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GROSS ESTATE OF MARRIED DECEDENT

MARRIAGE SETTLEMENT The determination of the gross estate of the decedent who is married will depend upon the property relations between the spouses. The spouse may, in the marriage settlements, agree upon the regime of absolute community, conjugal partnership of gains, complete separation of property, or any othe regime. In thwe absence of a marriage settlement, or when the regime agreed upon is void, the property relations of the spouses shall be governed by the following regime or system: 1. Conjugal Partnership of ains, if married before !ugust ",1#$$. %. !bsolute Community of Property, if married on or after !ugust ",1#$$ & !rt. '(, )amily Code* +ote: the )amily Code too, effect on !ugust -, 1#$$. Conjugal Partnership of Gains The regime of Conjugal Partnership of Property. ains is also called .elative Community of

!. CON !GAL PROPERTIES


1. %. ". -. (. 2. '. Those ac/uired by onerous title during the marriage at the e0pense of the common fund, whether the ac/uisition be for the partnership, or for only one of the spouses1 Those obtained from labor, industry, wor,, or profession of either both the spouses1 The fruits, natural, industrial, or civil, due or received during the marriage from the common property,as well as the net fruits from the e0clusive property of each spouse1 The share of either spouse in the hidden treasure which the law awards to the finder or owner of the property where the treasure is found1 Thise ac/uired through occupation such as fishing and hunting1 3ivestoc, e0isting upon the dissolution of the partnership in the e0cess of the number of each ,ind brought to the marriage by either spouse and1 Those which are ac/uired by chance, such as winnings from gambling or betting. 4owever, losses therefrom shall be borne e0clusively by the loser5spouse.

6. E"CL!SI#E PROPERTIES
1. That which is brought to the marriage as his7her own1 %. That which each ac/uires during the marriage by gratuitous title1 ". That which is ac/uired by right or redemption, by barter or by e0change with property belonging to only one of the spouses1 and -. That which is purchased with the e0clusive money of the wife or of the husband. A$solute Co%%unit& of Propert& The !bsolute Community of Property between the spouses shall commence at the precise moment that the marriage is celebrated.

!. COMM!NIT' PROPERTIES 1. ALL properties owned by the spouses at the time of the marriage, and %. ALL properties ac/uired thereafter. 6. E"CL!SI#E PROPERTIES
1. Property ac/uired during the marriage by gratuitous title by either spouse, and the fruits as well as income thereof, if any, unless it is e0pressly provided by the donor, testator or grantor that they shalol form part of the community property1 %. Property for personal and e0clusive use of either spouse. 4owever jewelry shall form part of the community property1 and ". Property ac/uired 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.

Si%ilarities (et)een the Regi%es of the Conjugal Partnership an* A$solute Co%%unit& Property The property ac/uired during the marriage &other than inheritance or donation* Property ac/uired from labor, industry, wor, or profession of the spouses )ruits or income received during the marriage comming from the common property Property inherited or donated during the marriage Conjugal Partnership Conjugal Property Conjugal Property Conjugal Property 80clusive Property !bsolute Community Community Property Community Property Community Property 80clusive Property

Differen+es (et)een the S&ste% of Conjugal Partnership an* A$solute Co%%unit& of Propert& Property Property ac/uired before marriage, or brought to the marriage )ruits or income due or received during the marriage from e0clusive property Conjugal Partnership 80clusive Property Conjugal Property !bsolute community Community Property 80clusive Property

1.

%.

For%ula for Gross Estate of Marrie* De+e*ent If the couple was under the conjugal partnership of gains Conjugal Properties 000 !dd: 80clusive Properties of 9ecedent .:;; 8;T!T8 If the couple was under the absolute community of properties Community properties !dd: 80clusive properties of decedent .:;; 8;T!T8

000 000 000 000 000

ILL!STRATI#E PRO(LEMS IP ,- <r. !nd <rs. =. .eyes have the following assets: 1. Properties inherited by <r. .eyes before the marriage 1>>,>>> %. Properties brought to the marriage by <rs. .eyes ->>,>>> ". Properties inherited during the marriage by <r. .eyes %>>,>>> -. Income of the properties in +o. " %>,>>> (. Properties inherited during the marriage by <rs. .eyes (>>,>>> 2. Income from properties in +o. ( (>,>>> '. Property ac/uired during the marriage ">>,>>> $. Income of the property in +o. ' 1>>,>>> .e/uired: !. Classify ther properties under Conjugal Partnership of ains. 6. Classify the properties under !bsolute Community of Property.

;:3?TI:+;: A- !NDER CON !GAL PARTNERS.IP 1. Conjugal Properties Property ac/uired during the marriage ">>,>>> Income of properties inherited during the marriage by <r. .eyes Income of properties inherited during marriage by <rs. .eyes (>,>>> Income of properties ac/uired during marriage 1>>,>>> TOTAL CON !GAL PROPERTIES /012111 %. 80clusive Properties of <r. .eyes Properties inherited by <r. .eyes 1>>,>>> Properties inherited during the marriage by <r. .eyes %>>,>>> TOTAL E"CL!SI#E PROPERTIES OF MR- RE'ES 3112111 80clusive Properties of <rs. .eyes Properties brought to the marriage by <rs. .eyes ->>,>>> Properties inherited during the marriage by <rs. .eyes (>>,>>> TOTAL E"CL!SI#E PROPERTIES OF MRS- RE'ES 4112111

%>,>>>

".

6. !NDER A(SOL!TE COMM!NIT' -. Community Properties


Properties inherited by <rs. .eyes before the marriage 1>>,>>> Properties brought to the marriage by <rs. .eyes ->>,>>> Property ac/uired duriong marriage Income of property ac/uired during the marriage 1>>,>>> TOTAL COMM!NIT' PROPERTIES 4112111 (. 80clusive Properties of <r. .eyes Properties inherited during marriage by <r. .eyes %>>,>>> .Income of properties inherited during marriage %>,>>> TOTAL E"CL!SI#E PROPERTIES OF MR- RE'ES 5512111 80clusive Properties of <r. .eyes Properties inherited during the marriage by <rs. .eyes (>>,>>> Income of properties inherited during the marriage by <rs. .eyes (>,>>> TOTAL E"CL!SI#E PROPERTIES OF MRS- RE'ES 6612111

">>,>>>

2.

IP 5The following information are gathered regarding the inheritance due to death of a married individual, )ilipino and and a resident of 6aguio City, Philippines: @.esidential house and lot in 6aguio, ac/uired at P1,>>>,>>> with Aonal value of P",>>>,>>> at the date of death. @=ewelry found on the body of the decedent at the date of death, with fair mar,et value of P(>>,>>>. This asset is determined as e0clusive property of the decedent.

@.eal property in <indanao, Philippines, bought 1> years ago, assessed at that time for P1,>>>,>>>. !n interested buyer would li,e to buy this property a wee, before his death at P(,>>>,>>>. @Investment in 6onds, local and foreign, P2>>,>>>. @;hares of stoc, of various domestic corporations, listed in the local stoc, e0change at date of death at aggregate value of ->>,>>>. @.eal property located in Pangasinan, inherited from his father " years ago. This was ta0ed at %,(>>,>>> when transferred from his father to hi name. !t that time, he assumed the unpaid mortgage of (>>,>>>. This has %>B assessment level at declared fair mar,et value of %,2>>,>>>. The 6I. Aonal valuation stated a fair value of %,$>>,>>> at date of death. @Income from farm earned before the date of death, $>>,>>> &net of related income ta0*. @Commercial lot inherited by wife during marriage. This was valued at 2,>>>,>>> when inherited by wife and it has a fair mar,et value of 1>,>>>,>>> at the date of death, ",>>>,>>>, &net of related income ta0*. @Property brought to marriage by his wife, 2,>>>,>>>. 9eductions claimed by the e0ecutor: !ctual funerla e0penses 1$>,>>> =udicial e0penses #>>,>>> <edical e0penses 1,>>>,>>> ?npaid mortgage on property in Pangasinan %>>,>>> Carious claims of creditors $,>>>,>>> Claims against insolvent person $>>,>>> .e/uired: !. ?nder the regime of conjugal partnership of gains, compute the following: 1. The gross e0clusive estate. %. The gross conjugal estate. ". The total gross estate. ?nder the regime of absolute community of property, compute the following: 1. The gross e0clusive estate. %. The gross conjugal estate. ". The total gross estate.

6.

SOL!TION to IP 5 Conjugal Partnership of Gains Properties; .esidential house and lot in 6aguio City =ewelry .eal property in <indanao, Philippines Investment in bonds ;hares of stoc, Inheritance from the decedent father Income from farm Income from wifeDs e0clusive property Claims against insolvent person TOTAL

7,8 E9+lusi:e (>>,>>>

758 Conjugal ",>>>,>>> (,>>>,>>> 2>>,>>> ->>,>>> $>>,>>> ",>>>,>>> $>>,>>> 1",2>>,>>>

738 Total ",>>>,>>> (>>,>>> (,>>>,>>> 2>>,>>> ->>,>>> %,$>>,>>> $>>,>>> ",>>>,>>> $>>,>>> 12,#>>,>>>

%,$>>,>>> EEEEEEEEE ",">>,>>>

A$solute Co%%unit& of Propert& Properties; .esidential house and lot in 6aguio City =ewelry .eal property in <indanao, Philippines Investment in bonds ;hares of stoc, Inheritance from the decedent father Income from farm Claims against insolvent person Prperty brought to marriage by wife TOTAL

7/8 E9+lusi:e (>>,>>>

768 Co%%unit& ",>>>,>>> (,>>>,>>> 2>>,>>> ->>,>>> $>>,>>> $>>,>>> 2,>>>,>>> 12,2>>,>>>

7<8 Total ",>>>,>>> (>>,>>> (,>>>,>>> 2>>,>>> ->>,>>> %,$>>,>>> $>>,>>> $>>,>>> 2,>>>,>>> 12,#>>,>>>

%,$>>,>>> EEEEEEEEE ",">>,>>>

IP ".

,444- <r. 4 through his labor ac/uired personal properties valued at -,>>>,>>>. <rs. F ac/uired real properties, valued at 1,>>>,>>> and inherited commercial buildings worth %,>>>,>>> from her grandparents. 5111- <r. 4 and <rs. F got married. 511, to 511/- Through their joint income, they were able to ac/uire their residential house and lot at ",>>>,>>>. <r. 4 received house and lot in Tarlac as inheritance from his father, valued at 1,>>>,>>>1 4 G F used this as their family home. <rs. F earned rent income of %>>,>>> from the commercial building she had inherited from here grandparents. In +ovember %>>-, <r. 4 died of heart attac,. <r. 4H Fhich of the above properties should be included in the gross estate of

Property ownership of 4 G F is governed by !bsolute Commnity under the )amily Code because the couple was married after !ugust ", 1#$$, and as such, the properties to be included in the gross estate of <r. 4 are: Community Property: 4Ds personal properties ac/uired in 1##' ->>,>>>

Properties of F ac/uired before marriage &1<I%<* ",>>>,>>> .esidential house and lot .ent Income Total Community Property !dd: 80clusive Property of 4, inheritance from his father T:T!3 .:;; 8;T!T8 :) <.. 4 Note;

",>>>,>>> %>>,>>> 2,2>>,>>> 1,>>>,>>> ',2>>,>>>

1. The properties ac/uired by the wife during marriage through gratuitous transfer reamain e0clusive property of the wife and should not be included in the gross estate of the husband. %. The gross esatate should be valued at their )<C, fair mar,et value at the date of death. ". 80clusive property does not become a community property just beacause it is used as family home. -. )ruits or income due during the marriage coming from e0clusive property is an e0clusive property under the absolute community property regime. (. !s a rule, the earnings of the e0clusive or conjugal properties have been subjected o income ta0es which is different from estate ta0. 4ence, thse earnings will still be subjected to transfer ta0es. IP -. Concepcion, married to 9omingo =ugalab on =une 1%, 1##( died in 1### leaving the following properties: Car purchased in 1##> 4ouse and lot ac/uired during marriage from conjugal funds $>>,>>> ;avings deposit with 6anco )ilipino, obtained through labor and industry of 9omingo )ishpond in Pangasinan, ac/uired through the income from ConcepcioDs oto 4ouse 3otto winnings by 9omingo Jamaha wonderbi,e purchased by Concepcion out of her e0clusive property .iceland brought into marriage by 9omingo %>>,>>> ;hares of stoc,s inherited by Concepcion from her mother who died two wee,s ago %(>,>>>

#>,>>> %>>,>>> (,>>>,>>> (>,>>>

2",>>>

.e/uired: Compute the gross estate. Conjugal Property: 4ouse and lot ;avings deposit )ishpond in Pangasinan Finnings in 3otto 80clusive Poperty: Car Jamaha wonderbi,e ;hares of stoc,s .:;; 8;T!T8 $>>,>>>

#>,>>> %>>,>>> (,>>>,>>>

2,>#>,>>>

%(>,>>> (>,>>>

2",>>>

"2",>>> 2,-(",>>>

IP(. 9ante Pugante, )ilipino, married to !da <aganda on )ebruary 1>, %>>>, died <arch %>, %>>- leaving the following properties: .eal properties: .iceland bought by 9ante in %>>% K '%>,>>> 4ouse and lot which he brought into the marriage K ",->>,>>> ;ubdivision lot inherited by 9ante from his father in %>>% K 1,">>,>>> Coconut land inherited by !da from her father who died in 1##( K 1,%>>,>>> Personal Properties: Computer set given as birthday gift to !da by her mother in %>>" K %->,>>> .ole0 watch owned by 9ante K %>>,>>> Cash in ban, earned by the spouses during the marriage K ",$>>,>>>

.e/uired: Compute the gross estate of 9ante if the marriage was under the absolute community of property regime. Community Property: .iceland 4ouse and 3ot Cash in 6an, Coconut land #,1%>,>>> 80clusive property: .ole0 watch ;ubdivision lot 1,(>>,>>> .:;; 8;T!T8 1>,2%>,>>> '%>,>>> ",->>,>>> ",$>>,>>> 1,%>>,>>> %>>,>>> 1,">>,>>>

!L3!+ ;T!T8 ?+IC8.;ITJ ;chool of <anagement ;ciences ;econd <idterm MuiA VILLANUEVA 6usiness and Transfer Ta0es +ame: EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE Course7Jr: EEEEEEEEEE ;core: EEEEE P.:638< I 9irection. If the property is includible in the gross estate, write A on the blan,, if community property, and ( on the blan,, if e0clusive property. If the property is not ncludible in the gross estate, write "======= a- Property inherited before the marriage. EEEEEEEEb. Property received as gift during the marriage. EEEEEEEEc. Income from property inherited in &a* above. EEEEEEEEd. Income from property received as gift during the marriage in &b* above. EEEEEEEEe. Property inherited by the spouse during the marriage. 5O .

EEEEEEEEf. Property received as gift by the spouse during the marriage. EEEEEEEEg. Income received from the property in &e* above. EEEEEEEEh. !ssets before marriage with decendants from previous marriage. EEEEEEEEi. !ssets rceived as gift by spouse during marriage which was subse/uently donated to a charity inter5vivos. P.:638< % 9ante Pugante, a )ilipino, married to !da <aganda on )ebruary 1>, %>>>, died <arch %>, %>>- leaving the following properties: .eal Properties: 1. .iceland bought by 9ante in %>>% K '%>,>>> %. 4ouse and lot which he brought into the marriage K ",->>,>>> ". ;ubdivision lot inherited by 9ante from his father in %>>% K 1,">>,>>> -. Coconut land inherited by !da from her father who died in 1##( K 1,%>>,>>> Personal Properties: 1. Computer set given as birthday gift to !da by her mother in %>>" K %->,>>> %. .ole0 wathch owned by dante K %>>,>>> ". Cash in ban, earned by the spouses during the marriage K ",$>>,>>>. .e/uired: 4ow much is the 1. Community Property under !bsolute Community Property .egime for 9ante: EEEEEEEEEEEE %. 80clusive Property under !bsolute Community Property .egime for 9ante: EEEEEEEEEEEE ". ross 8state under !bsolute Community Property .egime for 9ante: EEEEEEEEEEEE -. Conjugal Property under Conjugal Partnership of ains for 9ante: EEEEEEEEEEEE (. 80clusive property under Conjugal Partnership of ains for 9ante: EEEEEEEEEEEE 2. ross 8state under under Conjugal Partnership of ains for 9ante: EEEEEEEEEEEE '. 80clusive property under Conjugal Partnership of ains for !da: EEEEEEEEEEEE P.:638< ". . Concepcion, married to 9omingo =ugalab on !ugust ", 1#$' died leaving the following properties: Car purchased in 1#$> 4ouse and lot ac/uired during marriage from conjugal funds $>>,>>> ;avings deposit with 6anco )ilipino, obtained through labor and industry of 9omingo )ishpond in Pangasinan, ac/uired through the income from ConcepcioDs oto 4ouse 3otto winnings by 9omingo Jamaha wonderbi,e purchased by Concepcion out of her e0clusive property .iceland brought into marriage by 9omingo %>>,>>> ;hares of stoc,s inherited by Concepcion from her mother who died two wee,s ago 2",>>> .e/uired: 1. Compute the e0clusive property of Concepcion: EEEEEEEEEEEEEEEE %. Compute the gross estate of Concepcion: EEEEEEEEEEEEEEE P.:P638< -. ;pouses Tyrone G =ane .eyes have the following assets: a* Properties inherited by <r. .eyes before the marriage 1>>,>>> b* Properties brought to the marriage by <rs. .eyes ->>,>>> c* Properties inherited during the marriage by <r. .eyes %>>,>>> d* Income of the properties in &c* %>,>>> e* Properties inherited during the marriage by <rs. .eyes (>>,>>> %(>,>>>

#>,>>> %>>,>>> (,>>>,>>> (>,>>>

f*

Income from properties in &e* (>,>>> g* Property ac/uired during the marriage ">>,>>> h* Income of the property in &h*

1>>,>>>

.e/uired: Compute the following: 1. Total 80clusive Properties under !bsolute Community .egime: EEEEEEEEEEEEEEEEE %. Total 80clusive Properties under Conjugal Partnership of ains: EEEEEEEEEEEEEEEEE ". Total Community Properties: EEEEEEEEEEEEEEEEE -. Total Conjugal Properties: EEEEEEEEEEEEEEEEEE (. Total 80clusive Properties of <r. .eyes under !bsolute Community .egime: EEEEEEEEEEEEEEEEE 2. Total 80clusive Properties of <rs. .eyes under !bsolute Community .egime: EEEEEEEEEEEEEEEEE '. Total 80clusive Properties of <r. .eyes under Conjugal Partnership of ains: EEEEEEEEEEEEEEEEE $. Total 80clusive Properties of <rs. .eyes under Conjugal Partnership of ains: EEEEEEEEEEEEEEEEE P.:638< (. The following data pertain to the death of a resident alien: Property ac/uired by decedent prior to marriage 2>>,>>> Property ac/uired by surviving spouse prior to marriage '>>,>>> Property inherited by decedent during marriage $>>,>>> Property inherited by the surviving spouse during marriage #>>,>>> Property ac/uired through labor during marriage 1,>>>,>>> Income derived from property inherited by the surviving spouse 9uring marriage inclusive of income ta0 of (>,>>> -(>,>>> Time deposit &e0cluding interest before death, #>,>>> and interest !fter death, 2>,>>>* $(>,>>> .e/uired: 9etermine the gross estate under the following property relationships: 1. Conjugal partnership of gains regime: EEEEEEEEEEEEEEE %. !bsolute community of property regime: EEEEEEEEEEEEEEEEE P.:638< 2. Concepcion, married to 9omingo =ugalab on =une 1%, 1##( died in 1### leaving the following the properties: Car purchased in 1##> 4ouse and lot ac/uired during marriage from conjugal funds $>>,>>> ;avings deposit with 6anco )ilipino, obtained through labor and industry of 9omingo )ishpond in Pangasinan, ac/uired through the income from ConcepcioDs oto 4ouse 3otto winnings by 9omingo Jamaha wonderbi,e purchased by Concepcion out of her e0clusive property .iceland brought into marriage by 9omingo 1>>,>>> ;hares of stoc,s inherited by Concepcion from her mother who died two wee,s ago %(>,>>>

#>,>>> %>>,>>> (,>>>,>>> (>,>>>

2",>>>

.e/uired: 1. Compute the e0clusive property of Concepcion: EEEEEEEEEEEEEEEE %. Compute the gross estate of Concepcion: EEEEEEEEEEEEEEE NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNN NNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNNI

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