FS2223-ESTATETAX-15

BSA 2105 Atty. F. R. Soriano

ESTATE TAX

RULES WHEN THE DECEDENT

WAS A CITIZEN OR RESIDENT ALIEN DECEDENT
WHOSE STATUS WAS MARRIED AS OF THE DATE OF DEATH

CONJUGAL PARTNERSHIP OF GAINS

ADDITIONAL TOPIC

Rules when property is bought on installments and the installment payments came partly from
exclusive funds of either or both spouses and partly from conjugal funds
1. If full ownership was vested on the conjugal partnership during the marriage, the property shall be
considered the conjugal property of the spouses and reported at its FMV in the gross conjugal
estate. However, the amount paid by the purchaser-spouse shall be considered a liability of the
conjugal estate and shall form part of the ordinary deductions from conjugal properties. On the
other hand, the amount paid by the purchaser-spouse shall be considered as a receivable from the
conjugal estate and becomes part of his/her gross exclusive estate.

Suggested format (Assuming the decedent was the purchaser-spouse.)

Exclusive Conjugal
Properties properties
Property purchased P 0 P xxx
Receivable from the conjugal estate xxx 0
Other properties xxx xxx
Gross estate xxx xxx P xxx
Less: Ordinary deductions
Payable to the exclusive estate 0 xxx
Other ordinary deductions xxx xxx
Total ordinary deductions xxx xxx xxx

Net exclusive/conjugal properties xxx xxx xxx

Special deductions
Family home (xxx)
Standard deduction (5,000,000.00)
Amount received under RA No. 4917 (xxx)

Net estate xxx

Less: Share of the surviving spouse

(Net conjugal properties x ½) xxx

Net taxable estate P xxx

2. If full ownership was vested in the purchaser-spouse before the marriage, the property shall be
considered the exclusive property of the said spouse and reported at its FMV in the gross exclusive
estate. However, the amount paid by the conjugal estate shall be considered as a liability of the
exclusive estate and shall form part of the ordinary deductions from exclusive properties. On the
other hand, the amount paid by the conjugal estate shall be considered as a receivable from the
exclusive estate of the purchaser-spouse and becomes a part of the gross conjugal estate.

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 FS2223-ESTATETAX-15
Suggested format (Assuming the decedent was the purchaser-spouse.)
Exclusive Conjugal
Properties properties
Property purchased P xxx P 0
Receivable from the exclusive estate 0 xxx
Other properties xxx xxx
Gross estate xxx xxx P xxx
Less: Ordinary deductions
Payable to the conjugal estate xxx 0
Other ordinary deductions xxx xxx
Total ordinary deductions xxx xxx xxx

Net exclusive/conjugal properties xxx xxx xxx

Special deductions
Family home (xxx)
Standard deduction (5,000,000.00)
Amount received under RA No. 4917 (xxx)

Net estate Xxx

Less: Share of the surviving spouse

(Net conjugal properties x ½) xxx

Net taxable estate P xxx

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