The Concept of Succession & Estate Tax

Question 1

Types of Succession

Answer 1

Testate or Testamentary Succession
Legal or Intestate Succession
Mixed Succession

Question 2

Types of Will

Answer 2

Holographic Will
Notarial Will
Codicil Will

Question 3

Nature of Succession

Answer 3

Gratuitous transmission of [net] property

Question 4

Elements of Succession

Answer 4

Decedent
Estate
Heirs

Question 5

Heirs under intestate succession

Answer 5

Compulsory heirs
Up to fifth degree of consanguinity
Republic of the Philippines

Question 6

Types of Compulsory Heirs

Answer 6

Primary Heirs
Secondary Heirs
Concurring Heirs

Question 7

Primary heirs

Answer 7

Legitimate children and their direct descendants

Question 8

Secondary heirs

Answer 8

Legitimate/illegitimate parents and ascendants

Question 9

Tertiary heirs

Answer 9

The surviving spouse and illegitimate descendants

Question 10

Legitimate children

Answer 10

Those born out of a legal marriage

Question 11

Direct descendants

Answer 11

Children, or in their absence, grandchildren

Question 12

Legitimate parents

Answer 12

Biological parents

Question 13

Illegitimate parents

Answer 13

Adopting parents of an adopted child

Question 14

Surviving spouse

Answer 14

Widow or widower of the decedent

Question 15

Illegitimate descendants

Answer 15

Illegitimate children

Question 16

Basic Intestate Partition Procedures

Answer 16

The decedent and the surviving spouse shall first share in their common properties
Determination of the decedent’s net interest
Partition of the decedent’s net interest to the heirs

Question 17

Decedent’s Net Interest

Answer 17

Exclusive property of the decedent

+ Share in the net common properties

Question 18

Partition of the Decedent’s Net Interest to the Heirs

Answer 18

Surviving Spouse
Legitimate Children*
Illegitimate Children*

*Or, in their default, Parents

Question 19

Share of surviving spouse

Answer 19

1.0

Question 20

Share of each legitimate child

Answer 20

1.0

Question 21

Share of each illegitimate child

Answer 21

0.5

Question 22

Share of each legitimate parent (in the absence of adoptive parents)

Answer 22

1.0

Question 23

Share of each legitimate parent (in the presence of adoptive parents)

Answer 23

0.5

Question 24

Share of each illegitimate parent

Answer 24

0.5

Question 25

Heirs under Testamentary Disposition

Answer 25

Compulsory heirs | Other persons specified by the decedent in his will

Question 26

Legatee

Answer 26

Receiver, by virtue of a will, of gifts of personal property

Question 27

Devisee

Answer 27

Receiver, by virtue of a will, of gifts of real property

Question 28

Executors

Answer 28

A person, named by the decedent, who shall carry out the provisions of their will

Question 29

Administrators

Answer 29

A person appointed by the court to manage the distribution of the estate of the decedent

Question 30

Nature of Estate Tax

Answer 30

``` Excise tax Revenue or general tax Ad valorem tax National tax Proportional tax One-time tax ```

Question 31

Resident or Citizen Decedents are taxable...

Answer 31

On properties located within or outside the Philippines

Question 32

Non-Resident Alien Decedents are taxable...

Answer 32

Only on properties located in the Philippines | Exception: reciprocity rule

Question 33

The Estate Tax Model

Answer 33

Gross estate Less: Deductions from gross estate = Net taxable estate