1
T 1.Estate tax is a tax on the right to transfer property at death and on certain transfers
which are made by law the equivalent of testamentary disposition and is measured by the
value of the property.
T 2.Estate tax is an excise tax.
T 3.The taxpayer in estate taxation is the estate of the decedent as a
juridical person.
T 4.Estate tax accrues as of the date of the actual possession or
enjoyment of the estate by the beneficiary.
F 5.Executor is the person appointed by a court to carry out the directions and request of a
decedent in his will and to dispose of his property according to his testamentary provisions
after his death.
T 6.Intestate succession arises when there is transmission of properties in the absence of a
will, or if there is a will, the same is void or lost its validity, or nobody succeeds in the will.
F 7.Every will may be in writing and executed in a language not.
necessarily known to the testator.
T 8.A holographic will is a will entirely written by a testator with his own hand and may be
witnessed or attested.
T 9.The will of an alien residing abroad produces effect in the Philippines if made in
conformity with the formalities prescribed by law of the place in which he resides.
T 10.A person has unlimited right to make donations in his last will and testament.
T 11.The rights to the succession are transmitted from the moment the heirs receive their
share in inheritance.
T 12.The law presumes that every person is of sound mind in the absence of proof to the
contrary.
T 13.Brothers and sisters (whether half or full blood) of the decedent are not compulsory
heirs.
T 14.Brothers and sisters (whether half or full blood) of the decedent can be an intestate
heir.
F 15.There cannot be a disinheritance for compulsory heirs.
F 16.Relatives by affinity are strangers for estate tax purposes.
F 17.An heir who inherits a specific personal property by will is known as devisee.
T 18. A codicil is.a Supplement or addition to a will, made after the execution of a will and
annexed to be taken as a part thereof, by which any disposition made in the original, will is
explained, added to or altered.
F 19. Under the law on.legitime, if the only survivor is the widow or widower, she or he shall
be entitled to one half of the hereditary estate of the deceased spouse, and the testator may
freely dispose of the other half.
T 20. Representation is a right created By fiction of law by virtue of which the representative
is 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.
2
T 1.Estate tax is a tax imposed on the privilege that a person is given in the disposition of his
property, either by will or by operations of law, to take effect upon death.
T 2.Estate tax is an ad-valorem tax.
F 3. The accrual of the estate tax is distinct from the obligation to pay the same.
T 4.Delivery and acceptance are essential elements of estate taxation.
T 5.Under the “ability to pay theory”, the imposition of estate tax is justifiable because it
reduces the property received by the successor,
thus, helping to promote equitable distribution of wealth in society.
T 6.Regardless of situs, the tax code excludes intangible personal
property of a non-resident alien decadent in determining his taxable
estate.
T 7.Section 85 of the Tax Code provides that the value of the gross estate of a nonresident
alien should be determined by including the value at the time of his death, of all property,
real or personal, tangible or intangible, wherever situated.
T 8.There is reciprocity 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 tangible
personal property of citizens of the Philippines not residing in that
foreign country.
T 9.For estate tax computation, real estate, in general, shall be valued at fair market value at
the date of death of the decedent.
T 10.lf zonal value of a real estate 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.
T 11.Donation mortis causa are transfers intended to take effect at the time of the decedent's
death. Hence, the property should be valued at the fair market value of the property at the
date of the actual transfer.
F 12.Donation to the national government is an exempt transaction but should still require
inclusion of the property in the gross estate.
F 13.Juan devised in his will a piece of land; naked title to Pedro. and
usufruct to Ana for as long as Ana lives, thereafter to Pedro.
T 14.The transmission from Juan to Pedro and Ana is subject to estate tax but the merger of
the usufruct and the naked title to Pedro upon the death of Ana is exempt.
T 15.Ron devised in his will real property to his brother Bert who is
entrusted with the obligation to preserve and transmit the property to
Jay, son of Bert, when Jay becomes of age. The transmission from
Bert to his son Jay is subject to estate tax.
F 16.When an estate, under administration, has income-producing property, the annual
income of the estate becomes part of the taxable
gross estate.
T 17.When an estate, under administration, has income-producing property and its income
during the year is distributed to the heirs, the income so distributed is taxable to the heirs as
part of their gross:income for the year.
T 18.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.
T 19.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.
T 20.The Tax Code as amended under RA10963 (TRAIN Law) provides that the filing of
estate tax return should be done within one (1) year from the decedent's death.
T 21.The payment of estate tax could only be extended up to the maximum of thirty (30)
days from the date of filing.
