Marian Pearl Medina

Assignment 1

ASSIGNMENT 1: PREPARE AND DESCRIBE A SUCCESSION SCENARIO

TOMAS suffered an unexpected heart attack causing his death on November 1, 2018. His estate
is composed of the following:

o Cash in Bank - P 10,000,000

o Commercial building - P 15,000,000

o Cars - P 15,000,000

o House & Lot in Baguio - P 30,000,000

KIKO is the only heir of the decedent. The remains of the decedent were cremated on November
8, 2018. The executor of Tomas's estate filed the estate tax return and paid the corresponding
estate tax on January 15, 2019. The properties left by the decedent were finally distributed to
KIKO on February 14, 2019.
REQUIRED: (ANSWER BRIEFLY)

1. When will the transfer of ownership from decedent to the heir take effect? Explain.

2. When should the estate tax accrue?

3. Using the above information, make a scenario (situation) to illustrate each of the three
kinds of succession:

 Testamentary succession

 Intestate succession

 Mixed succession

ANSWER:

1. November 1, 2018. It is the right to the succession are transferred the moment of the
death of Tomas.
2. November 1, 2018. The estate tax accrues as of the time of decedent.
 3. TESTAMENTARY SUCCESSION
 Tomas left a final will and testament to his son, Kiko, before he died. When
Tomas died, he stated that all of his belongings would be handed to Kiko.

INTESTATE SUCCESSION
 During his lifetime, Tomas did not leave a last will and testament. In this
instance, the will is void and an intestate or lawful succession exists because the
will was not executed to the heir. The decedent's estate will be distributed in
accordance with the law.

MIXED SUCCESSION

 Tomas left a will passing all of his possessions to his son, Kiko. Before Tomas
passed away. Assume that the commercial building received rental income from
the preparation of Tomas' will until his death, and that the money was used to
purchase another house and land in Tarlac. Tomas' will and testament do not
contain the house and lot in Tarlac because they were purchased after the 'will'
was written. Although there is a mixed succession, the new property in Tarlac
will be distributed in accordance with the law.

“I affirm that I have not given or received any unauthorized help on this assignment, and that this
work is my own.”