Assessment for donor’s tax should be the illustrative cases given for discussions hence all of you will

gain
perfect score!

Instruction: Determine what made the statements incorrect(word/phrase) and supply the correct
word/phrase.

This assessment is good for 30 points, initial score is 10!

1. The rule of reciprocity applies to all properties situated in the Philippines owned by a non-
resident alien decedent
2. A transfer under special power of appointment is taxable transfer that shall be included in the
gross estate of the decedent
3. A transfer of property intended to protect the family from hazards of business operations is a
transfer in contemplation of death
4. Proceeds of life insurance taken by the decedent upon his own life are included in the gross
estate whether the designation of a third person as a beneficiary is revocable or irrevocable
5. Gross estate is generally valued at the historical cost of the properties owned by the decedent at
the time of death
6. Under absolute community of properties, all properties owned by the spouses before the
marriage regardless of how acquired shall belong to the community properties without
exception
7. An oral transfer to the National government exclusively for public purpose to take effect after
the decedent’s death is deductible from the estate
8. Unpaid taxes that accruing before the decedent’s death are deductible from the gross estate
including tax upon income received after the death of the decedent
9. In order for the estate to be allowed gamily home deduction, the family home must be the
actual residential home of the decedent and his family at the time of his death, as certified by
the municipal mayor of the locality the family home is situated
10. The estate of decedents including that of a non resident alien decedent is allowed to claim
estate tax credit on estate taxes paid to foreign countries