1. Who are the taxpayers under the estate tax; 2.

What are the properties that comprise an estate It consists of real estate and personal property, regardless of location. Personal property may be tangible personal property or intangible personal property. Real estate, or real property, (called in law immovable property) means land, building or anything attached to the soil with permanence. Personal property is called in law movable property. Tangible personal property is movable property that can be seen and touched. Intangible personal property is movable property that cannot be seen and touched. 3. Sec. 104 of the NIRC SEC. 104. Definitions. - For purposes of this Title, the terms 'gross estate' and 'gifts' include real and personal property, whether tangible or intangible, or mixed, wherever situated: Provided, however, That where the decedent or donor was a nonresident alien at the time of his death or donation, as the case may be, his real and personal property so transferred but which are situated outside the Philippines shall not be included as part of his 'gross estate' or 'gross gift': Provided, further, That franchise which must be exercised in the Philippines; shares, obligations or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippines in accordance with its laws; shares, obligations or bonds by any foreign corporation eighty-five percent (85%) of the business of which is located in the Philippines; shares, obligations or bonds issued by any foreign corporation if such shares, obligations or bonds have acquired a business situs in the Philippines; shares or rights in any partnership, business or industry established in the Philippines, shall be considered as situated in the Philippines: Provided, still further, that no tax shall be collected under this Title in respect of intangible personal property: (a) if the decedent at the time of his death or the donor at the time of the donation was a citizen and resident of a foreign country which at the time of his death or donation did not impose a transfer tax of any character, in respect of intangible personal property of citizens of the Philippines not residing in that foreign country, or (b) if the laws of the foreign country of which the decedent or donor was a citizen and resident at the time of his death or donation allows a similar exemption from transfer or death taxes of every character or description in respect of intangible personal property owned by citizens of the Philippines not residing in that foreign country. The term 'deficiency' means: (a) the amount by which tax imposed by this Chapter exceeds the amount shown as the tax by the donor upon his return; but the amount so shown on the return shall first be increased by the amount previously assessed (or Collected without assessment) as a deficiency, and decreased by the amounts previously abated, refunded or otherwise repaid in respect of such tax, or (b) if no

amount is shown as the tax by the donor, then the amount by which the tax exceeds the amounts previously assessed, (or collected without assessment) as a deficiency, but such amounts previously assessed, or collected without assessment, shall first be decreased by the amount previously abated, refunded or otherwise repaid in respect of such tax. 4. Requirements so that Proceeds of Life Insurance may be subject to estate tax. If the beneficiary is (1) the estate of the decedent, his executor or administrator; or (2) if a third person is revocably designated as beneficiary 5. When proceeds of life insurance shall be included in the gross estate a. Who is the beneficiary & b. Nature of designation 6. Conditions so that Family Home may be considered a deduction from the gross estate The deduction from the gross estate for family home shall be allowed when the family home is certified to as such by the Barangay Captain of the locality where it is located. A family home of a married person, or an unmarried head of family, is the dwelling house where the person and his family reside, and the land on which it is situated. 7. What is Vanishing Deduction? Property may change hands within a very short period of time be reason of the early death of the owner who received it by inheritance or gift. This subjects the property to a very heavy burden in taxes, because the transfer tax is imposed on each transfer. To provide a relief, vanishing deduction is allowed to reduce the gross estate of the recipient of the inheritance of the gift. To put it simply, vanishing deduction is deduction for property previously taxed.