Succession Law Overview

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Questions and Answers

What is the portion of a decedent's property that cannot be disposed of due to legal reservation for certain heirs called?

Free Portion

Legitime (correct)

Testamentary Estate

Compulsory Share

Who is tasked with carrying out the provisions of a decedent’s will?

Heir

Legatee

Administrator

Executor (correct)

Which of the following applies to properties of non-resident alien decedents?

Taxable on intangible personal property only

Taxable only on properties outside the Philippines

Taxable on all properties

Taxable only on properties located in the Philippines (correct)

What is the term for the excess properties of a decedent that are not reserved for compulsory heirs?

Free Portion Signup and view all the answers

What classification of tax does estate taxation fall under?

Excise Tax Signup and view all the answers

What happens to the share of the surviving spouse during the computation of the net taxable estate?

It is calculated as a percentage share Signup and view all the answers

Which law applies to estate tax for decedents who died on or after January 1, 2018?

TRAIN Law Signup and view all the answers

What type of tax is imposed on the transfer of properties of the decedent to heirs?

Estate Tax Signup and view all the answers

What is the primary distinction between testate and intestate succession?

Testate succession involves a will; intestate succession follows default legal provisions. Signup and view all the answers

Who is classified as a decedent?

A deceased or dead person. Signup and view all the answers

Which statement best defines inheritance?

All property, rights, and obligations that survive a person's death. Signup and view all the answers

Which of the following is not considered a type of will?

Living Will Signup and view all the answers

What is the role of compulsory heirs in a will?

Compulsory heirs include legitimate children and their descendants, as well as other relatives. Signup and view all the answers

What characterizes mixed succession?

Partly determined by a will and partly by legal provisions. Signup and view all the answers

What defines the nature of succession?

The transmission of property from a deceased person to successor heirs. Signup and view all the answers

In intestate succession, who inherits if there are no compulsory heirs?

Collateral relatives up to the fifth degree of consanguinity. Signup and view all the answers

Study Notes

Succession

Succession is the transfer of a person's property, rights, and obligations upon death, either through a will (testate) or by law (intestate).
Rights transfer upon the moment of death.
Inheritance includes all property, rights, and obligations not extinguished by death.
The deceased person is called the decedent.

Types of Succession

Testate Succession (Extrajudicial Settlement): Property transfer is according to a valid will. A last will and testament is the written document.
Intestate Succession (Judicial Settlement): Property distribution follows the Civil Code's default rules.
Mixed Succession: A combination of testate and intestate succession.

Wills

A will allows a person to control the disposition of their estate after death, following legal formalities.
Types of wills include holographic (handwritten), notarial (witnessed and notarized), and codicils (addendums to existing wills).

Nature of Succession

It's a gratuitous (free) transfer of property from the deceased to heirs.
Only the decedent's net assets are involved.

Elements of Succession

Decedent (Testator)
Estate (Inheritance)
Heirs

Heirs

Intestate: Compulsory heirs, relatives up to the fifth degree of consanguinity, and the Republic of the Philippines.
Testate: Compulsory heirs and others specified in the will.

Compulsory Heirs

Primary: Legitimate children and their descendants.
Secondary: Legitimate or illegitimate parents and ascendants.
Concurring: Surviving spouse and illegitimate descendants.
If no compulsory heirs exist: Collateral relatives (up to the fifth degree) inherit first, followed by the Philippine Government.

Intestate Partition Procedures

Decedent and surviving spouse share common property.
Decedent's net interest is determined.
Decedent's net interest is partitioned among the heirs.

Legitime and Free Portion

Legitime is the portion of the estate reserved by law for compulsory heirs.
The remaining estate is the free portion.

Other Persons in Succession

Legatee: Receives personal property through a will.
Devisee: Receives real property through a will.
Executor: Carries out the will's provisions (named by the decedent).
Administrator: Manages the estate's distribution (appointed by the court).

Estate Taxation

Taxes the gratuitous transfer of a decedent's property to heirs upon death.
The TRAIN Law applies from January 1, 2018 onwards; the NIRC applies before that date.

Nature of Estate Tax

Excise tax
Revenue/General tax
Ad valorem tax (based on value)
National tax
Proportional tax
One-time tax

Decedents for Tax Purposes

Resident/Citizen: Taxable on worldwide assets.
Non-resident Alien: Taxable on Philippine assets (except some intangible property under reciprocity rules).

Estate Tax Model

A model showing the calculation from Gross Estate through deductions to arrive at the Net Taxable Estate. The model accounts for separate and common properties, including the surviving spouse's share.

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Description

Explore the principles of succession law, covering testate, intestate, and mixed succession. Understand the significance of wills and the rights transferred upon death. This quiz delves into how property, rights, and obligations are inherited.