ESTATE TAX

• Written notice shall be given to the CIR if the gross estate exceeds 20, 000
• From the time of death, notice of death should be given within 2 months.
• As a rule, estate tax return should be filed under oath if the gross estate exceeds 200,000
• If the estate consists of registrable property, such as real property, motor vehicle, shares of stock or other similar property from which a clearance from the BIR is required as a condition for the transfer of ownership, an estate tax return should be filed under oath regardless of the value of the gross estate
• The estate tax return shall be supported with a statement duly certified by a CPA if the gross estate exceeds 2,000,000 pesos
• From the decedents’ death, the estate tax return shall be filed within 6 months
• The CIR, in meritorious cases may grant a reasonable extension to file the return, not exceeding 30 days.
• Proceeds of life insurance shall be included in the gross estate if the beneficiary designated is the estate and the designation is whether revocable or irrevocable
• Proceeds of life insurance shall be included in the gross estate if the beneficiary designated is the executor and the designation is whether revocable or irrevocable
• Proceeds of life insurance shall be included in the gross estate if the beneficiary designated is administrator and the designations is whether revocable or irrevocable
• Proceeds of life insurance shall be included in the gross estate if the beneficiary designated is a person other than the estate, executor or administrator and the designation is revocable
• This is not part of the gross estate of the decedent : Exclusive property of the surviving spouse
• This is not part of the conjugal property : Those acquired during the marriage by gratuitous title
• Under the absolute community of property, jewelry for personal and exclusive, the wife shall belong to the husband and wife
• Tax exempt transfer


  A died leaving a farm land. In his will, he transferred the ownership thereof to B but subject to the condition that C will have the right to use the land for a period of ten years (usufruct).In the seventh year however, C died and in C’s will he surrendered his right over the land to B.
• Legitimate children share equally in their legitimate of ½ the net distributable estate
• When the spouse survives with one legitimate child, the legitimate of the spouse is ¼ of the net distributable estate
• When the spouse survives with two legitimate children, the legitimate of the spouse is ¼ of the net distributable net estate.
• The estate should be valued at the time of death of the decedent
• The family home includes the house and the lot where the house stands
• Property brought to the marriage by either spouse shall belong to both spouses
• The share of the surviving spouse in the conjugal property is part of the gross estate of the decedent
• Unless stipulated, the property relations shall be governed by absolute community of property for marriages celebrated on or before August 3, 1988.
• The estate may claim a standard deduction of 500, 000 pesos
• The administrator or any of his heirs, may however upon authorization of BIR withdraw from the decedent’s bank deposits P20,000 without the required certification that the estate tax has been paid.
• Based on the above problem but assuming that the PLDT shares of stocks are not listed in the local stock exchange, and there are 1, 000 shares at the time of death, the company’soutstanding shares were 10, 000 shares. Its retained earnings was P2, 000, 000, par value per share was P50. The gross estate should show the said shares at 250,000
• 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 September 30, 2012
• A single individual who is a nonresident alien can never claim a family home allowance against the gross estate.
• If he was a non-resident, but citizen of the Philippines, tangible and intangible properties, regardless of location shall be included.
• If he was a resident who was not a citizen of the Philippines, tangible and intangible properties, regardless of location, shall be included.
• In succession, fruits and credits maturing after the death of the decedent pass to the heirs even if they were not subjected to estate tax.
• Elements of Succession

  • Decedent
  • Heir
  • Estate