transfer the property to C in B’s will when he was old
9. Nila Langaw, Filipina, died in Cambodia leaving the
following properties:
House and lot in Cambodia 1,000,000
Vacant lot in Manila 2,000,000
Shares of stock in a domestic
Corp., 60% of the business is
Located in the Philippines 100,000
Shares of stock in a foreign
Corp., 70% of the business is
Located in the Philippines 200,000
Car in Manila 500,000
How much is the gross estate?
a. P 3,800,000 c. P 2,500,000
b. P 2,600,000 d. P 2,000,000
10. Based on the preceding number, but assuming the
decedent is a non-resident alien, the gross estate is:
a. P 3,800,000 c. P 2,500,000
b. P 2,600,000 d. P 2,000,000
11. Continuing number 9, and the rule of reciprocity
applies, the gross estate is:
a. P 3,800,000 c. P 2,500,000
b. P 2,600,000 d. P 2,000,000
12. Lolo Sot, 95 years old, had been suffering from
various ailments. Motivated by though of death, he
decided to dispose all his properties to his children and
relatives. He executed a last will and testament
disposing all his properties in the Philippines to his
relatives. On the same day, he made donations inter-
vivos to his other relatives as to his properties in the
United States. Lolo Sot died three months after
disposing all his properties. Should the properties
donated by Lolo Sot to his other relatives be included in
the gross estate upon his death?
a. No, because they were not his properties
anymore at the time of death.
b. Yes, because the donations were donations
mortis causa and should be governed by the rules on
estate taxation.
c. No, if the donor’s tax had been paid already
on the donations.
d. No, because they were not transfer in
contemplation of death, since the donations were not
simultaneous with the execution of the last will and
testament.
13. One of the following donations is not included as
part of gross estate.
a. Revocable transfers
b. Transfers with revocation of certain rights
c. Transfer under special power of appointment
d. Transfer in contemplation of death
14. 1st statement: A died giving B power to appoint a
person who will inherit A’s house and lot. B, however,
can only choose among C, D, and F. B decided to
already. The transfer from B to C is subject to estate tax.
2nd statement: During A’s lifetime, he decided to give B
his (A0 car subject to the condition that if B does not
become a CPA within 3 years, A shall revoke the
transfer. In the second year however, A died. The car
should form part of A’s gross estate.
a. True, true c. True, false
b. False, False d. False, true
15. Pedro, decedent, owns a property valued at P
1,500,00 at the time of his death. The said property was
sold by Pedro during his lifetime to Juan for P 700,000
when its value was P 1,200,000. It was agreed by Pedro
and Juan that the former will enjoy the income of the
property as long as he lives. For Philippine estate tax
purposes, how much will be included in determining
gross estate?
a. P 500,000 c. P 800,000
b. P 1,200,000 d. P 0
16. Based on the preceding number, if the fair market
value of the property at the time of death is only P
600,000, how much is the gross estate?
a. P 500,000 c. P 800,000
b. P 1,200,000 d. P 0
17. Yna died on October 20, 2014. During his lifetime,
upon knowing that he had stage 4 cancer, sold his car to
his son for P4M. The fair market value of the car at the
time of sale is P 3,000,000 while it is already valued at P
5,000,000 at the time of death. The amount that will be
added to gross estate is:
a. P 1,000,000 c. P 2,000,000
b. P 5,000,000 d. nil
18. Based on the preceding number, if the consideration
is fictitious, how much is the gross estate?
a. P 1,000,000 c. P 2,000,000
b. P 5,000,000 d. 0
19. Which of the following life insurance proceeds shall
not be included in the computation of gross estate?
a. Beneficiary is the estate, executor, administrator and
the designation of the beneficiary is revocable.
b. Beneficiary is the estate, executor, administrator and
the designation of the beneficiary is irrevocable.
c. Beneficiary is other than the estate, executor,
administrator and the designation of the beneficiary is
revocable.
d. Beneficiary is other than the estate, executor,
administrator and the designation of the beneficiary is
irrevocable.
20. The list provided below is exempt from the gross
estate, except.
a. Share in common properties of the surviving spouse.
b. Exclusive property of the surviving spouse 25. One of the following is not a community property of
c. Properties outside the Philippines of a non-resident the spouses.
alien decedent a. Property inherited by the husband before marriage
d. Intangible personal property in the Philippines of a b. Winnings in gambling
non-resident alien when the rule of reciprocity applies. c. Fruits of property inherited during the marriage
d. Fruits of property inherited before the marriage
21. The following are transactions and acquisitions
exempt from transfer tax, except:
a. transmission from the first heir or donee in
favor of another beneficiary in accordance with the
desire of the predecessor
b. Transmission or delivery of the inheritance or
legacy by the fiduciary heir or legatee to the
fideicommissary.
c. The merger of usufruct in the owner of the
naked title.
d. All bequest, devises, legacies, or transfers to
social welfare, cultural and charitable institutions.

22. Statement 1: A devised in his will a piece of land;

naked title to B and usufruct to C for as long as C lives
thereafter to B. The transmission from A to B and C is
subject to estate tax but the merger of the usufruct and
the naked title to B upon the death of C is exempt.

Statement 2: X devised in his will real property to his

brother Y who is entrusted with the obligation to
preserve and transmit the property to Z, a son of Y,
when Z becomes of age. The transmission from Y to his
son Z is subject to tax.
a. First statement is correct, second statement is
wrong.
b. Both statements are not correct.
c. Both statements are correct.
d. First statement is wrong, second statement is
correct.

23. Statement 1: In the absence of marriage settlement

executed before the marriage, the property relationship
between husband and wife shall be governed by local
custom and by the provision of law, respectively.
Statement 2: Claims against insolvent persons may be
charged against exclusive property
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect

24. One of the following is a conjugal property of the

spouses
a. That which is brough to the marriage as his or her
own
b. That which each acquires during the marriage by
inheritance.
c. The fruits of an exclusive property.
d. Fruits of the property inherited before
marriage.