Name:

______________________________________________________________________________

True or False
_____1. Transfer tax is a tax on onerous transfer. T
_____2. All donations are subject to donors tax. F
_____3. A gratuitous transfer is always subject to estate tax or donors tax. F
_____4. A gratuitous transfers involves no consideration. F
_____5. A sale is a form of transfer transaction that requires payment of transfer tax.
F
_____6. Compulsory heirs include illegitimate children. T
_____7. The compulsory heirs have rights to insist that the legitime be given in the
form of property. F
_____8. Brothers and sisters are compulsory heirs. F
_____9. Intestate succession is a legal succession. T
_____10. In intestate succession, the distribution of properties is fixed by the
testator. F
_____11. A testator is a person who would administer the transfer of property
through a written will. T
_____12. Brothers and sisters can become heirs in the legal succession. T
_____13. An oral will corroborated by witnesses is valid. T
_____14. In the absence of a legitimate child, the illegitimate child succeeds his rank
in the succession over the decedents parents and surviving spouse. T
_____15. The property left by the decedent without a will shall be transferred in the
favor of the government. F
_____16. A free portion of the estate could be transferred to compulsory heir by
virtue of a will. T
_____17. The presence of a legitimate child eliminates the grandparents from the
legitime. F
_____18. Disinheritance can be effected only through a will wherein the legal cause
must be specified. F
_____19. In case of doubt, testamentary succession is preferred over legal or
intestate succession. T
_____20. When the only surviving relative is within the fifth degree in the collateral
line, the State will be the legitimate heir of the decedents estate. F

Problems
1. How much is the reportable amount of personal property owned by a resident
filipino citizen if the property was acquired for 1,000,000 but at the time of his
death it has a book value of 800,000 and a market value of 750,000, respectively?
750000

2. X, an American residing in the Philippines, died leaving the following properties

Business, Daly City, USA 30,000
Cars, Philippines 1,000
Condominium, Quezon City, Philippines 3,000
Mansion, Boracay, Philippines 20,000
Shares of stock, Hongkong 4,000
Receivable, including 500 claims against insolvent person 2,000
The gross estate is 60000
3. The following are the lists of properties pertaining to the computation of the
estate of X:
Real properties in the Philippines (FMV) 1,000
Car in the Philippines 800
Collectibles in the Philippines (20% uncollectible) 500
Franchise Taiwan 200

a. If X is a Filipino Citizen, the reportable gross estate in the Philippines is: 2500
b. Based on the above data, assume that the decedent is a nonresident alien with
estate tax reciprocity. The reportable gross estate in the philippines would be: 1800

4. X died in 2000 leaving a will which directed all real estates, owned by him, not to
be disposed or sold for a period of 13 years after his death, and ordered that the
property will be given to Lito Mendoza after 15 years.
The estate left by X in 2000 had a fair market value of 500,000. In 2013, the fair
market value of the estate increased to 4,500,000 and the bir commissioner
assessed value thereon is 4,000,000 in 2013. What would be the correct amount of
the gross estate? 500000

5. X, a Filipino decedent, left the following at the time of his death on June 1, 2016
Commercial building amounting to 10,000 with monthly rent income of 200.
200 common shares in Jolibee corporation acquired at par value for a total
amount of 20,000. Jolibee declared 10% cash dividends prior to Iwans death
but payment of which was made after death. The common share was selling
at 120 initial price and 130 closing price during the time of death.
How much is the amount reportable as gross estate? 39000

6. What would be the amount included in the gross estate of a resident citizen who
sold all his real property classified as capital asset to his only son two months prior
his death if these were the following? 2900000
Selling price paid by the son 100,000
FMV at the date of sale 2,500,000
FMV at the date of death 3,000,000

7. What would be the amount to be included in the gross estate of a decedent

whose collectible from a debtor is 160,000 and the same debtor was subsequently
declared by the court as insolvent for having total liabilities of 400,000 and total
properties of 50,000? 160000

8. A, a nonresident Filipino, died leaving a 10,000,000 gross estate in the USA. He

donated 30% to the US government and the 70% remaining to the Philippine
government. If A has no property left in the Philippines, how much is his gross
estate reportable in the Philippines? 10000000

9. Prior to the death of Mr. Exit, a Filipino decedent, he brought into a marriage a
business worth 3,000,000 but at the time of his death the business has a market
value of 12,000,000 plus an accumulated 4,000,000 earnings during the marriage
period.
a. How much is the exclusive gross estate of Mr. Exit if he was married on August 2,
1988? 12000000
b. How much is the exclusive gross estate of Mr. Exit if he was married on August 3,
1988? 0

10. Mr. Bungo died leaving the following assets:

Boarding house inherited from his parents during marriage
4,000,000
Accumulated income from the boarding house
3,000,000
Farm Land brought into marriage by his wife
6,000,000
Personal property acquired during marriage 5,000,000
a. Under the conjugal partnership of gains, how much is the amount of gross estate?
12000000
b. Under the absolute community of property relation, how much is the amount of
gross estate? 18000000