Reviewer in Estate Tax PDF

Transfer Taxes
1. Which of the following statements is false? Transfer tax is

a. Imposed upon gratuitous transfer of property
b. Of two kinds: estate tax and donors' tax
c. Classified as national tax
d. None of the above
2. Statement 1: Gratuitous transfer or donation is subject to transfer tax.

Statement 2: A donation which takes effect at the time of death of the donor is a
donation mortis causa subject to estate while a donation which takes effect
during the lifetime of both the donor and the donee is a donation inter-vivos
subject to donor's tax.
a. Only statement 1 is correct
b. Only statement 2 is correct
c. Both statements are correct
d. Both statements are incorrect
3. Statement 1: A sale is a form of transfer transaction that requires payment of

transfer tax.
Statement 2: Transfer tax accrues at the time of transfer of the decedent's
property or rights to the heir.
4. Statement 1: The rights to the succession are transmitted from the moment of
death of the decedent, notwithstanding the postponement of the actual
possession or enjoyment of the estate by the beneficiary.
Statement 2: The heirs succeed immediately to all the property of the deceased
ancestor at the moment of death as completely as if the ancestor had executed
and delivered to them a deed for the same before his death.
5. Mortis causa transfer of property is effected:

a. When the property is received by the heir.
b. When the court awarded the ownership of
property
particular heir.
c. Upon the death of the decedent.
d. Upon payment of estate tax.
6. The subject matter or object of transfer taxes is
a. Right to transmit c. Properties of the decedent
b. Decedent d. Beneficiaries
7. Justification for the imposition of transfer tax.

a. Redistribution of wealth theory
b. Benefit received theory
c. State partnership theory
d. All of the above
8. Inheritance received is construed as unequal distribution of wealth resulting to

the imposition of estate tax describes:
a. Redistribution of wealth c. state partnership theory
theory d. ability to pay theory
b. Benefit-received theory
9. The tax imposed on the right to transmit property death is known as:
a. Donor’s tax c. Business tax
b. Estate tax d. Income tax
10. The impose on the transfer of property without consideration between two or
more persons who are living at the time the transfer is made.
a. Doner’s tax c. Business tax
b. Estate tax d. Income tax
11. Estate tax is

a. A property tax because it is imposed on the property transmitted by the
decedent to his heirs.
b. An indirect tax because the burden of paying the tax is shifted to the
executor or any of the heirs of the decedent.
c. An excise tax because the object of which is the shifting of economic
benefits and enjoyment of the property from the dead to the living
d. A poll tax because it is also imposed on residents of the Philippines
whether Filipino citizens or not
12. Which among the following statements iscorrect?

a. Estate taxation is governed by the statue in force at the time of death of
the decedent.
b. Estate tax accrues as of the death of the decedent.
c. Succession takes place and the right of the State to tax the privilege to
transmit the estate vests instantly upon death.
d. All of the above
13. Which among the following statements iscorrect?

a. Estate tax is an excise tax. It is a tax on the right to transfer property at
death and on certain transfers which are made by the law the equivalent
if testamentary disposition.
b. Excise tax is an ad volarem tax. It is assessed based on the net value of
the estate transferred.
c. Upon effectivity of the TRAIN Law, estate tax is proportional tax. It is no
longer based on a graduated tax rate but to fixed rate of 6% on the net
taxable estate of the decedent.
d. Estate tax is a specific tax
14. The taxpayer in estate tax is:

a. The decedent
b. The estate as juridical entity
c. The heirs of succession
d. The administrator or executor
15. Estate tax accrues from:

a. The moment of death of the decedent
b. The moment the notice of death is filed
c. The moment the estate tax return is filed
d. The moment the properties are delivered to the heirs
16. Who has the personal liability to pay estate tax?

a. The decedent
b. The estate as a juridical entity
c. The heirs or successors
d. The administrator or executor
17. It is a well settled rule that estate taxation is governed by the statute in force at
the time of:
a. Creation of the last will testament or death of the decedent in case of
intestate succession
b. Death of the decedent
c. Filing of estate tax return
d. Either letter "b" or "c" whichever will result to higher estate tax liability
18. An executor or administrator, after paying the estate tax, and to escape a future
liability for a deficiency estate tax, must secure a written discharge from
personal liability from:
a. The heirs.
b. The Commissioner of Internal Revenue.
c. The court where the estate was being settled.
d. Need not secure a written discharge as long as he has a receipt on
payment of the excise tax.
Concepts of Succession
19. It is a mode of acquisition by virtue of which, the property, rights and
obligations, to the extent of the value of the inheritance, of a person are
transmitted through his death to another either by his will or by operation of law.
a. Succession c. Prescription
b. Donation d. Exchanges
20. Statement 1: decedent is the general term applied to a person whose property is
transmitted through succession, whether or not he left a will.
Statement 2: An heir is a person called to succession either by provision of a will
or by operation of law.
21. Which statement is false about succession?

a. The successor inherits all the transmissible property of a decedent
including his liabilities.
b. The successor can be made liable for the obligation of the decedent
beyond the value of the asset he received.
c. In succession, fruits and credits maturing after the death of the decedent
pass to the heirs even if they were not subject to estate tax.
d. In succession, the successor can refuse the inheritance.
22. Which of the following could leally effect transfer of properties through
succession?
I. By virtue of a will
II. By operations of law
III. By onerous transfer
a. I only c. I and III only
b. I and II only d. I, II and III
23. An act whereby a person is permitted, with the formalities prescribed by law, to
control to a certain degree the disposition of his estate, to take effect after his
death.
a. Contract c. Will
b. Trust d. Legacy
24. ___________is a written will which must be entirely written, dated, signed by the
hand of the testator himself. It subject to no other form and it may be made in
or out the Philippines and need not be witnessed.
a. Ordinary will c. Holographic will
b. Notarial will d. Codicil
25. Statement 1: the making of a will is strictly a personal act. It cannot be left in
whole or in part of the discretion of a third person, or accomplished through the
instrumentality of an agent or attorney.
Statement 2: the burden of proof that the testator was not of sound mind at the
time of making his dispositions is on the person who opposes the probate of the
will; but if the testator, one month, or less, before making his will was publicly
known to be insane, the person who maintains the validity of the will must prove
that the testator made it during a lucid interval.
26. The persons prohibited by the law to make a will are:

I. Those below 18 years of age
II. Those who are not of sound mind at the time of its execution
a. I only c. III Both I and II
b. II only d. Neither I nor II
27. The following are the elements of succession, except:

a. decedent c. heir
b. estate d. executor
28. Succession which results from the designation of an heir, made in a will executed
in the form prescribed by law is known as:
a. Legal or intestate c. Mixed succession
succession d. Ordinary succession
b. Testamentary succession
29. The portion of the decedent's estate which the law reserves to his compulsory
heir is called:
a. Legitime c. Legacy
b. Free portion d. Bequest
30. A person who inherits specific personal property thru a will:

a. Devisee c. Heir
b. Legatee d. Successor
31. A person who inherits specific real property thru a will:

a. Devisee c. Heir
b. Legatee d. Successor
32. Which of the following is a valid will?

a. That which reduces the legitime of compulsory heirs.
b. That which increase the share of one heir without impairing the legitime
of the other heirs.
c. That which transfer the legitime of one heir to the other heir.
d. That which impair the legitime of compulsory heirs.
33. Which of the following is not a compulsory heir?
a. Legitimate children and descendants, with respect to their legitimate
parents or ascendants
b. In default of letter "a", legitimate parents or ascendants, with respect to
their legitimate children or descendants
c. Widow or widower
Relatives by affinity
Composition and Valuation of Gross Estate

34. One of the following is subject to estate tax on properties situated within the
Philippines only
a. Resident citizen
b. Resident alien
c. Nonresident citizen
d. Nonresident alien
35. The personal properties of a non-resident, not citizen of the Philippines, would
not be
included in the gross estate if:
a. The intangible personal property in the Philippines
b. The intangible personal property is in the Philippines and the reciprocity
clause of the estate tax law applies
c. c. The tangible personal property is in the Philippines
d. The personal property is shares of stock of a domestic corporation 90% of
whose business is in the Philippines
36. Statement 1: As a general rule, the situs of tangible personal property is the
place or country where such is actually located at the time of the decedent's
death.
Statement 2: The rule that the situs of intangible personal property is the
domicile or residenceof the owner does not apply when the property has a situs
elsewhere.
37. All of the following are considered intangible in the Philippines, except:
a. Franchise which must be exercised in the Philippines
b. Shares, obligations or bonds issued by any corporation or sociedad
anonima organized or constituted in the Philippines in accordance with its
laws
c. Shares, obligations or bonds by any foreign corporation 75% of the
business of which is located in the Philippines
d. Shares, obligations of bonds issued by any foreign corporation if such
shares, obligations or bonds have acquired a business situs in the
Philippines;
38. Which of the following item is considered situated outside the Philippines?
a. Franchise in the name of the decedent which is exercised in the
Philippines
b. Share of stock holdings of decedent in a foreign corporation whose
business is 90% done in the Philippines
c. Bond certificate issued by a domestic corporation owned by a non-
resident decedent
d. Foreign currency deposited in bank outside the Philippines
39. Shares are not deemed property within the Philippines when
a. The shares are issued by a domestic corporation
b. The shares are issued by a foreign corporation with no business situs in
the Philippines.
c. The shares are issued by a foreign corporation with 85% business in the
Philippines.
d. The shares are issued by a corporation organized under Philippine laws.
40. The following are general rules on situs. Which one is not?
a. The situs of real property is the place or country where it is situated.
b. The situs of tangible personal property is the place or country where such
is actually located at the time of decedent's death.
c. The situs of intangible personal property is the place or country where
such is actually located at the time of the decedent's death.
d. The situs of intangible personal property is the domicile or residence of
the owner.
41. Which is not a test of situs?

a. Residence of the debtor in case of accounts receivable.
b. Place of storage in case of shares of stocks.
c. Location of depository bank in case of bank deposit.
d. Place of exercise in case of copyright.
42. Statement 1: For estate tax computation, real estate shall be valued at fair
market value at the death of the decedent.
Statement 2: If zonal value is available at date of death, and this is higher than
the fair market value per assessor's listings of values, then the amount to be
reported in the gross estate is the zonal value.
43. Pedro March 1, 2018. The following data were available in connection with the
property.
Assessed valued, six (6) months before death P2,500,000
Fair market value at the time of filing estate tax return on Feb. 28, 2019
3,000,000
Zonal value, March 1, 2018 2,000,000
What would be the value of the piece of land in the gross estate?
a. P2,000,000
b. P2,500,000
c. P3,000,000
d. P5,000,000
44. A decedent left 10,000 PLDT shares. The shares were traded in the local stock
exchange. At the time of death, the following were available:
Fair market value P400 per share
Mean between the highest and the lowest quotations P500 per
share
Book value P350 per share
What was the value included in the decedent's gross estate?
a. P3,500,000
b. P4,000,000
c. 5,000,000
d. Whichever was the highest among the fair market value, mean and book
value
45. Which property is valued using the book value?

a. Bonds being traded in the bond market
b. Annuity
c. Shares of stock not traded in the stock exchange
d. Usufruct
46. Pedro died on Nov. 2, 2018, leaving the following properties:

 Common stocks of Sunchamp Corporation (2,000 shares) – listed in the
Philippine Stock Exchange (highest - P40; lowest - P39).
 Common stocks of AgriNurture Corporation (1,500 shares) - not listed in the
stock exchange. Cost - P50 per share; book value - P45 per share.
Preferred stocks of Greenergy Inc. (3,000 shares) - not listed in the stock
exchange. Cost
P70 per share; book value - P60 per share; par value - P50 per share
 Car (cost - P600,000; book value - P350,000; market value - P400,000)
 Real properties (zonal value - PI 20,000; assessed value - P72,000)
The gross estate of Pedro is:

a. P816,500 c. P824,000
b. P817,500 d. P846,000
47. Part of the estate left by A are preference shares of MERALCO. The shares are
listed and traded in the Philippine Stock Exchange. Which of the following rules
of valuation is correct?
a. The preference shares will be valued using the arithmetic mean between the
highest and lowest quotation at the date nearest the date of death, if none is
available on the date of death itself.
b. The preference shares will be valued based on their book value.
c. The preference shares will be valued based on their par value.
d. The preference shares will be valued based on their fair market value as
determined by theCommissioner of Internal Revenue
48. Ana, Filipina, died in Syria leaving the following properties:

House & Lot in Syria 1,000,000
Vacant Lot in Manila 2,000,000
Shares of stock in a domestic corp., 60% of the business 100,000
is located in the Philippines
Shares of stock in a foreign corp., 70% of the business 200,000
is located in the Philippines
Car in Manila 500,000
How much is the gross estate?

a. P2,000,000 c. P2,600,000
b. P2,500,000 d. P3,800,000
49. Based on the preceding number, but assuming Ana is a non-resident alien, the
gross estate is:
a. P2,000,000 c. P2,600,000
b. P2,500,000 d. P3,800,000
50. Continuing the preceding number and the rule of reciprocity applies, the gross
estate is:
a. P2,000,000 c. P2,600,000
b. P2,500,000 d. P3,800,000
51. Following are properties in the gross estate with their fair market value:
House and Lot, family home in Quezon City
P1,500,000
Deposit in a foreign branch of a domestic bank
500,000
Shares of stock issued by a domestic corporation, certificate kept in the US
1,000,000
Pieces of jewelry 800,000
Receivable, debtor in Cebu
200,000
If the decedent was non-resident alien and there is reciprocity, property
excluded from gross estate is valued at
a. P4,000,000 c. P700,000
b. P1,700,000 d. P200,000
52. A non-resident alien left the following properties at the time of his death:
A. Bank deposit, Canada
B. Bank deposit, BDO-Manila
C. Car in Quezon City
D. Investments in bonds, PLDT
E. Investments in stocks, IBM, USA
F. House and Lot, USA
The country of the non-resident alien does not impose a transfer or death tax
of any character with respect to intangible personal property of citizens of the
Philippines not residing in that foreign country. What properties will be included
in the Philippine ross estate of the non-resident alien decedent?
a. All the properties above
b. Properties B, C, and D
c. Property C only
d. Properties A and C
53. Using the same data in the preceding number, assuming the decedent is a
resident alien, and his country does not impose transfer taxes to Filipino not
residing therein, the Philippine gross estate should include:
a. All the properties above
b. Property B, C and D
c. Property C only
d. Properties A and C
54. Which of the following shall be included in the decedent's gross estate?
I. Share in common properties of the surviving spouse
II. Capital or paraphernal property of the surviving spouse
III. Properties outside the Philippines of a non-resident citizen decedent
IV. Intangible personal property in the Philippines of a non-resident alien
a. I only c. I, III and IV only
b. I and III only d. I, II, III and IV
Transfer in Contemplation of Death and Revocable Transfers
55. Which of the following is not a characteristic of donation mortis causa?
a. The transfer to the donee is irrevocable while donor is alive.
b. There is no conveyance of title or ownership to the donee before the
death of the donor.
c. The transferor retains the full or naked ownership and control of the
property while alive.
d. The transfer should be void if the donor should survive the donee.
56. Which of the following statements is incorrect?

a. In a revocable transfer, the decedent during his lifetime may revoke,
alter, amend, or terminate the terms of enjoyment or ownership of the
property.
b. A revocable transfer is always includible in the gross estate of the
decedent-transferor,
c. A revocable transfer shall be included in the gross estate of the decedent-
transferor eventhough the power to revoke was not exercised.
d. The power of the decedent-transferor to revoke terms may be exercised
just once.
57. Lolo Sot, 95 years old, was to diagnosed dispose all of his various properties
ailments to his on children January and 1, relatives. 2018. Motivated by
thought of death, he decided to dispose all his properties to his children and
relatives.On the same day, he made donations inter-vivos to his other
relatives as to his properties in the United States. Lolo Sot died a month after
disposing all his properties. Should the properties donated by Lolo Sot to his
other relatives be included in his gross estate upon his death?
a. No, because they were not his properties anymore at the time of death.
b. Yes, because the donations were donations mortis causa and should be
governed by the rules on estate taxation.
c. No, if the donor's tax had been paid already on the donations.
d. No, because they were not transfers in contemplation of death, since the
donations were not simultaneous with the execution of the last will and
testament.
58. To prevent undue avoidance of tax, inter-vivos disposition in contemplation of

death is subject to
a. Doner’s tax c. Income tax
b. Estate tax d. Excise tax
59. The following are deemed transfers in contemplation of death, except

a. While still alive, the decedent donated property where the donation will
take effect at the time of his death.
b. The decedent transferred a property in the regular course of the business
operation.
c. The decedent donated a property with the condition that he/she will enjoy
the fruits of such while he/she is still alive.
d. The decedent transferred a property to take effect after his/her death
General Power of Appointment (GPA) and Special Power of Appointment
(SPA)
60. Statement 1: A special power of appointment authorizes the donee of the power
to appoint only from among a designated class or group of persons other than
himself.
Statement 2: The donee-decedent of a special power of appointment only holds
the property in trust, hence, the property shall form part of the donee-decedent's
gross estate.
61. Which is correct?

a. The person who creates the power is the donor of the power (donor-
decedent).
b. The person who is given the right to exercise the power of appointment is
the donee (donee-decedent)
c. The property being transferred and the subject of the power of
appointment is the appointed property.
d. All of the above

a. A general power of appointment authorizes the donee of the power to
appoint any person to possess or enjoy the property.
b. A general power of appointment makes the donee of the power the owner
of the property.
c. The appointed property passing under a general power of appointment is
not includible in the gross estate of the donee-decedent.
63. One of the following donations is not included as part of gross estate
a. Revocable transfers
b. Transfers with reservation of certain rights
c. Transfers under special power of appointment
d. Transfers in contemplation of death
64. Statement 1: Aguinaldo devised in his will a piece of land; naked title to
Bonifacio and usufruct to Rizal for as long as Rizal lives, thereafter to Bonifacio.
The transmission from Aguinaldo to Bonifacio and Rizal is subject to estate tax
but the merger of the usufruct and the naked title to Bonifacio upon the death of
Rizal is exempt.
Statement 2: Erap devised in his will real property to his brother Fidel who is
entrusted with the obligation to preserve and transmit the property to JDV, a son
of Fidel, when JDV becomes of age. The transmission from Fidel to his son JDV is
subject to tax.
65. statement 1: The power of appointment is "general" when the power of

appointment authorizes the donee of the power to appoint only from a restricted
or designated class of persons other than
statement 2: Special power of appointment exists when the power of
appointment authorizes the donee of the power to appoint any person he
pleases.

66. Which of the following transfer is not included in the gross estate?
a. Transfer with reservation of certain rights
b. Transfer for insufficient consideration
c. Transfer for an adequate and full consideration in money or money's
worth
d. Transfer in contemplation of death
67. Statement 1: Pedro died giving Juan the power to appoint a person who will
inherit his house and lot. Juan, however can only choose among Ana, Lorna and
Fe. Juan decided to transfer the property to Fe through the former's will. The
transfer from Juan to Fe is subject to estate tax.
Statement 2: During A's lifetime, he decided to give B as gift his (A) car subject
to the condition that if B does not become a CPA within 3 years, A shall revoke
the transfer. In the second year however, A died. The car should form part of A's
gross estate.
68. The following are transactions and acquisitions exempt from transfer tax, except
a. Transmission from the first heir or donee in favor of another beneficiary in
accordance with the desire of the predecessor
b. Transmission or delivery of the inheritance or legacy by the fiduciary or
legatee to the fideicommissary
c. The owner of the usufruct in the owner of the naked title
d. All bequest, devises, legacies or transfers to social welfare, cultural and
charitable institutions.
Insufficient Consideration
69. On the belief that Pedro is about to die, he sold to his daughter a parcel of land
valued at P3,000,000 for the same amount. One (1) year later, Pedro died of a
car accident. At that time, the property had already a value of P3,500,000. For
Philippine estate tax purposes, the amount includible in the gross estate is
a. P500,000
b. P3,000,000
c. P3,500,000
d. nil
70. Vlad died on October 20, 2018. During his lifetime, upon knowing that he had
Stage 4 cancer, sold his Lamborghini car to his son for P4,000,000. The fair
market value of the cår at the time of sale is P3,000,000 while it is already
valued at P5,000,000 at the time of death. The amount that will be added to
gross estate is:
a. P0 c. P800,000
b. P500,000 d. P1,200,000
71. Based on the preceding number, if the consideration is fictitious, how much will
form part of gross estate?
a. P1,000,000 c. P5,000,000
b. P2,000,000 d. nil
72. Pedro, decedent, owns a property valued at PI,500,000 at the time of his death.
The said property was sold by Pedro during his lifetime to Juan for P700,000
when its value was PI,200,000. It was agreed by Pedro and Juan that the former
will enjoy the income of the property as long as he lives. For Philippine estate tax
purposes, how much will be included in determining gross estate?
a. P0 c. P800,000
b. P500,000 d. P1,200,000
73. Based on the preceding number, if the fair market value of the property at the
time of death is only P600,000, how much will form part of gross estate?
a. P0 c. P800,000
b. P500,000 d. P1,200,000
Proceeds of Life Insurance

74. Which of the following is not included in the gross estate?
a. Revocable transfer where the consideration is not sufficient.
b. Revocable transfer where the power of revocation was not exercised.
c. Proceeds of life insurance where the beneficiary designated is the estate
and the designation is irrevocable
d. Proceeds of life insurance where the beneficiary designated is the mother
and the designation is irrevocable.
75. Amounts receivable by the estate of the deceased, his executor or administrator
as an insurance under policy taken by the decedent upon his own life is:
a. Excluded from the gross estate;
b. Part of the gross estate whether the beneficiary is
revocable or irrevocable;
c. Part of the gross estate if the beneficiary is revocable;
d. Part of the gross estate if the beneficiary is irrevocable.
76. Proceeds of life insurance where the beneficiary of the decedent is not his
estate, executor or administrator is:
a. Part of gross income if the beneficiary is revocable
b. Part of gross income regardless whether the beneficiary is
revocable or irrevocable
c. Not part of gross estate if the beneficiary is irrevocable
d. Part of gross estate regardless whether the beneficiary is revocable or
irrevocable
77. Proceeds of life insurance to the extent of the amount receivable by the estate of
the deceased, his executor or administrator under policies taken out by the
decedent upon his own life shall be
I. Part of the gross estate irrespective of whether or not the insured
retained the power of revocation
II. Not part of the gross estate if the beneficiary is irrevocable.
III. Part of the gross income if the designation of the beneficiary is revocable
IV. Not part of the gross income irrespective of whether or not the insured
retained the power of revocation
a. land Il c. land IV
b. land Ill d. only I
78. Which of the following life insurance proceeds shall not be included in the
computation of gross
estate?
a. Beneficiary is the estate, executor or administrator and the designation of
the beneficiary IS revocable;
b. Beneficiary is the estate, executor or administrator and the designation of
the beneficiary is irrevocable;
c. Beneficiary is other than the estate, executor or administrator and the
designation of the beneficiary is revocable;
d. Beneficiary is other than the estate, executor or administrator and the
designation of the beneficiary is irrevocable.

a. Marriage settlements may fix the property relations of spouses during the
marriage within the limits provided by the family code.
b. The purpose of system of property relationship is to distinguish a conjugal
or community property from an exclusive property.
c. Modifications or amendments in the marriage settlements may only be
allowed after the
d. celebration of the marriage.
e. None of the above.
80. statement 1: Conjugal partnership of gains, absolute community Of property and
complete
separation are all valid regimes that may govern property relations between
spouses.
statement 2: Under the regime of absolute community of property, the husband
and the wife place in a common fund the proceeds, products, fruits and income
from their separate property and those acquired by either or both spouses
through their effort or by chance.
81. Under the law, the property relationship between husband and wife shall be
governed in what order?
I. By marriage settlements executed before themarriage.
II. By the provisions of this Code.
III. By the local custom.
a. I, II, III c. II, III, I
b. I, III, II d. III, II, I
82. Exclusive property of the wife is called?

a. income c. paraphernal
b. capital d. equity
83. Exclusive property of the husband is called?

a. income c. paraphernal
b. capital d. equity
84. The gross estate of a decedent who was married at the time of death will be
composed of:
a. His capital property, the wife's paraphernal property and the common
property
b. His capital property and the common property
c. Common property
d. His capital property
85. Statement 1: In the absence of marriage settlements executed before the

marriage, the property
relationship between husband and wife shall be governed by local custom and
by the provisions of law,respectively.
Statement 2: Claims against insolvent persons may be charged against exclusive
property
86. In the absence of a marriage settlement, or when the regime agreed upon is
void, the property relations of the spouses who married before August 3, 1998
shall be governed by:
a. Absolute community of properties.
b. Conjugal partnership of gains.
c. Absolute separation of properties.
d. No property relations.
87. In the absence of a marriage settlement, or when the regime agreed upon is
void, the property relations of the spouses who were married on or after August
3, 1998 would be?
a. Absolute community of properties.
b. Conjugal partnership of gains.
c. Absolute separation of properties.
d. No property relations.
88. The following are exclusive property of each spouse. Which one is not?
a. That which each acquires during the marriage by lucrative title.
b. That which is purchased with the exclusive money of either spouse.
c. That which is acquired by exchange with other property belonging to the
spouses.
d. That which is brought to the marriage as his or her own.
Conjugal Partnership of Gains (CPG)

89. One of the following is a conjugal property of the spouses
a. That which is brought to the marriage as his or her own
b. That which each acquires during the marriage by inheritance
c. The fruits of an exclusive property
d. That which is purchased with the exclusive property of the wife
90. Which of the following is exclusive property under the system of conjugal
partnership of gains
a. Poverty before marriage
b. Inheritance during marriage
c. Property acquired during marriage out ofexclusive money
d. All of the above
91. Which is not an exclusive property of a spouse?
a. That which is brought to the marriage as his or her own.

b. That which each acquired during the marriage by gratuitous title.
c. That which is acquired by right of redemption
d. That which is purchased by the spouses’ common fund.
92. Which of the following is exclusive property under the system of conjugal
partnership of gains?
a. Property before marriage
c. Property acquired during marriage out of exclusive money
d. All of the above.
Absolute Community of Property

93. One of the following is not a community property of the spouses
a. Property inherited by the husband before marriage
b. Winnings in gambling
c. Fruits of property inherited during the marriage
d. Fruits of property inherited before the marriage
94. Which of the following is exclusive property under the system of absolute
community of property?
a. Property before marriage
c. Property acquired during marriage
d. All of the above.
95. Properties owned by the spouses before and brought into the marriage shall be
classified as:
Absolute Community Property Conjugal Partnership of Gains
a. Community Conjugal
b. Exclusive Exclusive
c. Community Exclusive
d. Exclusive Conjugal
96. The fruits on properties owned by the spouses before and brought into the
marriage shall' be classified as:
a Community Conjugal
b Exclusive Exclusive
c Community Exclusive
d Exclusive Conjugal
97. Properties received from gratuitous transfer during marriage shall be classified
as:
98. Properties received from gratuitous transfer during marriage where the donor or
testator expressly provides that it shall form part of the common property of the
spouses shall be classified as:
99. The fruits received during marriage from gratuitous transfer will be classified as:
100. Personal property for personal and exclusive use shall e classified as:
101. How much is the conjugal properties under Conjugal Partnership of Gains?
a. P12,510,000 c. P22,310,000
b. P18,510,000 d. P23,610,000
102. How much is the gross estate under Conjugal Partnership of Gains?
a. P12,510,000 c. P22.310,000
b. P18,510,000 d. P23,610,000
103. How much is the community properties under Absolute Community of Property?
a. P12,510,000 c. P22,310,000
b. P18,510,000 d. P23,610,000
104. How much is the gross estate under Absolute Community of Properties?
a. P12,500,000 c. P22,310,000
b. P18,510,000 d. P23,610,000
105. Statement 1: The right to succession is effected at the time of the transfer of the
decedent’s property or rights to the heir.
Statement 2: Ana is the surviving spouse of Jose. Her share in their
community property is
classified as her exclusive property and shall form part of the decedent's
distributable estate.
106. The list provided below is not included in the gross estate of a decedent, except
a. Share in common properties of the surviving spouse;
b. Exclusive property of the surviving spouse;
c. Properties outside the Philippines of a non-resident alien decedent;
d. Intangible personal property in the Philippines of a non-resident alien
when the rule of Reciprocity applies.
107. How much is the net taxable estate under Conjugal Partnership of Gains?
a. P3,926,000 c. P3,426,000
b. P6,426,000 d. P1,348,000
108. How much is the net taxable estate under Absolute Community of Property?
a. P4,836,000 c. P1,174,000
b. P(2,174,000) d. P2,174,00
Deductions From Gross Estate

Funeral Expenses
109. Which of the following is correct?
a. Cost of burial plot, tombstone, monument or mausoleum can be claimed
as deduction from gross estate including their upkeep.
b. Expenses of the prayer vigils succeeding the burial are deductible from
the gross estate
c. Telecommunication expenses incurred to inform relatives of the decedent
may be claimed as deduction from gross estate.
d. All of the above
1. Which is deductible from gross estate?
a. Interment fees
b. Expenses incurred after interment
c. Interment expenses borne by the decedent’s best friend
d. Death and interment notice published and duly receipted
2. Not allowed as funeral expense

a. Burial plot
b. Mourning clothes of surviving spouse
a. P100,000
c. Mourning clothes of minor and unmarriedc.children
P200,000
b.
d. P150,000
Expenses for religious rites 40 days afterd. P250,000
death
114.
112. Based on the
Statement above data,
1: Funeral how much
expenses is the
derived deducible
from claims
assistance against the are
by sympathizers
deductible funeral
estate? expense
Statement
a. P5,000 2: Receipts or invoices or other evidence to show that the expense
was really incurred must duly support the funeral expense.
b. P100,000
a. P150,000
c. Only statement 1 is correct
b. P0
d. Only statement 2 is correct
d. BothJose
115. Assume statements
died on are
Nov.incorrect
1, 2018, how much is the funeral expense that can
be claimed in computing the taxable net estate?
113. Jose died on November 1,2017 leaving a grossc.estate
a. P150,000 of P4,500,000. The
P250,000
actual
b. funeral
P200,000expense on his burial id P250,000.
d. nil Of the said amount,
P100,000 is unpaid. How much is the funeral expense that can be claimed in
computing the taxable net estate?
116. Aling Fely, administrator, claims the following funeral expenses for a
decedent who died in 2017:
Expenses of interment (paid by friend) P 60,000
Cost of burial & tombstone (1/2 paid by relatives) 42,000
Other funeral parlor expenses 36,000
Expenses during thewake 13,000
Obituary notice 7,500
Card of thanks 3,500
Mourning clothing of friends 15,000
Mourning clothing of unmarried minor children 5,000
If the gross estate is P1,500,000, the allowable funeral expenses is:

a. P75,000
b. P82,500
c. P93,500
d. P174,500
117. based on the preceding number, but the gross estate is P2,500,000, the
allowable funeral expense is:
a. P75,000 c. P93,500
b. P82,500 d. P174,500
Juridical Expenses
118. Judicial expenses may be deducted from the gross estate of a decedent who
died before 2018 Which of the statements provided below is correct?
a. Judicial expenses are costs and expenses incurred during the settlement
of the estate
b. Any unpaid amount of judicial expenses need not be supported by a
sworn statement of account issued and signed by the creditor.
c. Attorney's fees incident to litigation incurred by the heirs in asserting
their respective rights cannot be claimed as deduction from gross estate.
d. Expenses incurred in the administration and settlement of an estate in
extrajudicial proceedings is not allowed as deduction.
119. Judicial expenses may be deducted from the gross estate of a decedent who
died before 2018. However, expenses not essential in the proper settlement
of the estate but incurred for the individual benefit of the heirs, legatees, or
devisees are not allowed as judicial expenses. Which of the following is non-
deductible under this category?
a. Attorney's fees paid by the heirs to their respective lawyers arising from
conflicting claims are not deductible as judicial expenses. These expenses
should be separately borne bythem.
b. Premiums paid by a judicial administrator on his bond are not deductible
because the ability of the appointee to give bond is in the nature of a
qualification.
c. Compensation of trustees such as expenses being for the account and
benefit not of the estate but of the beneficiaries
d. All of the above
120. Statement 1: To be deductible, judicial expenses should be incurred during

the settlement of the estate but not beyond the last day prescribed by law, or
the extension thereof, for the filing of estate tax return.
Statement 2: Expenses primarily incurred by an heir intended to establish his
interest in the estate are deductible judicial expenses from the gross estate.
121. Which of the following statements is true?

Statement 1: Expenses incurred in locating a legal heir of the testator is a
deductible judicial expense
Statement 2: Brokerage fees in selling property of the estate are part of the
deductible judicial expense
122. Which of the following incurred expenses shall not be deducted under the
category of judicial exposes for a decedent who died before 2018?
a. Expenses for the inventory-taking of the assets comprising the gross
estate;
b. Expenses for the administration and payment of debts of the estate;
c. Expenses for the distribution of the estate among the heirs;
d. Expenses as of the last illness of the decedent
123. Which of the following is deductible as judicial expense of the testamentary

and judicial proceedings?
a. Expenditures incurred for the individual benefit of the heirs, devisees or
legatees
b. Premiums paid on the bond filed by the administrator as an expense of
the administration in nature of qualification for the office.
c. Attorney's fees incident to litigation incurred by the heirs in asserting
their respective rights.
d. Payments to an accounting firm for services in taking inventory of assets,
tax consultations, and preparation of income tax returns for the the
estate.
124. Mr. Ded, a bachelor and resident Filipino citizen, died on November 2, 2017.
The following fees were paid to the following in connection with the
settlement of his estate.
Executor, for time and effort in executing the will P50,0
00
Attorney, for legal advice in carrying out the will P80,0
00
Appraiser, for establishing property values 70,00
0
Administrative expenses for locating and collecting 40,00
assets 0
Accountant, for estate tax return preparation 30,00
0
How much deduction for judicial expenses may the estate claim?
a. P150,000 c. P230,000
b. P220,000 d. P270,000
125. Pedro died in 2017. The following are the requisites in claiming casualty
losses in the computation of estate tax, except:
a. Losses are not compensated by insurance;
b. Losses must not have been claimed as deduction in the computation of
income tax;
c. Losses were incurred not later than the six (6) months from the time of
death.
d. Losses were incurred not later than one (1) year from the time of death.
126. Pedro died in January 2018. The following are the requisites in claiming
casualty losses in the computation of estate tax, except:
a. Losses are not compensated by insurance;
b. Losses must not have been claimed as deduction in the computation of
income tax;
c. Losses were incurred not later than one (1) year from the time of death
127. Deductible claims against the estate or indebtedness in respect of property

may arise out of, except:
a. contract c. operations of law
b. tort d. none of the above
128. Which of the following statements pertaining to the duly notarized
certification from the creditor as to the unpaid balance of debt of debt by the
decedent including interest as of the date is correct?
a. If the creditor is a corporation, it shall be signed by President, or Vice-
President or otherprincipal officer of the corporation.
b. If the creditor is a partnership, it shall be signed by any of the general
partners.
c. If the creditor is a bank or other financial institutions, it shall be executed
by the branch manager of the bank/financial institution which monitors
and manages the loan of the debt or decedent.
d. All of the above
129. The following -are the requisites in order for claims against the decedent's
estate may be deductible, except which one?
a. They must be the personal debt of the decedent
b. They must be enforceable in court.
c. They may have been condoned prior to death.
d. If the loan was contracted 3 years before death, submit statement
showing the disposition of the proceeds.
130. Which of the following is not deductible from the gross estate of a decedent?
I. Income taxes on income received after death
II. Property taxes not accrued before death
III. Estate Tax
a. I and Il only c. All of the above

b. Il and Ill only d. None of the above
131. If a loan is found to be merely an accommodation loan where the loan

proceeds went to another person, which of the following statements is
incorrect?
a. The value of the unpaid loan must be included as a receivable of the
estate.
b. If there is a legal impediment to recognize the same as receivable of the
estate, said unpaid obligation shall not be allowed as a deduction from
gross estate.
c. In all instances, the mortgaged property, to the extent of the decedent's
interest therein, should always form part of the gross estate.
d. None of the choices
132. Which of the following is not a requirement in claiming unpaid mortgage as

deduction for estate tax purposes?
a. The fair market value of the mortgaged property, net of the mortgage
indebtedness, should be included in the gross estate;
b. The fair market value of the mortgaged property undiminished by the
mortgage indebtedness should be included in the gross estate;
c. The loan must be contracted in good faith
d. The loan must be for an adequate and full consideration.
133. Mr. Pobre is in need of money to start a small business. However, he has no
property to secure a loan from a bank so he sought the help of his good
friend Mr. Rich. Mr. Rich then obtained a ban from Banco de Uro amounting to 1
million pesos secured by a real property worth 2 million pesos to
accommodate the request of Mr. Pobre. If subsequent to securing the loan and
delivering to Mr. Pobre the proceeds, Mr. Rich died, how much gross estate
should be reported?
a. P1,000,000
b. P2,000,000
c. P3,000,000
d. Nil
134. A piece of land with a fair market value of P 10,000,000 at the time of the
decedent's death was included in the gross estate. Upon closer examination,
you found out that the value used was net of P2,000,000 unpaid mortgage on
the same land. How much should have been included and deducted from the
gross estate?
Amount to be included Amount to be deducted
a. P12,000,000 2,000,000
b. P10,000,000 2,000,000
c. P10,000,000 0
d. P8,000,000 0
Vanishing Deduction
135. The following are the requisites for vanishing deduction to be allowable,
except one.
a. The estate tax of the prior succession must have been finally determined
and paid.
b. The present decedent died within five (5) years from date of death of the
prior decedent
c. The property with respect to which deduction is sought can be identified
as having been received by the present decedent from the prior
decedent.
136. Ded Nha, a citizen of the Philippines and resident of Manila died intestate on
November 2, 2018 Among estate are properties acquired through public sale
of properties left by Bernardo who died 4 ½ years ago. What percentage of
deduction will be used in computing the amount of vanishing deduction?
a. 60%
b. 40%
c. 20%
d. nil
137. Which of the following properties of Namayapa Nha who died December 1,
2018 is subject vanishing deduction?
 Property 1: Rest House in Tagaytay purchased in 2012
 Property 2: Commercial lot and building inherited from her mother in
2011 where the estate tax thereon had not been paid.
 Property 3: Donation from a friend in 2013
 Property 4: Property won in a lottery six (6) months before
death.
Property 1 Property 2 Property 3 Property 4
a. No No Yes Yes
b. No No Yes No
c. Yes Yes No Yes
d. Yes Yes No No
138. Pedro a citizen of the Philippines and resident of Makati City, died testate on
May 10, 2018. Among his gross estate were properties inherited from his
deceased father who died on April 4, 2015. What percentage of the
deduction would be used in computing the amount of vanishing deduction?
a. 60% c. 20%
b. 40% d. nil
139. Mr. Pin Manaw, resident decedent, married, died leaving the following
properties:
Real and personal properties acquired during the marriage
P 3,000,000
House and Lot inherited from hisfather one year and 3 months
2,000,000
before he died (Fair market value when inherited, P1,500,000)
used as the decedent’s family home
Car purchased with cash received as gift from
his mother during the year he died.
500,000
Cash(inclusive of P500,000 received as inheritance from the father)
1,500,000
The following obligations and expenses where also made available:

Claims against conjugal properties
600,000
Unpaid mortgage on the inherited house and Lot
100,000
(original mortgage was P600,000)
How much is he total vanishing deduction?

a. P100,000 c. P1,530,000
b. P1,080,000 d. nil
140. Teh Pok died on November 20, 2018. Some of the properties he left are the
following:
Market Value
Asset Mode of AcquisitionDate Acquired Date Acquired Date
of Death
Land Purchased 7-3-14 500,000 350,000
Car Donation 10-2-17 800,000 980,000
Other information:
a) The gross estate of the decedent amounts to P3,000,000.
b) The car was mortgaged for P50,000 when it was acquired and Teh Pok paid
the same before he died.
c) The allowable deductions totaled P325,000, which includes judicial expenses
of P30,000 and funeral expenses of P150,000.
The vanishing deductions is -
a. P581,000
b. P571,000
c. P648,000
d. P637,617
141. A decedent died in 2016 leaving properties he inherited 2 1/2 years ago
which had fair market value of at the time of his death at the time of
inheritance, and unpaid mortgage of P500,000 paid by the present decedent).
After inheritance, the decedent mortgages the property for P500,000 and paid
the same before his death, other properties in his gross estate had fair
market value of P10,000 The total expenses, losses, indebtedness, taxes and
transfer for public purpose amounted to P3,000,000.
How much is the vanishing deduction?

a. P2,000,000 c. P3,000,000
b. P2,750,000 d. P3,120,000
142. Assume the same data in the immediately preceding number except for the
following assumptions:
 The decedent died in 2018
 Out of the P3,000,000 expenses, losses, indebtedness, taxes and transfer for
public use P200,000 was incurred for funeral expenses and P400,000 for
judicial expenses.
How much is the vanishing deduction?

a. P2,000,000 c. P3,000,000
b. P2,750,000 d. P3,120,000
143. Mrs. Nathy Gok died on March 20, 2017 leaving a gross estate of P8,000,000
including a land inherited from his uncle on October 15, 2013 and a car
donated to him on April 20, 2011. The following data pertain to the two
properties:
Unpaid mortgage FMV upon receipt FMV upon death
Land P1,000,000 P1,800,000 P1,250,000
Car 50,000 300,000 400,000
The decedent was able to pay 1/2 of the unpaid mortgage on the land before his
death. The deductions are:
Expenses, losses, indebtedness, taxes (excluding the unpaid mortgages
P1,200,000
above but including actual funeral expenses of P300,000
and medical expenses of P600,000)
Transfer to the Government, included above 300,000
Family home (included above) 2,000,000

The allowable vanishing deduction is:
a. P213,000 c. P440,625
b. P426,000 d. P626,000
144. The taxable net estate based on the preceding number is:
a. P2,174,000 c. P4,074,000
b. P3,174,000 d. P4,174,000
145. Mrs. Nathy Gok died on March 20, 2018 leaving a gross estate of including a
land inherited from his uncle on October 15, 2014 and a car donated to him
on April 20, 2012. following data pertain to the two properties:
Unpaid mortgage FMV upon receipt FMV upon death
Land P1,000,000 P18,000,000 P12,500,000
Car 500,000 3,000,000 4,000,000
The decedent was able to pay 1/2 of the unpaid mortgage on the land before his
death. The deductions are:
Expenses, losses, indebtedness, taxes (excluding the unpaid mortgages P12,000,000
above but including actual funeral expenses of P3,000,000
and medical expenses of P6,000,000)
Transfer to the Government, included above 3,000,000
Family home (included above) 2,000,000
The allowable vanishing deduction is:

a. P2,130,000 c. P4,380,000
b. P4,260,000 d. P6,260,000
146. The taxable net estate based on the preceding number is
a. P2,174,000 c. P51,620,000
b. P40,000,000 d. P52,000,000
147. vanishing deduction on properties received from gratuitous transfer before

marriage shall be classified as:
148. Vanishing deduction on properties received from gratuitous transfer during

marriage shall be classified as:
149. If the decedent is married under the conjugal partnership of gains, vanishing
deduction shall be chargeable against?
a. Exclusive Properties
b. Conjugal Properties
c. Either Exclusive Properties or Conjugal Properties
d. Neither Exclusive nor Conjugal Properties
150. The following are required to be listed as part of the gross estate, but are
exempted from estate tax, except
a. Share of the surviving spouse
b. Transfer for public use
c. Exclusive property of the decedent
d. Amount received by heirs under RA 4917
151. Which statement is incorrect about claims against insolvent persons?

a. They must be included in the gross estate even if uncollectible.
b. They must be duly notarized as a rule.
c. The deduction is only the uncollectible portion.
d. The insolvency of the debtor must be established.
152. Statement 1: In a claim against insolvent person, the insolvency of the debtor
z
Statement 2: It could be that the amount to be included as pad of the gross
estate is a claim against insolvent person is less than the full amount owed.
153. The following data were taken from the estate of Pedro:
 Claims against Juan (insolvent), PI 00,000, fully uncollectible.
 Claims against Manuel (insolvent), P200,000, 50% collectible.
 Claims against a person who absconded, P300,000.
Based on the data provided, how much should be deducted from Pedro's
gross estate?
a. P600,000 c. P200,000
b. P500,000 d. Nil
154. One of the following statements is wrong. Claims against insolvent persons
1. Should always be included in the gross estate.
2. If entirely uncollectible, may be omitted in the computation for the net
taxable estate
3. Can give rise to reduction even if the debtor had some properties.
4. Can be a deduction even if secured by a mortgage.
155. The gross estate of Juan includes P80,000 receivables which is duly notarized
from debtor Pedro whose records show:
Assets P 100,000
Indebtedness to:
 Government 40,000
 Juan 80,000
 Other creditors 20,000
The deductible claims against insolvent person is

a. P29,285 c. P48,000
b. P32,000 d. P80,000
SPECIAL DEDUCTIONS:
Standard deduction
156. The following statements are correct regarding standard deduction under the
TRAIN LAW, except:
a. A deduction in the amount of P5,000,000 shall be allowed as an
additional deduction without need of substantiation.
b. The full amount of shall be allowed as deduction for the benefit of the
decedent.
c. Standard deduction is not allowed to decedents who are non-resident
aliens.
157. If a decedent died prior to 2018, standard deduction from his gross estate is
allowed for
PI,000,000 unless the decedent
a. has a gross estate valued not more than PI,000,000
b. has his estate opted for itemized deduction
c. was a resident alien
d. was a non-resident alien.
158. All of the following items are allowed as deductions against exclusive portion
of the estate, except
a. Has a gross estate valued not more than P1,000,000
b. Claims against insolvent persons
c. Share of the surviving spouse
d. Family home
159. Medical expense is allowed as a deduction from the gross estate of decedent
who died prior the effectivity of the TRAIN Law. Which of the following is
correct?
I. If the actual amount of medical expenses incurred is P300,000, then only

P300,000 shall be allowed as deduction and not to the extent of the P500,000
threshold amount.
II. If the actual amount of medical expenses incurred within the year prior to
decedent's death is P700,000, only the maximum amount of P500,000 shall
be allowed as deduction. If in case the excess of P200,000 (P700,000 —
P500,000) is still unpaid, such amount shall be deducted from the gross
estate as "claims against the estate"
a. I only c. l and Il
b. Il only d. None of the above
Family Home (FH)
160. Which of the following statements is incorrect in connection with family home
deduction prior to TRAIN Law?
a. Family home deduction shall be allowed only if such family home is
situated in the Philippines
b. The total value of the family home must be included as part of the gross
estate of the decedent
c. For purpose of availing family home deduction, a person may constitute
only one family home
d. Family home deduction may not be lower than P1,000,000
161. A decedent died on Nov. 1, 2017 leaving a family home composed of the
following: Conjugal house worth P800,000, and the land which he exclusively
owned valued at P400,000. He also owns a vacation house in Baguio
worth P700,000. The deductible amount of family home is
a. P800,000 c. P1,200,000
b. P1,000,000 d. P1,900,000
162. Based on the preceding number, if the house is also an exclusive property,
how much is the deductible family home allowance?
a. P800,000 c. P1,200,000
b. P1,000,000 d. P1,900,000
163. In 2016, a married, nonresident citizen decedent has the following common
properties, obligations, and expenses
Real property, Philippines P 4,000,000
Real property, USA 5,000,000
Funeral expenses 250,000
Judicial expenses 150,000
Unpaid taxes 50,000
Medical expenses 650,000
The real property in the Philippines includes the family home valued at
P1,500,000. How much is the taxable net estate?
a. P6,350,000 c. P2,050,000
b. P3,050,000 d. P2,300,000
164. Under conjugal partnership of gains, gross conjugal property is

a. P1,300,000 c. P800,000
b.P1200,000 d.P300,000
165. The 1/2 share of the surviving spouse is

a. P600,000 c. P500,000
b. P575,000 d. P300,000
166. The net taxable estate of the decedent is

a. P600,000 c. P500,000
b. P575,000 d. P475,000
167. Prior to TRAIN Law, which of the following is deductible from the gross estate
of a non-resident alien decedent?
a. Funeral and judicial c. Family home allowance
expenses d. Standard deduction
b. Death benefits under RA
4917
168. Under TRAIN Law, all of the following, except ones are not deductible from
the gross estate of a non-resident alien:
a. Funeral and judicial c. Family home allowance
expenses d. Standard deduction
b. Death benefits under RA
4917
169. One of the following cannot be claimed as deduction from the gross estate of
a non-resident alien decedent
a. Vanishing deduction
b. Medical expenses
c. Share of surviving spouse
d. Transfer for public use
170. One of the following is allowed as a deduction from .the gross estate of a non-
resident alien decedent who died prior to 2018, but is prorated between
Philippine gross estate and the total or world gross estate:
a. Expenses, losses, indebtedness, taxes, etc.
b. Share of the surviving spouse
c. Vanishing deduction
d. Amount received under R.A. 4917
171. One of the following is allowed as a deduction from the gross estate of a non-
resident alien decedent who died on or after January 1, 2018, but is prorated
between Philippine gross estate and the total or world gross estate:
a. Losses, indebtedness, taxes, etc.
b. Share of the surviving spouse
c. Vanishing deduction
d. Amount received under R.A. 4917
172. One of the following is allowed as a deduction from the gross estate of a non-
resident alien decedent (prior or after TRAIN Law)
a. transfer for public use c. medical expenses
b. standard deduction d. family home
173. Allowable deduction for non-resident alien decedent who died on January 1,
2018:
a. funeral expenses
b. vanishing deductions
c. family home
d. all of the above
Use the following data for the next four (4) questions:
Sarah a resident of China and a Chinese citizen died last July 4,2017 leaving the
following properties:
Land in Davao P2,000,000
Rest house in China 1,000,000
Jewelries received from Leni, a week before her death 500,00
Family home 1,500,000
Car 800,000
The descendants of Sarah claimed the following deductions:
Funeral expenses P300,000
Claims against insolvent persons 500,000
Amounts received under RA 4917 1,000,000
Judicial expenses 100,000
Medical expenses incurred from
September 2016 to July 4, 2017 200,000
Family home 1,500,000
Standard deductions 1,200,000
174. The gross estate is

a. P4,800,000 c. P5,800,000
b. P5,300,000 d. P6,300,000
175. Total ELITe to be deducted from the gross estate

a. P300,000 c. P690,411
b. P604,911 d. P800,000
176. Deductible vanishing deduction shall be

a. P0 c. P445,205
b. P335,205 d. P545,205
177. Net taxable estate is

a. P1,854,795 c. P4,000,000
b. P2,049,884 d. P5,164,384
178. The taxable net estate is:

a. P5,165,000 c. P4,981,250
b. P4,665,000 d. P21,000,000
179. The taxable net estate assuming Kano died on Nov. 1, 2017:
a. P5,165,000 c. P4,981,250
b. P4,665,000 d. P21,000,000
180. If decedent is a Filipino citizen, the taxable net estate is:

a. P11,490,000 b. P12,645,000
c. PP4,100,000 d. P7,900,000
181. Bonifacio, head of the family died on January 15, 2017, leaving the following
properties and obligations:
Cash in bank, 50%, donated mortis causa to Nati Govt;-50% to Q.C. gov’t
P300,000
House and Lot in Makati, F. Home
1,500,000
Personal properties
1,500,000
Farm lot 825,000
Claims against an insolvent debtor
225,000
Transfer in contemplation of death(gratuitous)
1,500,000
Transfer passing under special power of appointment
75,000
DEDUCTIONS CLAIMED:
Funeral expenses
575,000
Judicial expenses
67,500
Donation mortis causa to Quezon City government
150,000
Unpaid mortgage on the farm lot
75,000
Medical expenses
225,000
(included in the funeral expenses incurred within the first year period with
receipts)
The farm lot was inherited 5 1/2 years by the decedent before his death with a
value then Of P575,000 and a mortgage indebtedness of PI 50,000.
The taxable net estate is:

a. P2,672,329
b. P2,757,500
c. P3,757,000
d. P4,982,500
182. Bonifacio, head of the family died on January 15,2018 leaving the following
properties and obligations:
Cash in bank, 50%, donated mortis causa to Nati Govt;-50% to Q.C. gov’t
P3,000,000
House and Lot in Makati, F. Home
15,000,000
Personal properties
15,000,000
Farm lot 8,250,000
Claims against an insolvent debtor
2,250,000
Transfer in contemplation of death(gratuitous)
15,000,000
Transfer passing under special power of appointment
750,000
DEDUCTIONS CLAIMED:
Funeral expenses
5,750,000
Judicial expenses
675,000
Donation mortis causa to Quezon City government
1,500,000
Unpaid mortgage on the farm lot
750,000
Medical expenses
2,250,000
(included in the funeral expenses incurred within the first year period with
receipts)
The farm lot was inherited 5 ½ years by the decedent before his death with a
value then of 5,750,000 and a mortgage indebtedness of 1,500,000.
The taxable net estate is:

a. 26,720,000
b. 37,500,000
c. 41,500,000
d. 50,500,000
183. Statement 1: Estate Tax credit refers to the taxpayer's right to deduct from
the tax due the amount of tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes
pertain to properties which are included in the gross estate for Philippine estate
tax computation.
184. In computing the estate tax, which of the following shall not be allowed tax
credit for taxes paid abroad?
a. Resident alien decedent
b. Non-resident alien decedent
c. Resident citizen decedent
d. Non-resident citizen decedent
185. Statement 1: Estate Tax credit refers to the taxpayer's right to deduct from
the tax due the amountof tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes
pertain to properties which are included in the gross estate for Philippine estate
tax computation.
186. Statement 1: This deduction is allowed by law to lessen the harshness of

international double taxation where the same estate is being subject to both
the foreign estate tax and the Philippine
Statement 2: Nonresident alien decedents are not entitled to estate tax
credit.
187. Statement 1: An estate tax credit is allowed as deduction from the estate tax
due if the decedent at the time of his death was a resident citizen of a
foreign country which at the time of his death did not impose an estate tax
of any character in respect of intangible personal property of citizens of
the Philippines not residing in that foreign country.
Statement 2: An estate tax credit is allowed as deduction from the estate tax
due if the laws of t he foreign country of which the decedent was a resident citizen
at the time of his death allow a similar exemption from estate taxes of every
character, in respect of intangible personal property owned by citizens of the
Philippines not residing in that foreign country.
188. Which of the following is not allowed with tax credit for payments of estate
tax on foreign countries?
a. A resident alien
b. A non resident citizen
c. An alien who was a resident of his own country at the date of death
d. An American residing in the Philippines at the date of death
189. Statement 1: tax credit for foreign estate tax is allowed to minimize the effect
of multiplicity of situs.
Statement 2: Tax credit for foreign estate is allowed to minimize the effect of
the indirect double taxation.
Tax Credit – Foreign Country Only

Next two (2) questions are based on the following:
A citizen-decedent died in 2018 with the following data:
Philippines USA
Gross estate P14,200,000 P4,400,000
Allowable deductions P6,400,000 2,200,000
(excluding standard deduction)
Estate tax paid 150,000
190. How much is the estate tax payable in the Philippines assuming the decedent
is a non-resident citizen?
a. P132,000 c. P168,000
b. P150,000 d. P300,000
191. How much is the estate tax payable in the Philippines assuming the decedent
is anon resident alien?
a. P150,000 c. P300,000
b. P168,000 d. P438,000
Tax Credit – More than 1 Foreign Countries

192. Mr. Bombo, Filipino died on April 10,2016 with the following data:
Gross Estate Allowable Deductions Estate tax paid
Philippines P1,875,000 1,575,000 P-
China 300,000 150,000 3,750
Japan 450,000 525,000 -
USA 600,000 225,000 18,000
The estate tax payable in the Philippines is:

a. P9,000
b. P13,500
c. P13,250
d. P14,000
Compliance Requirements
193. Statement 1: The estate tax imposed under the Tax Code shall be paid by the
executor or administrator before the delivery of the distributive share in the
inheritance to any heir or beneficiary.
Statement 2: The executor or administrator of an estate has the primary
obligation to pay the e state tax but the heir or beneficiary has subsidiary liability
for paying that portion of the estate corresponding to his distributive share
in the value of the total net estate.
194. Statement 1: If the decedent died before 2018, a notice of death is always
required to be filed. Statement 2: If the decedent died before 2018, the notice
of death shall be filed by the executor, administrator or any of the legal heirs
within two (2) months after the decedent's death, or within likeperiod after
qualifying as such executor or administrator.
195. Lolo Sot died in 2017 leaving a gross estate amounting to P150,000 only. No
estate tax is due based on the tax code. The gross estate is composed of a
second hand car worth P80,000, shares of stocks valued at P50,000 and
P20,000 time deposit. The administrator believes only notice of death should be
filed since the value of the gross estate is exempt from tax. What will you
tell him?
a. Notice of death and estate tax return have to be filed because the gross
estate exceeds P20,000 and when the gross estate consists of registered
or registrable properties, estate tax is required to be filed regardless of
the value of the gross estate.
b. Only notice of death is required to be filed because the gross 'estate
exceeds P20,000
c. estate tax return is required to be filed only when the gross estate
exceeds P200,000 and/or there is estate tax due
d. Neither notice ofdeath nor estate tax return need to be filed in this
particular case.
e. only estate tax return has to be filed because the filing of the return also
serves as of death.
196. A decedent died before the effectivity of the TRAIN Law, under which of the
following situations anestate tax return is not required to be filed?
a. Transfers which are subject to estate tax.
b. The gross value of the estate exceeds P200,000.
c. The estate consists of registered or registrable properties for which a
clearance from the BIR is required as a condition precedent fort he
transfer of ownership
d. The gross value of the estate consisting of non-registrable properties
does not exceed P200,000 and the deductions amount to PI 50,000.
197. A decedent died upon the effectivity of the TRAIN Law, under which of the
following situations an estate tax return is not required to be filed?
a. Transfers which are subject to estate tax.
b. The estate consists of registered or registrable properties for which a
clearance from the BIR is require mas a condition precedent fort he
transfer of ownership.
c. The gross value of the estates consisting of non-registrable properties
does not exceed
198. Who shall file the estate tax return?

a. Executor, or administrator, or any of the legal heirs
b. Creditors of the decedent
c. Personal secretary he decedent
d. Debtors of the decedent
199. The Estate Tax Return shall be filed and payment made with
a. An Authorized Agent Bank (AAB) of the Revenue District Office (RDO)
having jurisdiction over the place of residence of the decedent at the time
of his/her death.
b. If there is no AAB within the residence of the decedent, the Estate Tax
Return must 'be filed and the payment made with the Revenue Collection
Officer or duly Authorized City orMunicipal Treasurer of the RDO having
jurisdiction over the place of residence of the decedent.
c. If the required flier has no legal residence in the Philippines, the Estate
Tax return will be filed with the Office of the Commissioner or in the
Philippine Embassy or Consulate in the country where the decedent was
residing at the time of his or her death.
d. All of the above
200. If the decedent died before 2018, the estate tax return should be filed
a. At the time of death
b. Within 30 days after death
c. Within six months after death
d. Within one (1) year after death
201. If the decedent died on or after January 1, 2018, the estate tax return should
be filed
a. At the time of death
b. Within 30 days after death
c. Within six months after death
d. Within one (1) year after death
202. An estate tax return is not necessary in the following instance

a. Donation of P50,000 cash
b. Transfer of motor vehicle valued at P130,000
c. Both "a" and "b"
d. Neither "a" nor "b"
203. Statement 1: The Commissioner or any of the Revenue Officer authorized by

him pursuant to the tax code shall have the authority to grant, in
meritorious cases, a reasonable extension not exceeding thirty (30) days for
filing the return
Statement 2: The application for the extension of time to file the estate tax
return must be filed With the RDO where the estate is required to secure its
TIN and file tax return of the estate.
204. Extension for the payment of the estate tax shall be allowed on the ground
of:
a. Undue hardship upon the estate or any of the heirs
b. Negligence
c. Intentional disregard of rules and regulations
d. Fraud
205. The Commissioner, on meritorious cases, may extend the time for payment
of estate tax:
In the case the estate In the case the estate
is settled judicially is settled extra-judicial
a. 5 years 5 years
b. 2 years 2 year
c. 5 years 2 years
d. 2 years 5 years
206. When an estate is settled extra-judicially, the estate tax return may be filed
and the estate tax paid
a. By any of the heirs, with a right of reimbursement from the other heirs.
b. Only by the heir with authority from the other heirs.
c. By each of the heirs, the payment being for his distributive share in the
estate tax.
d. The eldest of the heirs and closest in relationship to the decedent.
207. A died leaving a house and lot to B on March 31, 2012 which was questioned
by C and it is under litigation but, subsequently, the parties executed an
extra-judicial settlement. The last day for filing the estate tax return is:
a. April 30, 2013 c. September 30, 2012
b. April 30, 2016 d. October 30, 2012
208. The last day for the payment of estate tax may be extended, until;
a. April 30, 2015 c. September 30, 2014
b. April 30,2018 d. April 30, 2018
209. A died leaving a house and lot to B on April 1, 2018 which was questioned by
C and it is under litigation but, subsequently, the parties executed an
extra-judicial settlement. The last day for filing the estate tax
return is:
a. April 30, 2018 c. October 1, 2018
b. April 30,2018 d. March 31, 2019
210. The last day for the payment of estate tax may be extended, until;
a. October 1, 2018 c. October 1, 2021
b. March 31 ,2021 d. March 31, 2022
211. A resident citizen died September 3, 2017. An administrator was appointed

on September 15, 2017. The inventory taking of the decedent's properties was
completed on October 10, 2017. When should the estate tax return be filed?
a. November 3, 2017 b. March 3, 2018
c. March 15, 2018 d. Sept 2, 2018
212. In filing the estate tax return of a decedent who died prior to the effectivity of
the TRAIN Law, a CPA certificate is required when:
a. Gross estate exceeds P 2,000,000
b. Gross estate exceeds P 5,000,000
c. Gross estate exceeds PI 0,000,000
d. Gross estate reaches P 2,000,000
213. In filing the estate tax return under the TRAIN Law, a CPA certificate is
required when:
a. Gross estate exceeds P2,000,000
b. Gross estate exceeds P5,000,000
c. Gross estate exceeds PI 0,000,000
d. Gross estate reaches P 2,000,000
214. One of the following is not a content of the statement certified to by a CPA:
a. Itemized asset of the decedent with their corresponding gross value at
the time of his death or in case of non-resident alien of that part of his
gross estate situated in the Philippines
b. Itemized deductions from gross estate
c. The amount of tax due whether paid or still due and outstanding
d. Certified copy of partition
215. Statement If an extension for payment of estate tax is granted, the

commissioner or his duly may require the executor, or administrator, or
beneficiary, as the case may be, to furnish a bond in such amount, not
exceeding double the amount of the tax.
Statement 2 Any amount paid after the statutory due date of the estate tax,
but within the extension period, Shall be subject to interest but not to
surcharge.
216. Which of the following is not correct?

a. When a compulsory heir is given by will less than his legitime, the
provisions of the will should be modified in such a way that he will receive
his legitime.
b. The CIR may examine the bank deposit of a decedent for the purpose of
determining his gross estate even the estate did not request for a
compromise on the ground of financial
c. The sharing of heirs in testamentary succession must satisfy the rules on
legitime.
d. If an extension to pay the estate tax is granted, the Commissioner or his
duly authorized representative may require the administrator, or
executor, or beneficiary, to furnish a bond in such amount exceeding
double the amount of the tax and with such sureties as the Commissioner
deems necessary, conditioned upon the payment of said tax in
accordance with the terms of the extension.
217. Statement 1: Any amount paid beyond the statutory due date of the tax, but
within the extension period, shall be subject to interest but not to
surcharge.
Statement 2: No extension for payment of estate tax shall be granted where
the request for extension is by reason of negligence, intentional disregard of
rules and regulations, or fraud on the part of the taxpayer.
218. In case of a resident decedent, the administrator of executor shall register

the estate of the decedent and secure new TIN from the the
a. Office of the Commissioner
b. RDO where the administrator or executor is registered.
c. RDO where the decedent was domiciled at the time of his death.
d. Duly authorized treasurer of the city or municipality where the decedent
is domiciled at the time of his death.
219. Can the yes, estate in case tax the be paid available in installment?
a. Yes in case the available cash of the estate is not sufficient to pay its
estate tax liability.
b. Yes, at the option of the heirs with corresponding interest charges.
c. No, tax is the lifeblood of the State, hence, collection cannot be delayed
under any circumstance.
220. Which of the following is not correct regarding the estate of a decedent who
died before 2018?
a. No judge shall order a distribution of any part of the estate to an heir
without a certification from the BIR that the tax has been paid.
b. A bank shall not allow the co-depositor of a deceased to withdraw from
the joint bank account without a certification from the BIR that the tax
has been paid.
c. No Register of Deeds shall transfer to any heir the title of a decedent to
real property without certification from the BIR that the tax has been
paid.
221. A decedent who maintains a bank account died in March 12, 2018. Which of
the following statements is correct?
Statement 1: If a bank has knowledge of the death of a person, who
maintained a bank account alone, or jointly with another, it shall allow the
withdrawal from said deposit account, subject to a final withholding tax of 6% of
the amount to be withdraw, provided, that the withdrawal shall only be made
within one year from the date of said decedent.
Statement 2: In all cases, the final tax withheld shall not be refunded, or
credited on the tax due, on the net taxable estate of the decedent.
222. Which of the following statements is correct?

a. There shall not be transferred to any new owner in the books of any
corporation, sociedad anonima, partnership, business, or industry organized
or established in the Philippines any share, obligation, bond or right by way
of gift inter-vivos or mortis causa, legacy or inheritance, unless an eCAR is
issued by the Commissioner or his duly authorize representative.
b. In instances where the deposit accounts have been duly included in the
gross estate of the
decedent and the estate tax due thereon paid, the executor, administrator,
or any of the legal heirs shall present the eCAR issued for the said estate
prior to withdrawing from the bank deposit account.
c. The withdrawal describe in letter b shall no longer be subject to the 6%
withholding tax by the bank.
d. All of the above

Reviewer in Estate Tax PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Reviewer in Estate Tax PDF

Uploaded by

Copyright:

Available Formats

Transfer Taxes

1. Which of the following statements is false? Transfer tax is

2. Statement 1: Gratuitous transfer or donation is subject to transfer tax.

3. Statement 1: A sale is a form of transfer transaction that requires payment of

5. Mortis causa transfer of property is effected:

7. Justification for the imposition of transfer tax.

8. Inheritance received is construed as unequal distribution of wealth resulting to

11. Estate tax is

12. Which among the following statements iscorrect?

13. Which among the following statements iscorrect?

14. The taxpayer in estate tax is:

15. Estate tax accrues from:

16. Who has the personal liability to pay estate tax?

21. Which statement is false about succession?

26. The persons prohibited by the law to make a will are:

27. The following are the elements of succession, except:

30. A person who inherits specific personal property thru a will:

31. A person who inherits specific real property thru a will:

32. Which of the following is a valid will?

Composition and Valuation of Gross Estate

41. Which is not a test of situs?

What was the value included in the decedent's gross estate?

45. Which property is valued using the book value?

46. Pedro died on Nov. 2, 2018, leaving the following properties:

The gross estate of Pedro is:

48. Ana, Filipina, died in Syria leaving the following properties:

How much is the gross estate?

56. Which of the following statements is incorrect?

58. To prevent undue avoidance of tax, inter-vivos disposition in contemplation of

59. The following are deemed transfers in contemplation of death, except

61. Which is correct?

62. Which of the following statements is incorrect?

65. statement 1: The power of appointment is "general" when the power of

a. Only statement 1 is correct

Proceeds of Life Insurance

79. Which of the following statements is incorrect?

82. Exclusive property of the wife is called?

83. Exclusive property of the husband is called?

85. Statement 1: In the absence of marriage settlements executed before the

Conjugal Partnership of Gains (CPG)

91. Which is not an exclusive property of a spouse?

a. That which is brought to the marriage as his or her own.

Absolute Community of Property

Deductions From Gross Estate

1. Which is deductible from gross estate?

2. Not allowed as funeral expense

If the gross estate is P1,500,000, the allowable funeral expenses is:

120. Statement 1: To be deductible, judicial expenses should be incurred during

121. Which of the following statements is true?

123. Which of the following is deductible as judicial expense of the testamentary

127. Deductible claims against the estate or indebtedness in respect of property

a. I and Il only c. All of the above

131. If a loan is found to be merely an accommodation loan where the loan

132. Which of the following is not a requirement in claiming unpaid mortgage as

The following obligations and expenses where also made available:

How much is he total vanishing deduction?

How much is the vanishing deduction?

How much is the vanishing deduction?

Family home (included above) 2,000,000

Family home (included above) 2,000,000

The allowable vanishing deduction is:

146. The taxable net estate based on the preceding number is

147. vanishing deduction on properties received from gratuitous transfer before