p
MULTIPLE CHOICE
Principles
1. An excise tax on transfers inter-vivas
a. Donor's tax
c. Income .tax
b. Estate tax
d. VAT
2. An ex(;ise on ·transfers morfis causa
a. VAT
b. Estate tax
c. Income tax
d. Donor's tax
3. Which among the following statements is not correct? .
· I.
Estate taxation is governed by the statute in force at the time
of death of the decedent.
II.
Estate tax accrues as of the death of the decedent.
111.
Succession takes place and the right .of the State to tax the
privilege to transmit. the estate vests ·instantly upon death ..
a. I only
c. Ill only
b. 11 only
d. None of the above
4. Estate tax is a tax on the righ.t of the deceased person to transmit his
estate to his lawful heirs and beneficiaries. Hence, it is
I.
A tax on property.
II.
An excise tax
c. Both I and II
a. I only
d. Neither I nor II
b. II only
5. Estate tax is imposed upon the:
a. Decedent
b. Property or rights transferred
c. Right to transfer property upon death
d. Privilege to receive inheritance .
6. When
a.
b.
c.
d.
will the. transfer through succession be effective?
Upon the signing of a written will.
Upon payment of estate tax.
Upon death of the testator
Upon registration in th~ register of deeds.
71
I
cljt« £erciies .
• not
following 15
E&tce ~
a characteristic of donation rnortis
. ' ocable while donor is alive ·
7. Which of the
·s ,rrev
causa?
fer to the donee I f rtle or ownership to the don~
a. The tra_ns
nveyance o I
b There rs no co
h donor
·
. before the death of_t ethe fuli or naked ownership and COntroi
c The transferor ret~ms live
.
.
.
· of the property ~hrle a ~oid if the donor should survive the
d. The transfer should be ..
donee.
.1
c.
lnvestmer
business
alien.
d. Shares c
establish1
12. The rule of recip1
Non
to old age, death may b~ imminent.
8. Mr. Wais thought th~t edu; estate tax is high, he disposed his
Knowing that t~e ~au I h ·rs prior to his death (transfer in
properties . to hrs ngh~tfu To ~~event undue avoidance of tax, inter-
a.
b.
C.
d.
f
i~~~~~:~~i0~1ii~~~t~mplation of death is ~ub~~~1 ~x
a Donor's tax
Estate tax
c. nc .
d. ~xc1se tax
b:
1 3_ Intangible Pers,
Situs in the Phil
I.
The dee
a foreig '
an esta1
propert~
foreign
ti.
The lav
residen
exem·p1
intangil
Philippi
a. I only
b. II only
Classification of Taxpayers
9. The gross estate of a_decedent shall b~ compris_ed of the :ollow!ng
properties and interest therein at the time of his death, including
re·vocable transfers and transfers for insufficient consideration, etc.:
I.
Residents and citizens: All properties,· real or personal or
intangible, wherever situated.
II.
1.
Nonresident aliens: Only properties situated in the Philippines,
!hat, with respect to ·intangible personal property, its inclusion
m the gross estate is not subject to the rule of reciprocity
a. I only
c. Both I and 11
b. II only _
d. Neither I nor II
10. The personal property of a n
•d
would not be included. th on_-res1 ent, not citizen .of the Philippines,
.
rn e gross estate if;
~: i~! ;~:~~:~:: ~~~;naf i~'fPerty is i~ th_e Philippines.
·
clause of the estate t : 1 n th e _Phrlrpprnes anc;j the reciprocity
c. The t
'bl
aw applies.
.angi e property is in the Ph
d. Th~ personal propert is
'ippines.
corporation 90% of wh Y b sh_ares of stocks qf a domestic
ose us1ness . . th
11 Wh· h
· IS in e Philippines.
.
ic of the following is sub·e t .
r ·
·
~- (ar in the Philippine~ ocw~:~he rule o~ reciprocity?
st
· r~~~ men~ in stock in a
, ent ahen decedent.
72
u:Y
Ca non-resident alien decedent.
orporation owned . by a non-
·~
14. One of the foll
the Philippine~
t.
Share:
socied
in acc1
11.
Share
where
Ill.
Share
such i
the Pl·
IV.
Share
establ
a. I only
b. II only
c£jter q;trcuu -
E&de
~
In 1estment in bond in a U.S.-Corporatian that h0 acq ·reo
business situs in the PhrHppjnes, and is a11naJ 1rY/ a resv.16
c,
alien.
Shares owned by a non-resident
established in the Philippines,
d.
12. The rule of reciproci y applies to:
Non•resident alien
decedent
a.
b,
Yes
No
Yes
,No
C.
d.
ar6n
in a
partne< · P
Intangible personal properft£.
in the Philippines
Yes
0
0
Yes
13. rntangible Personal Property of , on-Hes· ent Af -n Decedent ·1 •
Situs in the Philippines shall be Exempt from Taxation if:
L
The decedent, at the time of his death nas a resident citizen of
a foreign country v1hich at the time of his death did not i pose
an estate tax of any character in respect of intangibte personal
property of citizens of the PhiHppines not residing in that
foreign country,
IL
The laws of the foreign country of /nich the decedent ,as a
resident citizen at the time of his death all u a si Har
exemption from estate taxes of every character, in respect o~
intangible personal property ow ed by citize iS of
e
Philippines not residing in that foreign countr1.
a. I only
c. Either I or II
b. 11 only
d. leither I nor II
14. O
€
of the fof11.J wing is n o1 an intangible personal property srtuated in
e P lilippines:
L
Snares, o · afions or bonds issued by any corpora · n or
·ooad a onirna organized and constituted in the Philippines
i acco~ ance 1ith rts la111s.
IL
s! ?.res, bligati s or bo ds issued by any fore' gn corporation
// ere ge::o/£ fits si ess is located in the Philippines.
a .e s, . Hga ,
r :,on s issued by a fore➔gn corpora ·on rf
IIL
s
i atio s or ' · s ha ,e acqu·red business in
ths
I,
z. I
• II
·a
i a !f part ership, busi ess or 1ndustry
tside the Philippines.
. 111 1y
. I ✓ ly
c~- q«cisM
'f·1
'
I
E.rblte. ~ ;
. ,, f- property of a decedent
Situs of Estate
wing rules on "situs 0
.
15. Which of the. follo
•tus of rea 1. property 1s the place or
correct?
eneral rule, the s1 .
.
t.
As a 9
it is situated.
'ble personal property 1s the
country whe~ le the situs of_tang; ally located at the time OI
II.
As a genera ru ' here such is ac u .
I ce or country w
.
Pa d cedent's death.
.
'ble personal property 1s the
~; ~le that situs of mtang~ner does not apply when the
Ill.
e
domicile
or re s'1dence of the o
roperty has a situs elsewherr non-resident alien decedent is
~he test of situs of property O 81 the transmissions of property
IV.
t II because on Y
· ·t
not important a ~- . . are subject to estate ax.
.
.
located in the Philippines
I II and 111 only
·
C. I
a. I only
d I 11 111 and IV
b. I and II only
. ' ' '
16. Which is no~ a test of shituds?bt in case of accounts receivable.
a Residence oft e e or . .
f t ks
b. Place of storage in case of certificates o s oc . .
c.· Location of depository bank in ca~e of bank deposit
d. Place of exercise in·case of _copyright.
17. One of the following is not an intangible personal property situated in
the Philippines:
_
.
a. Shares, obligations or bonds issued by any corpor~~10~ or
sociedad anonima organized or constituted in the Ph1llppmes
in accordance with its law;
.
b. Shares, obligations or bonds issued by any foreign corporation
85% of the business of which is located in the Philippines;
c. . Shares, obligaUons or bonds issueo by any·foreign corporation
if such shares, obligations or bonds have acquired business
situs in the Philippines;
·
,
d. corporation.
Shares, _obligations or bonds issued IJy a non-resident foreign
18. Which of the folloWing statements is correct? _
.
a. The estate tax accrues
f h
·
d
the accrual of the ta . · a~
t e dea,th of the decedent an .
same. ·
x is diSbnct from the obligation to pay th e
b. Estate taxation is governed b
,
. e
th
the return is filed .
· Y e statute in force at the tirn
c. Both "a" and "b"
d. Neither "a" nor "b''
?
7,1
19_ Which of
Philippinei:
a. Franct
Philip~
b. Share
whose
c. Bond 1
reside
d. Forei~
20. Pedro die
common
the PhilipI
Common
in the stc
share.
·P referred
stock exc
par value
Car (cm
P400,00C
Real pro1
The gros
a. P-817
b. P81E
Use the folio
21 . Followin!
values:
House ;
Bank d
bank
Bank d◄
Shares
(ce1
Franc~i
Receive
19. 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 fs 90% done in the Philippines
c. Bond certificate issued by a domestic corporation owned by ? nonresident decedent
·
d. Foreign currency deposited in bank outside the Philippines
20. Pedro died on April 13, 2021, 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 - PS0 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 - P120,000; assessed value - P72,000)
The gross estate of Pedro is a. P-817,500
C. P-824,QQQ
b. P-816,500
· d. P-846,500
Use the following data for the next two (2) questions
21. Following are properties in the gross estate with their fair market
values:
·
· 1,500,000
House and lot, family home in Quezon City
500,000
Bank deposit in the foreign branch of a domestic
bank
Bank deposit in Makati branch of a foreign bank
300,000
Shares of stock issued by a domestic corporation - 1,000,000
(certificate kept in Canada)
800,000
Franchise exercised in Manila
200,000
Receivable, debtor from Mindanao
75
.
l::- rcrc,:us Cllf/LV
. .
.1
.
1
.
E...,-fidt• ~
'
fl~
.
d there is rec1proc1ty, propert
non.resident a/Jen an
Y
If the decedefnt wag~oss estate Is valued a~2 300,000
.
excluded rom
c.
'
000
a. P2,800,000
d. P2,000,
b P2,600,000
.
.
.
·
.
.
.
and
there
1s
no
rec1proc1ty,
the
-resident a1,en
22 If the decedent V'as non
.
· gross estate is valued at.
c. P3,500,000
.
a. P4,300,000
d p3 200,000
.b. P3,800,000
. . '
.
in Hawaii during his lifetime, left
23. A Filipino decedent residing
following properties:
P10,000,000
House and lot, USA
50,000,000
Mansion, Philippines
2,000,000
cars, Philippines ·
5,000,000
Shares of stock, Singapore
.
·3,000,000
Accounts receivable, USA
The gross estate of the deceden.t is
· . a. P?0,000,000
.
b. P67,000,000
-
I
the
c. P65,000,000
d. P62,000,000
Use the following data for the next two (2) questions
The gross estate of a decedent included the following:
·
Cost
Land and building, Philippin~s
P1,600,'000
House ·and lot, UK
1,800,000
Personal prop.erties, UK
1,000,000
House and lot, Philippines
.4,000,000
Shares of stocks, UK corp.
Shares of stocks, domestic corp.
(certificate kept in UK)
Shares . of stocks, domestic corp.
(certificate kept in Phils.)
Franchise exercised in the Phils.'
Franchise exercised in UK .
Receivables, debtor is from UK
Receivables, debtor is from Phils.
Fair value
P2,000,000
1,500,000
600,000
3,500,000
200,000
250,000
76
b. F
Valuation of E!
26. When the p
the tax shal
a. Fair
b. Fair
the
c. Fair
d. Cm
27. As a rule, t
fair market
case of do1
the fair maI
a. ThE
ass
b. Nel
c. Ac<
d.
Issi
28. Which of U
a. Fai
b. Fai
c. Zo1
rec
d. Bo
· ex,
100,000
200',000
150,000
50 ,000
50,000
24. If_!h~ decedent was a nonresid
·.
.
.
F1l1p1no . citizen from estate tax e~t ahen and his colJntry exempts a
subject to reciprocity?
' ow much of .his assets would be
a. P1 ,000,000
c. P6oo,ooo
b. Paoo,ooo
,
d. P3SO,ooo
25. If the decec
reciprocity, t
a. F
29. The follow
a deceden
1.
Va
lhE
leg
11.
Re
pril
a. I or
b. II 0 1
25. If the decedent was a nonresident alien and assuming there is no
reciprocity, how much is the gross estate?
· .
·
a. P10,700,000
c. P6,100,000
b. P6,600,000
d. PS,850,000
Valuation of Estate
26. When the property is donated in contemplation of death, the basis of
the tax shall be
·
a. Fair market value at the time of donation
b. Fair market value in the hands of the .donor before the time of
the donation.
c. Fair market value at the time of death of-the donor
d. Cost when the property was acquired
27. As a rule, the basis of valuation of property in the gross estate is the
fair market :,.,alue prevailing at the time of decedent's death. In the
case of domestic shares of stock not traded thru the stock exchange, · ·
the fair market value is
.
a. The value appearing in the schedule of fixed values from the
assessor's office
b. Net realizable value
c. Acquisition cost
d. Issuer's book value.
28. Which
a.
b.
c.
of the following value is not used when valuing gross estate?
Fair market value at the ~ime of death~ 1
Fair market v~lue at the time the estate return is filed;
Zonal value when higher ·than the assessed value in case of
real property;
·
d. Book value in case of shares not traded in the stock
· exchange.
29. The following statements pertain to rules on valu\ng the estate left by
a decedent. Select the incorrect statement.
I.
Values in the gross estate are based ·on values at the time of
the decedent's death because it is at this time that the heir
legally succeeds to the inheritance.
II.
Receivable are appraised on the . basis of the amount of. the
principal and interests due and unpaid at the time. of death:
a. I only
c. Both I and II .
b. ti only
d. Neither I nor II
77
\.
I
I
c~ cerd,e.5 -
~---~
Es&ue, ~ -
land. The following data were available i
, A decedent left a piece of
n
30 connection with the properfY(1.) onth before death
P2,500,0oo
Assessed valued, one
m
2,000 ooo
zonal value, time affil~eath tate tax return
3,000:000
1
FMV at the time of ,ng es
What would be the value of the piece of land in the gross estate?
P3 ooo ooo
c. p2,ooo,ooo
.
~: P : ;
d. cannot be determined
2 500 000
Use the following data for the next four (4) questions:
·
A decedent left 1,000 XYZ Corporation com~on shares. The shares were
not traded in the stock exchange. The followrng data were made available·
Capital stock, XYZ Corporation
P10,000,000
·
Retained earnings
2,000,000
Outstanding shares
100,000
31. What was the value included the decedent's gross estate?
a. P100,000
c. P150,000
b. P120,000
d. PO
32. Assume that the shares were 1 •ri d
was the value included the dece~asf' ,e as preference shares, what
a. P100 ooo
en s. gross estate?
b. P120,000
c. P150,000
'
d. PO
?? As
""· sume that the shares were traded .
.
.
~~rther ~at the average value ·at th in te stock exchange. Assume
a:. P1hoaotowas the value included t~e dime of death was P100 per
•
, 00
ecedent's g
t ?
b. P110,000
c. P120,000
ross esta e.
->
d. P150,000
34. Assume that the sh
.
.
the quoted price ar~s were traded in the
.
Nonetheless, the hi\ .the time of deathstock exchange. However,
market were P140 a~/st and lowest quot ·. was not determinable.
the decedent's gross es~~O, respectively w~1ons of the shares in the
~- P100,ooo
a e?
'
at Was the value included
. P110,ooo
c. P120,ooo
d. P1so,ooo
.,,..
35. Oeceden1
owned b)
his death
after 2 y
market v
estate in
thereon
What we
a. F
b. F
INCLUSION
Decedent's
36. Decede
I.
11.
a.
b.
37. Which
citizen
a.
b.
C.
d.
Transfer i
38. Transf
I.
11.
ciy-ter Eercise.,
~
Es&d& 'l~
35, Decedent died in 2020 leaving a will which directed all real estate
owned by him not to be disposed or sold for a period of 2 years after
his death, and ordered that the property be given to Juan Dela Cru~
after 2 years. In 2020, the estate left by the decedent had a fair
market value of P500,000. In 2022, the fair market value o_
f the said
estate increased by P4,500,000 and the BIR Commissioner assessed
thereon estate tax based on assessed value of P4,000,000 in 2020.
What would be the correct amount of the gross estate?
a. P5,0Q0,000
c. P4,500,000
b. P4,000,000
d. P500,000
re
e:
INCLUSIONS IN THE GROSS ESTATE
Decedent's Interest
36. Decedent's Interest
I.
Refers to the extent of equity or ownership participation of the
decedent ·on any property physically existing and present in
the gross estate, whether in his possession, control or
dominion.
II.
Refers to the value of any interest, having value or capable of
being valued or transferred, in property owned or possessed
by the decedent at the time of his death.
a. I only
c. Both I and II
b. II only
d. Neither I nor II
r
37. Which of the following is not to be included in the gross estate of
citizen decedent?
a. Dividend income declared, but not yet actually received at
date of death
b. Share in partnership's profit earned immediately after date of
death
·
·
c. Rent income accrued before death but collected after ·death
d. None of the abo~e
Transfer in Contemplation of Death
38. Transfer in contemplation of de~th
I.
Contemplates a situation where the transferor during his
lifetime, transfers property in contemplation of or intended to
take effect in possession or enjoyment at or after his death.
II.
Includes situations where the transferor retains. for life the
possession or enjoyment, or the right to the income from 'the
property, or the right to designate the person who shall
possess or enjoy the property or the income therefrom. .
79
\
cfter E{oz·/a"'
f-.,/,1/,
I,~•
d ath the deced ,nt n J ~
fme
of the ·decedenth'spr~perty form part of hi..,, gr~
1
.
111 _ At the
.
arty
I
but sue
owned the prop
' poses.
tate tor estate tax pur
All of the above
a. ~~nly
~: None of the ab V..,
b. I and II only
, 11 ·ng is correct?
.
f 1h j
39. Which among the ,o ow1
'es which at the time o ~ e c ecea ,n t
1.
There may be. propert, tate because they were tran fermo by
death are not ,n the es
him during his lifetime. ur oses of the estate tax, may t,X ,G<;
The gross esta te, for
P . ts at the time of his death a ·t
,
the actual value of his asse
.
b h' d ,
includes the value of transfers of property Y 1
U~~9 hi~
lifetime that partake of the nature of testamentary d1 po.;:i1tioni.
I only
c, Both I and II
· ~: 11 only
d. Neither I nor 11
11.
P
m,
40. Which of the following shall be included in the gros e. tat<; of a
decedent?
I.
Transfer of property in favor of another p.e rson, but th e tran fer
was intended to take effect only upon the transferor' death,
II.
Transfer by gift intended to take effect at death, or after death,
or ~nder which the donor reserved the income or the right to
designate the persons who should enjoy the income.
Ill.
Transfer with retention or reservation of certa in righ ts. The
de~dent had. transferred his property during hi lifetime, but
r~tained for. h1~self beneficial enjoyment of the thing or the
right to receive income from the same
a. I and II only
c. All of th. b
b. II and Ill only
d. None ott~e :~eove
,
44, All IJf th8· t
,
b,
d,
41. The following are deemed transfer .
.
a. While still alive, the deC:dn contemplation of death , except
donation will take effect at th e7_t donat~d property where the
b. The decedent transte ed e ime of his death.
the business ope,auot a property in the regular cour e of
C. The deced
.
. ent donated
·
~~/she will enjoy the fruits ~,Property with the condition that
d. de etiecedent transferred a such While still alive
a
· Property to take effect after his/hef'
4 ,'ft1 r ,A -~- ~~
marke ah e
eath nr;re F
the 1al e of ·
a. P1 ,
b, P25
I
80
tr
.
ofter ier@e,
42. Transfers in contemplation of death:
Consideration
received
· Land
P1,500,000
Shares· of stock
100,000
Vint~ge car
50,000
Painting
250,000
FMV upon
fMV upon
death
transfer
P2,000,000
P1,500,000
150,000
50,000
100,000
80,000
500,000
400,000 ·
The correct gross estate should be
a. P120,000
c. P350,000
b. P300,000
d. P400,000
Transfer with r~servation of rights and revocable Transfers
43. An agreement created by· will or an agreement under which title to
property is passed to· another for conservation or investment with the
income therefrom and ultimately . the corpus to be distributed in•
accordance with the directives of the creator as expresseq in the
governing instrument
a .. Estate
c. Fiduciary
b.- Trust
d. Beneficiary
44. All of the following statements are true, except
a. In a revpcable 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. The power of the decedent-transferor to revoke terms may be
exercised just once.
d. A revocable transfer shall be included in the gross estate of
the decedent-transferor even though the power to revoke was
not exercised.
45. A revocable transfer was made for a consideration of P100,000. Fair
· market values of the·property at the time of tran~fers and at the time of
death were P250,000 and P300,000, respectively._In the gross estate,
the value of the property was
a. P100,000 ·
c. P200,000
b. P250,000
. d. Exempt
81
cfw· qercise.<
Estate, 4(1'
.
.
. r of appointment
nder general powe
.
Transfer u
t regarding transfer under general
46 Which of the following state~e~r!nsfer under special power of
. power of appointment an
.
appointment is correct?
· sons involved under this rule; the
I.
There are .three per f ee and the second transferee. The
transferor, the first trans er 't
.
i
is the deceden .
.
•
first tran~ e~ee
d b tt-le transferor to the first transferee to
11.
If auth~nty is grante ~ho upon the latter's death, would next
determine th e p~rsont,he p'roperty transferred, his. authority
possess or enJoy
· t
t
emanates from a general power of appo1n men.
. Ill.
If the transferor himself had determined beforehand who upon
th d ath of the first transferee, would next possess or enjoy
th! ;roperty, then the authority o~ the first transferee
emanated from a special power of appointment.
a. I and II only
c. All of the above
b. II and Ill only
d. None of the above
47. Which is wrong?
a. A power of appo'intment is the right to designate the person or
persons who shall succeed to the property of a prior .decedent.
b. A special power of appointment authorized the donor of the
power to appoint only from among a designated class or group
of persons including himself.
c. The done-decedent of a special power of appointment only
holds the property in trust,. hence, the property shall not form
part of the done-decedent's gross estate.
d. None of the above
49. The power of i
through .the foll
I.
By will
II.
By dee
his dea
Ill.
By dee
not as1
period
a. I only
b. II only
Transfer for lnsu1
50. Which
a.
b.
c.
of the fc
Transf1
Transf1
Transf1
money
d. Transf1
51. In determining
· by a decedent
yourself, wast
I.
II.
48. Which of the following statements is not true?
If yes, the,
the consid1
If no, ther
..
et'ermmin•
a. I only
b. II only
1d
a. A general power of appointment authorizes the donee of the
Proceeds of life i1
0
b. ~ ;:~!~a~P~~:!:: perso~ to possess or enjoy the property.
power the owner of theapf0 1;tmen_t makes the donee of the
c. A power of appo· t
~ p rty.
.
d. The appointed ~~om:nt ,s not ?lways general.
appointment is not i~c~d·bfs~ing under a general power of
1 e in the gross estate of the donee·
decedent.
°
82
I
.52. Proceeds of lif1
a. lnsurar
b. Amoun
admini:
by the i
c. Amoun
insuran
d. Procee
employ
o'J,"'· Et_e,-we,s -
£<W--e, T'k':
49 , The power of appointment may be exercised by the donor-decedent
through the following modes
I.
By will
II.
By deed to take effect in possession or enjoyment at or after
his death.
Ill.
By deed under which he has retained for his life or any ·period
not ascertainable without reference to his death or for ~ny
period which does not in fact end before his death.
a. I only
c. I and II only
b. II only
d. I, II and Ill
Transfer for Insufficient Consideration
50. Which
a.
b.
c.
of the following transfer is not included in the gross estate?
Transfer with reservation of certain rights
Transfer for insufficient consideration
Transfer for an adeql:late full consideration in money or
money's worth
·
d. Transfer ·in contemplation of death
51. In determining whether the value of a property transferred onerously
by a decedent during his lifetime should be included 1n his estate, ask
yourself, was the considera.tion insufficient?
·
·
I.
II.
If yes, then add the excess of the FMV at the time of death_over
the consideration received.
1It 110, then it was a bona fide sale.
Exclude the property in
determining the decedent's gross estate.
a. I only
, c. Both I and II
b. 11 only
d. Neither I nor II
Proceeds of life insurance
.52. Proceeds of life insurance includible in the taxable gross estate
a. Insurance.proceeds from SSS or GSIS
b. Amount receivable OY any beneficiary other than the estate
administrator or executor, irrevocably designated in the policy
by the insured
,
,
c. Amount receivaQle by any beneficiary designated in the
insurance policy
d. Proceeds of group insurance taken out by a ·company for its
employees.
83
-
~
/"'{,;t{'I· l Lz ·c✓ -l·,:,,: \·
(j /l}
.
16rtc:
?:, ·
It
t te of the deceased , his executor
53. Amounts receivable ~y t : n : :nder policy taken by the
administrator as _an msu
decE:de:
upon his own life ,s:
ross estate.
.
.
a. Excl~ded from th e 9 t
hether the beneficiary 1s revocable
. b. Part of the gross esta e w
Or
57. Ms. Balo, Sp(
Transport), n
P9
irrevocable.
t ·t the beneficiary is revocable.
c. Part of the gross esttaat: the beneficiary is irrevocable.
d. Part·of the gross es
:f
.
P1
I
.
)
.
.
ot included in the gross estate?
here the consideration is not sufficient
a. Revocable trans fer wwhere the power of revocation was not
b. Revocable trans er
P4
exercised
fi ·
d ·
Proceeds of life insurance ~he~e _the bene ic1ary es1gnated is
c. the estate and the designation 1s irrevocable .
.
d. Proceeds of life insurance wher~ ~he benebfi1c1ary designated is
1
the mother and the designation 1s 1rrevoca e.
The
54. Which of the following isf n
'J
)
a. P90
55. 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. P~rt of gross income regardless of whether the beneficiary is
revocable or irrevocable
c. Not part of gross estate if the beneficiary is irrevocable
d. Part of gross estate regardless of whether the beneficiary is
revocable or irrevocable
56. Proceeds of life insurance to the extent of the amount receivable by
I
·
the estate of the deceased, his executor or administrator
policies taken out by .the decedent upon his own life shall be
under
b. P1,:
Claims against
58 . Which of th,
persons?
a. The
. liabi
b. The
esta
c. The
accc
d.
Clai
who
I.
11.
111.
·IV.
Part ~f the gross estate irrespective of whether the insured
retained the power of revocation
Not part of the gr~ss estate if the beneficiary is irrevocable.
Part of the gross income if the designation of the beneficiary is
revocable
~ot part 0 ~ th e gross income irrespe.ctive of whether
insured retained the power of revocation
a. I and II
b. I and 111
C.
I and IV
d. only I
84
11,e
59. Which i co
I.
In
d b
11.
It cc
t
m
I on
b. II r
1 ,d11 /,,
57. Ms. Balo, s
Transport), r
f ti
P
P
P1 . 00,000
P400,000
dt: nt wh di . d In b
00 br k n d wn · f<
Frorn H 1b
1n
Ir
A II Ins
t
n
rt 191, tin
I
r
fl
,I
t ((.
I'
Id nt (Hon trot
:
·
I
omp1: r Y·
J
· nt
ry.
f! rom W I ng H inrmun n uro In ur 1nc
d
dont
mp ny t :1 k n
ut by th
Irr
vo
ablo
d ign ting
hi .
wlf
A
b n -flcl ry.
Fr m H rur t Tr n port omp ny (own · r (
cld nt) whor
th
bus Inv lved In th
s ttl ment w
m d - out Id • court
proce ding .
The gross estate of the deced nt h II Include
a. P900,000
c. P2, 100,000
b. P1 ,200,000
d. P2,500 ,000
Claims against insolvent persons
58. Which of the following is not true regarding a cl aim against insolvent
persons?
a. The decedent's claim is deductible in full because the debtor's
· liabilities exceed his remaining assets.
b. The decedent's claim must be included in full in the gross
estate.
,
c. The decedent's claim which cannot be collected is deductible
according to the ratio of the debtor's assets to his liabilities.
d. Claim against insolvent person is a claim against person
whose assets are not sufficient to pay his liabilities.
59 . Which is correct?
I.
11.
In a claim against insolvent person, the insolvency of the
debtor must be proven and not merely alleged.
It could be that the amount to be included as part of the gross
estate in a claim against insolvent person is less than the full
amount owed .
c. Both I Ind II
d. Neithe I nor 11
a. I only
b. II only
85
_/' {l'/• l. ~ {'(:/'l •/ ,f(' ,,\
{J/t/1)
· ·
.,
.
• I
he income of th e
·s included In l
i/11 I('
0
,..I._, .
f(C' .
!' lb 1,
60. Which of the follqwlng ,
e of a decea ed person durln
decedent? ·
lved by the estat ttlement of the e tale.
g
a. lncom~ ~~~ administration orhse pprai sed value placed upon
. L
. .'
'
f
/
b r:c~:;1oof selling pr!~ee ~~e~e~t~,awhere the pro perty wa so1u
. the property at the t1 h state.
tter the settlement oft e 0f operty passed to the executor or
a
. . · the value o pr
·
c. Apprec1at1on in on death of decedent.
.
administrator up
. kind to legatee or dev1see.
d. Dei'ivery of property ,n
.
.
I
et
t t of a decedent 1s a claim against
aP~OO 000. The insolvent debtor can
an insolvent person amo~ntmg o
'
,
still pay P100,000 out of the P500,000.
.
61 . One of the items in the gro~s
..
.
d d . nd deducted from the gross estate?
How much will be ,nclu e in a
Deduction
Gross estate
p 100 000
C.
P100,000
P500,000
P500,000
'
P100,000
P400,000
d.
None
None
a.
2)
b.
•
•
ft~
alien d ~ c
a. W'r
del
b. Pa
re"
de
c,
Pr
de
th,
d. PE
de
m
65. Which of
a. M
di
SC
b. tv'
is
c. 8
d.
EXCLUSIONS FROM THE GROSS ESTATE
·1or1
64 , n
~
I
'
62. The following are transactions exempt from transfer tax except:
a. Transmission from the first heir or donee in favor of another
· beneficiary in accordance with the des_ire of the predecessor
b. transmission or delivery of the inheritance or legacy by the
· fiduciary heir or legatee to the fideicommissary.
c. The merger of usufruct in the owner of the naked title.
d. All bequest, devices, legacies, or transfers to social welfare,
cultural and charitable ,institutions
·
66 . Which
c
?!PPOintrr
k
E
ii
(
11.
r
'63. Wfhhich of th e f~llowing exempt transmissions will still require inclusion
0
I
t e property in the gross estate?
111.
a. Merger of the usufruct in the owner the naked t ·t·1 .
b Legacy to a h ·t bl
.
I e,
. expen
d'd c an a e institutioris whose ., administrative
T
ses. I not exceed 30% of the legacy·
c.
ransfer from a first heir t
'
decedent;
·
, 0 a second heir C:lesignated by the
d. Death benefits under the GSIS and
· 86
GS.IS.
a. I
b. I
(·
.
G1
f ,y-
E ,·er.-i,c·
Es6th 7,L,
64. One of the following is included in the gross estate of a nonresident
alien decedent:
a. Wholly un~llectible claims against a debtor who absconded ,
debt_or resides outside the Philippines.
b. Partially collectible claims against an insolvent person who
resides in Manila the country of the nonresident alien
decedent does not impose transfer taxes of any kind.
c. Proceeds of life insurance of the decedent where the
decedent's estate was designated as irrevocable beneficiary,
the policy was procured in Manila.
d. Pe·rsonal property .situated in the Philippines donated by ·the
decedent before he died to a son on account of the son's
marriage.
65. Which of the following is a transfer in contemplation of death?
a. Mhalapit Nha has been fighting for his life since he · was
diagnosed to have a terminal illness. Accepting his fate , he
sought the assistance of Atty. Lho Yer, and made his will.
b. Mr.· Matibay celebrated his 101 st birthday. Feeling that death
is not far, he transferred all his properties to Pedro and Juan.
c. Both "a" and "b"
d. Neither "a" nor "b"
66 . Which of the following is a transfer under special power of
?IPPOintment?
k
II.
Ill.
Earl transfers his property in trust for his son, Gabry and then
in -trust for anybody whom Gabry may, by will, appoint or
designate.
Mr. Byahero frequently travels due to the nature of his
profession. He thinks that he is not spared from meeting
accidents considering the rampant occurrence of accidents
these days. He decided to execute his last will and testament
appointing his properties to his children.
Georgia designated his special friend , E. Garcia as beneficiary
of an insurance which he took upon his own life.
c. All of th~ above
d. None of the above
a. 1·only
b. II only
87
~
· · ns
Administrative Prov1s10
·
.
•tuations an estate tax return is requ·
67. Under which of the follo~1~gL:~?
.
Ir~
to be filed under the !RA ·subject to estate tax.
a. Transfers which _a;e of registered or registra_
b le properties for
b. The estate consis ~ m the BIR is required as a ·condition
which a clearance ro
h' .
precedent for the transfer of owners ip.
.
c. · Both "a" and "b"
d. Neither "a" nor "b"
68. 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 of the decedent
d. Debtors of the decedent
69. 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
prim~ry obl!ga~i?n to pay_the estate tax but the heir or beneficiary has
s~bs!d,~ry l!ab11lty for paying that portion of the estate corresponding to
. hrs d1strrbut1ve share in the value of the total net estate.
·
a. Statements 1 and 2 are false ·
··
·b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
70. Statement 1: The Commis· .
.
authorized by him pursuant t~ioner or any of the Reve~ue Officer
th e tax code shall have the authority to
grant, in meritorious case
thirty (30) days for filing the s;et:r~~asonable ext~nsion not exceeding
Statement 2: The application for
.
tax retu:n must be filed with-the Rth e extens,0n of time to file the estate
secure its TIN and file tax r t
DO where the estate is required to
a. Statements 1 and ; urn of the estate.
b. Statement 1 i t
are false·
s rue but stat
Sta
c.
tement 1 is false b
ernent 2 is false
d. Statements 1 and 2 ut staterner:it 2 is true
.
are true
Deduction~
To compute
that can be ded
Code . .RR 12-2
Code, as .amenI
estate to arrive
determining the
Deductions ·
1. Ordina11
2. Special
3. Share o·
Beginning Ja1
allowable deduc1
TABLE 3~1. SUM
OED
A. Ordinary Deduc
1. LIT e (Los:
Taxes, etc
2. Vanishing
3.
Transfer f(
8. Special Deduct
1. Standard I
2. Family Ho
3. RA491 7
C. Share of the Su
For married de1
*** Total LITe x
88
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