Beruflich Dokumente
Kultur Dokumente
Topic: INTRODUCTION
TAXATION
the process or means by which the sovereign, through its lawmaking body,
raises income to defray the necessary expenses of the government
lifeblood of the government
INTERNAL REVENUE TAX
Taxes that are specifically provided by RA 8424 or the National Internal
Revenue Code
1. Income Tax
TRANSFER TAX
These are excise or privilege taxes.
These are taxes imposed for gratuitous passing of private owned
properties to the heirs in case of death, or to the donee in case of
donation.
DONOR'S TAX
Donation inter vivos
tax imposed on the right to transfer gratuitously, directly or indirectly, real
and personal properties, tangible or intangible out of the owner's liberality
in favor of another that accepts the gift.
right of donor to donate
ESTATE TAX
Donation mortis causa
tax imposed on the property on the transfer of economic benefits and
enjoyment of property from a decedent person to the heir
EFFECTIVITY OF TRANSFER
Right to succession is effected from the moment of the decedent's death
SUCCESSION
Mode of acquisition by virtue of which the property, rights and obligations
to the extent of the value of inheritance, of a person are transmitted
through his death to another or others either by will (testate) or by
operation of law (intestate)
ELEMENTS OF SUCCESSION
DECEDENT
person who died & whose property is transmitted through
succession
TESTATOR
decedent whose properties are to be transferred to his successor
through a written will
INTESTATE
transfer of property from a decedent without a will
ESTATE/INHERITANCE
properties or rights of the decedent
SUCCESSOR
heir or the person to whom the estate is to be transferred
Jewelry
PERSONS AUTHORIZED TO TAKE CHARGE OF THE ESTATE
EXECUTOR
person or trust company named in the will by the testator to carry
outs its provisions
ADMINISTRATOR
person or trust company appointed by the court to administer &
distribute the estate of the decedent if there is no will, or
SUCCESSORS
are the parties who have the legal right to received the estate
PRIMARY COMPULSORY HEIRS
SECONDARY COMPULSORY HEIRS
PRIMARY COMPULSORY HEIRS
the successors to whom the legal portion of the estate is first reserved by
the law
1. Legitimate children & their legitimate descendants
2. Surviving legitimate spouse
3. Illegitimate children & their descendants
SECONDARY COMPULSORY HEIRS
the successors to receive the estate in the absence of the primary
compulsory heirs
1. Legitimate parents & their legitimate ascendants
2. Illegitimate parents (no other descendants)
ABSENCE OF COMPULSORY HEIRS
1. decedent's relatives up to the 5th consanguinity
2. government
3. other pesons to inherit the free portion of the net distributable
estate
Devisee - person to whom a gift of real property is given by virtue of a will
Legatee - person to whom a gift of personal property (bequest) is given by virtue
of a will
ILLUSTRATION
Mrs. Mina Las died leaving the following properties:
1,000 square meters residential lot
P 1,000,000
Second hand car
200,000
300,000
In her last will & testament, Mrs. Las assigned her brother Ric Lamo to administer
the distribution of her properites upon death as follows:
1. Residential lot to her only son, Mado
2. the car & jewelry to Ric
KINDS OF SUCCESSION
TESTAMENTARY SUCCESSION
LEGAL
INTESTATE
MIXED
TESTAMENTARY SUCCESSION
results from the designation of an heir, made in a will & executed
in the form presribed by law
WILL - act whereby a person is permitted, with the formalities presribed by
law, to control to a certain degree the disposition of his estate upon his
death
CODICIL - a supplement or an addition to a will, made after the execution
of a will & annexed to be taken as a part thereof, by any disposition made
in the original will is explained, added to or altered
HOLOGRAPHIC WILL - one entirely written, dated & signed by the
testator himself & is subject to no formalities
LEGITIME
the portion of the testator's property which could not be disposed of freely
because the law has reserved it for the compulory heirs.
ascertain to protect the children and the surviving spouse from the
unjustified distribution of properties
FREE PORTION
the part of the whole estate which the testator could dispose of freely
through a written will irrespective of his relationship to the recipient
TESTAMENTARY DISTRIBUTION
SUCCESSOR
1. LEGITIMATE CHILDREN
2. ILLEGITIMATE CHILDREN ALONE
3. LC, NC, IC
LEGITIME
1/2
1/2
LC=1/2
IC=1/2 OF ONE LC
NC=1/2 OF ONE LC
4. 1 LC AND SS
5. 2 OR MORE LC, SS
6. IC & SS
7. 2 OR MORE LC, NC & SS
8. Parents or ascendants alone
9. SS alone
10. As & SS
11. As, SS & IC
LC=1/2, SS=1/4
SS=LEGITIME OF 1 LC
IC=1/3 ; SS=1/3
LC=1/2; NC=1/2 OF 1 LC; SS=1 LC
1/2
1/2 or 1/3
As=1/2, SS=1/4
As= 1/2; SS=1/8; IC=1/4
1. ILLUSTRATION
Net hereditary estate is P5,000,000 and there are two legitimate children.
3. ILLUSTRATION
Don Edgardo Louie Pichon, a widower died leaving a net hereditary estate
of P20,000,000 to his 2 legitimate children, his acknowledged natural child,
Che-Che and his illegitimate son. How much is the legitime of the
compulsory heirs?
4. ILLUSTRATION
Don Edgardo Louie Pichon, a widower died leaving a net hereditary estate
of P20,000,000 to his child, Che-Che and his wife, Vanessa. How much is
the legitime of the compulsory heirs?
5. ILLUSTRATION
Don Edgardo Louie Pichon, a widower died leaving a net hereditary estate
of P20,000,000 to his two legitimate sons and his wife, Vanessa. How
much is the legitime of each compulsory heirs?
6. ILLUSTRATION
Don Edgardo Louie Pichon, a widower died leaving a net hereditary estate
of P20,000,000 to his two illegitimate sons and his wife, Vanessa. How
much is the legitime of each compulsory heirs?
7. ILLUSTRATION
Don Edgardo Louie Pichon, a widower died leaving a net hereditary estate
of P20,000,000 to his two legitimate children, his two illegitimate children
and his legal wife, Vanessa. How much is the legitime of each compulsory
heirs?
8. ILLUSTRATION
INTESTATE SUCCESSION
A legal succession because it takes effect through the operation of
law because there is no decedent's last will & testament to
dispose the estate
A person who died without living a will is said to have died
intestate
Without a written will
With a void will
With a will which subsequentlt losts its validity
With a will but no one was named as successor
ORDER OF INTESTATE SUCCESSION
1. Descendants, direct line
2. Ascendants, direct line
3. Collateral Lines
INTESTATE DISTRIBUTION OF NET ESTATE
SURVIVOR
INHERITANCE
LEGITIMATE CHILDREN
ENTIRE ESTATE
ALONE
ILLEGITIMATE CHILDREN
ENTIRE ESTATE
ALONE
LC, IC
PROPORTION OF 2:1
LC AND SS
EQUALLY
IC & PARENTS
1/2; 1/2
IC & SS
1/2; 1/2
IC, SS & PARENTS
1/4; 1/4/ 1/2
PARENTS & SS
1/2; 1/2
PARENTS &
ENTIRE TO PARENTS
BROTHERS/SISTERS
SS & BROTHERS/SISTERS
1/2; 1/2
ADOPTED CHILDREN, LC
EQUALLY
WITH NO
PARENTS BY BLOOD W/IN 5TH
ASC/DESCENDANTS
CONSANGUINITY
LC, IC & SS
2:1, spouse=1 LC
1. ILLUSTRATION
The net estate is P5,000,000. There are 5 children as heirs.
The surviving relatives are both the parents, brothers & sisters of the
deceased & 5 children.
The net estate is P6,000,000. The surviving relatives are the 5 children of
the deceased & the wife.
The net estate is P6,000,000. The surviving relatives are the 5 legitimate &
2 illegitimate children of the deceased.
The net estate is P7,000,000. The surviving relatives are the 5 legitimate &
2 illegitimate children of the deceased & the surviving spouse.
The net estate is P7,000,000. The surviving relatives are the 2 illegitimate
children of the deceased & his mother and father.
The net estate is P7,000,000. The surviving relatives are the 2 illegitimate
child, father & surviving spouse of the deceased.
ADOPTED CHILD IS THE DECEASED
In case of death of an adopted child, leaving no children or descendants,
his parents & relatives by consanguinty shall be his legal heirs.
The net estate to be inherited upon death of D, single and adopted son of
Y and Z is P9,000,000. The surviving relatives are his adopting parents,
and his biological father. How much would be the distribution to each heir?
SURVIVING RELATIVES IS BEYOND 5TH DEGREE
The right to inherit "ab intestato" shall not extend beyond the 5th degree of
relationship in the collateral line.
In default of the persons entitled, the STATE shall inherit the whole estate.
MIXED SUCCESSION
This kind of succcession is effected partly by will & partly by operation of
law.
A testator made a will but omitted some properties, rights, or has acquired
some properties after the execution of his last will & testament.
Accordingly, not all of his properties shall be disposed based on the will
ILLUSTRATION
In January 10, 2014, Mrs. Nama Mathay, a widow and a Filipino Citizen
executed a last will and testament regarding some of his assets as follows:
Inheritance
FMV at death Heirs
Real Property P2,000,000
Modesto (son)
Jewelries
2,500,000
Desta (daughter)
Car
500,000
Estoy (driver)
In Nov. 1, 2014, Mrs. Nama Mathay died. Not included in her last will & testament
was a share of stock in San Miguel Corporation with a FMV of P3,000,000 at the
time of her death. Total deductions to arrived at the net distributable estate is
P1,347,500.