PABLO LORENZO vs JUAN POSADAS, JR.

G.R. No. L-43082 June 18, 193

!A"#S$
- On October 4, 1932, the plaintif Pablo Lorenzo, in his capacity as trustee of the estate of Thomas anley,
!ecease!, brou"ht this action in the #ourt of $irst %nstance of &amboan"a a"ainst the !efen!ant, 'uan Posa!as, 'r(,
then the #ollector of %nternal )e*enue, for the refun! of the amount of P2,+,2(-4, pai! by the plaintif as
inheritance ta. on the estate of the !ecease!, an! for the collection of interst thereon at the rate of / per cent per
annum, compute! from 0eptember 1,, 1932, the !ate 1hen the aforesai! ta. 1as pai! un!er protest( The
!efen!ant set up a counterclaim for P1,191(2- alle"e! to be interest !ue on the ta. in 2uestion an! 1hich 1as not
inclu!e! in the ori"inal assessment( $rom the !ecision of the #ourt of $irst %nstance of &amboan"a !ismissin" both
the plaintif3s complaint an! the !efen!ant3s counterclaim, both parties appeale! to this court(
- %t appears that on 4ay 2-, 1922, one Thomas anley !ie! in &amboan"a, &amboan"a, lea*in" a 1ill an!
consi!erable amount of real an! personal properties( On 'une 14, 1922, procee!in"s for the probate of his 1ill an!
the settlement an! !istribution of his estate 1ere be"un in the #ourt of $irst %nstance of &amboan"a( The 1ill 1as
a!mitte! to probate(
-The #ourt of $irst %nstance of &amboan"a consi!ere! it proper for the best interests of ther estate to
appoint a trustee to a!minister the real properties 1hich, un!er the 1ill, 1ere to pass to 4atthe1 anley ten years
after the t1o e.ecutors name! in the 1ill, 1as, on 4arch 5, 1924, appointe! trustee( 4oore too6 his oath of o7ce
an! "a*e bon! on 4arch 1+, 1924( e acte! as trustee until $ebruary 29, 1932, 1hen he resi"ne! an! the plaintif
herein 1as appointe! in his stea!(
- 8urin" the incumbency of the plaintif as trustee, the !efen!ant #ollector of %nternal )e*enue, alle"in"
that the estate left by the !ecease! at the time of his !eath consiste! of realty *alue! at P2-,92+ an! personalty
*alue! at P1,4/,, an! allo1in" a !e!uction of P45+(51, assesse! a"ainst the estate an inheritance ta. in the
amount of P1,434(24 1hich, to"ether 1ith the penalties for !eli2uency in payment consistin" of a 1 per cent
monthly interest from 'uly 1, 1931 to the !ate of payment an! a surchar"e of 2, per cent on the ta., amounte! to
P2,+,2(-4( On 4arch 1,, 1932, the !efen!ant 9le! a motion in the testamentary procee!in"s pen!in" before the
#ourt of $irst %nstance of &amboan"a :0pecial procee!in"s ;o( 3+2< prayin" that the trustee, plaintif herein, be
or!ere! to pay to the =o*ernment the sai! sum of P2,+,2(-4( The motion 1as "rante!( On 0eptember 1,, 1932, the
plaintif pai! sai! amount un!er protest, notifyin" the !efen!ant at the same time that unless the amount 1as
promptly refun!e! suit 1oul! be brou"ht for its reco*ery( The !efen!ant o*errule! the plaintif3s protest an! refuse!
to refun! the sai! amount hauste!, plaintif 1ent to court 1ith the result herein abo*e in!icate!(
%SSUE$
>O; the real property of Thomas anley, !ecease!, passe! to his institute! heir, 4atthe1 anley, from the
moment of the !eath of the former, an! that from the time, the latter became the o1ner thereof(
&ELD$
%f !eath is the "eneratin" source from 1hich the po1er of the estate to impose inheritance ta.es ta6es its
bein" an! if, upon the !eath of the !ece!ent, succession ta6es place an! the ri"ht of the estate to ta. *ests
instantly, the ta. shoul! be measure! by the *alue of the estate as it stoo! at the time of the !ece!ent3s !eath,
re"ar!less of any subse2uent contin"ency *alue of any subse2uent increase or !ecrease in *alue(
>hate*er may be the rule in other ?uris!ictions, 1e hol! that a transmission by inheritance is ta.able at
the time of the pre!ecessor3s !eath, not1ithstan!in" the postponement of the actual possession or en?oyment of
the estate by the bene9ciary, an! the ta. measure! by the *alue of the property transmitte! at that time
re"ar!less of its appreciation or !epreciation(
@##O)8%;=LA, the ?u!"ment a quo is re*erse!, an! the complaint is !ismisse!, 1ithout pronouncement as to costs(