SUCCESSION AND TRANSFER TAXES

CHAPTER 1

TRUE OR FALSE

1. True- estate tax is a tax on the right of transfer property at the death and on certain transfers
which are made by law the equivalent of testamentary disposition and is measured by the value
of the property.
2. True- estate tax is an excise tax
3. True- the tax payer in estate taxation is the estate of the decedent as a juridical person
4. False- estate tax accrues as of the date of the actual possession or enjoyment of the estate by
the beneficiary.
5. False- executor is the person appointed by a court to carry out the directions and request of a

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decedent in his will and to dispose of his according to his testamentary provisions after his

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death.

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6. True- intestate succession arises when there is transmission of properties in the absence of a

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will, or if there is a will, the same is void or lost its validity or nobody succeeds in the will.

o.
7. False- every will may be in writing and executed in a language not necessarily known by the
testator. rs e
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8. False- holographic will is a will entirely written by a testator with his own hand and may be
witnessed or attested
o

9. True- the will of an alien residing abroad produces effect in the Philippines if made in conformity
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with the formalities prescribed by law of the place where he resides.

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10. False- the person has unlimited right to make donations in his last will and testament
11. False- the rights to succession are transmitted from the moment the heirs receive their share on
inheritance
12. True- the law presumes that every person is of sound mind in the absence of proof to the
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contrary
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13. True- brothers and sisters whether half or full blood of decedent are not compulsory heirs
14. True- brothers and sisters whether half or full can be an intestate heir
15. False- there cannot be a disinheritance for compulsory heirs
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16. True- relatives by affinity are strangers for estate tax purposes
Th

17. False- an heir who inherits a specific personal property by will is known as devisee
18. True- codicil is a supplement or addition to will
19. True- under the law of legitime if the only survivor is the widow or widower she or he can be
entitled half of the hereditary estate
20. True- representation is a right created by fiction of law by virtue..

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 SUCCESSION AND TRANSFER TAXES
CHAPTER 1

MULTIPLE CHOICE

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Which of the following statement is false, transfer tax is- none of the above

The object of estate tax is- right to transmit

Justification for the imposition of transfer tax- all of the above

Mortis causa transfer of property is effected- upon the death of the decedent

Statement I- cancellation of existing debt as payment for services rendered by the debtor to the creditor

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is a gratuitous transfer (false0

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Statement II- sale is a form of transfer transaction that requires payment of transfer tax (false)

o.
Ans= both statement are false

rs e
ou urc
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Statement I- a sale on installment basis is considered as an onerous transfer(true)

o

Statement II- a gift out of love to former girlfriend is an onerous transfer(false)

aC s

It is mode of acquisition by virtue of which the property rights and obligations to the extent of the value
vi y re

of the inheritance, of a person are transmitted through his death to another either by his will or by
operation of law- succession
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Elements of succession are- decedent, estate and heirs

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Estate – is the sum of all the property of a deceased individual which are available for disposition to his
heirs successors or beneficiaries represented by an executor or administrator as the case may be.
sh is

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Th

Statement I- inheritance refers to all the property rights and obligations of a person which are
extinguished by death and all which have accrued thereto since the opening of succession (true)

Statement II- rights which are purely personal are not transmissible for they are extinguished by death
(true)

Which is not true about inheritance- inheritance includes property rights and obligations extinguished by
person’s death (false)

Heirs for estate tax purpose are classified as- voluntary heirs, compulsory heirs and legal or intestate
heirs.

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 SUCCESSION AND TRANSFER TAXES
CHAPTER 1
Heir who inherits personal property by will- legatee

The compulsory heirs are classified as-

primary (legitimate children and/ descendants),

secondary (legitimate parents and/ascendants; illegitimate parents) and c

concurring (surviving spouse; illegitimate and /or descendants)

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Which of the following could legally effect transfer of properties through succession- virtue of will and
operations of law

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Which among of the following are kinds of succession-

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testamentary or testate succession

o.
legal or intestate succession

rs e
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mixed succession

succession which results from the designation of an heir made in a will excecuted in the form prescribed
by law – testamentary or testate succession
o
aC s

which is true, legal or intestate succession does not take place- when the heir is capable of succeeding
vi y re

which of the following is regarded as intestate succession- the will was subsequently rendered void by
circumstances.
ed d

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ar stu

The following statements pertain to relatives by consanguinity except- none of the above

Which is not true about relationships- consanguinity is the relation of person’s ascending from the same
sh is

stock or common descendants (false)

Th

Which of the following statements regarding degree of relationship is incorrect- neither a nor b

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How many degrees of generation apart are third cousins- eight

In a legal succession- even half blood brothers and sisters may inherit

Who is not an intestate heir- collateral relatives within 6 th degree

In default of testamentary heirs, the law determines who are to succeed to the inheritance of the
deceased, which is the first in order- legitimated children

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 SUCCESSION AND TRANSFER TAXES
CHAPTER 1
In case where there are no relatives to receive the inheritance who of the following has the claim on the
estate- the state

Certain parts of the estate of a deceased filipino citizen cannot be freely disposed of because Philippine
law reserves them for the compulsory heirs- legitimes

Statement I- in testamentary and legal succession the compulsory heirs are assured of their legitimes
(true)

Statement II- in every inheritance the relative nearest in degree excludes the more distant ones, saving
the right of representation when it properly takes place (true)

If the surviving heirs in an intestate succession are the parents and a legitimate child of the decedent
what is the share of the parents- none

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Which of the following statements is true- the sharing of heirs in testamentary succession must satisfy

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the rules on legitimes (true)

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Statement I- under the law on legitimes, if only survivor is the widow or widower, she or he shall be

o.
entitled half of the hereditary estate (true)

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Statement II- legitimate and illegitimate child has equal share under intestate distribution of estate
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(false)

Statement I- a free portion of the estate could be transferred to compulsory heirs by virtue of a will
o

(true)
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vi y re

Statement II- the surviving spouse is always entitled to his or her legitimes that varies according to the
number and classes of the other surviving compulsory heirs (true)

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Statement I- the presence of the children does not disqualify the parents to inheritance (false)

Statement II- the rules on legitimes are substitute for testamentary dispositions(true)
sh is

Statement I- a will is an act whereby a person is permitted with the formalities prescribed by law to
control to a certain degree the disposition of his estate upon his death(true)
Th

Statement II- a codicil is supplement or an addition to a will made after the execution of a will and
annexed to be taken as part thereof, by any disposition made in the original will is explained added to or
altered (true)

No will shall be revokes except- all of the above

Which of the following is a valid will- that which increase the share of one heir to the other heir.

Probate of a will involves the following process, which is not- collecting the heirs estate

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 SUCCESSION AND TRANSFER TAXES
CHAPTER 1
Mr mhalapit nha executed a second will three months after he executed the first one, the second will is
silent as to the first will- the will is automatically revoked because of the existence of a subsequent will

In which of the following cases is a will invalid- when the will was executed in language not known to the
testator.

Which of the following is not a valid will- that which transfers the portion of legitime to other successors
other than compulsory heirs.

Statement I- the making of a person’s will may be left in part to the discretion of a third person( true)

Statement II- person’s of either sex under eighteen years of age cannot make a will (true)

A testator may execute holographic will instead of an ordinary will, which among of the following
statements pertaining to holographic will is false- none of the above

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Choose the incorrect statement from the following- 1 2 and 3

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If compulsory heir is given by will, less than his legitime the provisions of the last will and testament
should not be modified in such way that he will receive his legitime (false)

o.
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Compulsory heirs have the right to insist that the legitime be given in the form of property (false)
ou urc
The property left by the decedent without a will shall be transferred to government (false)

In deprives an heir to inherit properties by the decedent through the issuance of will- disinheritance
o
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The following are causes of disinheriting child, which is not- when a child has been convicted of adultery
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or concubinage with spouse of the testator

The following are causes of disinheriting spouse, which is not- when the spouse justifiably refuses to
support the children or the other spouse
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ar stu

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Which is not true about inheritance- the inheritance or repudiation of an inheritance takes effect upon
inheritance or repudiation (false)
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Statement I- representation is a right created by fiction of law by virtue of which the representative is
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raised to the place and degree of the person represented and acquires the rights which the latter would
have if he were living or if he could have inherited (true)

Statement II- if a compulsory heir dies ahead of the testator his legitime goes to the child by
representation (true)

Statement I- The right of representation takes place in the direct descending line but never in ascending
line (true)

Statement II- the child of a voluntary heir who predeceases the testator gets nothing because there is no
representation among voluntary heirs nor free portion (true)

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 SUCCESSION AND TRANSFER TAXES
CHAPTER 1
Which is not authorized to take charge of the estate during intestate period- court

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Th

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