PROBLEM 8 & 9

ESTATE TAX: MARRIED DECEDENTS

CARAIG DELA CRUZ TAN

 PROBLEM 8
absolute community, vanishing deduction, inheritance
before marriage
Problem 8 – Absolute community, vanishing deduction, inheritance before marriage

Mrs. Paraluman, married, under the system of absolute community of property during the marriage, a
citizen and resident of the Philippines, died on August 6, 20A1. She left the following properties and
related charges:

Land inherited before marriage P6,000,000

Lot and house, acquired by gift before marriage (family home) 4,000,000
Personal properties owned before marriage 3,000,000
Cash and personal properties acquired during marriage 27,000,000
Actual funeral expenses 700,000
Judicial expenses 1,000,000
Claims against the estate 2,500,000

The land had a fair market value of P5,600,000 when inherited two and one-half years before Mrs.
Paraluman died, and had a mortgage of P600,000 at that time. She paid the mortgage indebtedness in full
before she died. The lot and house received as gift had a fair market value of P4,500,000 when it was
received ten months before August 6, 20A1.

Required: Determine the net taxable estate and tax.

Problem 8 – Absolute community, vanishing deduction, inheritance before marriage
Problem 8 – Absolute community, vanishing deduction, inheritance before marriage
Problem 8 – Absolute community, vanishing deduction, inheritance before marriage
Problem 8 – Absolute community, vanishing deduction, inheritance before marriage
 PROBLEM 9
net taxable estate, estate tax credits, estate tax
Problem 9 – Net taxable estate, estate tax credits, estate tax

Mrs. Trinidad, a citizen and resident of the Philippines died leaving the following properties in and outside
the Philippines, and related charges:

PHILIPPINES AUSTRALIA
Exclusive properties P30,000,000 P10,000,000
Conjugal properties (including family home of P5,880,000) 10,000,000 30,000,000
Funeral expenses 800,000 200,000
Medical expenses 1,000,000 500,000
Claims against the estate and unpaid mortgages, conjugal 1,000,000 200,000
Claims against the estate and unpaid mortgages, exclusive 6,375,000 625,000
Estate tax paid 1,000,000

Required. Determine the net taxable estate and estate tax still due after credit.
Problem 9 – Net taxable estate, estate tax credits, estate tax
Problem 9 – Net taxable estate, estate tax credits, estate tax
Problem 9 – Net taxable estate, estate tax credits, estate tax