The Final Estate Plan

INTRODUCTION
Estate Planning refers to a procedure designed to help people preserve and manage their
assets while they are living, as well as to impose control on the distribution of the same at the
time of their death, in accordance to their wishes. This process has a stigma and somewhat
negative popularity among people, especially Filipinos, as it is somewhat done in anticipation
of one's death. However, the few individuals who do decide to pursue an Estate Plan have
varying reasons for doing so. It could be to protect the family wealth, to ensure that their
surviving spouse and children are financially secured, to fund for their descendants'
education, or simply to share their assets to charities and other organizations. Young or old,
wealthy or middle class, an estate plan can reduce the taxes and expenses of an estate,
simplify and speed the transfer of assets to the next generation and help ensure that
beneficiaries are protected. The plan also deals with the important decision about who will
look after the estate.
Estate planning can also be a remedy for the defects of other modes of disposition of
property. (1) It may ease the demanding proceeding of Probate. Court-supervised
administration of an estate disposed in accordance with the Last Will and Testament of the
testator is a strenuous journey. Despite the adequacy of assistance from qualified
professionals, there are still filing fees, privacy issues, and long waiting periods before
distribution; (2) the disposition of Digital 0Property. Truthfully, this problem may seem
irrational ten years before but not nowadays. Digital property includes data, Internet
accounts, and other rights in the digital world, including contractual rights and
intellectual property rights; (3) the insufficiency of mere execution of a General Power of
Attorney. It appoints another person to handle all of your assets and property, without
limitation, so it can easily be abused. It contains no instructions about how to manage your
assets and what to do with them; (4) the faults of a Will. Wills do not necessarily fit all the
different estate planning situations and goals. They often are not customized to your overall
estate planning needs. Wills don’t make it as easy as trusts to do overall planning: death tax
planning, business planning, income tax planning, and “generation-skipping” planning.
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Will planning doesn’t always include a review of assets and how they are titled. In other
words, the entire plan is not coordinated. In this paper, the Repudiation team aims to produce
a plausible Estate Plan that will be custom-tailored for the latter's client, Mr. Torres, needs
and wishes. The main objective of this activity is to assist Mr. Torres in threshing out an
Estate Plan which would sufficiently cover the disposition of his estate and ensure him that
the same would be properly distributed in accordance with his preferences.
Particularly, to provide for lifetime financial security, provide for the management of assets,
create the liquidity to fund tax, debt and administrative needs, minimize estate and gift taxes,
minimizing assets being transferred to children or others, and to provide for family members
and protecting those with special situations. This paper also aims to afford the client peace of
mind that all these items area in place before any sort of disability or other issues make it too
late to act. Further, the team aims to be able to garner an excellent learning experience from
this activity as regards succession and the ins and outs of the process, as well as discover
each individual's skill in resolving succession-related disputes and issues that may be
encountered throughout the duration of the activity.
The negative connotation that comes with Estate Planning must be abolished as it is
advisable to people who want to make sure that their hard-earned assets will be properly
bequeathed among their loved ones, or whomsoever they please, after their death. These
assets include but are not limited to properties, stocks, cars, life insurance, and valuable
personal belongings. Estate Planning strategies are not only related to the eventual
distribution of the wealth, but ought to be viewed as a worthwhile part of the ongoing
administration and management of one’s financial affairs during his working life and
retirement.
Estate Planning is for everyone. It is not only advisable to old or retired people nor is it only
for wealthy people. No matter what age, as long as an individual has already acquired his
own estate, it is already advisable for him to make have an Estate Plan.
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Chapter I. Client
Personal Profile of the Client
“Today, be thankful and think how rich you are. Your family is priceless. Your health is
wealth, Your time is gold.” These are the words that Dr. Jesus Rodrigo F. Torres live by.
The client of this group for this Estate Plan, Dr. Jesus Rodrigo F. Torres, is a family man who
continuously works hard in order to provide a good life for his loved ones. Dr. Torres is the
SUC President and a professor in Rizal Technological University. A Filipino citizen, he is 60
years of age and was born in March 13, 1958, in Quezon City. He is currently residing at 359
Dr. Sixto Antonio Ave, Caniogan, Pasig City, NCR, Philippines, with his family.
Dr. Torres has strived all his life to make sure that his family lives a comfortable life. Being
able to do that, at this point in his life, his concerns revolve around the future of his family
without him. People would describe him as the kind of Father who will do anything and
everything for his children, and their children.
Thus, when the group offered to assist him in creating an Estate Plan, he readily agreed to
participate. According to him, creating an Estate Plan is an assurance that all his hard work
will pay off and a means to be able to lend a helping hand to his heirs even after he passes.
Family Tree
Dr. Jesus Torres is one of the three children of spouses Jaime and Teresita Torres. He has
two sisters, Christina Torres, who is unmarried, and Cecilia Rubio, who is married to Reuben
Rubio. Dr. Torres found the love of his life in Chrysanthemum Torres. The couple was
blessed with three children, Isabelle, Jay, and Clara Torres.
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Description of Properties and Estate
1. A CERTAIN HOUSE AND LOT SITUATED IN THE 359 DR. SIXTO

ANTONIO AVE, CANIOGAN, PASIG CITY, NCR, PHILIPPINES AND IS THE
FAMILY HOME, BOUNDED AND DESCRIBED AS FOLLOWS:
A PARCEL OF LAND (LOT 2-A) OF THE SUBD. PLAN (LRC) PSD-269430, APPROVED
AS A NON-SUBDIVISION PROJECT, BEING A PORTION OF LOT 2, PSU-145199, LRC.
CAD. REC. NO. N-10996), SITUATED IN THE BO. OF KANIOGAN, MP. OF PASIG,
PROV. OF RIZAL BOUNDED ON THE NE. POINTS 3 TO 4 BY CALLEJON 7; ON THE
SE. POINTS 4 TO 1 BY LOT 1, PSU-145199; ON THE SW. POINTS 1 TO 2 BY PROPERTY
OF TOMAS MATIENZE; ON THE NW., POINTS 2 TO 3 BY LOT 2-B, OF THE
SUBD. PLAN. BEGINNING AT A POINT MARKED 1 ON PLAN, BEING N. 8 DEG. 40’E.,
1566.18 M. FROM BLLM 1., PASIG, PIZAL; THENCE N. 57 DEG. 07’W., 17.23 M. TO
POINT 2; THENCE N. 35 EG. 32’E., 10.41 M. TO POINT 3; THENCE S. 54 DEG. 29’E.,
16.10 M. TO POINT 4; THENCE S. 28 DEG. 55’W., 9.68 M. TO THE POINT OF
BEGINNING; CONTAINING AN AREA OF ONE HUNDRED SIXTY SEVEN (167) SQUARE
METERS, MORE OR LESS. ALL POINTS REFERRED TO ARE INDICATED ON THE
PLAN AND ARE MARKED ON THE GROUND AS FOLL: POINTS 1 & 4 BY OLD PS AND
THE REST BY PS CYL. CONC. MONS., 15X60 CMS.; BEARINGS TRUE; DEC. 1 DEG.
01’E; DATE OF THE ORIGINAL SURVEY, DEC. 28, 1954 AND THAT OF THE SUBD.
SURVEY, EXECUTED BY JORGE C. TUPAS, GEODETIC ENGINEER ON AUG. 11 1977.
Family Home Estimated value: P20, 000,000.00
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2. A certain land situated in the Municipality of Taytay, Rizal, bounded and
described as follows:
A PARCEL OF LAND (LOT 7, BLK. 30 OF THE CONS. SUBD. PLAN PCS-04-003743,

BEING A PORTION OF THE CONSOLIDATION OF PSU-1791533, PSU-179155, LOT A
(LRC) PCS-132632 & PSU-179544), SITUATED IN THE BO. OF DOLORES, MUN. OF
TAYTAY, PROV. OF RIZAL. BOUNDED ON THE SE., ALONG LINE 1-2 BY LOT 6, BLK.
30 OF THE SAME CONS. SUBD. PLAN; ON THE SW., ALONG LINE 2-3 BY ROAD LOT
12 (8.00 m. wide); ON THE NW., ALONG LINE 3-4 BY LOT 8, BLK. 30 OF THE CONS.
SUBD. PLAN ALONG LINE 4-5 BY EASEMENT 1; ON THE NE, ALONG LINE 5-6 BY
ROAD LOT 13 (8.00 m. wide); AND ON THE SE., ALONG LINE 6-1 BY LOT 5, BLK. 30 OF
THE CONS. SUBD. PLAN. BEGINNING AT A POINT MARKED “1” ON PLAN BEING S.
75 DEG. 45’E., 1223.56 M. FROM CHURCH SPIRE, TAYTAY, RIZAL.
Current value: P4, 000,000.00
3. A certain land situated in Brgy. San Juan Roque, Angono, Rizal, bounded and
described as follows:
A PARCEL OF LAND (LOT 44, BLOCK 26, OF THE CONS.-SUBD. PLAN, PCS-04-
024606, BEING A PORTION OF LOTS B, C, D, E, F, PSD-04-188660, LRC REC. NO
1733), SITUATED IN THE BRGY. OF SAN JUAN ROQUE, MUN. OF ANGONO, PROV.
OF RIZAL, IS. OF LUZON. BOUNDED ON THE NW., ALONG LINE 1-2 BY LOT 43,
BLOCK 26; ON THE NE., ALONG LINE 2-3 BY ROAD LOT 18; ON THE SE., ALONG
LINE 3-4 BY LOT 45; ON THE SW., ALONG LINE 4-5 BY LOT 42; AND ALONG LINE 5-1
BY LOT 40, ALL OF BLOCK 26, ALL OF THE CONS.-SUBD. PLAN. BEGINNING AT A
POINT MARKED “1” ON PLAN, BEING N. 65 DEG. 56’E., 2903.75 M. FROM BLLM NO.
1, MUN. OF ANGONO, RIZAL.
4. A condominium parking unit identified and described as:

BERKSHIRE TOWER J UNIT NO: PS-196 LOCATION & DESCRIPTION OF UNIT:
PARKING – UG – IN FRONT OF TOWER J FLOOR AREA IN SQUARE METERES: 12.50
MORE OR LESS WHICH FORMS PART OF THE “HAMPTON GARDENS
CONDOMINIUM – PHASE VI” CONDOMINIUM PROJECT.
Current value: P600, 000.00
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5. A condominium unit identified and described as:
BERKSHIRE TOWER I
UNIT NO: 1002
LOCATION & DESCRIPTION OF UNIT: STUDIO REAR – 10TH FLOOR
FLOOR AREA IN SQUARE METERES: 20.00 MORE OR LESS
WHICH FORMS PART OF THE “HAMPTON GARDENS CONDOMINIUM – PHASE VI”
CONDOMINIUM PROJECT.
6. A condominium unit identified and described as:
HAMPTON GARDENS PHASE VII DOVER (M) TOWER

UNIT NO: 703
LOCATION & DESCRIPTION OF UNIT: STUDIO REAR – 7TH FLOOR
FLOOR AREA IN SQUARE METERES: 19.32
COMMON AREAS OF THE PROJECT: 0.53%
ESTATE COMMON AREA: 0.27%
WHICH FORMS PART OF THE “HAMPTON GARDENS CONDOMINIUM – PHASE VI”
CONDOMINIUM PROJECT.
Problems and Questions in Estate Disposition

It is an impression that estate planning is complex and because it involves facing one’s own
mortality, it can be difficult subject to address. While the law provides that the act of will
making, this simple document may not be sufficient to manage the estate and efficiently pass
on the assets to one’s heirs. The client raised the following as some of his primary
forebodings:
1. What will be the effect of the passage of TRAIN law on the settlement of my estate?
2. Have I sufficiently prepared my transactions in case of incapacity or disability?
3. Are advanced medical directives in place?
4. Are there unique circumstances requiring specialized advice?
5. How could I discuss estate planning to my family and prepare them for the same?
6. If I would opt to create a trust fund, what qualification should I look for in a trustee?
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I.E. Objectives of Estate Plan
During a brief conference, the client confided his specific objective which he seeks to
achieve through an effective estate planning, namely:
It is the priority of the client to preserve his assets for family members and relatives
by consanguinity—to the exclusion of all other. Hence, as discussed under Chapter III of this
paper, our group ensured that the disposition of the estate be in accordance with the strict
instruction of the client. The client emphasized that through hard work and smart decisions,
he managed to put together some assets insurance, real estate, stocks and bonds, and so on.
His priority is to allow his family to live a comfortable and privileged life because it is his
only intent in building everything he has. Dr. Torres does not want his assets to be
mishandled and eaten up by legal fees and court costs.
Corollary to the first objective, the client sets to provide for the management of healthcare
and financial assets in the case of disability. Dr. Torres wishes that the purpose of this estate
plan is not confined only to matters that arise after his death. It shall also have an objective of
managing his assets if he should become incapacitated in any way. Generally, it is a way for
the client to prepare for incapacitation when afflicted by a cognitive disorder.
The client, lastly, that through this estate plan, results to the allowance of a smooth, effective
transfer of assets to beneficiaries but still in a regulated and discipline manner. Dr. Torres
does not want his successors to be in any way heavily burdened. However, one of the visions
of the client is to impose conditions for the regulated allocate the inheritance. He wishes
that the heirs shall efficiently use the assets rather than at his or her free and unregulated
usage, the client opted to impose negative conditions, which during this time, is not yet
ascertained by the client. As a legal consequence of this endeavor, the heirs may be required
or comply to such negative condition by giving a security that he will not do or give that
which the client has prohibited and in case of contravention he will return whatever he may
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have received.
Chapter II. Heirs
II.A. Compulsory Heirs
“Article 887. The following are compulsory heirs:
(1) Legitimate children and descendants, with respect to their legitimate parents
and ascendants;
(2) In default of the foregoing, legitimate parents and ascendants, with respect
to their legitimate children and descendants;
(3) The widow or widower;
(4) Acknowledged natural children, and natural children by legal fiction;
(5) Other illegitimate children referred to in article 287.
Compulsory heirs mentioned in Nos. 3, 4, and 5 are not excluded by those in
Nos. 1 and 2; neither do they exclude one another.
In all cases of illegitimate children, their filiation must be duly proved.
The father or mother of illegitimate children of the three classes mentioned
shall inherit from them in the manner and to the extent established by this
Code.”
Under the said provision of law, legitimate children and descendants, with respect to their
legitimate parents and ascendants are compulsory heirs. A compulsory heir is entitled to a
legitime. Undeniably, a person is allowed by law to determine the disposition of his estate
upon his death. However, this right is not absolute. There is a portion that a person is not
allowed to dispose according to his wish. This portion is called legitime, which is the part of
a person’s property which he cannot dispose of because the law has reserved it for his
compulsory heirs (Art. 886, Civil Code of the Philippines).
Consequently, a person’s right to dispose of his properties only extends to the portion not
covered by the law on legitime. He may, however, disinherit a compulsory heir for causes
expressly stated by law. (Art. 915).
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The compulsory heirs of Dr. Torres are his three legitimate children namely: Isabelle
Natasha, Jesus Gamaliel Jose and Clara Maria Amaranta, all carrying the surname of the
client, Torres and his wife, Chrysanthemum D. Torres.
Isabelle Natasha D. Torres is the first born daughter of the client. Born on November 9, 1994
at Mandaluyong City, Isabelle is a 24-year-old Filipino citizen currently residing with the
client at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City and is currently a student.
Jesus Gamaliel Jose D. Torres is the second child and the only son of the client. Born on
November 18, 1996 at Mandaluyong City, Jesus is a 21-year-old Filipino citizen also
currently residing with the client at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City and is
also currently a student.
Clara Maria Amaranta D. Torres is the youngest child of the client. She was born on October
29, 2002 at Pasig City and is currently 16 years old. Clara is also a Filipino Citizen and is
currently residing with the client at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City and is
also a student.
Chrysanthemum D. Torres is the wife of the client. Married to Dr. Torres on 1994,
Chrysanthemum, aged 45, was born on September 6, 1973 on Davao City. She is also a
Filipino Citizen and is residing with the client at 359 Dr. Sixto Antonio Ave., Caniogan,
Pasig City. She is a full time housewife and a hands on mother to their three children.
II.B. Voluntary Heirs
Voluntary heirs refer to the person other than the compulsory heirs. They are heirs instituted
to the whole or to an aliquot portion of the estate particularly of the free dispositive portion,
or to the whole or to a fraction of the whole. A voluntary heir is different from a legatee or
devisee because the latter is given individualized items of property.
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The distinction between a voluntary heir and a legatee or devisee is important for when there
is preterition or omission in the will of a compulsory heir in the direct line, the institution of
voluntary heirs is invalidated but the legacy shall remain valid and only reducible if found
inofficious (Art. 954, NCC).
Dr. Torres wanted his two sisters to be his voluntary heirs who, when time comes, will
inherit from the free disposable portion of his estate. His two sisters are Christina Torres-
Cabell and Ma. Cecilia Bernadette Torres- Rubio.
Christina Torres- Cabell is the 58-year-old sister of the client. She was born on January 6,
1960 on Quezon City and is currently an American Citizen residing at Philadelphia, USA.
She is currently working as a Bank Vice President.
Ma. Cecilia Bernadette Torres- Rubio is the 50-year-old sister of the client. She was born on
July 14, 1968 also on Quezon City. Ma. Cecilia is also an American Citizen and is residing at
New Jersey, USA. She is a full time housewife.
II.C. Legacies and Devises
The term legacies and devises have different meanings in general terminology, but in a legal
sense, it is used to refer to a bequest in a will. The difference lies in the nature of the property
to be bequeathed unto the heir or a successor-in-interest. Simply put, a legacy does not
include real property, so legacy usually refers to a gift of personal property or money to a
beneficiary of a will.
To properly and legally address an heir, the New Civil Code thus provides:
Article 782. An heir is a person called to the succession either by the

provision of a will or by operation of law.
Devisees and legatees are persons to whom gifts of real and personal property
are respectively given by virtue of a will.
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A devisee or legatee succeeds by particular title to cash or to a particular or specified item or
thing in the inheritance. In other words, a legatee or devisee is given individualized items of
property. A legatee or devisee is still entitled to the property given to him as long as such
legacy or devise is not inofficious. An inofficious bequest is one which impairs or reduces
the legitime or the share expressly reserved by the law for compulsory heirs. Corollary to
this:
Article 854. The preterition or omission of one, some, or all of the compulsory
heirs in the direct line, whether living at the time of the execution of the will
or born after the death of the testator, shall annul the institution of heir; but
the devises and legacies shall be valid insofar as they are not inofficious.
If the omitted compulsory heirs should die before the testator, the institution
shall be effectual, without prejudice to the right of representation
Therefore, the determination as to who are legatees and devisees from a voluntary heir
is important because as mentioned under Article 854, in case of omission of a
compulsory heir in the direct line, an instituted voluntary heir gets nothing but a legatee
or devisee still gets the property given as long as the legitime is not impaired.
The client opted to bequest the following properties to the following heirs:
1. To the beloved wife of the client, Chrysanthemum Torres, a RAV 4 2017 with MV
FILE NO.: 1497-005934962, and PLATE NO.: ZEY 766 with the value of P1, 800,000.
2. To the sister of the client, Christina T. Cabell, a condominium at BERKSHIRE

TOWER I valued P1, 916,000.00
3. To the sister of the client, Ma. Cecilia Bernadette T. Rubio, a condominium at

HAMPTON GARDENS valued P1, 804, 000.00
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Chapter III. Estate and Inheritance
III.A. Properties, Rights, and Obligations
REAL PROPERTIES
1. A certain land situated in the municipality of Taytay, Rizal valued P4, 000,
000.00
2. A certain land situated in Brgy. San Juan Roque, Angono, Rizal valued P2, 500,
000.00
3. A condominium parking unit valued P600, 000.00
4. A condominium at BERKSHIRE TOWER I valued P1, 916,000.00
5. A condominium at HAMPTON GARDENS valued P1, 804, 000.00
6. A certain house and lot situated at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig
City valued P20, 000,000.00
7. A parcel of Land in Jalajala, Rizal valued P4,000,000.00
8. A parcel of Land in Binangonan, Rizal valued P4,300,000.00
9. A condominium unit in Hampton Gardens valued P2,400,000.00
10. A condominium unit in Sorrento Oasis valued P1,900,000.00
11. A private library and the books therein valued P2,300,000.00
PERSONAL PROPERTIES
12. Mazda 3 valued P1, 500, 000.00
13. Toyota Rav 4 P1, 800, 000.00
14. Telescopes P1, 300, 000.00
15. Several sculptures by National Artists P1, 094, 000.00
16. Several paintings by National Artists P 1, 960,000.00
OBLIGATIONS
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17. Unpaid Real Estate Mortgage of P2, 370, 000.00
III.B. Property Regime
The client and his spouse did not execute any marriage settlement or an agreement executed
between two parties who plan to get married, in preparation for the property regime that
would govern their conjugal property during the marriage. The execution of a marriage
settlement is not mandatory under the law. In the absence of a marriage settlement or if there
is one but is void, nonetheless, the law provides for default property regime that would
govern the conjugal property during the subsistence of marriage. At this point, the date of the
marriage of the spouses is the determining factor. If the contraction of marriage was made
before the effectively of the Family Code which was on August 3, 1988, then the Conjugal
Partnership of Gains (CPG) will apply. On the other hand, if the marriage was contracted
after said date with the Family Code having taken effect, the Absolute Community of
Property (ACP) will apply. Therefore, Article 75 of the Family Code of the Philippines is the
applicable law since the spouses got married in 1994. This provision states:
“Art. 75. The future spouses may, in the marriage settlements, agree upon the
regime of absolute community, conjugal partnership of gains, complete
separation of property, or any other regime. In the absence of a marriage
settlement, or when the regime agreed upon is void, the system of absolute
community of property as established in this code shall govern.”
The aforementioned provision sets the property regime that governs the marriage of the
client. This is called the absolute community of property. This means that every piece of
property that the client has acquired before and after your marriage forms part of his absolute
community of property. This can be found under Article 91 of the Family Code, which
provides:
“Art. 91. Unless otherwise provided in this chapter or in the marriage
settlements, the community property shall consist of all the property owned by
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the spouses at the time of the celebration of the marriage or acquired
thereafter.”
In relation thereto, not every piece of property that the spouses have forms part of their
absolute community. Thus, the exemptions therein are enumerated under Article 92 of the
same law,
“Art. 92. The following shall be excluded from the community property:
(1) Property acquired during the marriage by gratuitous title by spouse, and the
fruits as well as the income thereof, if any, unless it is expressly provided by the
donor, testator or grantor that they shall form part of the community property;
(2) Property for personal and exclusive use of either spouse. However, jewelry
shall form part of the community property;
(3) Property acquired before the marriage by either spouse who has legitimate
descendants by a former marriage, and the fruits as well as the income, if any,
of such property.”
The determination of the exclusive properties of the client is necessary in order to properly
deduct the conjugal share of the spouse since such capital properties or exclusive properties
of the husband shall not form part of the conjugal shares of the wife. It is all the more
important because the conjugal property will also be subjected to a deduction of an ordinary
conjugal deduction which will depend on the applicable law at the time of the death of the
spouse. As a necessary consequence, it is also indispensible for the accurate computation of
the estate tax, net hereditary estate, and finally the legitime. An example of the computation
is provided under Chapter III.D of this paper.
III.C. Collation
The collation of properties is the supposed or real return to the mass of the succession which
an heir makes of property which he received in advance of his share or otherwise, in order
that such property may be divided together with the other effects of the succession. It means
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computing or adding certain values to the estate, and charging the same to the legitime or to
the free disposable portion. There can be collation both in testamentary and legal succession.
The purpose of this process is to produce equality as among the compulsory heirs of the same
class. Equality is produced because every donation inter vivos or any gratuitous transfer
during lifetime is given to such heir, and is generally considered as advancement to his
legitime or of his inheritance. Under Article 1061 of the New Civil Code:
Article 1061. Every compulsory heir, who succeeds with other compulsory
heirs, must bring into the mass of the estate any property or right which he may
have received from the decedent, during the lifetime of the latter, by way of
donation, or any other gratuitous title, in order that it may be computed in the
determination of the legitime of each heir, and in the account of the partition.
At this juncture, it is important to mention that a certain vehicle more particularly described
as a Mazda 2016 model with MV FILE NO.: 1301-00000508402, PLATE NO.: ABT 8036
was donated to the subject’s second (2nd) child, JESUS GAMALIEL JOSE D.
TORRES. Such vehicle is currently with a value of P1, 500,000.00. According to Article
909 of the Civil Code of relating to collations:
“Art. 909. Donations given to children shall be charged to their legitime.

Donations made to strangers shall be charged to that part of the estate of which
the testator could have disposed by his last will. Insofar as they may be
inofficious or may exceed the disposable portion, they shall be reduced
according to the rules established by this Code.”
Given that JESUS GAMALIEL JOSE D. TORRES, the second child of the client, being a
compulsory heir, the certain vehicle donated to him shall be considered as an advance to his
legitime. Such amount shall be added to the computation of the client’s gross estate and in
the computation of the compulsory heir’s legitime shall be deducted therefrom.
Our client has also brought to our attention his desire of bringing to collation the law school
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fees incurred by him through his law student daughter ISABELLE NATASHA D.
TORRES.
This will result to such amount being added to the computation of the client’s gross estate
and in the computation of the compulsory heir’s legitime shall be deducted therefrom.
In connection to this, according to Articles 1067 and 1068 of the Civil Code:
“Art. 1067. Expenses for support, education, medical attendance, even in

extraordinary illness, apprenticeship, ordinary equipment, or customary gifts
are not subject to collation.
Art. 1068. Expenses incurred by the parents in giving their children a

professional, vocational or other career shall not be brought to collation unless
the parents so provide, or unless they impair the legitime; but when their
collation is required, the sum which the child would have spent if he had lived
in the house and company of his parents shall be deducted therefrom.”
Given these rules, it may be denoted that support, as a general rule is not subject to collation,
save in the case when such expense is incurred in giving the child a professional, vocational
or other career with the parent providing or requiring for its collation.
The collationable fees of the subject’s first child shall include tuition fees for five semesters
approximately in the amount of Two Hundred Thousand (P200, 000.00) Philippine currency;
law books and monthly subscription fees to various software applications with a total amount
of approximately Eighty Five Thousand (P85, 000.00) Philippine currency.
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III.D. Computation of Net Hereditary Estate
(a) COMPUTATION OF NET HEREDITARY ESTATE UNDER NIRC
The first step in determining the net hereditary estate is the computation of the gross estate.
The gross estate is the value at the time of death of all property, real or personal, tangible or
intangible, wherever situated. In the case of a nonresident decedent who at the time of his
death was not a citizen of the Philippines, only that part of the entire gross estate which is
situated in the Philippines shall be included in his taxable estate.
Since the client is a Filipino resident citizen, his gross estate shall include all of his
properties, real or personal, tangible or intangible, wherever situated, computed as follows:
Exclusive Conjugal Total

Conjugal Properties:
Real Properties: P18, 474, 000.00 P38, 474, 000.00
Exclusive Properties:
Family Home: P20, 000,000.00
Other Exclusive Properties: P14, 900,000.00 P14, 900,000.00
----------------- ----------------- --------------
---
GROSS ESTATE: P 14, 900, 000 .00 P38, 474, 000.00 P53, 374, 000.00
The classification as to whether the properties are exclusively owned or a part of the conjugal
property is necessary. As mentioned under Chapter III.B, the determination of the exclusive
properties of the client is necessary in order to properly deduct the conjugal share of the
spouse since such capital properties or exclusive properties of the husband shall not form part
of the conjugal shares of the wife.
17
The exclusive property of the client includes the following:
A parcel of Land in Jalajala, Rizal P4,000,000.00

A parcel of Land in Binangonan, Rizal P4,300,000.00
A condominium unit in Hampton Gardens P2,400,000.00
A condominium unit in Sorrento Oasis P1,900,000.00
A private library and the books therein P2,300,000.00
----------------------
P 14, 900, 000.00
The next step is to deduct from the computed gross estate the total of all of the available
ordinary and special deductions available under the law at the time of death.
Less:
Ordinary Deductions
Funeral Expenses P200, 000.00 P200, 000.00
Unpaid Real Estate Mortgage P2, 370, 000.00 P2, 370, 000.00
Claims against insolvent persons P530, 000.00 P530, 000.00
Special Deductions
Family Home P1, 000, 000.00 P1, 000, 000.00
Standard Deduction P1, 000, 000. 00 P1, 000, 000. 00
Medical Expenses P500, 000.00 P500, 000.00
----------------- -----------------
TOTAL DEDUCTIONS: P 5, 600, 000.00

NET ESTATE P 47, 774, 000. 00
The determination of the exclusive properties of the client is all the more important because
the conjugal property will also be subjected to a deduction of an ordinary conjugal deduction
18
which will depend on the applicable law at the time of the death of the spouse.
Less: ½ Share of Surviving Spouse

Conjugal Property P38, 474, 000.00
Conjugal Deduction P 1, 500, 000.00
Net Conjugal Estate P36, 974, 000.00
(P 36, 974, 000.00/2) P18, 487, 000.00
-----------------
NET TAXABLE ESTATE P29, 287, 000.00
After deducting all of the available deductions and the conjugal share of the surviving
spouses from the gross estate, we will then result to the amount referred to as the Net Taxable
Estate. It is the amount that will be subjected to the estate tax rate depending on the law in
force.
Under the provisions of the National Internal Revenue Code of 1997 (NIRC), as amended,
the estate tax is imposed at graduated rates of 5% to 20%, depending on the value of the
net estate. These rates are applicable in the computation of estate taxes on the estate of a
person who died between January 1, 1998 and December 31, 2017.
Below is the table containing the graduated tax rate:
Over But not over Tax Plus % In excess of

200, 000 Exempt
200, 000 500, 000 0% 5% 200,000
500, 000 2,000,000 15,000 8% 500,000
2,000,000 5,000,000 135,000 11% 2,000,000
5,000,000 10,000,000 465,000 15% 5,000,000
10,000,000 And over 1,215,000 20% 10,000,000
19
COMPUTE ESTATE TAX:
Amount for P10, 000,000.00 and over P1, 215,000.00
20% of excess of P10, 000.000.00 (P4, 710,000.00) P3, 857,400.00
-----------------
P5, 072, 400.00
The computed estate tax will then be deducted from the gross estate:
SUBTRACT ESTATE TAX FROM GROSS ESTATE – (P53, 374,

000.00)
-----------------
P48, 301, 600.00
The next step is to add the collationable donations to the computed amount. As mentioned
under Chapter III.C collation is the return of the donations made by the deceased to his
hereditary estate either by adding mathematically the value of said donation or by actually
bringing them back to the estate. It takes place when there are compulsory heirs to determine
the legitime and the free portion so that there will be equality of distribution among them.
ADD COLLATIONABLE DONATIONS P 1, 500,000.00

P 285,000.00
-----------------------
P1, 785, 000.00
The figures provided above represents the collationable donations mentioned under Chapter
III.C of this paper. The computed amount is the net hereditary estate. It is the amount which
will be the basis of computing the shares and legitime of compulsory heir. Consequently,
upon determination of the legitime, the net hereditary estate will also be determinative as to
whether the donations, legacies or devises made by the deceased are inofficious or impairs
the legitime. If such were the case, such donations, legacies or devises are reducible.
20
NET HEREDITARY ESTATE P50, 086, 000.00
(b) COMPUTATION OF NET HEREDITARY ESTATE UNDER TRAIN LAW
The first step in determining the net hereditary estate is the computation of the gross estate.
The gross estate is the value at the time of death of all property, real or personal, tangible or
intangible, wherever situated. In the case of a nonresident decedent who at the time of his
death was not a citizen of the Philippines, only that part of the entire gross estate which is
situated in the Philippines shall be included in his taxable estate. Since the client is a Filipino
resident citizen, his gross estate shall include all of his properties, real or personal, tangible or
intangible, wherever situated, computed as follows:
Family Home: P20, 000,000.00
Other Exclusive Properties: P14, 900,000.00 P14, 900,000.00
----------------- ----------------- -----------------
GROSS ESTATE: P 14, 900, 000 .00 P38, 474, 000.00 P53, 374, 000.00
The classification as to whether the properties are exclusively owned or a part of the
conjugal property is necessary. As mentioned under Chapter III.B, the determination of the
exclusive properties of the client is necessary in order to properly deduct the conjugal share
of the spouse since such capital properties or exclusive properties of the husband shall not
form part of the conjugal shares of the wife. The exclusive property of the client includes the
following:
A parcel of Land in Jalajala, Rizal P4,000,000.00
A parcel of Land in Binangonan, Rizal P4,300,000.00
A condominium unit in Hampton Gardens P2,400,000.00
A condominium unit in Sorrento Oasis P1,900,000.00
A private library and the books therein P2,300,000.00
21
----------------------
P 14, 900, 000.00
The next step is to deduct from the computed gross estate the total of all of the available
ordinary and special deductions available under the law at the time of death.
Less:
Ordinary Deductions
Special Deductions
Family Home P10, 000, 000.00 P10, 000, 000.00
Standard Deduction P 5, 000, 000. 00 P 5, 000, 000. 00
----------------- -----------------
NET ESTATE P 35, 474, 000. 00
The determination of the exclusive properties of the client is all the more important because
the conjugal property will also be subjected to a deduction of an ordinary conjugal deduction
which will depend on the applicable law at the time of the death of the spouse. It is
noteworthy that the conjugal ordinary deduction of One Million Five Hundred Thousand (P1,
500, 000.00) Pesos under the NIRC has been increased under the Tax Reform for
Acceleration and Inclusion Act or TRAIN law to Two Million Pesos (P2, 000, 000.00). It is
computed as follows:
(P 36, 474, 000.00/2) P18, 237, 000.00
22
After deducting all of the available deductions and the conjugal share of the surviving
spouses from the gross estate, we will then result to the amount referred to as the Net Taxable
Estate. It is the amount that will be subjected to the estate tax rate depending on the law in
force. Section 22 of the TRAIN law amends Section 84 of the Tax Code, which provides for
the estate-tax rate. Previously, a tax based on the value of the net estate of the decedent,
whether resident or nonresident of the Philippines, was computed based on a tax schedule
where an estate worth P200, 000 and over was taxed from 5 percent to 20 percent. Under the
TRAIN law, it will now be subject to a flat rate of 6 percent.

COMPUTE ESTATE TAX: (6%)
------------------
P1, 034, 220.00

The computed estate tax will then be deducted from the gross estate:
SUBTRACT ESTATE TAX FROM GROSS ESTATE – (P53, 374, 000.00)

-------------------
P52, 339, 780.00
The next step is to add the collationable donations to the computed amount. As mentioned
under Chapter III.C collation is the return of the donations made by the deceased to his
hereditary estate either by adding mathematically the value of said donation or by actually
bringing them back to the estate. It takes place when there are compulsory heirs to determine
the legitime and the free portion so that there will be equality of distribution among them.
23
P 285,000.00
---------------------
The figures provided above represents the collationable donations mentioned under Chapter
III.C of this paper. The computed amount is the net hereditary estate. It is the amount which
will be the basis of computing the shares and legitime of compulsory heir. Consequently,
upon determination of the legitime, the net hereditary estate will also be determinative as to
whether the donations, legacies or devises made by the deceased are inofficious or impairs
the legitime. If such were the case, such donations, legacies or devises are reducible.
III.E. Computation of Legitime and Free Portion and Division of the Estate
The Philippines follows the system of Legitime wherein a part of the estate is the legitime,
the other is for the free disposable portion that is to be disposed of in accordance to the
wishes of the decedent. Simply put, legitime is that part of the estate of the testator that is
reserved for the compulsory heirs and cannot be subjected to the free disposal of the testator.
This is provided under Article 886 of the New Civil Code, which states:
“Art. 886. Legitime is that part of the testator's property which he cannot
dispose of because the law has reserved it for certain heirs who are, therefore,
called compulsory heirs.”
The testator cannot deprive his compulsory heir of the legitime, except in cases expressly
specified by law.
Neither can he impose upon the same any burden, encumbrance, condition, or substitution of
any whatsoever, except, of course, the condition that the property will not be divided for a
period not exceeding twenty (20) years as mentioned under Article 870 of the New Civil
Code, as to wit:
24
“Art. 870. The dispositions of the testator declaring all or part of the estate
inalienable for more than twenty years are void.”
As discussed under Chapter II.A of this paper, the compulsory heirs are the surviving spouse,
ascendants meaning parents or grandparents, descendants meaning children or grandchildren.
In the latter two cases, the descendants exclude the ascendants and those nearest in degree
exclude the others. For proper computation of the legitime it is necessary to determine the set
of all the compulsory heirs entitled and not disqualified by law to inherit. Furthermore, to
determine the value of one’s legitime, “the value of the property left at the death of the
testator shall be considered, deducting all debts and charges, which shall not include those
imposed in the will. To the net value of the hereditary estate shall be added the value of all
donations by the testator that are subject to collation at the time he made them” (Article 908,
Civil Code).
It must be noted that what is computed at the time of death and what is collated at the time of
death is the value of the property left by the deceased.
The effect of the rule on legitime is to prioritize certain heirs and satisfy their shares first
before the shares of other heirs are determined. The client, as mentioned, will leave behind
four compulsory heirs composed of his spouse and his three legitimate children. Therefore, in
this case, the pertinent provision of the law is Article 892 of the New Civil Code, which
states that:
“Art. 892. If only one legitimate child or descendant of the deceased survives,
the widow or widower shall be entitled to one-fourth of the hereditary estate. In
case of a legal separation, the surviving spouse may inherit if it was the
deceased who had given cause for the same.
If there are two or more legitimate children or descendants, the surviving

spouse shall be entitled to a portion equal to the legitime of each of the
legitimate children or descendants.
In both cases, the legitime of the surviving spouse shall be taken from the
25
portion that can be freely disposed of by the testator.”
The application of the above mentioned provision may be computed as follows:
A. Legitime and Free Portion using the Net Hereditary Estate computed under the
NIRC
The basis for the computation of the legitime and of the free portion is the Net Hereditary
Estate. It is the amount which would receive the application of the pertinent provision of the
law depending as to the composition of the compulsory heirs. The computed Net Hereditary
Estate under the provisions of the NIRC is Fifty Million Eighty Six Thousand (P50, 086,
000.00) Philippine currency. There are four compulsory heirs including the spouse and three
legitimate children. The computation, hence, may be illustrated as follows:
First. The one-half portion of the estate is the legitime of the legitimate children. Hence, the
first step is to divide the entire net hereditary estate into two.
P50, 086, 000.00 = P25, 043, 000.00

2
Second. Since the one-half portion of the estate is the share of the legitimate children, and the
client has three legitimate children, the next step would be to equally divide the one-half
portion into three. Such quotient will represent the respective share of each legitimate child.
P25, 043, 000.00 = P8, 347, 667

3
Third. After determining the share of each legitimate child, the collationable donations
discussed under Chapter III.C of this paper shall then be subtracted from their inheritance
since such donations are considered as advances to their legitime.
P8, 347, 667.00 FIRST CHILD
26
P 285, 000.00 COLLATIONABLE DONATIONS
P8, 062, 667.00 Receivable Share
P8, 347, 667.00 SECOND CHILD

P1, 500, 000.00 COLLATIONABLE DONATIONS
Fourth. The pertinent law expressly provides that “if there are two or more legitimate
children or descendants, the surviving spouse shall be entitled to a portion equal to the
legitime of each of the legitimate children or descendants”.
Thus, the surviving spouse shall receive the same amount of Eight Million Three Hundred
Forty Seven Six Hundred Sixty Seven (P8, 347, 667).
Fifth. Upon satisfaction of the legitimes of the compulsory heirs, the remaining portion of the
estate will then be regarded as the free dispositive portion. The total amount of the legitime is
the sum of the entire share of the compulsory heirs. The free dispositive portion is computed
by deducted the total amount of legitime from the net hereditary estate. Illustrated:
P8, 347, 667.00 SPOUSE

P8, 347, 667.00 THIRD CHILD
P31, 605, 668.00 LEGITIME

(-)P50, 086, 000.00 NET HEREDITARY ESTATES
P18, 480, 332.00 FREE DISPOSITIVE PORTION
Sixth. It is the will of the client to distribute the free dispositive portion to his two sisters,
Christina T. Cabell and Ma. Cecilia Bernadette T. Rubio, and to his spouse, in equal shares.
27
However, it should be noted that the abovementioned heirs are also instituted as legatees and
devisees. Therefore, their respective legacies and devises will be deducted from the free
dispositive portion before dividing the remainder of the free portion among them equally.
P 1, 800, 000.00 SPOUSE

P 1, 950,000.00 CHRISTINA
P 2, 140, 000.00 CECILIA
P 5, 890, 000.00 LEGACIES AND DEVISES
(-)P18, 480, 332.00 FREE DISPOSITIVE PORTION
= P12, 590,332.00 = P 4, 196, 777.00 each.

3
B. Legitime and Free Portion using the Net Hereditary Estate computed under
TRAIN law
law depending as to the composition of the compulsory heirs. The computed Net Hereditary
Estate under the provisions of the TRAIN law is Fifty Four Million One Hundred Twenty
Four Thousand Seven Hundred Eighty (P54, 124, 780.00) Philippine currency. There are four
compulsory heirs including the spouse and three legitimate children. The computation, hence,
may be illustrated as follows:
First. The one-half portion of the estate is the legitime of the legitimate children. Hence, the
first step is to divide the entire net hereditary estate into two.
P54, 124, 780.00 = P27, 062, 390.00

2
Second. Since the one-half portion of the estate is the share of the legitimate children, and the
client has three legitimate children, the next step would be to equally divide the one-half
portion into three. Such quotient will represent the respective share of each legitimate child.
28
P27, 062, 390.00 = P9, 020, 796.00
3
Third. After determining the share of each legitimate child, the collationable donations
discussed under Chapter III.C of this paper shall then be subtracted from their inheritance
since such donations are considered as advances to their legitime.

P 285, 000.00 COLLATIONABLE DONATIONS

P1, 500, 000.00 COLLATIONABLE DONATIONS
Fourth. The pertinent law expressly provides that “if there are two or more legitimate
children or descendants, the surviving spouse shall be entitled to a portion equal to the
legitime of each of the legitimate children or descendants”. Thus, the surviving spouse shall
receive the same amount of Nine Million Twenty Thousand Seven Hundred Ninety Six (P9,
020, 796.00) Philippine currency.
Fifth. Upon satisfaction of the legitimes of the compulsory heirs, the remaining portion of the
estate will then be regarded as the free dispositive portion. The total amount of the legitime is
the sum of the entire share of the compulsory heirs. The free dispositive portion is computed
by deducted the total amount of legitime from the net hereditary estate. Illustrated:
P9, 020, 796.00 SPOUSE

P9, 020, 796.00 THIRD CHILD
29
P34, 298, 184.00 LEGITIME
(-)P54, 124, 780.00 NET HEREDITARY ESTATES
P19, 826, 596.00 FREE DISPOSITIVE PORTION

Sixth. It is the will of the client to distribute the free dispositive portion to his two sisters,
Christina T. Cabell and Ma. Cecilia Bernadette T. Rubio, and to his spouse, in equal shares.
However, it should be noted that the abovementioned heirs are also instituted as legatees and
devisees. Therefore, their respective legacies and devises will be deducted from the free
dispositive portion before dividing the remainder of the free portion among them equally.
P 1, 800, 000.00 SPOUSE

P 1, 950,000.00 CHRISTINA
P 2, 140, 000.00 CECILIA
P 5, 890, 000.00 LEGACIES AND DEVISES

(-)P19, 826, 596.00 FREE DISPOSITIVE PORTION
= P13, 936,596.00 = P 4, 645, 532.00 each.

3
30
SUMMARY COMPARISON OF THE AMOUNTS IN THE
COMPUTATION OF ESTATE TAX UNDER NIRC and TRAIN LAW
NIRC TRAIN
Gross Estate P 53, 374, 000.00 P 53, 374, 000.00
Less: Ordinary and Special P 5, 600, 000.00 P 17, 900, 000.00

Deductions
Net Estate P 47, 774, 000. 00 P 35, 474, 000. 00
Less: Share of Surviving Spouse P18, 487, 000.00 P18, 237, 000.00
Net Taxable Estate P 29, 287, 000.00 P17, 237, 000.00
Estate Tax P 5, 072, 400.00 P1, 034, 220.00
Add: Collationable Donations P 1, 785, 000.00 P 1, 785, 000.00
Net Hereditary Estate P50, 086, 000.00 P54, 124, 780.00
Total Legitime P31, 605, 668.00 P34, 298,

184.00
Free Portion P18, 480, 332.00 P19, 826,

596.00
Share of each Legitimate Children P8, 347, 667 P9, 020, 796.00
Less: Collationable Donations

First Child P8, 062, 667.00 P8, 735,796.00
Second Child P6, 847, 667.00 P7, 520,796.00
31
Share of the Surviving Spouse P8, 347, 667.00 P9, 020, 796.00
Shares of each Voluntary Heirs P 4, 196, 777.00 P 4, 645, 532.00
Chapter IV. Plan
IV.A. Solutions to Problem
1. What will be the effect of the passage of TRAIN law on the settlement of my estate?
TRAIN Law or the Tax Reform for Acceleration and Inclusion (TRAIN) Act is the law
signed by President Rodrigo Duterte which consists of revisions to the National Internal
Revenue Code (NIRC) or the Tax Code. This reform includes packages that make changes in
taxation concerning the personal income tax, estate tax, donor's tax, value added tax (VAT),
documentary stamp tax (DST) and the excise tax of petroleum products, automobiles,
sweetened beverages, cosmetic procedures, coal, mining and tobacco.
In connection with the estate plan of Dr. Torres, changes in the estate tax will apply to the
settlement of his estate. As indicated in the computation of the Net Hereditary Estate of this
estate plan on III.D. using the provisions of the NIRC, the total Net Hereditary Estate of the
client would be Php 50, 086, 000.00. However, due to the passage of TRAIN law, which is
now the applicable law for the estate plan of the client, the total Net Hereditary Estate of Dr.
Torres is Php 54, 124, 780.00. Thus, a positive effect to his estate.
The Net Hereditary Estate computed using the provisions of the TRAIN law has less number
deductions but of greater value compared to that of the NIRC for under the NIRC, deductions
for the family home only amounts to P1,000,000.00, while under the TRAIN, the family
home deduction is P10,000,000.00. Also, the standard deductions where raised to
P5,000,000.00 under the TRAIN, removing the funeral expenses and medical expenses under
the NIRC, which are valued at P200,000.00 and P500,000.00 respectively. These are the
deductions under the NIRC:
32
Ordinary Deductions
Funeral Expenses P200, 000.00 P200, 000.00
Special Deductions
Family Home P1, 000, 000.00 P1, 000, 000.00
Medical Expenses P500, 000.00 P500, 000.00
----------------- -----------------
On the other hand, these are the deductions under the TRAIN Law:
Ordinary Deductions
Special Deductions
Family Home P10, 000, 000.00 P10, 000, 000.00
Standard Deduction P 5, 000, 000. 00 P 5, 000, 000.
00
----------------- ---------------
--
The Net Hereditary Estate is greater under the TRAIN Law for the Estate Tax under the said
33
law was fixed at 6%, compared to the P1,215,000 tax rate for estates worth P10,000,000 and
over, with an additional 20% in excess of the P10,000,000.
Here is the computation of estate tax under the NIRC:

20% of excess of P10, 000.000.00 (P4, 710,000.00) P3, 857,400.00
————————————-
P5, 072, 400.00
On the other hand, here is the computation of estate tax under the TRAIN law:

------------------
P1, 034, 220.00
Thus, disadvantage of TRAIN law on the settlement of the estate of the client is that the
deductions are higher and the advantage of which is less estate tax. The comparison as to
estate taxes is thus shown in this form:
NIRC TRAIN
Gross Estate P 53, 374, 000.00 P 53, 374, 000.00
Less: Ordinary and Special Deductions P 5, 600, 000.00 P 17, 900, 000.00
Net Estate P 47, 774, 000. 00 P 35, 474, 000. 00
34
Estate Tax P 5, 072, 400.00 P1, 034, 220.00
2. Have I sufficiently prepared my transactions in case of incapacity or disability?
Yes. The primary purpose of an estate plan is to help you examine your financial needs and
assets in order to make sure that your heirs are provided for in the best possible way,
including lifetime planning as well as disposition of property at death. Thus, upon agreeing to
participate in this estate plan, the client can be rest assured that everything is sufficiently
prepared in case of incapacity or disability. The advantage of preparing the client’s
transactions in an estate plan is that in case of incapacity, disability or death, the disposition
of properties are intact and the way he wanted them to be disposed will be followed. It is also
an assurance that the legitimes of his compulsory heirs will not be impaired and donations to
be made are proper. The disadvantage of preparing the estate plan is that it is frowned upon
due to the thought of “preparation for death”. However, if people are more aware of the
benefits an estate plan offers, then it is a helpful tool to prevent disputes upon the incapacity,
disability or death of the client.
3. Are advanced medical directives in place?
Yes, advanced medical directives are in place. An estate plan is a plan to help you examine
your financial needs and assets in order to make sure that your heirs are provided for in the
best possible way, including lifetime planning as well as disposition of property at death. An
estate plan make sure that all the wishes of the client pertaining to the disposition of the
property and the management of his finances in case of incapacity, disability or death is
strictly followed provided that legitimes of compulsory heirs will not be impaired and all are
in accordance with the law. The advantage of advanced directives is that the client will
always be ready, since no one knows what will happen eventually. It is better to be prepared
and safe than sorry. An advanced directive is a written statement of a person's wishes
regarding medical treatment, often including a living will, made to ensure those wishes are
35
carried out should the person be unable to communicate them to a doctor. An advanced
directive has a different purpose than of an Estate Plan which helps you with finances and
disposition of property. Thus, advanced directives are not in place.
4. How could I discuss estate planning to my family and prepare them for the same?
Death, or the thought itself, is always frowned upon especially by us Filipinos. If someone
wishes to discuss estate planning and encourage other to do the same, one must discuss the
positive implications of an estate plan. An estate plan is a plan to help examine a person’s
financial needs and assets in order to make sure that his heirs are provided for in the best
possible way, including lifetime planning as well as disposition of property at death.
Thus, discussing and telling them that being ready for the inevitable is always good. Making
an estate plan is always a good tool and it will eventually help your family in case you
become incapacitated, disabled or you die, for the estate plan already resolved the problem
pertaining to the estate tax that they will pay, the legitimes they will receive, and the
donations you want to make, all in accordance with the law. Therefore, they can be assured
that they are doing the right thing and that they are doing what you wanted them to do.
5. If I would opt to create a trust fund, what qualification should I look for in a trustee?
If the client wanted to create a trust fund, he should look for a trustee with the following
qualifications:
1. Trustworthy. Trust is built with Trust itself. Choose someone whom you are sure
of carrying out your wishes upon your death. Someone you believe is reliable even when
no one is looking.
2. Financial responsible. Your trustee’s primary duty is to handle your finances and
financial accounts. He will be the one who is responsible for your investments. A trustee
36
not only needs to handle and administer financial accounts, a trustee is also charged with
the responsibility of accounting to the trust beneficiaries regarding all assets, income, and
expenses of a trust, so basic record keeping skills are essential.
He should handle finances well and make sure to choose someone who spend your
money for himself.
3. Choose someone who is available. It is a good idea to select a trustee who is likely
to be available when the need for his or her services arises. Age, health, job demands,
and location are all factors that should be considered with selecting a trustee.
While choosing a family member or multiple family members to serve as trustee(s) is

common, there are other good alternatives. A friend, for example, may be better able to
handle the administrative duties than a family member, and the use of a friend as trustee may
help avoid inter-family conflict regarding the trust administration. Another option is to use a
professional fiduciary. Choosing a financial institution to serve as professional fiduciary may
be more costly than using a friend or family member, but it can be a good choice in many
situations. The benefit of a trust fund is that you may choose a more trustworthy person,
other than a family member. say, your bestfriend or your lawyer, who will be in charge of all
your financial accounts, because sometimes, someone is more qualified that a family
member. The disadvantage of which is that choosing someone who is not a family member
may use your money for his own benefits. Thus, choosing a trustee should be a really careful
task.
IV.B. Strategies and Implications in the Implementation of the Estate Plan
The primary mode of disposition that the client, Dr. Torres, wishes to utilize is testamentary
succession or the making of a Last Will and Testament. This is to make sure that the property
he leaves behind on the occasion of his death is properly distributed to his heirs. This mode is
also highly advisable to the client since it is very simple to establish, and the testator can
draft his own will with little to no up-front costs. Wills offer a lot of flexibility for a testator
37
who has a spouse, minor children or others for whom he wants to provide support after his
death.
The determination of which property should go to whom in the free disposable portion of his
estate should, of course, be left to the sound discretion of the client, since it is provided for
under Article 784 of the New Civil Code that the making of a will is astrictly personal
act. However, given the large number of both personal and real properties currently in the
name of Dr. Torres, there is a need to also resort to alternative ways of transferring property
in order to avoid any possible mishaps that may occur during his lifetime.
The following are the suggested modes of disposition which the group deems the most
appropriate for the estate of the client:
Sale
The value of land increases over time. The increase can be exponential when the location of
the parcel is near or right in the middle of an area being eyed by big investors. Dr. Torres has
three (3) parcels of land in the province of Rizal, one of which is right next to a commercial
and upper-class residential area. The sale of either or all of these properties, at the most
opportune time (when the value of the property is at its highest since its purchase), could
prove beneficial to the overall estate of the client. On the other hand, a sale is not included in
the computation of the hereditary estate and legitime.
Trust
Dr. Torres has a collection of paintings and sculptures by national artists which cost millions
of pesos. Over time, these works of art increase in value, especially when the demand
becomes higher either due to the fame attached to the name of the artist or because of the
artist’s death. This collection forms part of our client’s long-term investments. To ascertain
that these artworks are well-curated and taken care of through the passage of time, our client
can place them in trust for certain number of years or for the duration of his lifetime. As
provided for by Article 1440 of the NCC, a trust is where the trustor (the person who
38
establishes the trust) reposes property for the benefit of another person to the trustee (the
person who shall hold the property in trust). Once the trust agreement comes to an end, the
properties can go to the beneficiary heirs of the client trustor while still in good condition.
Donation Inter Vivos
Article 729 of the NCC provides: When the donor intends that the donation shall take effect
during the lifetime of the donor, though the property shall not be delivered till after the
donor’s death, this shall be a donation inter vivos. The fruits of the property from the time of
the acceptance of the donation, shall pertain to the donee, unless the donor provides
otherwise.
Dr. Torres owns four (4) condominium units in Pasig City which he plans on leasing out for
purposes of earning passive income. If our clients wishes to continue leasing these units out
to tenants subsequently following his death, then he can cause a donation of the properties to
his wife or either of his three children. The donee shall receive the unit/s upon the death of
our client, including the fruits of the lease agreement/s from the time of the acceptance of the
donation. From there, the donee heir can take over the management of the condominium
units. If the provisions of the NIRC were to apply, a donation inter vivos would also be a
valid tax avoidance scheme, since the tax rate of donor’s tax (2% to 15%) is lower than that
of estate tax (5% to 20%).This transfer, however, can prove disadvantageous to the donee
heir who accepts the donation should our client decide to include the properties as an
advance to the former’s legitime. The same can also be done with the client’s collection of
telescopes. A donation inter vivos can be effected in favor of either of his two daughters who
are both enthusiastic about astronomy.
Since there are technological upgrades almost every few months now, the value of the
telescopes may or may not increase. A donation would be the wisest course of action when it
comes to disposition of the telescopes.
The ultimate plan is to create a Last Will and Testament with Modal Institution.
39
The client, however, opted to resort to a more direct and immediate mode of creating a Last
Will and Testament and to avoid any other mode of disposition unless otherwise provided in
case of some of the properties for the purpose of satisfying the legitime of the heirs.
The Last Will and Testament of the client shall also contain all of the terms and conditions
attached to the disposition of the properties. The ultimate goal of the client is to avoid any
unnecessary legal processes and to settle the estate in the most unvaried way possible.
The client believed that resorting to a conditional testamentary disposition and testamentary
disposition with a term is sufficient to adequately regulate the disposition of his properties
and ensure the utilization of the same in accordance to his personal wishes. The liquidation of
the properties in accordance with wishes of the client will be further discussed under Chapter
IV.D of this paper. The group resorted to liquidate the properties mainly through the direct
orders of the client. However, several properties are necessarily subjected to sale (mostly real
properties) in order to sufficiently comply with the ultimate goal of the client that the heirs
shall immediately receive their shares and avoid any burden accompanied by the acquisition
of properties, such as co-ownership, except those conditions personally provided by the client
himself in his Last Will and Testament. The client also included in the Last Will the manner
by which the computed estate tax will be paid and as to who will be accountable for its
payment.
In addition to the Last Will, the client also opted to create a Living Will which shall provide
all of his advance medical directives in any case of disability, incapacity, or severe medical
condition that would render him unable to communicate.
40
IV. B. Tax Computation and Implications
COMPUTATION OF ESTATE TAX UNDER NIRC

Family Home: P20, 000,000.00
Other Exclusive Properties: P14, 900,000.00 P14, 900, 000.00
----------------- ----------------- -----------------
GROSS ESTATE: P 14, 900, 000 .00 P38, 474, 000.00 P53, 374, 000.00
Less:
Ordinary Deductions
Funeral Expenses P 200, 000.00 P 200, 000.00
Claims against insolvent persons P530, 000.00 P 530, 000.00
Special Deductions
Family Home P1, 000, 000.00 P1, 000, 000. 00
Medical Expenses P500, 000.00 P 500, 000. 00
------------------- -----------------
NET ESTATE P 47, 774, 000. 00
(P 36, 974, 000.00/2) P18, 487, 000.00
-------------
Over But not over Tax Plus % In excess of

200, 000 Exempt
200, 000 500, 000 0% 5% 200,000
500, 000 2,000,000 15,000 8% 500,000
2,000,000 5,000,000 135,000 11% 2,000,000
5,000,000 10,000,000 465,000 15% 5,000,000
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10,000,000 And over 1,215,000 20% 10,000,000
COMPUTE ESTATE TAX:

20% of excess of P10, 000.000.00 (P4, 710,000.00) P3, 857,400.00
-----------------
P5, 072, 400.00
-----------------
P48, 301, 600.00
ADD COLLATIONABLE DONATIONS P 1, 500, 000.00
P 285,000.00
---------------------
P1, 785, 000.00
COMPUTATION OF NET HEREDITARY ESTATE UNDER TRAIN LAW

Family Home: P20, 000,000.00
Other Exclusive Properties: P14, 900,000.00 P14, 900, 000.00
----------------- ----------------- --------------
-GROSS ESTATE: P 14, 900, 000 .00 P38, 474, 000.00 P53, 374, 000.00
Less:
Ordinary Deductions
Claims against insolvent persons P 530, 000.00 P 530, 000.00
Special Deductions
Family Home P10, 000, 000.00 P10, 000, 000.00
Standard Deduction P 5, 000, 000.00 P 5, 000, 000. 00
----------------- ---------------
--
NET ESTATE P 35, 474, 000.00
42
(P 36, 474, 000.00/2) P18, 237, 000.00
-------------------

-------------------
-
P1, 034, 220.00

-------------------
P52, 339, 780.00

P 285,000.00
-----------------------
Thus, disadvantage of TRAIN law on the settlement of the estate of the client is that the
deductions are higher and the advantage of which is less estate tax. The comparison as to
estate taxes is thus shown in this form:
NIRC TRAIN
Gross Estate P 53, 374, 000.00 P 53, 374, 000.00
Less: Ordinary and Special Deductions P 5, 600, 000.00 P 17, 900, 000.00
Net Estate P 47, 774, 000. 00 P 35, 474, 000. 00
Estate Tax P 5, 072, 400.00 P1, 034, 220.00
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IV. C. Forms, Documentary Requirements and Procedure
In accordance with the legal processes required by the modes of disposition chosen by the
testator, the group prepared the following pertinent forms and legal instruments:
Last Will and Testament

A last will and testament is the most important building block to the planning for the estate of
the client. This instrument should explain and clarify the details of what the client want to
happen with his property and other issues at the time of his death, but the extent to which it
does so depends a great deal on the type of estate plan the client have elected to put into
place. The Last Will provides all of the essential and necessary details of who will inherit the
properties of the client with this type of estate plan. It will explain when and how the heirs
will inherit, and it should name the choice of an executor. This is the individual who will be
put in charge of settling the client’s final affairs and guiding his estate through the probate
process. It should also state what powers the client want his executive to have, as well as
address an important point that the client has a minor child. Who will serve as such child’s
guardian until they become adults if his other parent predeceases the client or dies with the
client in a common event?
Petition for Probate of the Will

The law requires every last will to undergo what is called a probate proceeding wherein the
Court having jurisdiction will determine, in accordance with the Rules of Court, whether the
contents of the last will shall be allowed or disallowed. This is specifically mandated under
Article 838 of the Civil Code of the Philippines, which states that no will shall pass either
real or personal property unless it is proved and allowed in accordance with the Rules of
Court. The testator himself may, during his lifetime, petition the court having jurisdiction for
the allowance of his will. In such case, the pertinent provisions of the Rules of Court for the
allowance of wills after the testator’s death shall govern. However, such proceeding (ante
44
mortem proceeding) is unviable for the Supreme Court shall first formulate such additional
procedural rules as may be necessary for the allowance of wills on probate proceedings upon
petition of the testator.
The petition for probate must among other things state:
1. The fact that the testator is dead, and the place and time of said death;
2. The fact that the deceased left a will, copy of which has to be attached to the petition;
3. The fact that the will was executed in accordance with legal requirements;
4. Names, ages, addresses of the executor and all interested parties therein;
5. The probable value and character of the property of the estate;
6. The name of the individual whose appointment as executor is being asked for;
7. If the will has not been delivered to the court, the name of the person who is supposed
to have the will in his custody.
Petition for Letters of Administration

Letter of administration or letter of testamentary is the appointment issued by a probate court,
after the will has been admitted to probate, to the executor named in the will to administer the
estate of the deceased testator, provided the executor named in the will is competent, accepts
the trust, and gives a bond. (Sec. 4, Rule 77 of the Rules of Court) If no executor is named in
the will, or the executor or executors are incompetent, refuse the trust, or fail to give bond, or
a person dies intestate, administration shall be granted:
(a) To the surviving husband or wife, as the case may be, or next of kin, or both, in
the discretion of the court, or to such person as such surviving husband or wife, or
next of kin, requests to have appointed, if competent and willing to serve;
(b) If such surviving husband or wife, as the case may be, or next of kin, or the person
selected by them, be incompetent or unwilling, or if the husband or widow, or next of
kin, neglects for thirty (30) days after the death of the person to apply for
administration or to request that administration be granted to some other person, it
may be granted to one or more of the principal creditors, if may be granted to one or
45
more of the principal creditors, if competent and willing to serve;
(c) If there is no such creditor competent and willing to serve, it may be granted to
such other person as the court may select. (Sec. 6, Rule 78 of the ROC)
Deeds of Absolute Sale
In accordance with the Last Will and Testament of the client, he allocated other real
properties to subject to sale in order to immediately satisfy the inheritance of his heirs. The
Deed of Absolute Sale is used in many real estate sales. A deed is a document that states that
one party is transferring his real estate property rights to another. The deed proves the
transfer, but, if properly recorded with the Registry of Deeds of the place where the property
is situated, it serves to give other prospective purchasers notice that all of the seller's rights in
the property have now passed on to another party. An "absolute sale" deed is defined by
having no conditions attached to the sale except the buyer's payment of the purchase price.
When the seller signs and delivers the absolute sale deed, this is generally recognized by law
as the moment of sale. To be valid, an absolute sale deed must clearly describe the property
being transferred, either by address or other distinguishing information. The deed must also
clearly identify the seller and purchaser, the date on which the transfer becomes legally
effective and pertinent information such as the purchase price.
Accomplished BIR Form No. 1801 or Estate Tax Return

In all cases of transfers subject to the tax imposed herein, or regardless of the gross value of
the estate, where the said estate consists of registered or registrable property such as real
property, motor vehicle, shares of stock or other similar property for which a Certificate
Authorizing Registration from the Bureau of Internal Revenue is required as a condition
precedent for the transfer of ownership thereof in the name of the transferee, the executor, or
the administrator, or any of the legal heirs, as the case may be, shall file a return under oath.
Estate tax returns showing a gross value exceeding Five million pesos (P5, 000,000) shall be
supported with a statement duly certified to by a certified Public Accountant containing the
following:
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1.Itemized assets of the decedent with their corresponding gross value at the time of his
death, or in the case of a nonresident, not a citizen of the Philippines, of that part of his gross
estate situated in the Philippines;
2. Itemized deductions from gross estate allowed in Section 86; and
3. The amount of tax due whether paid or still due and outstanding.
For purposes of determining the estate tax, the estate tax return shall be filed within one (1)
year from the decedent’s death. The Court approving the project of partition shall furnish the
Commissioner with a certified copy thereof and its order within thirty (30) days after
promulgation of such order.
Living Will
The client resorted to execute a Living Will. It allows the client to designate a health care
agent to make medical decisions for him if, for any reason, he is unable to make them for
himself. It can also be used to designate someone to serve as his guardian or conservator in
the event a court determines that he has become mentally incapacitated. A living will
contains a written set of instructions to the client’s physician as to whether or not he wants to
receive life-sustaining procedures if he has been diagnosed with a terminal condition, end-
stage condition, or is in a persistent vegetative state. It also gives guidelines for his family
members to follow if he shall become terminally ill.
IV. D. Liquidation and Charges
Liquidation means determination of all the assets of the estate and payment of all the debts
and expenses. Thereafter, distribution is made of the decedent's liquidated estate among the
persons entitled to succeed him. The proceeding is in the nature of an action of partition, in
which each party is required to bring into the mass whatever community property he has in
47
his possession. To this end, and as a necessary corollary, the interested parties may introduce
proofs relative to the ownership of the properties in dispute. All the heirs who take part in the
distribution of the decedent's estate are before the court, and subject to the jurisdiction
thereof, in all matters and incidents necessary to the complete settlement of such estate, so
long as no interests of third parties are affected.
The determination of the exclusive properties of the client is necessary in order to properly
deduct the conjugal share of the spouse since such capital properties or exclusive properties
of the husband shall not form part of the conjugal shares of the wife. As a necessary
consequence, the amount that is to be subjected to the computation of the legitime of the
heirs of the client consists only of the exclusive property of the client and his conjugal share
in the community. As to the process of the settlement, pursuant to Section 3, Rule 73 of the
Rules of Court, when the marriage is dissolved by the death of the husband or wife, the
community property shall be inventoried, administered, and liquidated, and the debts thereof
paid, in the testate or intestate proceedings of the deceased spouse.
As explained under Chapter III.B of this paper, the client and his spouse did not execute any
marriage settlement and contracted their marriage after the effectivity of the Family Code
hence the property regime governing the marriage is the absolute community. Thus, the
applicable provision under the Civil Code is Article 102, as to wit:
Article 102. Upon dissolution of the absolute community regime, the following
procedure shall apply:
1. An inventory shall be prepared, listing separately all the properties of

the absolute community and the exclusive properties of each spouse.
2. The debts and obligations of the absolute community shall be paid out
of its assets. In case of insufficiency of said assets, the spouses shall be
solidarily liable for the unpaid balance with their separate properties in
accordance with the provisions of the second paragraph of Article 94.
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3. Whatever remains of the exclusive properties of the spouses shall
thereafter be delivered to each of them.
4. The net remainder of the properties of the absolute community shall

constitute its net assets, which shall be divided equally between husband
and wife, unless a different proportion or division was agreed upon in the
marriage settlements, or unless there has been a voluntary waiver of such
share provided in this Code. For purpose of computing the net profits
subject to forfeiture in accordance with Articles 43, No. (2) and 63, No.
(2), the said profits shall be the increase in value between the market value
of the community property at the time of the celebration of the marriage
and the market value at the time of its dissolution.
5. The presumptive legitimes of the common children shall be delivered

upon partition, in accordance with Article 51.
6. Unless otherwise agreed upon by the parties, in the partition of the

properties, the conjugal dwelling and the lot on which it is situated shall be
adjudicated to the spouse with whom the majority of the common children
choose to remain. Children below the age of seven years are deemed to
have chosen the mother, unless the court has decided otherwise. In case
there in no such majority, the court shall decide, taking into consideration
the best interests of said children.
Firstly, the law requires that there must be a separate list of the properties of the community
and the exclusive properties of each spouse.
This is for the purpose of determining the proper subjects of the net hereditary estate, for the
49
settlement of all the debts and obligations of either the community or of the spouses.
Secondly, the absolute community shall be liable for the debts and obligations of it during the
liquidation of the properties. The exclusive properties of each spouse shall not be subjected
to the satisfaction of such obligations unless otherwise the properties of the community are
insufficient to cover the debt.
In such case, the spouses shall be held solidarily liable or personally accountable to satisfy
the debt even to the extent of their own exclusive properties.
Thirdly, after the settlement of all the debts and charges of the community, and in the event
there is a remainder in the exclusive properties of the spouses, such shall be delivered unto
each of them.
Fourthly, if in the event the properties of the community is even more than sufficient to settle
the debts and obligations of the community, and thus results to remainders, the same shall be
divided equally between the spouses.
Fifthly, upon partition, the presumptive legitimes of their common children shall be given.
The Family Code further mandates that judgment on the nullity of the marriage and the
delivery of the presumptive legitimes shall be recorded in the civil registry and the Register
of Deeds, otherwise it shall not affect third persons. To make sure that these requirements are
complied with, the Family Code further provides in Article 53 that a subsequent marriage is
null and void if the judgment on annulment and the delivery of presumptive legitimes are not
recorded with the civil registry and the Register of Deeds.
Lastly, in the partition of the properties, the conjugal dwelling and the lot in which it is
situated shall be adjudicated to the spouse with whom the majority of the common children
choose to remain, unless otherwise agreed upon by the parties. If the children are below the
age of seven (7) years of age he is deemed to have chose his mother unless otherwise decided
by the court.
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In the event that there is no such majority of choices, the court shall decide, taking into
consideration the interests of the children.
As to when the liquidation of the properties shall be made, the applicable provision of
law is Article 103 of the Civil Code, which provides:
Article 103. Upon the termination of the marriage by death, the community
property shall be liquidated in the same proceeding for the settlement of the
estate of the deceased.If no judicial settlement proceeding is instituted, the
surviving spouse shall liquidate the community property either judicially or
extra-judicially within six months from the death of the deceased spouse. If
upon the lapse of the six months period, no liquidation is made, any disposition
or encumbrance involving the community property of the terminated marriage
shall be void. Should the surviving spouse contract a subsequent marriage
without compliance with the foregoing requirements, a mandatory regime of
complete separation of property shall govern the property relations of the
subsequent marriage.
The provision contemplates are marriage terminated by reason of death of either spouse. The
law requires that the community property shall be liquidated in the same proceeding for the
purpose of settling the estate of the deceased. Again, this is in line with the necessity to first
determine the exclusive properties of the deceased. If no judicial settlement is attained, it is
the obligation of the surviving spouse to liquidate the community property either judicially or
extra-judicially within the period of six months after the death of the decedent. If the spouse
failed to do so within such period of time, any disposition or encumbrance involving
community properties is considered void. And in the event the surviving spouse remarried
without compliance to the requirement, the law imposed a mandatory property regime of
complete separation of property to govern such subsequent marriage. This is for the
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protection of the children of the former marriage who are entitled to receive their shares in
the community property. It must be noted that the failure of the surviving spouse to liquidate
the community property shall not result to any defect on the subsequent marriage hence the
validity of such marriage cannot be circuitously argued in order to avoid the requirement of
liquidation.
law depending as to the composition of the compulsory heirs. This amount represents the
exclusive properties of the client and his share in the community properties. The computed
Net Hereditary Estate under the provisions of the TRAIN law is Fifty Four Million One
Hundred Twenty Four Thousand Seven Hundred Eighty (P54, 124, 780.00) Philippine
currency. The client opted to liquidate and distribute the estate in the following manner:
Distribution of the Legitime. The first property to be liquidated is the family home. The
client desires an equal distribution of the value of the property among all of the compulsory
heirs. It is clear then that the property, before the same is partitioned, is owned in common
by the compulsory heirs. Thus, co-ownership is created. According to the law on co-
ownership, each of the co-owners may at any time demand partition of the thing owned in
common. Likewise, the co-owners may agree that the thing owned in common shall remain
undivided for a certain period of time.
a. The house and lot is situated at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City
currently valued at P20, 000,000.00. There are four compulsory heirs.
LEGITIME SHARE IN THE PROPERTY BALANCE
SPOUSE P 9, 020, 796 P 5, 000, 000 P 4, 020, 796
1st CHILD P 8, 735, 796 P 5, 000, 000 P 3, 735, 796
2nd CHILD P 7, 520, 796 P 5, 000, 000 P 2, 520, 796
3rd CHILD P 9, 020, 796 P 5, 000, 000 P 4, 020, 796
52
b. A certain land situated in the municipality of Taytay, Rizal shall go to spouse of the
client. The property is currently valued at P4, 000, 000.00. The client has decided to bequeath
this portion of the estate to his spouse, subject to no conditions, because it was their first
family home prior to permanently settling down in Pasig City and holds a number of their
properties. His spouse, according to the client’s wishes, has the right to make use or dispose
of the said property in whichever way she pleases during her lifetime.
SPOUSE P 9, 020, 796 P 4, 000, 000 P 20, 796
c. The collection of telescopes valued at the amount of P 1, 300, 000 is willed to be

bequeathed to the subject’s first child who has taken after her father’s love for astronomy,
more so than her two siblings. This bequeathal is subject to the condition that she will not
sell, barter, exchange or dispose of this collection in any way during her lifetime. She may,
however, use it for purposes of public telescope viewings and other similar activities.
1st CHILD P 8, 735, 796 P 1, 300, 000 P 2, 435, 796
d. The client opted to give his collection of several sculptures by National Artists valued
at the amount of P1, 094, 000.00 to his second child. It is the client’s wish that his only son
should be the one to make sure that this collection stands the test of time, being one of the
greater investments of their family. The second child may choose to dispose of the sculptures
through sale, exchange or donation. Provided, that such donation shall only be done in favor
of a reputable person or institution. Provided further, that at least 30% of the sculptures
remain with him throughout his lifetime.
2nd CHILD P 7, 520, 796 P 1, 094, 000 P 1, 426, 796
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e. The client wishes to give his collection of several paintings by National Artists valued
at P 1, 960,000.00 to his youngest daughter who has always loved and adored this collection,
being an artist-in-the-making herself. This is subject to the same conditions as those imposed
on the second child with regard to the collection of sculptures, namely: the youngest child
may choose to dispose of the sculptures through sale, exchange or donation.
Provided, that such donation shall only be done in favor of a reputable person or institution.
Provided further, that at least 30% of the paintings remain with her throughout her lifetime.
3rd CHILD P 9, 020, 796 P 1, 960, 000 P 2, 060, 796
f. A condominium at Hampton Gardens valued P2, 030, 000.00 is also given to the first
child. It is the client’s wish that his daughter be able to use this condominium unit for her
personal use until such time as she is capable of purchasing her own house and even while
she already has her own house or continue leasing the said unit to tenants. This is subject to
the condition that, should she choose the latter, 35% of the fruits of the lease shall go to her
mother, the client’s spouse.
1st CHILD P 8, 735, 796 P 2, 030, 000 P 405, 796
g. The client opted to sell the condominium parking unit valued P600, 000.00 and the
proceeds shall be given to his second child. He may use the parking unit for his personal use
or lease it to tenants or condominium owners who have no means of purchasing their own
parking units. This is subject to no conditions.
2nd CHILD P 7, 520, 796 P 600, 000 P 826, 796
h. The condominium unit in Sorrento Oasis valued P1, 900,000.00 shall be given to the
54
third child of the client. This is bequeathed to her for the same reasons as those for giving the
first child a condominium unit, particularly: that his daughter be able to use this
condominium unit for her personal use until such time as she is capable of purchasing her
own house and even while she already has her own house or continue leasing the said unit to
tenants.
This is subject to the condition that, should she choose the latter, 35% of the fruits of the
lease shall go to her mother, the client’s spouse.
3rd CHILD P 9, 020, 796 P 1, 900, 000 P 160, 796
i. The remaining legitime of the compulsory heirs at the total amount of P 1, 414, 184
shall be paid by the proceeds of the sale of a certain land situated in Brgy. San Juan Roque,
Angono, Rizal valued P2, 500, 000.00. This will result to an excess amount of P 1, 085, 816
which shall form part of the free dispositive portion.
Devices and Legacies. The client instituted his wife and his two sisters as devisees and
legatees. After the satisfaction of the legitime of the compulsory heirs, the following devices
and legacies shall be bequeathed and devised, respectively, to the following:
j. A Toyota Rav 4 at the value of P1, 800, 000.00 shall go to the spouse of the client. The
client deems it unnecessary to give this car to any of his 3 children as he believes that they
will be able to purchase their own cars once they are already practicing their chosen
professions. The spouse may use or dispose of the said car in whichever manner she desires.
k. A condominium at BERKSHIRE TOWER I valued at P1, 950,000.00 is devised to the

sister of the client, Christina. Although the latter rarely visits the Philippines, a condominium
unit would prove beneficial and economical for her rather than checking into a hotel (which
has been a practice of hers every time she visits). Should the client’s sister die before him,
given the current state of her health, the condominium unit shall go to his first child.
55
l. A condominium unit in Hampton Gardens valued P2,140,000.00 is devised to the sister
of the client, Cecilia. The latter, which is the client’s youngest sister, is a frequent visitor,
flying from New Jersey to the Philippines once every two years (and sometimes even once a
year). The client’s sister may use this condominium unit whenever she is in the country and
may dispose of the same should she wish to do.
Distribution of Free Dispositive Portion. It is the will of the client that after the satisfaction
of the legitime of the compulsory heirs and the bequeathal of the devices and legacies, the
remaining properties valued at the total amount of P 13, 936, 596 shall be equally distributed
to the abovementioned voluntary heirs entitling each to the amount of P 4, 645, 532, in the
following manner and subject to the following conditions:
m. The private library and the books therein valued P2, 300,000.00 to the spouse of the
client. It has always been a dream of the client’s spouse to convert their collection of books
into a small library/museum of sorts. The client believes that no one else will be able to better
take care of his most prized books other than his beloved wife as she has always been the one
to maintain and organize this large collection. This is subject to no conditions as the client
knows that he and his wife share the same outlook when it comes to books.
SHARE IN THE FREE PORTION SHARE IN THE PROPERTY BALANCE

SPOUSE P 4, 645, 532 P2, 300, 000 P 2, 345, 532
n. A parcel of Land in Jalajala, Rizal valued P4, 000,000.00 to his sister Christina. Should
the client’s sister die before him, given the current state of her health, the condominium unit
shall go to his first child

CHRISTINA P 4, 645, 532 P 4, 000, 000 P 645, 532
o. A parcel of Land in Binangonan, Rizal valued P4, 300,000.00 to his sister Cecilia.She
may make use or dispose of said property in whichever manner she pleases, subject to the
56
condition that shehas to stop smoking, otherwise, the property shall go to the client’s three
children and shall be divided between them equally.

CECILIA P 4, 645, 532 P 4, 300, 000 P 345, 532
p. A Mazda 3 valued P2, 250, 780.00 to be used for personal transportation shall be given
to the spouse of the client. Provided, in case the client’s spouse has not yet learned to drive
by the time said car has been bequeathed to her, she is ordered to sell it to any person who is
not a relative by consanguinity up to the 5th degree.

SPOUSE P 4, 645, 532 P 2, 250, 780 P 94, 752
q. The remaining unpaid shares of the voluntary heirs shall be satisfied by the excess cash
proceeds of the sale of a certain land situated in Brgy. San Juan Roque, Angono, Rizal which
is in the amount of P 1, 085, 816.
CASH PROCEED BALANCE

P 1, 085, 816 P 94, 752 (-) Spouse
-P 991, 064 P 645, 532 (-) Christina
-P 345, 532 P 345, 532 (-) Cecilia
0.
SUMMARY OF THE LIQUIDATION OF PROPERTIES
P54, 124, 780.00 (net hereditary estate) P34, 298, 184.00 (legitime)
-P19, 826, 596.00 (free dispositive portion) P 5, 890, 000.00 (legacies and devises)
-P13, 936,596.00 P 4, 645, 532.00 (share of
Chrysanthemum)
-P 9, 291, 064.00 P 4, 645, 532.00 (share of Cecilia)
-P 4, 645, 532.00 P 4, 645, 532.00 (share of Christina)
0.
57
IV. E. Administrator/Executor
An Administrator or an Executor may be appointed whose responsibility will be that of

carrying out the wishes of the testator. The appointment of such is necessary when the
decedent, upon his death has outstanding obligations and for the management of the expenses
of administration, thus;
The administrator has the duty of administering, settling, and closing the administration
without delay. (Wilson v. Rear, 70 Phil. 251). Of course, he should determine what properties
must belong to the estate, and must bring the needed actions for their recovery if they be in
the possession of others. Within three months after his appointment, he must submit an
inventory and appraisal of the decedent’s real and personal property. Within a year from his
appointment, he must render proper accounting. (Rule 85, Sec. 8, Rules of Court).
The executor or administrator shall have the right to take possession of the properties of the
deceased so long as it is necessary for the payment of the debt and expenses of
administration. Where there are no debts to be paid, the estate should pass to the heirs.
(Layogue, et al. v. Perez de Ulgaoan, L-13666, Oct. 31, 1960).
Generally, it is the executor or administrator who is primarily liable for attorney’s fees due
the lawyer who rendered legal services for the executor or administrator this is in relation to
the settlement of the estate, and where the executor or administrator may seek reimbursement
from the estate for the sums paid in attorney’s fees if it can be shown that the services of the
lawyer redounded to the benefit of the estate. (Salonga Hernandez & Allado v. Pascual, 488
SCRA 449 [2006]).
Article 881 provides that the law to be applied as regards the appointment of the
administrators and executors are the Rules of Court, particularly Rules 78 to 90 thereof;
Art. 881. The appointment of the administrator of the estate mentioned in the
preceding article, as well as the manner of the administration and the rights
and obligations of the administrator shall be governed by the Rules of Court.
58
As a summary of the rules provided for the appointment of administrators and executors, the
Rules of Court give the guidelines as to whom such duty may be placed, giving the
qualifications an appointee may and may not possess for the validity of his appointment.
Rule 78 governs on letters testamentary and of administration, when and to whom issued,
Rule 79 speaks of opposing issuance of letters testamentary and petition and contest for
letters of administration. Rule 80 lays down the rules as to special administrators. Bonds of
executors and administrators are tackled by Rule 81 and the revocation of administration,
death, resignation, and removal of executors and administrators are discussed in Rule 82.
Rule 78 of the Rules of Court lays down the list of persons deemed incompetent to serve as
executors or administrators:
Sec. 1. Who are incompetent to serve as executors or administrators. - No person is

competent to serve as executor or administrator who:
(a) Is a minor;
(b) Is not a resident of the Philippines; and
(c) Is in the opinion of the court unfit to execute the duties of the trust by reason of
drunkenness, improvidence, or want of understanding or integrity, or by reason of conviction
of an offense involving moral turpitude.
Note the difference between an executor and administrator is that the former is appointed by
the testator expressly in the will and the latter is appointed by the court in the absence or the
incapacity of the former and thus according to Sec. 6 of Rule 78 of the Rules of Court:
Sec. 6. When and to whom letters of administration granted. - If no executor is named in the
will, or the executor or executors are incompetent, refuse the trust, or fail to give
bond, or a person dies intestate, administration shall be granted:
(a) To the surviving husband or wife, as the case may be, or next of kin, or both, in the
discretion of the court, or to such person as such surviving husband or wife, or next
of kin, requests to have appointed, if competent and willing to serve;
(b)
59
(b) If such surviving husband or wife, as the case may be, or next of kin, or the person
selected by them, be incompetent or unwilling, or if the husband or widow, or next of
kin, neglects for thirty (30) days after the death of the person to apply for
administration or to request that administration be granted to some other person, it
may be granted to one or more of the principal creditors, if competent and willing to
serve;
(c) If there is no such creditor competent and willing to serve, it may be granted to such
other person as the court may select.
As regards our client, he desires to appoint his eldest and first daughter, Isabelle Natasha D.
Torres to be his executor. This shall be expressly provided for in the will and before the
appointee may be issued the Letter of Administration and act as the appointed executor she
must first comply with Rule 81 thus;
RULE 81. BONDS OF EXECUTORS AND ADMINISTRATORS
Sec. 1. Bond to be given before issuance of letters; Amount; Conditions. - Before an executor
or administrator enters upon the execution of his trust, and letters testamentary or of
administration issue, he shall give a bond, in such sum as the court directs, conditioned as
follows:
(a) To make and return to the court, within three (3) months, a true and complete inventory
of all goods, chattels, rights, credits, and estate of the deceased which shall come to his
possession or knowledge or to the possession of any other person for him;
(b) To administer according to these rules, and, if an executor, according to the will of the
testator, all goods, chattels, rights, credits, and estate which shall at any time come to his
possession or to the possession of any other person for him, and from the proceeds to pay
and discharge all debts, legacies, and charges on the same, or such dividends thereon as
shall be decreed by the court;
(c) To render a true and just account of his administration to the court within one (1) year,
and at any other time when required by the court;
(d) To perform all orders of the court by him to be performed.
Thus it is essential for Ms. Isabelle Natasha D. Torres as our client’s appointed executor to
give a bond as the court directs, conditioned on that after the duration of three months, she
must possess a complete inventory of estate of the deceased, to administer such estate to pay
off any debts, legacies and charges decreed by court, to have an account of the administration
within one year and within anytime the court requires and to perform all orders given.
60
Chapter V. Summary, Recommendations, Conclusions
Based on the foregoing, it can be surmised that the team's herein client, Dr. Torres, has
accumulated numerous properties thus far, and there is an ascertainment that he will continue
to expand his estate in the coming years. It is thus very timely that Dr. Torres has decided to
create an Estate Plan, in that he is now made aware that there is a need for him to manage all
his assets before he passes in order to make sure that everything will go according to his
plans and wishes.
The team's recommendation would be to have the client execute a will, defined in Art. 783 of
the New Civil Code as an act whereby a person is permitted, with the formalities prescribed
by law, to control to a certain degree the disposition of his estate, to take effect after his
death. A will may either be holographic or notarial, the difference between the two being its
form. Although both types of will have basically the same effect, which is the proper
disposition of the testator's assets after his death, it is noteworthy that the law is more strict
when it comes to the formalities in a notarial will, the rules of which is provided in the same
code, viz:
“Article 805. Every will, other than a holographic will, must be

subscribed at the end thereof by the testator himself or by the
testator’s name written by some other person in his presence, and
by his express direction, and attested and subscribed by three or more
credible witnesses in the presence of the testator and of one another.
The testator or the person requested by him to write his name and the
instrumental witnesses of the will, shall also sign, as aforesaid,
each and every page thereof, except the last, on the left margin, and
all the pages shall be numbered correlatively in letters placed on the
upper part of each page.
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The attestation shall state the number of pages used upon which the will
is written, and the fact that the testator signed the will and every
page thereof, or caused some other person to write his name, under his
express direction, in the presence of the instrumental witnesses, and that
the latter witnessed and signed the will and all the pages thereof in the
presence of the testator and of one another. If the attestation
clause is in a language not known to the witnesses, it shall be
interpreted to them.”
“Article 806. Every will must be acknowledged before a notary public

by the testator and the witnesses. The notary public shall not be
required to retain a copy of the will, or file another with the office
of the Clerk of Court.”
On the other hand, holographic wills need only be entirely hand-written, dated and signed by
the testator. The same code provides that the execution of a holographic will shall not be
subjected to any form inasmuch as it complies with the said requirement. This is provided for
in Art. 810, to wit:
“Article 810. A person may execute a holographic will which must be

entirely written, dated, and signed by the hand of the testator
himself. It is subject to no other form, and may be made in or out of the
Philippines and need not be witnessed.”
That said, the team highly recommends that Dr. Torres execute a notarial will, specifically,
with the expert assistance of a lawyer in the said field. This is for the reason that a notarial
will may be more beneficial to Dr. Torres in a way that he will be well-advised of the options
available to him and the legal implications of his decisions in the disposition of his estate.
Also, it is advised that expert services be required in order to make the process easy and
smooth, come the time for probate.
62
Further, the team recommends that Dr. Torres hire a lawyer review and update the herein
Estate Plan every few years to make sure that the same is still the perfect plan for the client
and his family. Although it may be the best plan for the client at this point in time, it may not
be so in a few years or even a few months. The team recognizes the inevitability of certain
things happening which will have a direct impact on the current Estate Plan such as addition
to children, buying or selling properties or businesses, retirement, deciding to move to
another country, the change in taxes, and many other possibilities.
All of these things may factor into the changes in the circumstances that this Estate Plan is
based on, and the need to update the Estate Plan to make sure it will work properly when
needed will definitely arise as the years go by. Thus, the herein recommendation to review
and update the estate plan every few years, or on a more frequent basis.
These recommendations are specifically tailored to fit the needs of Dr. Torres and are shared
by the group with the client's best interests in mind. It is a given that many people are
disinterested or intimidated when it comes to creating an Estate Plan, and even more so in
executing a will, because it deals with the issue of mortality. However, the team recognizes
the rising need for people, especially Filipinos, to be more open to these things because the
need for the same will certainly arise at some point.
Therefore, the team concludes that although it may be a sensitive topic for most, the issue on
Estate Planning and figuring out the disposition of one's assets is a must, not just for elderlies
but also for younger people, as soon as they acquire properties that they want to be protected.
Dr. Torres, in agreeing to make an Estate Plan and in deciding to follow the
recommendations herein, made the right decision and will effectively protect his estate and
loved ones in the future.
63
Appendix A
LAST WILL AND TESTAMENT OF JESUS RODRIGO F. TORRES
KNOW ALL MEN BY THESE PRESENTS:
I, JESUS RODRIGO F. TORRES, of legal age, married and now actually residing at 359 Dr.
Sixto Antonio Ave., Caniogan, Pasig City, being of sound and disposing mind and memory, and
not acting under influence, violence, fraud or intimidation of whatever kind, declare this to be
my Last Will and Testament which I have caused to be written in English, the language which is
known to me. And I hereby declare that should time come that I shall die:
I.
I hereby designate my daughter Isabelle Natasha D. Torres as the executor and administrator of
this Last Will and Testament, and in his incapacity, I name and Christina Torres- Cabell as her
substitute. I hereby direct that the executor and administrator of this Last Will and Testament or
his substitute need not present any bond for the faithful performance of his duties as executor.
II.
I direct that all my just debts, secured and unsecured, be paid as soon as reasonable after my
death, provided, however, I direct that my executor may cause any debt to be carried, renewed
and refinanced for its repayment as my executor may deem advisable taking into consideration
the best interest of the beneficiaries hereunder.
III.
I give and bequeath to my beloved and cherished wife, CHRYSANTHEMUM TORRES, the
following properties:
a. A share as a co-owner of the house and lot situated at 359 Dr. Sixto Antonio Ave., Caniogan,
Pasig City at the value of P 5, 000, 000. It is my desire that there is an equal distribution of the
value of the property among all of the compulsory heirs.
64
b. A certain land situated in the municipality of Taytay, Rizal that currently has a fair market
value at P4, 000, 000.00. The client has decided to bequeath this portion of the estate to his
spouse, subject to no conditions, because it was their first family home prior to permanently
settling down in Pasig City and holds a number of their properties. His spouse, according to the
client’s wishes, has the right to make use or dispose of the said property in whichever way she
pleases during her lifetime.
c. A share from the cash proceeds of the sale of a certain land situated in Brgy. San Juan Roque,
Angono, Rizal valued P2, 500, 000.00, in the amount of P 115, 548.
d. The private library and the books therein valued P2, 300,000.00 because it has always been a
dream of my wife to convert their collection of books into a small library/museum of sorts. I
believe that no one else will be able to better take care of my most prized books other than my
beloved wife as she has always been the one to maintain and organize this large collection. This
is subject to no conditions as I know that I and my wife share the same outlook when it comes to
books.
e. A Mazda 3 valued P2, 250, 780.00 to be used for personal transportation shall be given to my
spouse. Provided, in case she has not yet learned to drive by the time said car has been
bequeathed to her, she is ordered to sell it to any person who is not a relative by consanguinity up
to the 5th degree and apply the proceeds for the maintenance and preservation of the family
home.
f. I hereby order my wife to take ownership of the Toyota Rav 4 with a current fair market value
of P1, 800, 000 and to procure a buyer and negotiate the sale, on a first come first
served basis and thereafter apply the cash proceeds for the payment of the computed estate tax at
the amount of P 1, 034, 220.00. She shall receive any excess amount from the proceeds of the
sale and be accountable for any deficit, in the event the proceeds of the sale are insufficient.
65
IV.
I give and bequeath to my first born, my daughter, ISABELLE NATASHA D. TORRES, the
following:
b. The collection of telescopes valued at the amount of P 1, 300, 000 because I know that she has
taken after my love for astronomy, more so than her two siblings. This bequeathal is subject to
the condition that she will not sell, barter, exchange or dispose of this collection in any way
during her lifetime. She may, however, use it for purposes of public telescope viewings and other
similar activities.
c. A condominium at Hampton Gardens valued P2, 030, 000.00 so that she will be able to use
this condominium unit for her personal use until such time as she is capable of purchasing her
own house and even while she already has her own house or continues leasing the said unit to
tenants. This is subject to the condition that, should she choose the latter, 35% of the fruits of the
lease shall go to her mother, the client’s spouse.
d. A share from the cash proceeds of the sale of a certain land situated in Brgy. San Juan Roque,
V.
I give and bequeath to my second born, my son, JESUS GAMALIEL JOSE D. TORRES, the
following:
66
b. My collection of several sculptures by National Artists valued at the amount of P1, 094,
000.00. It is the my wish that my only son should be the one to make sure that this collection
stands the test of time, being one of the greater investments of my family. The second child may
choose to dispose of the sculptures through sale, exchange or donation. Provided, that such
donation shall only be done in favor of a reputable person or institution. Provided further, that at
least 30% of the sculptures remain with him throughout his lifetime.
c. The cash proceeds of the sale of a condominium parking unit valued P600, 000.00. Prior to the
sale of the property, he may use the parking unit for his personal use or lease it to tenants or
condominium owners who have no means of purchasing their own parking units. This is subject
to no conditions.
VI.
I give and bequeath to my third and youngest, my daughter, CLARA MARIA AMARANTA D.
TORRES, the following:
b. My collection of several paintings by National Artists valued at P 1, 960,000.00 because my

youngest daughter has always loved and adored this collection, being an artist-in-the-making
herself. This is subject to the same conditions as those imposed on the second child with regard
to the collection of sculptures, namely: the youngest child may choose to dispose of the
sculptures through sale, exchange or donation. Provided, that such donation shall only be done in
favor of a reputable person or institution. Provided further, that at least 30% of the paintings
remain with her throughout her lifetime.
67
c. The condominium unit in Sorrento Oasis valued P1, 900,000.00 for the same reasons as those
for giving the first child a condominium unit, particularly: that his daughter be able to use this
condominium unit for her personal use until such time as she is capable of purchasing her own
house and even while she already has her own house or continue leasing the said unit to tenants.
This is subject to the condition that, should she choose the latter, 35% of the fruits of the lease
shall go to her mother, the client’s spouse.
VII.
I bequeath and device to my sister, CHRISTINA TORRES-CABELL, the following:
a. A condominium at BERKSHIRE TOWER I valued at P1, 950,000.00. Although she rarely

visits the Philippines, a condominium unit would prove beneficial and economical for her rather
than checking into a hotel (which has been a practice of hers every time she visits). Should my
sister die before me, given the current state of her health, the condominium unit shall be
subjected to sale and the proceeds be equally divided to my three children.
b. A parcel of Land in Jalajala, Rizal valued P4, 000,000.00. Should my sister die before me,
given the current state of her health, the condominium unit shall be subjected to sale and the
proceeds be equally divided to my three children.
Angono, Rizal valued P2, 500, 000.00, in the amount of P645, 532.00.
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VIII.
I give and bequeath to my sister, CECILIA BERNADETTE TORRES-RUBIO, the following;
a. A condominium unit in Hampton Gardens valued P2,140,000.00. Cecilia, who is my youngest

sister, is a frequent visitor, flying from New Jersey to the Philippines once every two years (and
sometimes even once a year). My sister may use this condominium unit whenever she is in the
country and may dispose of the same should she wish to do. Should my sister die before me,
given the current state of her health, the condominium unit shall be subjected to sale and the
proceeds be equally divided to my three children.
b. A parcel of Land in Binangonan, Rizal valued P4, 300,000.00. She may make use or dispose
of said property in whichever manner she pleases, subject to the condition that she has to stop
smoking, otherwise, the property shall go to the client’s three children and shall be divided
between them equally.
Angono, Rizal valued P2, 500, 000.00, in the amount of P345, 532.00.
IX.
In the event I shall die as the sole parent of my minor child, then I appoint as Guardian of my
child CECILIA BERNADETTE TORRES-RUBIO. If this named Guardian is unable or
unwilling to serve, then I appoint CHRISTINA TORRES-CABELL as alternate Guardian.
X.
In the event that my spouse shall die simultaneously with me or there is no direct evidence to
establish that my wife and I died other than simultaneously, I direct that I shall be deemed to
have survived my wife notwithstanding any provision of law to the contrary, and that the
provisions of my Will shall be construed on such presumption.
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XI.
I hereby revoke, set aside and annul any and all of my other will and codicils heretofore made,
executed, signed or published jointly or severally by me preceding this Last Will and Testament.
IN WITNESS WHEREOF, I have set my hand this 10th day of January 2019, in Pasig City.
JESUS RODRIGO F. TORRES
Testator
ATTESTATION CLAUSE
WE, the undersigned witnesses, whose residences are stated opposite our respective names, do
hereby certify that: the testator, JESUS RODRIGO F. TORRES has published unto us the
foregoing will consisting of seven (7) pages numbered correlatively in letters on the upper part of
each page, as his last will and testament and has signed the same and every page thereof, on the
left margin, in our joint presence and we, in turn, at her request have witnessed and signed the
same and every page thereof, on the left margin, in the presence of the testator and in the
presence of each other.
NAMES OF WITNESSES ADDRESS
1. Maricar Grace M. Velasco Block 91A, Matalino St, Quezon City
2. Theresa Andrea R. Lacson Lot 72, Mckinley Lane, Quezon City
3. Coleen Joyce Q. Bautista 12 Animo, Brgy. Unlad, Quezon City
70
ACKNOWLEDGMENT
BEFORE ME, Notary Public for and in Quezon City on 29th of September, 2018 personally
appeared:
Name ID No. Date of Issuance

1. Jesus Rodrigo F. Torres UMID CRN 01234 2345678-0 08-19-2017
2. Maricar Grace M. Velasco TIN ID No. 342-547-431-000 12-16-2016
3. Therese Andrea R. Lacson SSS ID No. 02-5742683-01 05-13-2017
4. Coleen Joyce Q. Baustista Philhealth ID No. 4637-1246-7842 09-21-2017
all known to me to be the same persons who executed the foregoing Will, the first as testator and
the last three as instrumental witnesses, and they respectively acknowledged to me that the same
as their own free act and deed. This Last Will and Testament consists of seven (7) pages,
including the page on which this acknowledgment is written, and has been signed on the left
margin of each and every page thereof by the testator and his witnesses, and sealed with my
notarial seal.
IN WITNESS WHEREOF, I have hereunto set my hand the day, year, and place above written.
Notary Public
Doc. No. 575;
Page No. 42;
Book No. XXI;
Series of 2018.
ATTY. Mary Jobeth E. Pallasigue
Notary Public
Until November 20, 2020
Serial No. of Commission: NP-022 (2018-19)
Place of Commission: Pasig City
Office Address No. Unit 7M, Scout Borromeo Panay Ave.
Roll of Attorney’s No. 85753
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
71
Appendix B
PETITION FOR PROBATE
COMES NOW THE PETITIONER, Isabelle Natasha D. Torres, through the undersigned counsel
and unto this Honorable Court most respectfully avers:
1. That the Petitioner is of legal age, single, Filipino and residing at 359 Dr. Sixto Antonio
Ave., Caniogan, Pasig City where she can be served with summons and other processes of
this Honorable Court;
2. That Petitioner is the executor named in the last will and testament of JESUS RODRIGO
F. TORRES, deceased, who died in ___________, at _______ hereto attached and
marked as Annex “A” of this petition is the death certificate;
3. That said JESUS RODRIGO F. TORRES executed and left said last will and testament in
accordance with the formalities of the Republic of the Philippines, said last will and
testament (duplicate original only) dated January 10, 2019 is hereto attached as Annex
“B” and made an integral part of this petition, the original thereof to be presented to this
Honorable Court at the time of the probate;
4. That the subscribing witnesses to said will are: MARICAR GRACE M. VELASCO, of
legal age, single, Filipino and a resident of Block 91A, Matalino St, Quezon City;
THERESA ANDREA R. LACSON, married, Filipino, and a resident of Lot 72, Mckinley
Lane, Quezon City; and COLEEN JOYCE Q. BAUTISTA, of legal age, single, Filipino
and a resident of 12 Animo, Brgy. Unlad, Quezon City
5. That the decedent is an inhabitant of the Philippines and a resident of 359 Dr. Sixto
Antonio Ave., Caniogan, Pasig City at the time of his death;
72
6. That the petitioner, Isabelle Natasha D. Torres, named in the will as executor thereof, be
allowed to serve and that Petitioner is legally qualified, competent, willing and ready to
accept the appointment as Executor of the last will and testament and hereby signifies her
willingness to serve and discharge her duties and responsibilities as such;
7. That the property left by the decedent consists of real and personal property, estimated to
have the gross value of FIFTY THREE MILLION THREE HUNDRED SEVENTY
FOUR THOUSAND PESOS (P53, 374, 000.00) Philippine currency;
8. That the testator, at the time of the execution of the said will, was ___________ years old,
of sound and disposing mind, and not acting under duress, fraud, or undue influence and
was in every respect capacitated to dispose of his estate by will.
9. That the decedent JESUS RODRIGO F. TORRES was survived by Isabelle Natasha D.
Torres who is the first born daughter of the client, single, of legal age, Filipino citizen;
Jesus Gamaliel Jose D. Torres who is the second child and the only son of the client, single,
of legal age, Filipino citizen; Clara Maria Amaranta D. Torres who is the youngest child of
the client, single, minor, Filipino citizen; and Chrysanthemum D. Torres who is the wife of
the client, also a Filipino Citizen, all residing at 359 Dr. Sixto Antonio Ave., Caniogan,
Pasig City where they can be served notices.
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PRAYER
Wherefore, premises considered, it is respectfully prayed upon this Honorable Court that
judgment be rendered declaring:
(a) That, upon proper notice, publication and hearing, the abovementioned will of
deceased JESUS RODRIGO F. TORRES be approved, allowed and admitted to
probate;
(b) That letters testamentary (or of administration) be issued to herein petitioner, upon
the giving of a bond in such reasonable sum as this Honorable Court may fix;
(c) That such other relief be granted as shall be deemed just and equitable in the
premises.
Quezon City, Philippines, January 15, 2019.

Counsel for Petitioner
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
74
VERIFICATION AND CERTIFICATION
I, Isabelle Natasha D. Torres, of legal age, after having been duly sworn in accordance with
law, depose and state that:
1. I am a petitioner in the above-stated case;
2. I caused the preparation of the foregoing petition;
3. I have read the contents thereof and the facts stated therein are true and correct of my personal
knowledge and/or on the basis of copies of documents and records in my possession;
4. I have not commenced any other action or proceeding involving the same issues in the
Supreme Court, the Court of Appeals, or any other tribunal or agency;
5. To the best of my knowledge and belief, no such action or proceeding is pending in the
6. If I should thereafter learn that a similar action or proceeding has been filed or is pending
before the Supreme Court, the Court of Appeals, or any other tribunal or agency, I undertake to
report that fact within five (5) days therefrom to this Honorable Court.
ISABELLE NATASHA D. TORRES
Affiant
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Appendix C:
PETITION FOR LETTERS OF ADMINISTRATION
COMES NOW THE PETITIONER, ISABELLE NATASHA D. TORRES, through the

undersigned counsel and unto this Honorable Court most respectfully avers:
1. That the Petitioner is of legal age, single, Filipino and resident of 359 Dr. Sixto Antonio
Ave., Caniogan, Pasig City, where she can be served with summons and other processes of
this Honorable Court;
2. That Petitioner is the executor named in the last will and testament of JESUS RODRIGO
F. TORRES, deceased, who died in ____________, on _______________________,
hereto attached and marked as Annex “A” of this petition is the death certificate;
3. That said JESUS RODRIGO F. TORRES executed and left said last will and testament
in accordance with the formalities of the Republic of the Philippines, said last will and
testament (duplicate original only) dated _________________ is hereto attached as Annex
“B” and made an integral part of this petition, the original thereof to be presented to this
Honorable Court at the time of the probate;
4. That the petitioner herein, as the named executor in the Last Will and Testament of the
deceased, on behalf of the heirs of the decedent, had on several occasions, requested to
make a settlement and liquidation of the estate left by said deceased, and to deliver to all
the legal heirs what is due to each and every one of them.
5. That your petitioner, as the executor of the last will and testament of the decedent is legally
qualified, competent, willing and ready to accept the appointment as Executor of the last
will and testament and hereby signifies her willingness to serve and discharge her duties
and responsibilities as such;
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PRAYER
Wherefore, premises considered, it is respectfully prayed upon this Honorable Court that
judgment be rendered declaring:
(a.) That, after due hearing, letters of administration be issued to herein petitioner
ISABELLE NATASHA D. TORRES for the administration of the estate of the
deceased JESUS RODRIGO F. TORRES;
(b.) That letters testamentary (or of administration) be issued to herein petitioner, upon
the giving of a bond in such reasonable sum as this Honorable Court may fix;
(c.) That after all property of the deceased have been inventoried and expenses and just
debts, if any, have been paid and the legal heirs of the deceased fully determined, that
that said estate of the decedent be settled and distributed among the legal heirs of
JESUS RODRIGO F. TORRES.
(d.) That such other remedies based on law and equity be granted to petitioner.
Quezon City, Philippines, January 15, 2019.

Counsel for Petitioner
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
77
VERIFICATION AND CERTIFICATION
I, ISABELLE NATASHA D. TORRES, of legal age, after having been duly sworn in
accordance with law, depose and state that:
1. I am a petitioner in the above-stated case;
2. I caused the preparation of the foregoing petition;
3. I have read the contents thereof and the facts stated therein are true and correct of my personal
knowledge and/or on the basis of copies of documents and records in my possession;
4. I have not commenced any other action or proceeding involving the same issues in the
5. To the best of my knowledge and belief, no such action or proceeding is pending in the
6. If I should thereafter learn that a similar action or proceeding has been filed or is pending
before the Supreme Court, the Court of Appeals, or any other tribunal or agency, I undertake to
report that fact within five (5) days therefrom to this Honorable Court.
__________________________________
Affiant
78
REPUBLIC OF THE PHILIPPINES)
Pasig City ) S.S.
SUBSCRIBED AND SWORN TO BEFORE ME, a Notary Public for and in Pasig City,
Philippines, Affiant on ____________________, exhibiting her UMID:
Name
Proof of Identity
UMID CRN 01234-2345678-0
known to me be the same person who executed the foregoing PETITION FOR LETTERS OF
ADMINISTRATION OF THE ESTATE OF JESUS RODRIGO F. TORRES, and she
acknowledged to me that the same is her own voluntary act and deed.
This instrument relates to PETITION FOR LETTERS OF

ADMINISTRATION OF THE ESTATE OF JESUS RODRIGO F. TORRES consisting of
four (4) pages including the page wherein this acknowledgment is written, duly signed by the
testator and the required witnesses.
WITNESS MY HAND AND SEAL.
Notary Public
Doc. No. 575;
Page No. 42;
Book No. XXI;
Series of 2018.
ATTY. Maricar Grace M. Velasco
Notary Public
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
79
Appendix D: Deeds of Absolute Sale
DEED OF ABSOLUTE SALE
That I, JESUS RODRIGO F. TORRES, of legal age, married and now actually residing
at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City is the lawful owner of A CERTAIN LAND
IN BRGY. SAN JUAN ROQUE, ANGONO, RIZAL which is more particularly described as
follows:
A PARCEL OF LAND (LOT 44, BLOCK 26, OF THE CONS.-SUBD. PLAN, PCS-04-024606,
BEING A PORTION OF LOTS B, C, D, E, F, PSD-04-188660, LRC REC. NO 1733), SITUATED
IN THE BRGY. OF SAN JUAN ROQUE, MUN. OF ANGONO, PROV. OF RIZAL, IS. OF
LUZON. BOUNDED ON THE NW., ALONG LINE 1-2 BY LOT 43, BLOCK 26; ON THE NE.,
ALONG LINE 2-3 BY ROAD LOT 18; ON THE SE., ALONG LINE 3-4 BY LOT 45; ON THE
SW., ALONG LINE 4-5 BY LOT 42; AND ALONG LINE 5-1 BY LOT 40, ALL OF BLOCK 26,
ALL OF THE CONS.-SUBD. PLAN. BEGINNING AT A POINT MARKED “1” ON PLAN,
BEING N. 65 DEG. 56’E., 2903.75 M. FROM BLLM NO. 1, MUN. OF ANGONO, RIZAL.
That for and in consideration of the sum of TWO MILLION FIVE HUNDRED
THOUSAND (P2, 500, 000.00) PESOS, Philippine Currency, receipt whereof is hereby
acknowledged to my entire satisfaction, I hereby sell, transfer and convey by way of Absolute
Sale unto JUAN DELA CRUZ, of legal age, married and now actually residing at 123 Dr. One
Two Three Ave., Caniogan, Pasig City the above described property, free from all liens and
encumbrances.
IN WITNESS WHEREOF, we have hereunto affixed our hands this ___day at ____.
___________________________ _____________________________
SELLER BUYER
80
Signed in the presence of:
___________________________________ ___________________________________
for Seller for Buyer

Quezon City ) S.S.
ACKNOWLEDGMENT
BEFORE ME, a Notary Public for and in Quezon City, Philippines, on

__________________, the following appeared:
Name Proof of Identity

JESUS RODRIGO F. TORRES UMID CRN 0123-1234567-0
Juan Dela Cruz UMID CRN 0143-1234533-1
known to me be the same persons who executed the foregoing instrument, and they acknowledge
to me that the same is their own voluntary act and deed and in accordance with the authority
given by their respective principal.
This instrument relates to a DEED OF ABSOLUTE SALE OF A CERTAIN LAND IN

BRGY. SAN JUAN ROQUE, ANGONO, RIZAL consisting of two (2) pages including the
page wherein this acknowledgment is written, duly signed by the parties and their instrumental
witnesses.
Notary Public
Doc. No. 575;
Page No. 42;
Book No. XXI;
Series of 2018.
Notary Public
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
81
at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City is the lawful owner of A CONDOMINUM
PARKING UNIT which is more particularly described as follows:
BERKSHIRE TOWER J; UNIT NO: PS-196, LOCATION & DESCRIPTION OF UNIT:

PARKING – UG – IN FRONT OF TOWER J, FLOOR AREA IN SQUARE METERES: 12.50
MORE OR LESS. WHICH FORMS PART OF THE “HAMPTON GARDENS CONDOMINIUM –
PHASE VI” CONDOMINIUM PROJECT.
That for and in consideration of the sum of SIX HUNDRED THOUSAND
(P 600,000 ) PESOS, Philippine Currency, receipt whereof is hereby acknowledged to my entire

satisfaction, I hereby sell, transfer and convey by way of Absolute Sale unto JUAN DELA
CRUZ, of legal age, married and now actually residing at 123 Dr. One Two Three Ave.,
Caniogan, Pasig City the above described property, free from all liens and encumbrances.
IN WITNESS WHEREOF, we have hereunto affixed our hands this _____ day at _____.
___________________________ _____________________________
SELLER BUYER
82
___________________________________ ___________________________________

Quezon City ) S.S.
ACKNOWLEDGMENT


This instrument relates to a DEED OF ABSOLUTE SALE OF A CONDOMINIUM

PARKING UNIT consisting of two (2) pages including the page wherein this acknowledgment is
written, duly signed by the parties and their instrumental witnesses.
Notary Public
Doc. No. 575;
Page No. 42;
Book No. XXI;
Series of 2018.
Notary Public
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
83
at 359 Dr. Sixto Antonio Ave., Caniogan, Pasig City is the lawful owner of A CONDOMINIUM
UNIT which is more particularly described as follows:
HAMPTON GARDENS PHASE VII DOVER (M) TOWER; UNIT NO: 703 LOCATION &
DESCRIPTION OF UNIT: STUDIO REAR – 7TH FLOOR FLOOR AREA IN SQUARE
METERES: 19.32 COMMON AREAS OF THE PROJECT: 0.53% ESTATE COMMON AREA:
0.27% WHICH FORMS PART OF THE “HAMPTON GARDENS CONDOMINIUM – PHASE
VI” CONDOMINIUM PROJECT.
That for and in consideration of the sum of ONE MILLION EIGHT HUNDRED AND
FOUR THOUSAND (P1, 804, 000.00) PESOS, Philippine Currency, receipt whereof is hereby
acknowledged to my entire satisfaction, I hereby sell, transfer and convey by way of Absolute
Sale unto JUAN DELA CRUZ, of legal age, married and now actually residing at 123 Dr. One
Two Three Ave., Caniogan, Pasig City the above described property, free from all liens and
encumbrances.
IN WITNESS WHEREOF, we have hereunto affixed our hands this _____ day at _____.
___________________________ _____________________________
SELLER BUYER
84
___________________________________ ___________________________________

Quezon City ) S.S.
ACKNOWLEDGMENT


This instrument relates to a DEED OF ABSOLUTE SALE OF A CONDOMINIUM

UNIT consisting of two (2) pages including the page wherein this acknowledgment is written,
duly signed by the parties and their instrumental witnesses.
Notary Public
Doc. No. 575;
Page No. 42;
Book No. XXI;
Series of 2018.
Notary Public
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
85
Appendix E:
Living Will
I JESUS RODRIGO F. TORRES, of legal age, married and now actually residing at 359 Dr.
Sixto Antonio Ave., Caniogan, Pasig City, having the capacity to make health-care decisions, in
possession of and being of sound mind, do hereby declare that this is my living Will. I willfully
and voluntarily make known my desire that my dying shall not be artificially prolonged under
the circumstances set forth below, and do hereby declare that:
(a) If at any time I should be diagnosed in writing to be in terminal condition by the attending
doctor, or in a permanent unconscious state by three doctors, and where the application for
life-sustaining treatment would serve only to artificially prolong the process of my dying, I
direct that such treatment be withheld or withdrawn, and that I be permitted to die naturally.
I understand by using this document that terminal condition means

incurable and irreversible condition caused by injury, disease, or illness
that would within reasonable medical judgment cause death within a
reasonable period of time in accordance with accepted medical standards,
and where the application of life-sustaining treatment would serve only to
prolong the process of dying.
I further understand in using this form that a permanent unconscious

condition means an incurable and irreversible condition in which I am
medically assessed within reasonable medical judgment as having no
reasonable probability of recovery from an irreversible coma or permanent
vegetative state.
(b) In the absence of my ability to give directions about the use of a life-sustaining treatment, it
is my intention that this directive shall be honored by my family and doctor(s) as the final
expression of my legal right to refuse medical or surgical treatment and I accept the
consequences of such refusal.
86
(c) I hereby appoint my wife, Chrysanthemum D. Torres, as the person administered to make
decisions in accordance with my wishes in the Will.
(d) If upon refusal, incapacity, or refusal to perform her duties of the aforementioned appointee,
and another person shall be appointed by to make these decisions for me, I request that the
person be guided by this directive and any other clear expressions of my desires.
(e) If I am diagnosed to be in a terminal condition or in a permanent unconscious condition I do

not prefer or do not want to have artificially provided nutrition and hydration.
(f) I understand the full import of this directive and I am emotionally and mentally capable to
make the health-care decisions contained in this directive.
(g) I understand that before I sign this directive, I can add to or delete from or otherwise change
the wording of this directive and that I may add or delete from this directive at any time and that
changes shall be consistent with Philippine laws to be legally valid.
(h) It is my wish that every part of this directive be fully implemented. If for any reason any part
is held invalid, it is my wish that the remainder of my directive be implemented.
JESUS RODRIGO F. TORRES

Testator
87
Appendix F: Accomplished BIR Form No. 1801 or Estate Tax Return
88

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INTRODUCTION

Personal Profile of the Client

1. A CERTAIN HOUSE AND LOT SITUATED IN THE 359 DR. SIXTO

Family Home Estimated value: P20, 000,000.00

A PARCEL OF LAND (LOT 7, BLK. 30 OF THE CONS. SUBD. PLAN PCS-04-003743,

Current value: P4, 000,000.00

Current value: P2, 500,000.00

4. A condominium parking unit identified and described as:

6. A condominium unit identified and described as:

HAMPTON GARDENS PHASE VII DOVER (M) TOWER

Problems and Questions in Estate Disposition

II.A. Compulsory Heirs

“Article 887. The following are compulsory heirs:

II.B. Voluntary Heirs

II.C. Legacies and Devises

Article 782. An heir is a person called to the succession either by the

2. To the sister of the client, Christina T. Cabell, a condominium at BERKSHIRE

3. To the sister of the client, Ma. Cecilia Bernadette T. Rubio, a condominium at

III.A. Properties, Rights, and Obligations

III.B. Property Regime

“Art. 909. Donations given to children shall be charged to their legitime.

“Art. 1067. Expenses for support, education, medical attendance, even in

Art. 1068. Expenses incurred by the parents in giving their children a

(a) COMPUTATION OF NET HEREDITARY ESTATE UNDER NIRC

Exclusive Conjugal Total

A parcel of Land in Jalajala, Rizal P4,000,000.00

TOTAL DEDUCTIONS: P 5, 600, 000.00

Less: ½ Share of Surviving Spouse

NET TAXABLE ESTATE P29, 287, 000.00

Below is the table containing the graduated tax rate:

Over But not over Tax Plus % In excess of

SUBTRACT ESTATE TAX FROM GROSS ESTATE – (P53, 374,

ADD COLLATIONABLE DONATIONS P 1, 500,000.00

(b) COMPUTATION OF NET HEREDITARY ESTATE UNDER TRAIN LAW

NET ESTATE P 35, 474, 000. 00

NET TAXABLE ESTATE P17, 237, 000.00

P1, 034, 220.00

SUBTRACT ESTATE TAX FROM GROSS ESTATE – (P53, 374, 000.00)

ADD COLLATIONABLE DONATIONS P 1, 500,000.00

NET HEREDITARY ESTATE P54, 124, 780.00

If there are two or more legitimate children or descendants, the surviving

The application of the above mentioned provision may be computed as follows:

P50, 086, 000.00 = P25, 043, 000.00

P25, 043, 000.00 = P8, 347, 667

P8, 347, 667.00 FIRST CHILD

P8, 062, 667.00 Receivable Share

P8, 347, 667.00 SECOND CHILD

P6, 847, 667.00 Receivable Share

P8, 347, 667.00 SPOUSE

P31, 605, 668.00 LEGITIME

P 1, 800, 000.00 SPOUSE

= P12, 590,332.00 = P 4, 196, 777.00 each.

P54, 124, 780.00 = P27, 062, 390.00

P9, 020, 796.00 FIRST CHILD

P9, 020, 796.00 SECOND CHILD

P9, 020, 796.00 SPOUSE

P19, 826, 596.00 FREE DISPOSITIVE PORTION

P 1, 800, 000.00 SPOUSE

P 5, 890, 000.00 LEGACIES AND DEVISES

= P13, 936,596.00 = P 4, 645, 532.00 each.

Gross Estate P 53, 374, 000.00 P 53, 374, 000.00

Less: Ordinary and Special P 5, 600, 000.00 P 17, 900, 000.00

Net Estate P 47, 774, 000. 00 P 35, 474, 000. 00