St.

Vincent College
Leganes/ Ivisan

TAXATION ESTATE TAX

GROSS ESTATE
( Exercise )

1. What kind of tax is applicable for the transfer of real property due to death of
its owner?

a. Donor’s Tax c. Value-Added Tax

b. Estate Tax d. Percentage Tax

2. When will the transfer through succession be effective?

a. Upon signing of a written will

b. Upon death of the testator
c. Upon payment of estate tax
d. Upon registration in the register of deeds

3. Which of the following is not a valid will?

a. That which increases the legitime of compulsory heir

b. That which transfers the portion of legitime to other successors other than
compulsory heir
c. That which reduces the free portion of the estate
d. That which transfers a part of free portion to compulsory heir

4. Who is the taxpayer in an estate taxation?

a. The decedent person c. The administrator

b. The estate d. The heir

5. A person called to the succession either by the provision of the will or by

operation of the law is a (an)

a. Legatee c. Heir
b. Devisee d. Beneficiary

6. An heir who inherits real property by will is called a

a. Legatee c. Heir
b. Devisee d. Beneficiary

7. The portion of the decedent’s estate which the law reserves for his compulsory
heirs is called

a. Inheritance c. Free Portion

b. Legitime d. Will

8. The estate tax is a tax on

a. The property left by the decedent

b. The privilege of transmitting property upon death
c. The heirs of the property
d. The property left to the surviving spouse

9. A natural or artificial person appointed by the court to carry out the provisions
of the will is called

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 a. Executor c. Legitime heir
b. Administrator d. Successor

10. Estate tax is not a (an)

a. Excise tax c. Personal tax

b. Direct tax d. Ad-valorem tax

11. What is the common characteristic of a transfer tax?

a. The transfer of property is onerous.

b. The transfer of property takes effect during the lifetime of the transferor.
c. The transfer of property takes effect upon the death of the transferor.
d. The transfer of property is gratuitous.

12. Which of the following is subjected to transfer tax?

a. Sale of personal property for a price lower than cost

b. Exchange of a piece of jewelry for a set of furniture
c. Transfer of personal goods for free
d. Transfer of real property for services rendered

13. Which of the following is not a valid will?

a. That which increases the legitime of compulsory heir.

b. That which transfers the portion of legitime to other successors other than
compulsory heir.
c. That which reduces the free portion of the estate.
d. That which transfers a part of free portion to compulsory heir.

14. Which of the following is not a primary compulsory heir?

a. Legitimate children and their descendants

b. Surviving spouse
c. Illegitimate children and their descendants
d. Parents of the decedent person

15. Which of the following proceeds of life insurance is to be included in the taxable gross
estate?

a. Insurance proceeds from SSS and GSIS

b. Amount receivable by any beneficiary, irrevocable, designated in the policy
c. Amount receivable by any beneficiary designated in the insurance policy
d. Proceeds of group insurance taken out by a company for its employees

16. For purposes of determining the properties to be included as part of the taxable gross
estate, it is necessary to identify those which have situs in the Philippines from those
which have situs outside the Philippines, when the decedent was a

a. Resident citizen c. Resident alien

b. Non-resident citizen d. Non-resident alien

17. The property rights and obligations of a person which are not extinguished by his
death and those which have been accrued thereto since the opening of succession is:

a. Capital c. Assets
b. Income d. Estate

18. The value of the gross estate of the resident or citizen decedent shall include:

a. All property situated in the Philippines

b. All property situated in foreign countries
c. All property wherever situated
d. None of the above

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19. The value of the gross estate of the non-resident, not a citizen of the Philippines shall
include:

a. All property situated in the Philippines

b. All property situated in foreign countries
c. All property wherever situated
d. None of the above

20. “Transfer in contemplation of death”, as part of the gross estate, includes any of the
following, except:

a. Transfers in contemplation of death

b. Donation mortis causa
c. Transfers under which the decedent has retained for his life the possession or
enjoyment of the property
d. Property passing under the general power of appointment

21. Which of the following does not qualify as “Transfer in contemplation of death”, as
part of the gross estate?

a. Transfers in contemplation of death

b. Bona fide sale for an adequate and full consideration
c. Transfers under which the decedent has retained for his life the possession or
enjoyment of the property
d. Transfers under which the decedent has retained for his life the right to the
income from the property

22. “Proceeds of life insurance” on the life of the decedent form part of the gross estate if
the beneficiary named is:

a. Estate of the deceased c. His administrator

b. His executor d. All of the above

23. Which of the following “Proceeds of life insurance” do not form part of the gross
estate of the decedent?

a. Proceeds of life insurance where the beneficiary is the estate of the deceased,
his executor or his administrator and the designation of beneficiary is revocable
b. Proceeds of life insurance where the beneficiary is the estate of the deceased,
his executor or his administrator and the designation of beneficiary is irrevocable
c. Proceeds of life insurance where the beneficiary is any person other than estate
of the deceased, his executor or administrator and the designation of beneficiary
is revocable
d. Proceeds of life insurance where the beneficiary is any person other than estate
of the deceased, his executor or administrator and the designation of beneficiary
is irrevocable

24. X, decedent, a resident and citizen of the Philippines, left the following properties:

Land in the Philippines

Car in the Philippines
Bonds issued by a foreign corporation

During the lifetime of X, he secured a life insurance wherein he designated his estate
as the irrevocable beneficiary. Two months before his death, upon the thought of
death, transferred his shares of stock issued by a domestic corporation to his
daughter.

What property/cash shall be excluded gross estate of the decedent?

a. All the properties/cash shall be excluded from the gross estate of the decedent.
b. Only the land, car and bonds shall be excluded from the gross estate of the
decedent.
c. Only the proceeds from life insurance and the shares of stock shall be excluded
from the gross estate.
d. None of the properties/cash shall be excluded from the gross estate of the
decedent.
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25. A revocable transfer with a consideration received:

Consideration received P200,000

Fair market value of property at the time of transfer 300,000
Fair market value of the property at the time of death 250,000

The value to be included in the gross estate is 50,000

26. Miss Inocencia, single, but a head of family, a citizen and resident of the Philippines,
died on November 10, 2023, leaving the following properties, with their fair market
values:

Piece of land and house thereon (family home)

in Manila, Philippines P 600,000
Vacation house and lot in Florida, United States 1,500,000
Car in the Philippines 120,000
Personal properties in the house in Manila, Philippines 150,000
Jewelry in the Philippines 50,000

How much is the gross estate subject to estate tax? 2,420,000

27. Mr. X, single, a citizen of the United States, died on October 4, 2023, residing in
California, United States, leaving the following real and personal properties:

Real and personal properties in California, United States P400,000

Real property (land) in the Philippines 180,000
Cash deposited in the Philippines National Bank 20,000

How much is the gross estate? 200,000

28. Mr. Y, a citizen of the Philippines, single, died a resident of the United States, leaving
the following properties:

Real property in the United States, inherited from the

father one and one-half years ago P2,000,000
Personal property in the Philippines inherited from
the father 1,600,000
Family home in the United States 1,400,000

The gross estate subject to Philippine estate tax:

29. Mr. Z, single, a Filipino citizen, residing in the United States died in Los Angeles,
California on April 10, 2023 leaving the following properties:

a. Land located in Cebu City, Philippines, P1,160,000

b. Car in USA, P420,000
c. Land located in Masbate, Philippines inherited from his brother who died on
October 8, 2022 on which estate tax was fully paid. The market value of the land
in 2022 was P200,000 but in 2023 it was valued at P400,000
d. Shares of stock in PNB worth P220,000
e. Proceeds of life insurance where he named his mother as irrevocable beneficiary,
P300,000

*Claims against an insolvent debtor, Philippines, P150,000

The total amount of taxable gross estate is:

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