This Is The Most Common Real Estate Tax Mistake

Aside from not creating an estate plan for your heirs, one of the most common mistakes is to assume that the Real Property Tax and the Estate Tax are the same. Joseph A. Bamba, a financial adviser, explains the differences between the two: 

Real Property Tax or Amilyar is a type of tax levied on your property by the local government that you pay annually, during the first quarter of the year. 

READ: Real Property Tax Deadlines You Need To Know

Estate Tax is the type of tax, levied by the government on a person upon death, that has to be settled within six months after the person passes away. Considered part of the estate of the deceased person are "money in the bank, investments like stocks and bonds, jewlery, cars, real estate properties, and other personal effects that are considered of value."

READ: How To Divide Inherited Property Among Children

You must make sure that your tax payments are up-to-date and correct, so that your heirs will not be saddled by penalties and added tax obligations meted out by the Bureau of Internal Revenue (BIR). 

This snippet is originally from "Right Here, Right Now: Starter Guide To Estate Planning", which originally appeared in the May 2015 issue of Good Housekeeping Magazine Philippines.