Estate Taxation Overview

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Questions and Answers

What happens to the rights to the succession at the moment of the decedent's death?

They become void and are not transferable.

They are transmitted to the heirs from the moment of the decedent's death. (correct)

They are retained by the decedent's estate until distributed.

They are determined based on the decedent's wishes before their death.

What defines testate succession?

It is based solely on the decisions of a legal authority.

It occurs when there is no will present.

It involves a written will executed according to the law. (correct)

It cannot specify recipients of the decedent's properties.

Which of the following is true about intestate succession?

It adheres to default provisions of the law for distribution of estate. (correct)

It requires a valid written will.

It is applicable only to wealthy individuals.

It allows for complete control over property distribution.

What term is used to describe a person who has made a last will and testament?

Testator Signup and view all the answers

Which type of succession includes both a written will and provisions of law?

Mixed succession Signup and view all the answers

What is the primary function of a will?

It controls property disposition after death. Signup and view all the answers

Which of the following best describes the term 'decedent'?

A deceased person whose estate is being managed. Signup and view all the answers

What is NOT a characteristic of testate succession?

It can only occur in the presence of multiple heirs. Signup and view all the answers

What is the primary effect of a decedent's death on estate taxation?

Estate tax is computed from the net estate after deductions. Signup and view all the answers

Which of the following is NOT a requisite for disinheritance?

The heir must be a voluntary heir. Signup and view all the answers

In the context of representation, which scenario allows for representation to arise?

Death of the person represented. Signup and view all the answers

What is meant by 'right of representation'?

Being placed in the position of the deceased for inheritance. Signup and view all the answers

Which statement correctly describes the limitation on the right of representation?

It does not apply to repudiating compulsory heirs. Signup and view all the answers

What condition is essential for a valid claim of disinheritance?

The cause must be unconditional and stated in the will. Signup and view all the answers

What is required for the probate of a holographic will?

One witness must verify the handwriting of the testator. Signup and view all the answers

What happens to the share of heirs in the estate following the decedent's death?

Estate tax must be deducted before determining shares. Signup and view all the answers

Which of the following must be true about the cause of disinheritance?

It must be stated explicitly and be true. Signup and view all the answers

What is a codicil?

An addition or alteration to a will. Signup and view all the answers

Which of the following is a valid cause for the revocation of a will?

The testator changes their mind. Signup and view all the answers

How can a will be revoked by the testator?

By creating a new will. Signup and view all the answers

What happens if a will is destroyed without the express direction of the testator?

The estate is distributed according to the will if its execution can be established. Signup and view all the answers

Which of the following describes intestacy?

Dying without a will or with a void will. Signup and view all the answers

Which method is NOT a way to revoke a will?

Stating the revocation verbally. Signup and view all the answers

Which statement regarding a holographic will is accurate?

It requires no witnesses. Signup and view all the answers

What portion of the estate does each illegitimate child inherit compared to a legitimate child?

Half share Signup and view all the answers

In Mr. Richie's estate, how much did each legitimate child inherit?

P15,000,000.00 Signup and view all the answers

What is the total value of the estate left by Mr. Richie Rich?

P45,000,000.00 Signup and view all the answers

What is the share of Mrs. Uyong in the net common properties?

P18,000,000.00 Signup and view all the answers

How is the net estate of Don Uyong calculated?

Exclusive properties of Don Uyong plus his share in common properties Signup and view all the answers

According to the inheritance rules, how many total shares are accounted for in the partition of Mr. Richie's estate?

3.00 Signup and view all the answers

What is the purpose of distributing the estate among heirs?

To allocate shares based on legitimacy of the children Signup and view all the answers

In the estate of Don Uyong, what is the total value of exclusive properties?

P18,000,000.00 Signup and view all the answers

What defines legitimate children?

Children born out of a legal marriage. Signup and view all the answers

Which relatives qualify as primary heirs?

Biological parents of the decedent. Signup and view all the answers

What determines the proximity of collateral relatives?

The number of generations from a common ancestor. Signup and view all the answers

Who inherits in absence of compulsory heirs?

Collateral relatives up to the fifth degree, followed by the Philippine government. Signup and view all the answers

What is the difference between lineal and collateral consanguinity?

Lineal involves direct relationships, while collateral involves relationships that do not ascend or descend. Signup and view all the answers

Who qualifies as illegitimate parents?

Adopting parents to an adopted child. Signup and view all the answers

What is meant by secondary compulsory heirs?

Heirs who inherit only in the absence of primary heirs. Signup and view all the answers

What do legitimate parents refer to in the context of this content?

Biological parents of children. Signup and view all the answers

Study Notes

Estate Tax

Upon death, estate is assessed and reduced by legal deductions before computing estate tax.
Estate tax is applicable regardless of the decedent's will validity or absence of heirs.
Tax is due even if no relatives inherit the estate.

Disinheritance

Deprivation of inheritance rights granted to a compulsory heir through a valid will.
Not applicable to voluntary heirs.
Requires specific legal grounds stated within the will, which must be clear and true.
Disinheritance must be total and unconditional, identifying the disinherited person clearly.

Right of Representation

A legal mechanism allowing a representative to inherit the share of a deceased heir.
Arises from situations such as death, incapacity, or disinheritance.
Representatives inherit only the share that the original heir would have received.

Succession

Transfer of a person's property, rights, and obligations, effective immediately upon death.
Inheritance encompasses all assets and liabilities not extinguished by death.

Types of Succession

Testate: Succession through a valid will, where the testator designates heirs.
Intestate: Succession without a valid will, following statutory rules.
Mixed Succession: Combination of both will and law-based inheritance.

Will and Codicil

A will allows a person to dictate property distribution posthumously, requiring specific legal formalities.
A codicil is an addition to a will, modifying its provisions, and must adhere to the same execution requirements as a will.

Revocation of Wills

Wills can be revoked at any time before death; any waiver of this right is invalid.
Methods include implication of law, new writings, or physical destruction of the will.
Wills can still be deemed valid if destruction is proven to be unauthorized.

Causes of Legal Succession

Occurs when there’s no valid will or if the will is void.
Inheritance hierarchy prioritizes legitimate children, biological parents, surviving spouses, and illegitimate descendants.

Inheritance Prioritization

Absence of compulsory heirs leads to inheritance by collateral relatives (up to the fifth degree) or the Philippine government.

Compulsory Heirs

Primary heirs include children (legitimate and illegitimate) and the surviving spouse.
Partition of the estate reflects equal shares among legitimate children, while illegitimate children receive half shares.

Illustrative Examples

Example: Mr. Richie Rich’s P45,000,000 estate divided among two legitimate and two illegitimate children, showing share calculation.
Example: Don Uyong’s estate divided between widow and children, demonstrating computation of exclusive and common properties to determine distributable estate.

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Description

This quiz covers the fundamental aspects of estate taxation, including how the estate of a decedent is determined and the deductions allowed by law. It also explains the implications of a decedent's will and the distribution of an estate among heirs. Understand the essentials of estate tax computation and its relevance regardless of heirship.