Question 1: When will the transfer of ownership from the decedent to heir take effect?

Answer: The rights to the succession are transmitted on November 21, 2011from the moment of death
of the decedent, notwithstanding the the actual date of transfer. Furthermore, Upon the death of the
decedent, succession takes place and the right of the state to tax the privilige to transmit the estate
vestst instantly upon death (Section 3,RR 2-2003).Article 777 of the Civil Code provides that “the rights
to the succession are transmitted from the moment of the death of the decedent.”

Question 2: When should the estate tax accrue?

Answer November 1, 2011, Although the executor is allowed to file and pay the correspondingestate tax
within six (6) months from the date of death, the estate tax due accrues immediately at the time of
death. It shall be noted that the accrual of the estate tax is distinct from the obligation to pay the same
(RR 2-2003),It is a rule that estate taxation is governed by the statute in force at the time of death of
the decedent. The estate tax accrues as thedate of death of the decedent and the accrual of the tax is
distinct from the obligation to pay the same.

While in our successional system the responsibility of the heirs for the debts of their decedent cannot
exceed the value of the inheritance they receive from him, the principle remains intact that these heirs
succeed not only to the rights of the deceased but also to his obligations.”

The Civil Code, however, limits the liability of an heir for the obligation of his predecessor, “to the extent
of the value of the inheritance.” The surviving heir, therefore, cannot be made liable for his
predecessor’s obligations in excess of what she may receive as inheritance.Based on the foregoing, the
creditor of your father is correct in his argument that you, being an heir, acquired the obligations of your
father by virtue of succession. The Civil Code clearly provides that your responsibility as heirs cannot
exceed the value of your inheritance.