Chapter 2: Gross Estate

Question 1

Inclusion, Exemption, or Exclusion

Exclusive property of the surviving spouse

Gross Estate

Answer 1

Exclusion

Question 2

Inclusion, Exemption, or Exclusion

NRA: Property outside the Philippines

Gross Estate

Answer 2

Exclusion

Question 3

Inclusion, Exemption, or Exclusion

NRA: Intangible personal property in the Philippines under Reciprocity Law

Gross Estate

Answer 3

Exclusion

Question 4

Inclusion, Exemption, or Exclusion

NRA: Property within the Philippines

Gross Estate

Answer 4

Inclusion

Question 5

Inclusion, Exemption, or Exclusion

RA, RC, NRC: Property outside the Philippines

Gross Estate

Answer 5

Inclusion

Question 6

Inclusion, Exemption, or Exclusion

Merger of usufruct in the owner of the naked title

Gross Estate

Answer 6

Exclusion

Question 7

Inclusion, Exemption, or Exclusion

Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicomissary

Gross Estate

Answer 7

Exclusion

Question 8

Inclusion, Exemption, or Exclusion

Transfer under Special Power of Appointment

Gross Estate

Answer 8

Exclusion

Question 9

Inclusion, Exemption, or Exclusion

All bequests devises, legacies, or transfers to social welfare, cultural and charitable institutions wherein not more than 30% shall be used by such institutions for administration purposes

Gross Estate

Answer 9

Exclusion

Question 10

Inclusion, Exemption, or Exclusion

All bequests, devises, legacies or transfers to social welfare, cultural and charitable institutions wherein more than 30% shall be used by such institutions for administration purposes

Gross Estate

Answer 10

Inclusion

Question 11

Term

Right or privilege to enjoy the use and advantages of another’s property

Answer 11

Usufruct

Excluded in gross estate of current decedent (donee-decedent)

Question 12

True or False

In a usufruct, the current decedent is the owner of the property.

Answer 12

False

The current decedent is not considered the owner of the property.

Question 13

True or False

The usufructuary is the intended owner of the land.

Answer 13

False

The usufructuary is not the intended owner but person with naked title

Question 14

Term

exists when the donee-decedent can appoint only from a restricted or designated class of persons other than himself

Answer 14

Special Power of Appointment

Question 15

Term

Transfer of property that is, in substance, the same with transfer of property under SPA, except that the relationship of the 1st heir and the 2nd heir should not be more than one degree apart

Answer 15

Fideicommisary transfer of property

Question 16

Enumerate (Two)

Elements of fideicommisary substitution

Answer 16

• substitution must not go beyone one degree from the heir originally instituted
• the fiduciary heir and the fideicommisary must be both living at the time of the testator’s death

Question 17

Inclusion, Exemption, or Exclusion

Proceeds of life insurance and benefits received by members of the GSIS

Gross Estate

Answer 17

Exclusion

Question 18

Inclusion, Exemption, or Exclusion

Accruals and benefits received by members from the SSS by reason of death

Gross Estate

Answer 18

Exclusion

Question 19

Inclusion, Exemption, or Exclusion

Amounts received from Philippines and US governments for war damages

Gross Estate

Answer 19

Exclusion

Question 20

Inclusion, Exemption, or Exclusion

Amounts received from US Veterans Administration

Gross Estate

Answer 20

Exclusion

Question 21

Inclusion, Exemption, or Exclusion

Payments from the Philippines of US government to the legal heirs of deceased World War II Veterans and decease civilian for supplies/services furnished to the US and Philippine Army

Gross Estate

Answer 21

Exclusion

Question 22

Inclusion, Exemption, or Exclusion

Retirement benefits of officials/employees of a private firm

Gross Estate

Answer 22

Exclusions

Question 23

Inclusion, Exemption, or Exclusion

Personal Equity and Retirement Account assets of the decedent contributor

Gross Estate

Answer 23

Exclusion

Question 24

Inclusion, Exemption, or Exclusion

Compensation paid to private and public health workers who have contracted COVID 19 in case of death

Gross Estate

Answer 24

Exclusion

Question 25

# **Inclusion, Exemption, or Exclusion** Property owned by the decedent that are actually and physically present in his estate at the time of his death | Gross Estate

Answer 25

Inclusion

Question 26

# **Inclusion, Exemption, or Exclusion** Decedent's interest to the extent of the interest therein of the decedent at the time of death | Gross Estate

Answer 26

Inclusion

Question 27

# **Inclusion, Exemption, or Exclusion** Property not physically in the estate | Gross Estate

Answer 27

Inclusion ## Footnote propeties have already been transferred during lifetime of the decedent but still form part of the GE because the transfers were either intended to take effect only upon his death or does not actually convey full ownership over the property transmitted

Question 28

# **Inclusion, Exemption, or Exclusion** Transfer in contemplation of death | Gross Estate

Answer 28

Inclusion

Question 29

# **Term** extent of equity or ownership participationi of the decedent on any property or physically existing and present in the gross estate, whether or not in his possession, control or dominion

Answer 29

Decedent interest

Question 30

# **Term** Value of any interest in property owned or possessed by the decedent at the time of his death

Answer 30

Decedent Interest

Question 31

# **Term** Disposition of property prompted by thought of death

Answer 31

Transfer in contemplation of death

Question 32

# **Inclusion, Exemption, or Exclusion** Transfer by gift which the donor reserved the income or right to designate the persons who should enjoy the income | Gross Estate

Answer 32

Inclusion

Question 33

# **Inclusion, Exemption, or Exclusion** Transfer with retention or reservation of certain rights | Gross estate

Answer 33

Inclusion

Question 34

# **Inclusion, Exemption, or Exclusion** Revocable Transfers | Gross Estate

Answer 34

Inclusion

Question 35

# **Term** Transfer where the terms of enjoyment of the property may be altered, amended, revoked, or terminated by the decedent

Answer 35

Revocable transfers

Question 36

# **True or False** It is not sufficient that the decedent had the power to revoke, he must also exercise the power

Answer 36

False | It is sufficient that decedent had the power to revoke tho not exercised

Question 37

# **Term** Right to designate the person or persons who will succeed to the property of the prior decedent

Answer 37

Power of Appointment

Question 37

# **Term** Power of appointment that authorizes the donee of the power to appoint any person he pleases

Answer 37

General power of appointment

Question 38

# **Inclusion, Exemption, or Exclusion** Appointed property of the general power of appointment | Gross Estate

Answer 38

Inclusion ## Footnote the donee of a general power of appointment holds the appointed property with all the attributes of ownership

Question 39

# **Inclusion, Exemption, or Exclusion** Excess of FMV of the transferred property at time of death over the value of the consideration received | Gross Estate

Answer 39

Inclusion

Question 40

# **Inclusion, Exemption, or Exclusion** Full amount of the claim against the insolvent person | Gross Estate

Answer 40

Inclusion and Deduction ## Footnote should be included in the gross estate of the decedent; portion of claim which is not collectibel should be allowed as deduction from the GE

Question 41

# **Inclusion, Exemption, or Exclusion** Proceeds of life insurance taken out by the decedent on **his own life** | Gross Estate

Answer 41

Inclusion ## Footnote requisites: 1. It must be insurance on the life of the decedent; and 2. Beneficiary must be either: a) his estate or executor/administrator **(revocable or not)**, b) anu third person (other than estate/administrator/executor) provided that designation is **not irrevocable**

Question 43

# **Inclusion, Exemption, or Exclusion** Proceeds of life insurance under group insurance taken by the employer | Gross Estate

Answer 43

Exclusion

Question 44

# **Question** Estate tax rate

Answer 44

6%

Question 45

# **Question** System for filing of estate tax return and payment of estate tax due

Answer 45

Pay as you file system

Question 46

# **Question** When should estate tax return be filed under oath?

Answer 46

1. In cases of transfer subejct to Estate Tax 2. Where regardless of the gross value, the estate consists of property for which a certificate authorizing registration from the BIR is required

Question 47

# **Question** When should estate tax returns be supported by statement duly certified by CPA?

Answer 47

whe gross value exceeds P5,000,000

Question 48

# **Question** When is estate tax return required to filed?

Answer 48

1 year from decedent's death

Question 49

# **Question** The maximum number of days for reasonable extension for filing the return

Answer 49

30

Question 50

# **Question** Maximum number of years for extension of time to pay estate tax for cases settled through the courts

Answer 50

5 years

Question 51

# **Question** Maximum number of years for extention of time to pay estate tax for case settled extrajudicially

Answer 51

2 years

Question 52

# **True or False** The request of extension by reason of negligence will result to no extension being granted by the Commissioner

Answer 52

True