Navigating complex modern family landscapes

Financial decisions often carry significant emotional weight in the Philippines, where close family ties are culturally ingrained. Filial expectations usually mean that individuals are responsible for supporting their aging parents and fully providing for the family they are building, which creates added pressure, particularly for the "sandwich generation" who must balance their parents' and children's financial needs. Whether assisting a couple in setting financial priorities or managing assets across different family units, clear communication and a deep understanding of these dynamics are crucial to addressing emotional and economic concerns. 

Three financial advisors from the Philippines have successfully navigated privacy and legal complexities through self-study, experience, and seeking advice from fellow advisors who have encountered the same situation. Going the extra mile guarantees each client’s legacy is protected and policies are executed according to their specific wishes. 
 

Aligning financial plans with all the parties involved 

According to Godofredo “Butz” Peteza III, a seven-year MDRT member from Quezon City, Philippines, “For double-income couples, finances are crucial for a healthy relationship.” He shares the story of his same-sex couple clients who have stable sources of income and live together, highlighting that same-sex couples in the Philippines do not have legal protection or a formal process for transferring assets. Therefore, having a straightforward financial setup and an aligned view of finances is vital. “If both parties are earning, the relationship dynamic may be different. First, check if their individual financial goals are aligned. Next, they must set a combined financial goal and contribute to it.” 

During the planning stage, clients must decide whether to manage their assets together or separately. However, he emphasizes that even if finances are handled independently of their partners, they must still contribute to a shared financial goal. “Most of the time, couples set a financial goal for shared assets such as a house or their future kids’ education. It is important to specify the cost of achieving this goal to understand how much they should contribute. The couple plans to talk to a lawyer to ensure their shared assets and goals are aligned.” As they plan to adopt or try surrogacy, he emphasized the cost of these procedures to his client while stressing the importance of investing and building retirement funds. 

“This client of mine is earning as a high-level executive of a multinational consulting company while his partner is an entrepreneur. Therefore, he and his partner are disciplined in finances, saving and investing around 80% of their earnings.” As double-income earners without children yet to support, Peteza stresses to the couple that now is the best time to prepare for retirement. 

 

Honoring privacy and requests  

As a financial advisor, Bernadette Batalan Chavez, a one-year MDRT from Manila City, Philippines, respects and protects her clients’ privacy and executes their decisions. She shares the story of her client with a blended family. The client had a child with a previous partner and another one with his current wife, legally classifying the first one as illegitimate. He designated both sons, who are adults, as beneficiaries of his insurance policy. 

"My client wanted to allocate a larger portion of the claim to his first son, who lives independently.” Chavez carried out this instruction in strict confidentiality despite no conflicts between the client’s family and his first child. While processing the claim, she contacted the two sons separately and discussed their benefits.  

Chavez highlights the importance of respecting your client’s economic decisions after advising them. "Through insurance, my client was able to ensure that his current family and out-of-wedlock son were included in his financial plan without going through any legal proceedings.”  

 

Understanding family dynamics 

For Pauline Casingal, a two-year MDRT member from Makati City, Philippines, managing complex family dynamics is a delicate and crucial part of the job. She had to deal with a unique situation in which her client, a father who is an engineer and construction company owner, wanted to keep his insurance policies confidential from his family. With one daughter from a previous relationship and two younger children with his current wife, he was keen on providing for all his children equally. He instructed Casingal not to deliver policies to his home, as his beneficiaries include his eldest daughter. Instead, all communication and documentation were coursed through his secretary, who became Casingal’s primary point of contact. 

This situation posed several challenges as she rarely had direct access to the client. All instructions, updates, and clarifications had to go through the secretary, making verifying details firsthand difficult. The client's request to distribute the benefits equally among his children, including his illegitimate daughter, required careful legal coordination. Casingal had to establish that all policies and legalities were properly handled without overstepping boundaries or creating friction among family members. It wasn’t only after the end of the process that she could speak directly with the client.  

Casingal offers tips to other financial advisors handling similar cases. "Always be cautious when clients provide sensitive instructions. Clarify everything with their designated contact, especially if you cannot communicate directly with the client." She stresses the importance of understanding the family structure to prevent problems, such as delivering documents to a specific address. “Awareness of the family background and dynamics is critical to maintaining trust and avoiding conflicts, underscoring the importance of navigating family complexities.” 

 

Contact: MDRTeditorial@teamlewis.com