
Those conceived or born
outside a valid marriage
Illegitimate children have
inheritance rights, although it is
much less than the share of
legitimate children and
illegitimate child gets ½ of the
ledge a team of what is given to
a legitimate child
LEGITIMATED CHILDREN
Does conceived and born
outside of wedlock of parents
who are not disqualified to
marry each other during the
time of the child’s conception
These are children born before
parents got married but there are
no impediments to get married
at conception
ADOPTED CHILDREN
Those who are legally taken and
brought into the adopters family
to be given support and care as
if they were their own
biological children
Adoption is a relationship
legally created or established
through a court proceeding
between a child and a parent.
For legal adoption to be valid
and effective all necessary
requirements must be complied
with
 CHAPTER 8
TYPES OF HEIRS
 TYPES OF HEIRS

COMPULSORY HEIRS VOLUNTARY HEIRS

-those whom the law
reserved a certain portion PRIMARY COMPULSORY
called “legitime” HEIRS
- Heirs on the descending line
which consist of legitimate
children and their descendants;
they also have the power to
exclude secondary compulsory
heirs
- Those who inherits a portion
of the estate that is done
through a will whose share is
taken from the free portion of
the estate LEGATEES – person who
receives personal property given
through a last will and testament

SECONDARY
COMPULSORY HEIRS – heirs
on the ascending line which DEVISEES – person to receive
includes legitimate parents and real property given through a last
their ascendants; they inherit will and testament
only in the absence of primary
compulsory heirs
• Exclusion of compulsory heirs is called preterition, as a result it will annul
the institution of heirs but the institution of the devices and legacies still be
valid insofar as they are not inofficious.

• Disinheritance may also be effected through a will stating the legal cause for
such disinheritance
 CHAPTER 9
WEALTH ACCUMULATION
&
FINANCIAL PLANNING
 train yourself to
set your track your save a portion KEEP
assess your current live within or
financial expenses and to pay yourself save & invest YOURSELF
financial situation even below
objectives income first PROTECTED
your budget
 3 MAIN CLASSES OF ASSETS

Cash accounts Bonds Equities

Classification Savings Investment Investment

Objective Capital preservation Current income Capital appreciation

Time Horizon Short medium long

Typical Goals for liquidity provides income during retirement to match and identified goal in
or to match identified goal in 5 to 10 years or more
10 years
Return Potential Low Moderate High

Volatility Low Moderate High

example Money market such a savings, capital market such as corporate capital market common stock
time deposit and short-term bond or government bond or prepared stock
fixed income
 • Do not put all your eggs in one basket

• In case the stocks value goes down the

investment in bonds makeover for the
loss at the performance of stocks and
bonds is inversely correlated which
means that if the stocks values down
in the bonds value is up and vice versa

Unrealized loss or paper loss. Unrealized gain or paper gain

LOOK AT:
• Net asset value (NAV)
• IT IS THE VALUE OF THE FUNDS ASSETS MINUS THE VALUE OF ITS LIABILITIES SUCH AS A
BANK FEES

• Net asset value PER SHARE (NAVPS)

• REFERS TO THE VALUE OF A SINGLE SHARE OUR UNIT OF A FUN AND IT INDICATES THE
PRICE AT WHICH SHARES ARE BOUGHT AND SOLD

• Calculating NAVPS
Dividing the total net asset value of the company by the number of outstanding shares or units
Financial institution investment product description
mutual fund companies and Mutual fund (MF) Open and investment security that enables investors of mutual fund
investment houses companies and investment houses to pool their money together into
one professionally managed investment.

Open ended security is it investment scheme that can issue and

reading shares at any time without restrictions and limits

Monitored by SEC

trust companies or trust Unit investment trust fund (UITF) It is an open ended pool fund administered my trust in teepees and
department of banks is made available through participation just like in mutual funds
the underlying investments here maybe put in fixed income
securities equities or a combination of both

Monitored by BSP

life insurance companies Variable unit link product (VUL) Product offered by insurance companies that provide investors with
both insurance and investment portion of the phone is used to pay
for the cost of insurance so that the product and offer insurance
benefits which are not available in the previous products the
remaining portion of the font is used to invest in various security
such as fixed income equity or a combination of both.
• Fixed income fund -it is a type of fund that’s holy capitalizes in fixed income
investments such as bonds or certificates of deposits. this fund provides limited return
given the low amount of risk the investor takes in
• Balance fund - it is a fund that combines both fixed income in stock component in a
single portfolio this hybrid fond of bonds and stocks is applicable to clients looking for
an investment that provides both secure and moderate income from capital appreciation
• Equity fund –it is a fund invest in stocks or equity securities its return potential is bigger
compared to other friends but is also poses higher risk given opportunity for better
returns
• Growth fund -fund that aims to achieve capital appreciation by investing in companies
long they will be in the streets and which are experiencing significant earnings rather
than companies that provide dividends
 CHAPTER 10
MANAGEMENT TOOLS IN
THE ESTATE PLANNING
1. Use of “AND/OR” in bank Main goal of the owner Estate planning tools

accounts
ATTAIN PERSONAL And/Or bank accounts
2. Will NEEDS AND WISHES Trust
Life insurance
3. Donation and Sale
ORDERLY TRANSFER Will
4. Incorporation of family’s assets THE ESTATE TO HEIRS Donation
Sale
5. Trust Incorporation of Family’s
Assets
6. Life insurance
 1. Use of “AND/OR” in bank accounts

when you intend to open a bank account jointly with another person such as your
wife, brother or any other person open AND/OR account and not and AND
account only- in AND/OR account only one of the account holders is required to
sign in any transactions especially on withdrawals.
Useful when one of the owners get sick or incapacitated.
 3. Donation and Sale
2. Will
• Both devices are options in transferring
• An act whereby a person is
ownership to another person
permitted with the formalities
prescribed by law to control to a Donation is defined as Sale is the transfer of
certain degree to disposition of the voluntary transfer property ownership in
his estate to take affect after his of an asset from one exchange for payment
person to another of money or
death without any consideration the
• CHAPTER 11 tackles wills for compensation. The seller will be required
donor is required to to pay capital gains
Succession Planning pay donor’s tax upon tax
giving the property
 4. Incorporation of Family’s Assets
Creation of a family corporation
1. Separate juridical personality – a corporation is treated as separate entity from
stockholders
2. Limited liability of stockholders – any liability obtained by the corporation will be
charged against the corporation & not directly against stockholders
3. Shares of stocks are easier to distribute to heirs –shares of stock convenient to
divide & distribute
4. Reserves the management of wealth within the family – insures continuity of
ownership
 5. Trust
• entrusts his property to a trustee who can either be
The holding of an asset as an owner by
one person for the benefit of another
trustor an individual or an institution.

person or the owner himself.

manages the property for the benefit
Trust allows you to accomplish of the beneficiary who is the one
succession planning goals like funding a chosen by the trustor to receive this
trustee property.
child’s education, providing for
handicapped children or obtaining
professional property management.
Person chosen to
beneficiary receive the
benefits
 6. Life insurance
• Provides liquidity as immediate funds are
necessary- sickness arises or at the time of
death- to meet the cash requirements of the
decedent’s estate
• Can be used as family savings or investment
after all the bills and taxes associated with • Protection against accident, sickness, or
death have been paid.
• This can be used as capital to support the
window or or widow & insure educational
needs of children
disability having insurance covers dreaded
disease or critical illness and provides a
guaranteed source of income when the
situation arises
CHAPTER 11
SUCCESSION
PLANNING
 THREE TYPES OF SUCCESSION

TESTAMENTAR • Happens when an estate is transferred to the heirs of estates

owner through the last will and testament.
Y SUCCESSION • By a will

INTESTATE • Legal succession

SUCCESSION • By operation of law

MIXED • effected partly by will and partly by operation of law

SUCCESSION
 LEGITIME
• FIXED LEGITIME • VARIABLE LEGITIME

It is when the fractional part It is when the fractional part of

of the estate which a certain
class of compulsory heirs is
entitled never varies or
changes no matter who are
the other compulsory heirs
the estate changes depending on
whether the compulsory heirs
survive alone as a class or they
come with other classes of
compulsory heirs

FREE PORTION - The remaining part or leftover of the estate after lunch the ledge a
team or the shears of compulsory heirs have been given. Only exists when the will is created so
if there’s no will there is no free portion
 WHAT CAN A WILL DO?
(1) Name the executor –to assign the person who will be
responsible in carrying out his wishes. It can either be a
member of the family, business associate, trust institution or
another 3rd party.
(2) Name the recipient of gifts and bequests – to designate
the people you want to inherit a portion of your estate. A
testator cannot use a will to disinherit a compulsory heir
without sufficient legal cause. Accepted reasons for
disinheritance include proven attempts to take the testator’s
life or maltreatment by compulsory heir.
(3) Name the guardian for testator’s children who are
minors – to name someone who will take care of the children
when the testator dies. 
CONDITIONS IN WRITING A
WILL
• It can only be executed by an individual aged 18
years old and above
• the testator or person writing a will must be of
sound mind
• Knows the nature of the estate, the proper objects of his
bounty and the current the character of the testamentary act
• it must be written and in language or dialect known
to the testator
• it must be in the prescribed form
• it is an individual act and hence there is no joint
well in the Philippines
 CONSEQUENCES IF A PERSON DIES WITHOUT A
2 TYPES OF WILLS  WILL

(1) Your property will be divided according to the state’s

1. Notarial will – It is a document for the
disposition of your estate that is subject to the
formalities required by law. A notarial will has
the following requirements:  (2) If there is no will, the court will name an administrator
2. Holographic will – It is a document used
for the disposition of your estate that must be
entirely written, dated and signed by the
testator himself. In this type of will, there is
no specific form required, may be made in and
out of the Philippines, and need not be
witnessed. To emphasize, a holographic will
must be totally be handwritten by the testator. 
intestacy laws. This means that your property might not go
to the person you choose to succeed your property or in the
amount you desire. 
to handle the estate instead of carefully selected executor
that the decedent would have named. 
(3) If the decedent has a business, it may not be given to an
heir capable of continuing its operations. 
(4) There are some properties that cannot be divided.
Without a will, the testator cannot designate to whom that
asset or lifetime gift will be given
 WHEN CAN THE TESTATOR FREELY
DISPOSE OF HIS ASSETS BY WILL?
1. Entire estate - If he has no compulsory heirs, he can dispose
his entire estate by will.
2. Half of his estate - If he is survived by legitimate children or
descendants, or in their absence, ascendants. He can dispose ½
of his estate through a will.
3. Nothing - In case there are several heirs, and there is
nothing left for free disposal. 
2 FORMS OF ESTATE SETTLEMENT LEGACY PLANNING
Extrajudicial Settlement  - happens when the heirs do not have Looks into how future generations will
any dispute as to the distribution of the estate of the decedent. manage the assets transferred such as the
Extrajudicial Settlement of estate by agreement between heirs family business and how it will be
may only be carried when: perceived by people. 
a. Decedent left no will; It involves:  
b. Decedent has no debts or have been paid fully; and (a) creating business succession plans
c. Heirs are all of legal age or minors are represented by their (b) setting up foundations or;
judicial or legal representatives.
(c) choosing future charitable
Judicial Settlement - happens when the heirs could not agree on contributions.
the partition of the estate which necessitates judicial or court
intervention. 
 CHAPTER 12
PROPERTY DISPOSITION
DONATION SALE TRANSFER BY TRUST
PRESCRIPTION
An act of liberality Sale of assets means A mode of acquiring (or A legal arrangement
whereby a person that a property is losing) ownership and whereby a person
disposes gratuitously a disposed in exchange other real rights through delivers part or all of his
thing or right in favor of for a valuable the lapse of time in the properties to another
another who accepts it. consideration or money.  manner and under person who administers
conditions laid down by and manages the
law, namely, that the properties for the
possession should be in benefit of a designated
the concept of an owner, person known as the
public, peaceful, "beneficiary."
uninterrupted &
adverse.

to be explained further in the next slides….

 DONATION
• What are the conditions of a valid Donation?

1. Capacity of the donor -donor must be capacitated to make a donation 

2. Donative Intent - The donor must have the deliberate intention to donate

3. Acceptance by the donee - person who will receive the donation must freely accept the donated property
and this must be made during his lifetime

4. Delivery of the gift to the donee - donated property must be delivered to the person accepting the donation
or through an authorized person with general or special power for that purpose 

5. Real, Personal, Tangible or intangible property - property can be anything with monetary value.
 DONATION IS SUBJECT TO DONOR’S TAX

• A tax on a donation or gift, which is imposed on the gratuitous

transfer of property between two or more persons who are • What is the Tax
living at the time of the transfer.. A donor's tax or gift is Base of Donor’s
charged so that the donor obtains the right to make a gift.  Tax? 
• General Rule: All donations are subject to donor’s tax.  Tax is computed for
• Exception: If exempted by law, such as donations made to: a.) each calendar year
Educational and/or charitable, religious, cultural or social on the basis of the
welfare corporations; b.) Accredited non-government total net gifts made
organizations; c.) Philanthropic organizations or research during the year.
institutions.
 SALE
• 2 parties in a sale –(1) Vendor - Who is required to transfer the ownership and deliver
the asset to the buyer, and (2) Vendee - Who is obligated to pay the price as payment for
the asset.
• 2 kinds of assets –
(1) Capital Asset - Assets held by a person which are not used for trade or business This is the property
held by the taxpayer, but does not include: stock in trade, property held for sale, property used in trade
or business, or real property used in the business of the taxpayer.
(2) Ordinary Asset - Properties excluded from the definition of capital assets. These are properties
primarily held for sale in the ordinary course of trade or business

Discussion on
capital gains tax
Not all capital assets are subject to Capital
Gains Tax (CGT) –
The Tax Code only imposes CGT on the
following non-business assets:
(1) Real properties located in the
Philippines and held as capital assets
(2) Shares of stock of a domestic
corporation that are not sold through
the local stock exchange.
An exemption in the payment of CGT, is the sale of a principal
residence or the seller's family home. The following conditions
should be met: 
1. Entire proceeds of the sale will be used to a to acquire or
construct a new principal residence within 18 calendar months
from the date of sale. 
2. The historical cost or adjusted basis of the real property sold
shall be carried over to the new principal residence built or
acquired. 
3. The BIR Commissioner shall be duly notified within 30 days
from the date of sale through a prescribed return stating his
intention to avail of the tax exemption. 
4. This tax exemption can only be availed once every 10 years. 
5. In case the proceeds from sale have not been fully utilized, the
portion of the gain or the excess from sale will be subject to the
6% CGT. 
 TRANSFER BY PRESCRIPTION
Mode of acquiring (or losing) ownership and other real rights through the lapse of time in the
manner and under conditions laid down by law, namely, that the possession should be in the concept
of an owner, public, peaceful, uninterrupted and adverse. 
• Acquisitive Prescription can either be: 

1. Ordinary - the prescriptive period is 10 years if possession is done in good faith and with a just
title. 

2. Extraordinary- ownership and other real rights over an immovable property are acquired through
uninterrupted adverse possession for 30 years without need of title or of good faith.
 TRUST
Testamentary Trust -takes effect after a person’s Inter Vivos Trust “Living Trust”- takes effect
death and is created inside a will.  even if the person is still alive

Created inside the will  Created using trust agreement 

Take effect upon the death of the testator  Takes effect upon signing the trust agreement 
Execution of the trust must be after the death of the Execution of the trust can be immediate 
testator Revocable or Irrevocable
 Revocable  Can only be amended if stated in the agreement 
Can be amended anytime  Financial provision to the beneficiaries may start
Financial provisions to beneficiaries will only start without grant of probate.
after the grant of probate
CHAPTER 13
TAX ASPECTS
• The Supreme Court ruled that it is perfectly a legitimate right of the
taxpayer to reduce or avoid his tax as long as it is done through lawful
means allowed for Tax Avoidance.
• Tax Avoidance vs. Tax Evasion: Tax avoidance is a process of reducing
taxes in accordance with law. Tax evasion uses illegal means to escape the
payment of taxes.
• Tax Planning is a vehicle used to reach the economical objective of saving
on taxes due to the government. Lawyers often use this to assist people
who would like to preserve the value of their assets and give more to
their heirs.