Sen Sei Thiv, a Japan resident and citizen died on November 27, 2018 leaving the ff.

properties:

Family home 1,750,000

Car 950,000
Rest house in Siargao 1,500,000
Land in Japan 2,700,000
Jewelries received
from MJ, a week
before her death 1,000,000

Her descendants claimed these deductions:

Funeral Expenses 250,000
Judicial Expenses 150,000
Family home 1,250,000
Standard deductions 1,100,000
Claims against
insolvent persons 500,000
Amounts received
under R. A. 4917 1,000,000
Medical Expenses
incurred from Jan 2018
to November 27,2018 250,000

1. How much is the gross estate?

A. 5,200,000
B. 6,200,000
C. 6,700, 000
D. 5,700,000
Suggested answer: C

2. How much is the total deductions from the gross estate?

A. 523,647
B. 463,298
C. 450,000
D. 617,229
Suggested answer: B

Ms. Claire Ferrer a resident of the Philippines died single and left some properties:
Family Home 20M
Real and Personal Property 16M

She also left some unpaid real estate taxes worth 3M

3. Compute for the allowable deductions on gross estate.

A. 28M
B. 18M
C. 15M
D. 3M
Suggested answer : B

4. Compute for the Net Estate

A. 18M
B. 8M
C. 33M
D. 21M
Suggested answer : A

5. Same information from number 3 difference is that Ms. Claire Ferrer is married and there is a
surviving spouse. compute for the allowable deductions on gross estate.
A. 15M
B. 18M
C. 10M
D. 33M
Suggested answer : D

Solution for prob 3:

•Family Home 20M

•R&P prop 16M
= 36M ➡ Gross Estate
•(SD 5M)
•(FH Deduction 10M)
•(Unpaid real estate tax 3M)
Total Allowable Deductions =18M

For the Net Estate

Gross Estate 36M
(TAD 18M)
=18M
Solution for prob 4

Since there is a surviving spouse first we need to find the surviving spouse’s share.

Fam Home 20M

R&E prop 16M
GE= 36M
(Unpaid RET 3M)
(Obligation to conjugal prop 3M)
NE= 30M

Surviving spouse’s share is 1/2 of NE so 30M/2 = 15M

Allowable deductions and obligations on gross estate tax are:

SD 5M
Unpaid RET 3M
Fam home Deduction 10M
Surviving spouse’s share 15M
Total allowable deductions and obligations 33M

6.
Statement 1: All transfer tax are considered estate tax.
Statement 2: All IPPs are excluded in the computation of gross estate if it is outside the situs of the
Phil.
Statement 3: All personal property of spouses for exclusive use shall be deemed exclusive in both
CPG and ACoP.

a. All statements are true.

b. Only statement 2 and 3 are true.
c. Only statement 3 is true.
d. All statements are false.

Answer: D

Ms. GMA was married at the time of her death. The following properties was left in the estate:
Real Properties Inherited by the decedent before the marriage ----- 7 Million
Personal Properties inherited by the decedent during the marriage ----- 3 Million
Real properties inherited by surviving spouse during the marriage ------ 1.5 Million
Real properties recueved by surviving sppuse as gift before the marriage ----- 1 Million
Clothes of the decedent purchased by the wife for the exclusive use of the decedent ----- 150K
Jewelry inherited by the surviving spouse during the marriage ----- 500K
Jewelry acquited using common fund for the exclusive use of the decedent ----- 200K
Cash in Bank representing income recieved during the marriage from an exclusive property -----
100K
Real properties acquired by the decedent while married tk her first husband who predeceased him
----- 300K

Question 7. How much is the total exclusive properties under conjugal partnership of gains?

a. 11,250,000
b. 10,650,000
c. 10,450,000
d. None of the choices
Suggested answer : C

Question 8. How much is the total conjugal properties under conjugal partnership of gains?

a. 800,000
b. 700,000
c. 300,000
d. None of the choices
Suggested answer : C

Question 9. How much is the total exclusive properties under absolute community properties?

a. 5,050,000
b. 3,550,000
c. 3,400,000
d. none of these choices
Suggested answer : B

Question 10. How much is the total community properties under absolute community of
properties?

a. 8,200,000
b. 8,000,000
c. 7,200,000
d. none of the choices
Suggested answer : A

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 property at the time of death- 250,000

11. How much is to be included in the gross estate?

A. 300,000
B. 250,000
C. 100,000
D. 50,000
Suggested answer : D

Rose, a resident of Sulat Philipines, died from a plane crash while on her way to Korea to meet her
Oppa Jude. She left several properties in the Philippines including a commercial lot with a 6-
storey building. The City assessors office determined the values of the commercial lot and
building as 6,000,000 and 12,000,000 respectively. And based on the assessment made by the BIR,
the lot and building has a zonal value of 7,000,000 and 10,500,000 respectively. She also left her
SUV Car which was purchased a week ago for 3,000,000. As per revaluation of the Car, it was
found out to have a fair market value of 2,500,000. She also has previously acquired 2,000
publicly traded shares of ABB Corporation with a highest market price of 120 per share and 80
being the lowest at the day of her death.

12. What is the total gross estate of Rose?

A. 21,700,000
B. 22,200,000
C. 22,240,000
D. 20,240,000

Suggested Answer: B

Solution:
Lot (Zonal Value) = 7,000,000
Building (Assessed Value) = 12,000,000
Car (Purchase Price kay newly purchased) = 3,000,000
Stocks: Mean [(120+80)/2] * 2000 sh = 200,000

Total 22,200,000
Angel and Andrey had their marriage on Aug. 3, 1988.Mr. And Mrs Stelle married without agreed
property regime. They did everything for their marriage to work on but unfortunately, to be
separated is the only choice they have for them to be happy. They had the following properties:

Before Marrige:
Angel:
Car-1,500,000
Andrey:
Residential Lot(gift to Mr. Stelle- 2,000,000

During Marriage:
Angel:
Gold Necklace(gift to Mrs. Stelle) - 5,000,000
Income from own Labor-20,000

Andrey:
Income from Own Labor-500,000.

Q13: Compute for the total exclusive and common properties of Mrs. Stelle

A. 6,500,000-4,020,000
B. 5,000,000-4,020,000
C.3,500,000-5,520,000
D.5,000,000-5,520,000

Suggested Answer:B

Mia Caliph, single, is a successful doctor, actress, teacher, businesswoman and influencer among
other things. She is the CEO of Brassers Jewelry. Her parents were both of Arab decent and was
born in the Philippine Embassy building in the United States. One afternoon she suddenly died of
a heart attack while shooting a movie. The ff. Information were gathered regarding her accounts:

House and lot , PH P 3M

Apartment , US. 50k
Toys used for movies 70% in PH 70k
AR, from American friend 20k
Car - US 600k
Costumes and Clothes - PH 15k
Shares of stock, US situs in PH. 500k
Shares of stock, PH. 350k
Mortgage on House&Lot. 600k
America and Ph allows reciprocity.

14. How much is her gross estate?

A. P 2,984,000
B. P 4,605,000
C. P 3,914,000
D. P 3,985,000
Suggested answer: C

Pangs a citizen of wadiya visits Philippine on March 1 2018. On December 25 2018 pangs died
leaving a mass of property compose of tricycle worth P500, 000 in Oras Eastern Samar, Share of
Stock 25,000 share with a par value of P80 per share and a market value of 150 per share, Golden
brief worth P150, 000 which he is wearing on the day of his death and family home worth P5,000,
000. Pangs is a CEO of San Miguel Corporation.

Q15: compute the gross estate subject to Philippine taxation.

A. 0
B. 4,250,000
C. 9,250,000
D. 8,900,000
Suggested answer: B

16. Xhamster a resident citizen died on February 14. Milf is the executor of his last well and
testament, according to his well, his property will be divided equally to his children P O R and N
but before his death he found out that his second wife and N has a sexual affair, O who made a
promise to his father that he will top the bar exam but failed to do so, P and R who is always a
headache to their father. Who among the children is qualified for disinheretance?

A. P O R and N
B. N
C. O
D. P and R
Suggested answer: B

17.
I. A power of appointment is the right to designate the person or persons who will succeed to the
property of the prior decedent.

II. Transfers passing under special power of appointment is excluded from the gross estate.

III. X died giving Y power to appoint a person who will inherit X's House and Lot. Y however can
only choose among A, B, C, D and E. Y decided to transfer the property to E. The transfer from Y
to E is subject to Estate tax.
IV. During X's lifetime, he decide to give to Y as gift his (X) car subject to the condition that if Y
does not become a CPA within 2 years. X shall revoke the transfer. In the 1st year however, X
died. The car can no longer form part of X's gross estate.

A. All statements are correct.

B. Only statements III and IV are correct.
C. Only statements I and II are correct.
D. Only statement I is correct.

Suggested answer: C

Roooowbes muril, a campus crush who has an artificial dimples, a filipino citizen and a married
womanizer, died in Feb. 14, 2014 due to cardiac arrest for some desirable activies. He received a
Building in Tacloban City with a FMV of 7,650,000 on March 3, 2013 and the said propoerty has
a FMV of 10,650,000 at the time of his death.

With the following additional info:

Land inherited in the PH on March 3, 2013

FMV acquired: 5,000,000

FMV present decedent: 6,000,000

Jewelries acquired outside the PH on march 3, 2013

FMV acquired: 8,000,000

FMV present decedent: 7,000,000

Deductions:
Loss of properties(7mos after death) 5,000,000

Mortgage assumed on Bldg(700,000) 500,000

18. How much is the Gross Estate?

a. 19,650,000 c. 21,650,000
b. 24,650,000 d. 23,650,000
19. How much is the Properties subject to vanishing deductions?
a. 16,650,000 c. 12,650,000
b. 19,650,000 d. 24,650,000

20. How much is the Proportionate deductions?

a. 253,535 c. 12,197,465
b. 252,525 d. 252,535

21. How much is the amount of vanishing deductions?

a. 12,197,465 b. 253,535
b. 12,540,000 d. 252,535

Suggested answer:
18. Gross Estate: 24,650,000 (B)
19. Prop subj to vd: 12,650,000 (C)
20. proportionate deducts: 252,535 (D)
21. vanishing kage bunshin technique deductions: 12,197,465 (A)

22. Mr. Jay and his son JR paid P1,000,000 for a vacation home in Palo. Mr. Jay put up P800,000
and JR put up P200,000. After a month, Mr. Jay died from a heart attack. How much will be
included in his gross estate?

A. P200,000 B. P800,000 C. P1,000,000 D. 0

SUGGESTED ANS: C.
-> In the absence of any proof that JR's contribution is from the money he exclusively earned, it is
presumed to be that of a gift from his father.

23. Darlene, Sabrina's bestfriend is legally incapacitated. Sabrina asked you, the attorney, what
type of documents can you make in order for Sabrina to take care of Darleen and her assets?

A. A living will and testament

B. Deed of special power of appointment
C. Deed of general power of appointment
D. None

SUGGESTED ANS: D
-> Documents must be executed prior to Darlene's incapacity in order for it to be valid.

Ms. Angelita Mcbints, a resident alien, decedent, married, died on August 10,2018, leaving the ff
properties :
Car received as gift from her mother during the year he died-3M

House and lot in California was inherited from his father 2 years and 5 months before he died
( fair market value of 18M when inherited)-20M

Personal properties acquired during the marriage-1.5M

Cash (inclusive of 2.5M received as gift from mother)-2M

Unpaid taxes before death-250K

Funeral expenses-150K

The car was mortgaged of 500K when it is acquired and unpaid mortgage of 100K

24. How much is the gross estate?

A. 26.5M
B. 6.5M
C. 24.5M
D. 25M
Suggested answer: A
Sol: 20M+3M+1.5M+2M=26.5M

25. How much is the vanishing deductions?

A. P15,591,320.75
B. P15,491,450.75
C. P15,861,920.75
D. P15,341,050.75
Suggested answer: A
Sol:
Father(inheritance)
Value to take 18M
Less: 237,735.85(18M/26.5M*350K)
=17,762,264.15*60%
Vanishing deduction=10,657,358.49

Mother(Donation)
Value to take: 3M+2M=5M
Less:66,037.74(5M/26.5M*350K)
=4,933,962.26*100%
Vanishing deduction =4,933,962.26
 10,657,358.49+4,933,962.26
Total Vanishing Deduction=15,591,320.75