GROSS ESTATE

Decedent’s Gross Estate:

1. Properties Owned
2. Properties already transferred but still
owned – transferred by virtue of taxable
transfer; subj. to condition and revocable;
decedent remains to control and own them until
death
 Revocable transfer
 Transfer in contemplation of death
 Transfer for insufficient consideration
 Property passing under gen. power of atty.
 Proceeds of life insurance payable to a
revocable beneficiary
3. Accrued Interests

Forms of Properties in the Gross Estate

1. Real Properties
2. Tangible Personal Properties
3. Intangible Personal Properties – cash, bank
deposit, interests, rights, usufruct, receivables,
insurance, goodwill, franchise, patents,
trademarks, bonds, stock certificates, inv. Sec.

Not included in the Gross Estate

1. Exclusive property of spouse
2. Prop., int., rights and all income accruals
after death
3. Exempt by law

Situs of the Gross Estate

Filipino citizens and resident aliens, all properties,
within and outside the country are included.
Non-resident aliens, only within, and if there is
reciprocity, intangible properties are not included.

Valuation of Gross Estate

Fair market value at the time of death

Gross Estate not diminished by:

1. Encumbrance/mortgage loans
2. Bad debts
3. Taxes and permissible deductions
4. Share of spouse in conjugal properties
5. Any subsequent contingencies

Specific Valuation Method

1. Usufruct