5 things every Filipino should know about writing a will

MANILA, Philippines — In the first salvo of this Wealth Planning series, we explored why estate planning is essential to protecting wealth and securing your family's future.

Many people focus on who will inherit their wealth. Few stop to consider whether those wishes can actually be carried out when the time comes.

This is where a Last Will and Testament plays a critical role. Far more than a legal document, it helps ensure that your intentions are clearly documented and legally recognized.

It also helps reduce uncertainty, protect family relationships, and provide direction during one of the most significant financial transitions a family will experience.

To better understand the legal and practical realities of writing a will, we sat down with Atty. Karen Espineli, AXA’s chief compliance officer and general counsel, who shared five things every Filipino should know.

1. Without a will, the law becomes your estate planner

If you pass away without a valid will, your estate will be settled through intestate succession, the process under the Civil Code of the Philippines that determines who inherits and in what order. While this ensures that eligible heirs receive their share of the estate, the law follows a prescribed framework that may not necessarily reflect your wishes.

You may have specific intentions for a family business, a property with sentimental value, or family members with different needs and responsibilities. While the law can distribute assets, it cannot account for the reasoning behind your decisions or the legacy you hope to leave behind.

A will helps bridge that gap. By clearly documenting your wishes, it provides direction, reduces uncertainty and helps minimize the risk of misunderstandings that can delay estate settlement or strain family relationships.

Rather than leaving important decisions to a default legal framework, consider whether your current estate plan clearly reflects your intentions for your family, your assets, and the legacy you want to leave behind.

2. A will is only effective if it is valid

A will allows you to put your wishes into writing, but those wishes can only be carried out if the document complies with Philippine law.

In the Philippines, you may choose between a notarial will, which is signed in the presence of witnesses and notarized, and a holographic will, which is entirely handwritten, dated and signed by the person making the will. Both are legally recognized, but each comes with specific requirements.

Seemingly minor mistakes can create questions about a will's validity, potentially delaying the settlement of an estate and creating unnecessary challenges for the family members left behind. This is why it's important to ensure that your will is prepared properly and reviewed together with your legal counsel and financial advisor when circumstances change.

3. Not all inheritance decisions are entirely yours to make

Many people assume that writing a will gives them complete freedom to decide who receives their assets. In reality, Philippine law protects certain family members, known as compulsory heirs, by reserving for them a portion of the estate called the legitime.

This means that while you may allocate part of your estate according to your wishes, you generally cannot completely exclude certain heirs, such as your spouse, children, or, in some cases, your parents, unless specific legal grounds exist.

Failing to account for these rules can create complications and may prevent portions of a will from being carried out as intended.

Understanding the rights of compulsory heirs is an important part of effective estate planning. The goal is not simply to express your wishes, but to ensure that those wishes can be implemented within the framework of the law.

4. Your will should evolve as your life changes

Many people see writing a will as a milestone. It should be viewed as an ongoing process.

Life rarely stands still. Marriage, the birth of children or grandchildren, the acquisition of significant assets, the sale of a business, or changes in family relationships can all affect how you want your wealth distributed.

A will that accurately reflected your wishes years ago may no longer reflect your circumstances today.

In fact, an outdated will can create as much uncertainty as having no will at all.

Regular reviews help ensure that your will keeps pace with your life, your wealth, and the people you want to provide for. After all, the value of a will lies not just in having one, but in having one that remains relevant when it matters most.

5. A will tells your family what you want. An inheritance plan helps make it possible.

A common misconception is that writing a will completes the estate-planning process. A will communicates your wishes, but successfully transferring wealth often requires additional planning.

Even the clearest instructions can encounter practical challenges. Families may need to navigate estate taxes, settlement costs, liquidity requirements, and the complexities of transferring properties, investments or business interests.

Without preparation, these obligations can place additional financial and emotional strain on loved ones during an already difficult time.

This is where inheritance planning solutions such as AXA's Legacy Steward can play a meaningful role.

Designed to complement your estate plan, it can help provide liquidity for your heirs to cover estate taxes, wealth transfer costs, and other expenses while offering access to planning resources and professional guidance.

With Legacy Steward, you can:

• Help secure your heirs with a death benefit of up to 250% of total premiums paid to cover estate taxes, wealth transfer costs, and funeral expenses;
   
• Support a more structured transfer of wealth through its life insurance benefits; and
   
• Gain access to estate-planning resources, including tax calculators, legal consultation, and guidance from financial professionals.

Ultimately, a will helps express your intentions, while an estate plan helps ensure those intentions can be carried out. Together, they can help ensure that the wealth you've worked hard to build is transferred according to your wishes and continues to support the people who matter most.

Talk to an AXA financial advisor today to learn how Legacy Steward can help support your inheritance planning goals.

Editor’s Note: This press release is sponsored by AXA. It is published by the Advertising Content Team that is independent from our Editorial Newsroom.