ESTATE TAX

ESTATE TAX

 tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on
certain transfers, which are made by law as equivalent to testamentary disposition.

 It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner.

 The Estate Tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or
enjoyment of the estate by the beneficiary.

 BIR Form 1801

 Documentary Requirements

A. Mandatory Requirements [additional two (2) photocopies of each document]:

i. Certified true copy of the Death Certificate;

ii. Taxpayer Identification Number (TIN) of decedent and heir/s;

iii. Notice of Death (only for death prior to January 1, 2018) duly received by the BIR, if gross taxable estate exceeds
P20,000 for deaths occurring on January 1, 1998 up to December 31, 2017; or if the gross taxable estate exceeds
P3,000 for deaths occurring prior to January 1, 1998;

iv. Original copy of any of the following: a) Affidavit of Self Adjudication; b) Deed of Extra-Judicial Settlement of the
Estate, if the estate has been settled extra-judicially; c) Court order if settled judicially; d) Sworn Declaration of all
properties of the Estate;

v. A certified copy of the schedule of partition and the order of the court approving the same within thirty (30) days
after the promulgation of such order, in case of judicial settlement;

vi. Proof of Claimed Tax Credit, if applicable;

vii. Certified Public Accountant (CPA) Statement on the itemized assets of the decedent, itemized deductions from
gross estate and the amount due if the gross value of the estate exceeds five million pesos (Php5,000,000.00) for
decedent’s death on or after January 1, 2018 or two million pesos (Php2,000,000.00) for decedent’s death from
January 1, 1998 to December 31, 2017;

viii. Certification of the Barangay Captain for the claimed Family Home;

ix. Accounting of the proceeds of loan contracted within three (3) years prior to death of the decedent;

x. Proof of the claimed "Property Previously Taxed";

xi. Proof of the claimed "Transfer for Public Use";

B. For Real Properties, if any [additional two (2) photocopies of each document]:

i. Certified true copy/ies of the Transfer/Original/Condominium Certificate/s of Title of real property/ies (front and
back pages), if applicable;

ii. Certified true copy of the Tax Declaration of real properties at the time of death, if applicable;

iii. Certificate of No Improvement issued by the Local Assessor's Office where declared properties have no
improvement;

iv. Statement/Certificate of Aggregate Property Land Holdings issued by City/Municipal/Provincial Assessor’s Office

C. For Personal Properties, if any [additional two (2) photocopies of each document]:

i. Original copy of Certificate of Deposit/Investment/Indebtedness owned by the decedent and the surviving spouse,
if applicable;

ii. Certificate of Registration of vehicles and other proofs showing the correct value of the same, if applicable;

iii. Proof of valuation of shares of stock at the time of death, if applicable;

a) For shares of stocks not listed/not traded - Latest Audited Financial Statement of the issuing
corporation with computation of the book value per share

b) For shares of stocks listed/traded - Price index from the Philippine Stock Exchange (PSE) /latest Fair
Market Value (FMV) published in the newspaper at the time of transaction

c) For club shares - Price published in newspapers on the transaction date or nearest to the transaction
date

iv. Certificate of stocks, if applicable;

v. Proof of valuation of other types of personal property, if applicable;

D. Other Additional Requirements, if applicable:

 Duly Notarized Original Special Power of Attorney (SPA), if the person transacting/processing the transfer is not a
party to the transaction and/or Sworn Statement if one of the heirs is designated as executor/administrator;
 ESTATE TAX

 Certification from the Philippine Consulate if document is executed abroad

 Location Plan/Vicinity map issued by the Local Assessor’s Office if zonal value cannot be readily determined from
the documents submitted

 Certificate of Exemption/BIR Ruling issued by the Commissioner of Internal Revenue or his authorized
representative, if tax exempt

 BIR-approved request for installment payment of Estate tax due

 BIR-approved request for partial disposition of Estate

 Such other documents as may be required by law/rulings/regulations/etc.

 Tax Rates

 (The rate applicable shall be based on the law prevailing at the time of decedent’s death)

 Effective January 1, 2018 to present [Republic Act (RA) No. 10963]

 There shall be an imposed rate of six percent (6%) based on the value of such NET ESTATE determined as of the time of death
of decedent composed of all properties, real or personal, tangible or intangible less allowable deductions.

Effective January 1, 1998 up to December 31, 2017 (RA No. 8424)

If the Net Estate is

Over But not Over The Tax Shall be Plus Of the Excess Over
P 200,000.00 Exempt
P 200,000.00 500,000.00 0 5% P 200,000.00
500,000.00 2,000,000.00 P 15,000.00 8% 500,000.00
2,000,000.00 5,000,000.00 135,000.00 11% 2,000,000.00
5,000,000.00 10,000,000.00 465,000.00 15% 5,000,000.00
10,000,000.00 1,215,000.00 20% 10,000,000.00

Effective July 28, 1992 up to December 31, 1997 (Section 77 of the NIRC, as amended (RA No. 7499)

If the Net Estate is

Over But not Over The Tax Shall be Plus Of the Excess Over
P 200,000.00 Exempt
P 200,000.00 500,000.00 5% P 200,000.00
500,000.00 2,000,000.00 P 15,000.00 8% 500,000.00
2,000,000.00 5,000,000.00 135,000.00 12% 2,000,000.00
5,000,000.00 10,000,000.00 495,000.00 21% 5,000,000.00
10,000,000.00 1,545,000.00 35% 10,000,000.00
Effective January 1, 1973 to July 27, 1992 (Section 85 of the NIRC, as amended (Presidential Decree No. 69)

If the Net Estate is

Over But not Over The Tax Shall be Plus Of the Excess Over
P 10,000.00 Exempt - -
P 10,000.00 50,000.00 3% - P 10,000.00
50,000.00 75,000.00 P 1,200.00 4% 50,000.00
75,000.00 100,000.00 2,200.00 5% 75,000.00
100,000.00 150,000.00 3,450.00 10% 100,000.00
150,000.00 200,000.00 8,450.00 15% 150,000.00
200,000.00 300,000.00 15,950.00 20% 200,000.00
300,000.00 400,000.00 35,950.00 25% 300,000.00
400,000.00 500,000.00 60,950.00 30% 400,000.00
500,000.00 625,000.00 90,950.00 35% 500,000.00
625,000.00 750,000.00 134,700.00 40% 625,000.00
750,000.00 875,000.00 184,700.00 45% 750,000.00
875,000.00 1,000,000.00 240,950.00 50% 875,000.00
1,000,000.00 2,000,000.00 303,450.00 53% 1,000,000.00
2,000,000.00 3,000,000.00 833,450.00 56% 2,000,000.00
3,000,000.00 - 1,393,450.00 60% 3,000,000.00
Effective September 15, 1950 to December 31, 1972 (Section 85 of the NIRC, as amended (RA No. 579)

Estate and Inheritance Tax: If the Net Estate is

Over But not Over ESTATE INHERITANCE

 ESTATE TAX

0 5,000.00 Exempt Exempt

5,000.00 12,000.00 1.00% 2%
12,000.00 30,000.00 2.00% 4%
30,000.00 50,000.00 2.50% 6%
50,000.00 70,000.00 3.00% 8%
70,000.00 100,000.00 5.00% 12%
100,000.00 150,000.00 7.00% 14%
150,000.00 250,000.00 9.00% 16%
250,000.00 500,000.00 11.00% 18%
500,000.00 1,000,000.00 13% 20%
1,000,000.00 15% 22%
Effective July 1, 1939 to September 14, 1950 (Section 85 of the NIRC, as amended (Commonwealth Act No. 466)

Estate and Inheritance Tax: If the Net Estate is

Over But not Over ESTATE INHERITANCE

0 3000 Exempt
1.00%
3,000.00 10,000.00 1.00%
10,000.00 30,000.00 1.50% 2.00%
30,000.00 50,000.00 2.00% 3.00%
50,000.00 80,000.00 2.50% 4.00%
80,000.00 110,000.00 3.00% 5.00%
110,000.00 150,000.00 3.50% 6.00%
150,000.00 190,000.00 4.00% 7.00%
190,000.00 240,000.00 4.50% 8.00%
240,000.00 290,000.00 5.00% 9.00%
290,000.00 350,000.00 5.50% 10.00%
350,000.00 420,000.00 6.00% 11.00%
420,000.00 500,000.00 6.50% 12.00%
500,000.00 600,000.00 7.00% 13.00%
600,000.00 720,000.00 7.50% 14.00%
720,000.00 850,000.00 8.00% 15.00%
850,000.00 1,000,000.00 8.50% 16.00%
1,000,000.00 1,200,000.00 9.00% 17.00%
1,200,000.00 1,500,000.00 9.50% 17.00%
1,500,000.00 10.00% 17.00%

 Procedures

A. Who Shall File

 The Estate Tax Return (BIR Form 1801) shall be filed in triplicate by:

a) The executor, or administrator, or any of the legal heir/s of the decedent, whether resident or
non-resident of the Philippines, under any of the following situations:

i. In all cases of transfers subject to estate tax;

ii. Regardless of the gross value of the estate, where the said estate consists of registered or
registrable property such as real property, motor vehicle, shares of stock or other similar
property for which a clearance from the BIR is required as a condition precedent for the
transfer of ownership thereof in the name of the transferee; or

b) If there is no executor or administrator appointed, qualified, and acting within the Philippines, then
any person in actual or constructive possession of any property of the decedent.

 Taxpayers who are filing BIR Form 1801 are excluded in the mandatory coverage from using the eBlRForms
(Section 2 of RR No. 9-2016)

B. When and Where to File and Pay

 The Estate Tax Return (BIR Form 1801) shall be filed within one (1) year from the decedent's death. In
meritorious cases, the Commissioner shall have the authority to grant a reasonable extension not exceeding thirty
(30) days for filing the return.

 The return shall be filed with any Authorized Agent Bank (AAB) of the Revenue District Office (RDO) having
jurisdiction over the place of domicile of the decedent at the time of his death. If the decedent has no legal
residence in the Philippines, the return shall be filed with the Office of the Commissioner (RDO No. 39, South
Quezon City).

 In case of a non-resident decedent with executor or administrator in the Philippines, the return shall be filed with
the AAB of the RDO where such executor/administrator is registered or is domiciled, if not yet registered with the
BIR.
 ESTATE TAX

 When the return is filed with an AAB, taxpayer must accomplish and submit BIR-prescribed deposit slip, which the
bank teller shall machine validate as evidence that payment was received by the AAB. The AAB receiving the tax
return shall stamp mark the word “Received’’ on the return and also machine validate the return as proof of filing
the return and payment of the tax by the taxpayer, respectively. The machine validation shall reflect the date of
payment, amount paid and transaction code, the name of the bank, branch code, teller’s code and teller’s initial.
Bank debit memo number and date should be indicated in the return for taxpayers paying under the bank debit
system.

 Payments may also be made thru the epayment channels of AABs thru either their online facility,
credit/debit/prepaid cards, and mobile payments.

 In case the available cash of the estate is insufficient to pay the total estate tax due, payment by installment shall
be allowed within two (2) years from the statutory date for its payment without civil penalty and interest upon
approved by the concerned BIR Official.

 The due date on filing and payment of the return/tax shall depend on the applicable law at the time of the
decedent’s death.

C. Extension to File and Pay

 When the Commissioner of Internal Revenue finds that the payment on the due date of the estate tax or of any
part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for
payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the
courts, or two (2) years in case the estate is settled extra-judicially. In such case, the amount in respect of which
the extension is granted shall be paid on or before the date of the expiration of the period of the extension, and
the running of the Statute of Limitations for assessment as provided in Section 203 of the National Internal
Revenue Code shall be suspended for the period of any such extension.

 Where the taxes are assessed by reason of negligence, intentional disregard of rules and regulations, or fraud on
the part of the taxpayer, no extension will be granted by the Commissioner.

 If an extension is granted, the Commissioner of Internal Revenue or his duly authorized representative may
require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond in such amount, not
exceeding double the amount of tax and with such sureties as the Commissioner deems necessary, conditioned
upon the payment of the said tax in accordance in the terms of extension.

 The application for extension of time to file the estate tax return must be filed with the Revenue District Officer
(RDO) where the estate is required to secure its Taxpayer Identification Number (TIN) and file the tax returns of
the estate. The application shall be approved by the Commissioner or his duly authorized representative.

What are included in gross estate?

A. For resident alien decedents/citizens:
i. Real or immovable property, wherever located
ii. Tangible personal property, wherever located
iii. Intangible personal property, wherever located
B. For non-resident decedent/non-citizens:
i. Real or immovable property located in the Philippines
ii. Tangible personal property located in the Philippines
iii. Intangible personal property - with a situs in the Philippines such as:
iv. Franchise which must be exercised in the Philippines
v. Shares, obligations or bonds issued by corporations organized or constituted in the Philippines
vi. Shares, obligations or bonds issued by a foreign corporation 85% of the business of which is located in the Philippines
vii. Shares, obligations or bonds issued by a foreign corporation if such shares, obligations or bonds have acquired a business situs
in the Philippines (i.e. they are used in the furtherance of its business in the Philippines)
viii. Shares, rights in any partnership, business or industry established in the Philippines

What are excluded from gross estate?

 GSIS proceeds/ benefits
 Accruals from SSS
 Proceeds of life insurance where the beneficiary is irrevocably appointed
 Proceeds of life insurance under a group insurance taken by employer (not taken out upon his life)
 War damage payments
 Transfer by way of bona fide sales
 Transfer of property to the National Government or to any of its political subdivisions
 Separate property of the surviving spouse
 Merger of usufruct in the owner of the naked title
 Properties held in trust by the decedent
 Acquisition and/or transfer expressly declared as not taxable

What will be used as basis in the valuation of property?

 The properties comprising the gross estate shall be valued based on their fair market value as of the time of decedent’s death.
 If the property is a real property, the appraised value thereof as of the time of death shall be, whichever is the higher of –
 ESTATE TAX

1. The fair market value as determined by the Commissioner, or

2. The fair market value as shown in the schedule of values fixed by the provincial and city assessors.
 In the case of shares of stocks, the fair market value shall depend on whether the shares are listed or unlisted in the stock exchanges.
Unlisted common shares are valued based on their book value while unlisted preferred shares are valued at par value. In determining the
book value of common shares, appraisal surplus shall not be considered as well as the value assigned to preferred shares, if there are any.
On this note, the valuation of unlisted shares shall be exempt from the provisions of RR No. 6-2013, as amended.
 For shares which are listed in the stock exchanges, the fair market value shall be the arithmetic mean between the highest and lowest
quotation at a date nearest the date of death, if none is available on the date of death itself.
 The fair market value of units of participation in any association, recreation or amusement club (such as golf, polo, or similar clubs), shall
be the bid price nearest the date of death published in any newspaper or publication of general circulation.
 To determine the value of the right to usufruct, use or habitation, as well as that of annuity, there shall be taken into account the
probable life of the beneficiary in accordance with the latest basic standard mortality table, to be approved by the Secretary of Finance,
upon recommendation of the Insurance Commissioner.(Sec. 5, RR No. 12-2018)

What are the allowable deductions for Estate Tax Purposes?

(Please note that the allowable deductions will vary depending on the law applicable at the time of the decedent ’s death)
For dates of deaths occurring January 1, 2018 to present (RA No. 10963/TRAIN Law)
A. For a citizen or resident alien:
1. Standard Deduction — An amount equivalent to Five million pesos (₱5,000,000.00)
2. Claims against the estate -
 Requisites for Deductibility of Claims against the Estate –
 The liability represents a personal obligation of the deceased existing at the time of death;
 The liability was contracted in good faith and for adequate and full consideration in money’s worth;
 The claim must be a debt or claim which is valid in law and enforceable in court; and
 The indebtedness must not have been condoned by the creditor or the action to collect from the decedent
must not have prescribed.
3. Claims of the deceased against insolvent persons where the value of the decedent’s interest therein is included in the
value of the gross estate
4. Unpaid mortgages, taxes and casualty losses
5. Property previously taxed - An amount equal to the value specified below of any property forming part of the
gross estate situated in the Philippines of any person who died within five (5) years prior to the death of the decedent,
or transferred to the decedent by gift within five (5) years prior to his death, where such property can be identified as
having been received by the decedent from the donor by gift, or from such prior decedent by gift, bequest, devise or
inheritance, or which can be identified as having been acquired in exchange for property so received:
 “One hundred percent (100%) of the value, if the prior decedent died within one (1) year prior to the death
of the decedent, or if the property was transferred to him by gift, within the same period prior to his death;
 “Eighty percent (80%) of the value, if the prior decedent died more than one (1) year but not more than two
(2) years prior to the death of the decedent, or if the property was transferred to him by gift within the
same period prior to his death;
 “Sixty percent (60%) of the value, if the prior decedent died more than two (2) years but not more than
three (3) years prior to the death of the decedent, or if the property was transferred to him by gift within
the same period prior to his death;
 “Forty percent (40%) of the value, if the prior decedent died more than three (3) years but not more than
four (4) years prior to the death of the decedent, or if the property was transferred to him by gift within the
same period prior to his death; and
 “Twenty percent (20%) of the value, if the prior decedent died more than four (4) years but not more than
five (5) years prior to the death of the decedent, or if the property was transferred to him by gift within the
same period prior to his death.
 “These deductions shall be allowed only where a donor’s tax, or estate tax imposed under Title III of NIRC
was finally determined and paid by or on behalf of such donor, or the estate of such prior decedent, as the
case may be, and only in the amount finally determined as the value of such property in determining the
value of the gift, or the gross estate of such prior decedent, and only to the extent that the value of such
property is included in the decedent’s gross estate, and only if in determining the value of the estate of the
prior decedent, no deduction was allowable under this item in respect of the property or properties given in
exchange therefor. Where a deduction was allowed of any mortgage or other lien in determining the
donor’s tax, or the estate tax of the prior decedent, which was paid in whole or in part prior to the
decedent’s death, then the deduction allowable this item shall be reduced by the amount so paid. Such
deduction allowable shall be reduced by an amount which bears the same ratio to the amounts allowed as
deductions under items (2), (3), (4), and (6) of this Subsection as the amount otherwise deductible under
this item bears to the value of the decedent’s estate. Where the property referred to consists of two or
more items, the aggregate value of such items shall be used for the purpose of computing the deduction.
6. Transfers for Public Use
7. The Family Home - An amount equivalent to the current fair market value of the decedent’s family
home: Provided, however, that if the said current fair market value exceeds Ten million pesos (₱10,000,000.00), the
excess shall be subject to estate tax
 If the family home is conjugal property and does not exceed (₱10,000,000.00), the allowable deduction is
one-half (1/2) of the amount only.
 ESTATE TAX

8. Amount Received by Heirs Under Republic Act No. 4917

 Any amount received by the heirs from the decedent’s employer as a consequence of the death of the
decedent-employee in accordance with Republic Act No. 4917: Provided, that such amount is included in
the gross estate of the decedent.
9. Net share of the surviving spouse in the conjugal partnership or community property
B. For a non-resident alien:
1. Standard Deduction – An amount equivalent to Five hundred thousand pesos (₱500,000)
2. Losses and indebtedness -
i. Claims against the estate
ii. Claims of the deceased against insolvent persons where the value of the decedent’s interest therein is
included in the value of the gross estate
iii. Unpaid mortgages, taxes and casualty losses
3. Property previously taxed
4. Transfers for Public Use
5. Net share of the surviving spouse in the conjugal partnership or community property

For deaths occurring January 1, 1998 to December 31, 2017 (RA No. 8424/NIRC of 1997)
A. For a citizen or resident alien:
1. Expenses, Losses, Indebtedness, and Taxes:
a) Actual funeral expenses (whether paid or unpaid) up to the time of interment, or an amount equal to five percent (5%)
of the gross estate, whichever is lower, but in no case to exceed P200,000.
b) Judicial expenses of the testamentary or intestate proceedings.
c) Claims against the estate.
d) Claims of the deceased against insolvent persons where the value of the decedent’s interest therein is included in the
value of the gross estate; and,
e) Unpaid mortgages, taxes and casualty losses
2. Property previously taxed (Vanishing Deduction) (Section 86 (2) of the NIRC as amended by RA No. 8424) - An amount equal
to the value specified below of any property forming a part of the gross estate situated in the Philippines of any person who
died within five (5) years prior to the death of the decedent, or transferred to the decedent by gift within five (5) years prior
to his death, where such property can be identified as having been received by the decedent from the donor by gift, or from
such prior decedent by gift, bequest, devise or inheritance, or which can be identified as having been acquired in exchange for
property so received:
 One hundred percent (100%) of the value, if the prior decedent died within one (1) year prior to the death of the
decedent, or if the property was transferred to him by gift within the same period prior to his death;
 Eighty percent (80%) of the value, if the prior decedent died more than one (1) year but not more than two (2)
years prior to the death of the decedent, or if the property was transferred to him by gift within the same period
prior to his death;
 Sixty percent (60%) of the value, if the prior decedent died more than two (2) years but not more than three (3)
years prior to the death of the decedent, or if the property was transferred to him by gift within the same period
prior to his death;
 Forty percent (40%) of the value, if the prior decedent died more than three (3) years but not more than four (4)
years prior to the death of the decedent, or if the property was transferred to him by gift within the same period
prior to his death; and
 Twenty percent (20%) of the value, if the prior decedent died more than four (4) years but not more than five (5)
years prior to the death of the decedent, or if the property was transferred to him by gift within the same period
prior to his death;
 These deductions shall be allowed only where a donor’s tax or estate tax imposed was finally determined and paid
by or on behalf of such donor, or the estate of such prior decedent, as the case may be, and only in the amount
finally determined as the value of such property in determining the value of the gift, or the gross estate of such
prior decedent, and only to the extent that the value of such property is included in the decedent’s gross estate,
and only if in determining the value of the estate of the prior decedent, no Property Previously Taxed or Vanishing
Deduction was allowable in respect of the property or properties given in exchange therefor. (Section 6 & 7 of RR
No. 2-2003)
3. Transfers for public use
4. The family home - fair market value but not to exceed P1,000,000.00
 The family home refers to the dwelling house, including the land on which it is situated, where the husband and
wife, or a head of the family, and members of their family reside, as certified to by the Barangay Captain of the
locality. The family home is deemed constituted on the house and lot from the time it is actually occupied as a
family residence and is considered as such for as long as any of its beneficiaries actually resides therein. (Arts. 152
and 153, Family Code)
5. Standard deduction – A deduction in the amount of One Million Pesos (P1,000,000.00) shall be allowed as an additional
deduction without need of substantiation.
6. Medical expenses – All medical expenses (cost of medicines, hospital bills, doctor’s fees, etc.) incurred (whether paid or
unpaid) within one (1) year before the death of the decedent shall be allowed as a deduction provided that the same are duly
substantiated with official receipts. For services rendered by the decedent’s attending physicians, invoices, statements of
account duly certified by the hospital, and such other documents in support thereof and provided, further, that the total
amount thereof, whether paid or unpaid, does not exceed Five Hundred Thousand Pesos (P500,000).
7. Amount received by heirs under RA No. 4917 - Any amount received by the heirs from the decedent’s employer as a
consequence of the death of the decedent-employee in accordance with Republic Act No. 4917 is allowed as a deduction
provided that the amount of the separation benefit is included as part of the gross estate of the decedent.
8. Net share of the surviving spouse in the conjugal partnership or community property
 ESTATE TAX

B. For a non-resident alien:

1. Expenses, losses, indebtedness and taxes
2. Property previously taxed
3. Transfers for public use
4. Net share of the surviving spouse in the conjugal partnership or community property
 No deduction shall be allowed in the case of a non-resident decedent not a citizen of the Philippines, unless the
executor, administrator, or anyone of the heirs, as the case may be, includes in the return required to be filed in the
Section 90 of the Code the value at the time of the decedent’s death of that part of his gross estate not situated in the
Philippines.

What does the term "Funeral Expenses" include?

 The term "FUNERAL EXPENSES" is not confined to its ordinary or usual meaning. They include:
1) The mourning apparel of the surviving spouse and unmarried minor children of the deceased bought and used on the
occasion of the burial;
2) Expenses for the deceased’s wake, including food and drinks;
3) Publication charges for death notices;
4) Telecommunication expenses incurred in informing relatives of the deceased;
5) Cost of burial plot, tombstones, monument or mausoleum but not their upkeep. In case the deceased owns a family estate or
several burial lots, only the value corresponding to the plot where he is buried is deductible;
6) Interment and/or cremation fees and charges; and
7) All other expenses incurred for the performance of the rites and ceremonies incident to interment.
 Expenses incurred after the interment, such as for prayers, masses, entertainment, or the like are not deductible. Any portion of the
funeral and burial expenses borne or defrayed by relatives and friends of the deceased are not deductible. Actual funeral expenses shall
mean those which are actually incurred in connection with the interment or burial of the deceased. The expenses must be duly supported
by official receipts or invoices or other evidence to show that they were actually incurred. (Sec 6 (A)(1) of RR 2-2003)

What does the term "Judicial Expenses" include?

 Expenses allowed as deduction under this category are those incurred in the inventory-taking of assets comprising the gross estate, their
administration, the payment of debts of the estate, as well as the distribution of the estate among the heirs. In short, these deductible
items are expenses incurred during the settlement of the estate but not beyond the last day prescribed by law, or the extension thereof,
for the filing of the estate tax return. Judicial expenses may include:
1) Fees of executor or administrator;
2) Attorney’s fees;
3) Court fees;
4) Accountant’s fees;
5) Appraiser’s fees;
6) Clerk hire;
7) Costs of preserving and distributing the estate;
8) Costs of storing or maintaining property of the estate; and
9) Brokerage fees for selling property of the estate.
 Any unpaid amount for the aforementioned cost and expenses claimed under “Judicial Expenses” should be supported by a sworn
statement of account issued and signed by the creditor. (Sec 6 (A)(2) of RR 2-2003)