Estate Tax Concepts and Provisions

True (A)

True (A)

Absolute Community of Property (ACOP), Conjugal Partnership of Gains (CPG), and Complete Separation

<p>The rule of reciprocity applies when the foreign country where the non-resident alien decedent resides does not impose transfer tax on intangible properties of Filipino citizens or when they do impose transfer tax but grant similar exemption with respect to intangible personal properties of Filipino citizens not residing in that country.</p> Signup and view all the answers

<p>Place of storage in case of shares of stocks. (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>True (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

A transfer of property where the recipient pays less than its fair market value. This could be considered a gift, resulting in estate taxes.

The value of the property at the time of death, minus the selling price, is included in the gross estate for estate tax purposes.

Life insurance policies taken out by the decedent on their own life are subject to estate tax if the beneficiary is their estate, executor, or administrator. This also applies if the beneficiary is a third party and the policy is revocable.

Properties owned by the surviving spouse are exempt from estate tax.

Properties located outside the Philippines owned by a non-resident alien decedent are not subject to Philippine estate tax.

Intangible personal property owned by a non-resident alien decedent in the Philippines is exempt if the country where they reside grants a similar exemption to Filipino citizens.

The combination of the usufruct (right to use) and the naked title (ownership) into one ownership is exempt from estate tax.

A transfer of ownership under a Special Power of Appointment (SPA), where the beneficiary receives an inheritance from the previous heir, is exempt from estate tax.

A transfer of property from the first heir (fiduciary) to the ultimate beneficiary (fideicomissary) is exempt from estate tax.

Donations to social welfare, cultural, and charitable institutions are exempt from estate tax if the income does not benefit any individual and no more than 30% of the donation is used for administration.

Life insurance and benefits received by GSIS members are exempt from estate tax.

Benefits received by SSS members due to death are exempt from estate tax.

War damage compensation from both the Philippines and US governments is exempt from estate tax.

Benefits received from the United States Veterans Administration are exempt from estate tax.

Benefits received from the Philippines and U.S. government for damages suffered during World War II are exempt from estate tax.

Retirement benefits for private sector employees are exempt from estate tax.

Payments received by legal heirs of deceased WWII veterans and civilians who provided supplies and services are exempt from estate tax.

Proceeds from a group life insurance policy taken out by an employer are exempt from estate tax if it was not taken out upon the decedent's life.

Bona fide sales, meaning genuine transactions with proper consideration, are not subject to estate tax.

Transferring property to the Philippine government or any of its political subdivisions is exempt from estate tax.

Assets held in a Personal Equity and Retirement Account (PERA) are exempt from estate tax.

Compensation paid to private and public health workers who died due to COVID-19 is exempt from estate tax.

The total value of all assets owned by the decedent at the time of death, including real estate, personal property, and intangible assets.

The value of the decedent's property at the time of death for estate tax purposes.

The value of real property for estate tax is the higher amount between its fair market value and zonal value.

Stocks traded on the Local Stock Exchange are valued for estate tax based on the average of the highest and lowest quotations close to the date of death.

Common shares of unlisted companies are valued at book value for estate tax, while preferred shares are valued at par value.

The value of the usufruct is determined based on mortality tables approved by the Secretary of Finance.

The property relationship between spouses is determined by agreements made before marriage, the Family Code, or local customs.

The property relationship where all assets are owned equally by both spouses.

The property relationship where spouses separate their own assets from those they acquire jointly.

The property relationship where spouses keep their assets completely separate, even those acquired during marriage.

Items that are allowed to be deducted from the gross estate to arrive at the net taxable estate, which is the amount subject to estate tax.

Deductions that apply to both citizen and resident alien decedents, and nonresident alien decedents, unless specifically stated as exclusive.

Deductions that are specific to certain types of estates or situations, not applicable to everyone.

Losses, Indebtedness, Taxes, and other expenses incurred in settling the estate are deductible.

Casually incurred losses, such as those from fires or theft, are deductible if they are not compensated by insurance and not claimed for income tax purposes.

Valid debts owed by the decedent are deductible if they were contracted in good faith and were not condoned or prescribed.

Unpaid mortgages on properties included in the gross estate are deductible if they were contracted in good faith and for adequate consideration.

Taxes accrued before the decedent's death, but not including income tax on income earned after death, property taxes not accrued before death, and estate tax on property transmission.

Uncollectible receivables from insolvent debtors are deductible if the value of the claims is included in the gross estate.

Transfers of property to the Philippine government, either through a will or donation, for public use are deductible from the gross estate.

A deduction for property previously taxed during the inheritance or donation process if it was subject to estate tax or donor's tax, and certain conditions are met.

The standard deduction amount for estate tax purposes, which is a fixed amount that is deductible without any documentation.

A deduction for the decedent's family home, which is limited to a certain amount.

Deductible amount received by heirs as a consequence of the decedent's death from their employer.