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and

1. Seat Plan
2. TIP Vision & Mission
Statements
3. Course Coverage
4. Course Requirements
 Attendance
 Classroom Attitude
 Commitment (to be a CPA)
5. Syllabus – Acknowledgment
Receipt
6. Book Order Slip
7. Introduction/Overview

VISION
1. A leading professional technological
institution in the Philippines
2. An institution whose graduates
contribute to the welfare of society

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MISSION
1. Is committed to continue to empower the Filipino youth through
technological education of the highest standard, employing
outcomes -based education and state-of-the-art laboratories.

2. To transform students into graduates with full competence in

their fields of study who possess:
 values of honesty, integrity, service to others
 positive work attitude, good communication skills,
proficiency in computers, initiative, openess to keep
learning to reinvent themselves
 global values of mindfulness, respect for cultural
diversity, care for the environment and contribute to
general welfare of society

COURSE
REQUIREMENTS

ACTIVITY WEIGHT FREQUENCY

Assignment, Seatwork, 25% At least 3x/ period
Boardwork
Recitation 15% Every meeting
Attendance 10% Checked daily
Quiz 50% 2x per period

1. Succession, Transfer Tax and

Estate Tax defined
2. Kinds of Succession (be prepared
to illustrate each kind)
3. Elements of Succession
4. Kinds of Successors/Heirs
5. Kinds of Wills, revoking a will
6. Institution of Heirs
7. Requisites for Disinheritance

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Succession, Transfer Tax and

Estate Tax defined

SUCCESSION – mode of acquisition by

virtue of which, the property, rights and
obligations to the extent of the value of
the inheritance of a person is
transmitted through his death to
another by his will or by operation of
law.

Succession, Transfer Tax and

Estate Tax defined

TRANSFER TAXES – are taxes imposed

upon the gratuitous disposition of
private properties or rights.

Transfer that neither

imposes burden nor
requires consideration
from transferee or
receipient.

Succession, Transfer Tax and

Estate Tax defined

ESTATE TAX – is a tax levied on an heir’s

inherited portion of an estate if the
value of the estate exceeds an exclusion
limit set by law.

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Kinds of Succession
(be prepared to illustrate each kind)

TESTAMENTARY or
TESTATE

 A type of succession that results

from the designation of an heir,
made in a will executed in the
form prescribed by law

Kinds of Succession
(be prepared to illustrate each kind)

LEGAL or INTESTATE

 A type of succession which is

effected by operations of law (as
provided by the Civil Code), since
the decedent did not execute a
will or the will executed is void.

Kinds of Succession
(be prepared to illustrate each kind)

MIXED SUCCESSION

 A type of succession which is

effected partly by “will” and
partly by operation of law.

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Elements of Succession

DECEDENT

 the general term applied to the

person whose property is transmitted
through succession whether there is a
will or none. Also called a testator.

Elements of Succession

INHERITANCE (Estate)

 include all the property, rights

and obligations of a person which are
not extinguished by death. Rights
which are purely personal are not
transmissible, thus they are
extinguished by death.

Elements of Succession

SUCCESSORS

 an heir or successor is a person

who is called to the succession either
the provision of a will or by operation
of law.

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Kinds of HEIRs

COMPULSORY HEIRS

 those who suceed by force of law

to some portion of inheritance whether
the testator likes it or not.

 they cannot be deprived by the

testator of their legitime except by
disinheritance.

Kinds of COMPULSORY HEIRs

PRIMARY
 Legitimate children and their
legitimate descendants
SECONDARY
 Legitimate parents and
legitimate ascendants
CONCURING
 Illegitimate children and
descendants and surviving
spouse

Kinds of HEIRs

VOLUNTARY HEIRS

 those instituted by the testator

in his will to succeed to the inheritance
of the portion thereof of which the
testator can freely dispose.

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Kinds of HEIRs

LEGAL or INTESTATE
HEIRS

 those who succeed to the estate

of the decedent by operation of law.

ORDER of INTESTATE
SUCCESSION
1. Legitimate children or decendants
2. Legitimate parents or ascendants
3. Illegitimate children or descendants
4. Surviving spouse
5. Brothers and sisters, nephews and nieces
6. Other collateral relatives within the 5th
degree
7. State

KINDS of WILL

NOTARIAL/ORDINARY/ATTESTED WILL

 Is one executed in accordance with

the formalities prescribed by Art
804 to 808 of the New Civil Code.

HOLOGRAPHIC WILL
 Is a written will entirely written,
dated and signed by the hand of the
testator himself/herself..

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Institution of Heirs

 It is an act by virtue of which a

testator designates in his will the person
or persons who are to succeed him in
his property and transmissible rights
and obligations.

Requisites for Disinheritance

 Disinheritance is a testamentary
disposition by which a compulsory heir is
deprived of, or excluded from the
inheritance to which he has a right.

 Disinheritance is not applicable to

voluntary heirs.

Requisites for Disinheritance

 Effected only through a valid will

 For a cause expressly stated by law
 Cause must be stated in the will itself
 Cause must be certain and true
 It is unconditional
 It is total disinheritance (not partial)
 The heir disinherited must be
designated in such a manner that
there can be no doubt as to his
identity

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CAUSES FOR
DISINHERITANCE
 When the heir has been found guilt of an
attempt against the life of the testator, his
descendants or ascendants and spouse.
 When the heir has accused the testator of a
crime which the law prescribed imprisonment
of 6 years or more and the accusation has
been found groundless.
 When the heir by fraud, violence, intimidation
causes the testator to make a will of change
one already made.
 Refusal without justifiable cause to support
the testator

SUCCESSION and TRANSFER TAXES

MODES OF ACQUIRING
OWNERSHIP UNDER
PHILIPPINE LAWS

Under the new Civil Code (NCC), ownership

may be acquired through the following:
 Occupation
 Intellectual creation
 Law
 Donation
 Tradition
 Contract
 Prescription
 Succession

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TRANSFER TAX

Are taxes imposed upon the gratuitous

transfer or disposition of private properties
or rights.
What do you
transfers that neither call transfer of
imposes burden nor
requires consideration
properties or
rights with
?
from transferee or consideration
recipient - FREE
ONEROUS TRANSFERS

TRANSFER TAX

Gratuitous transfer or donation may take effect

as follows:

Donation Subject to
At time of death estate tax
of the donor mortis causa

Subject to
During the Donation donor’s
lifetime of both inter vivos tax
donor and donee

NATURE OF TRANSFER TAX

 The subject matter of a transfer tax is

the privilege of the transferor, to transfer
property or rights.

 Transfer tax is classified as excise tax or

privilege tax imposed on the act of passing
the ownership of property and not on the
value of the property or right.

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SUCCESSION

Is a mode of acquisition by virtue of which,

the property, rights and obligations to the
extent of the value of the inheritance, of a
person are transmitted through his death to
another or others either by his will or by
operation of law. (Art. 774 NCC)

Includes all the property,

rights and obligations of a
person which are not
extinguished by his death

KINDS OF SUCCESSION

Testamentary or Succession that results from the

designation of an heir, made in a
Testate Succession
“will” executed in the form
prescribed by law

Succession which is effected by

Legal or Intestate operation of law since the decedent
Succession did not execute a “will” or the last
will and testament executed by
him is void.

Mixed Succession which is effected partly

Succession by “will” and partly by operation of
law.

PEDRO suffered an unexpected heart attack causing his

death on November 1, 2018. His estate composed of the
C following:
A Cash in Bank P 10,000,000
S Commercial building 15,000,000
E Cars 15,000,000
House & Lot in Baguio 30,000,000
Juan is the only heir of the decedent. Pedro’s remains
A were cremated on November 8, 2018. The executor of
N Pedro’s estate filed the estate tax return and paid the
A corresponding estate tax on January 15, 2019. The
L properties left by the decedent were finally distributed to
Y Juan on February 14, 2019.
S
I 1. When will the transfer of ownership from the decedent
S to the heir take effect ?
2. When should the estate tax accrue ?
1

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PEDRO suffered an unexpected heart attack causing his

death on November 1, 2018. His estate composed of the
C following:
A Cash in Bank P 10,000,000
S Commercial building 15,000,000
E Cars 15,000,000
House & Lot in Baguio 30,000,000
Juan is the only heir of the decedent. Pedro’s remains
A were cremated on November 8, 2018. The executor of
N Pedro’s estate filed the estate tax return and paid the
A corresponding estate tax on January 15, 2019. The
L properties left by the decedent were finally distributed to
Y Juan on February 14, 2019.
S
I Give an illustration of each succession.
S

CAUSES OF LEGAL
SUCCESSION OR
INTESTACY

 If a person dies without a will, or with a void will,

or one which has subsequently lost its validity.
 When the “Will” does not institute an heir.
 Partial institution of heir. In such case, intestacy
takes place as to the undisposed portion.
 When the heir instituted is incapable of
succeeding.
 Other causes.

OTHER CAUSES

 Non-fulfillment of the suspensive condition

attached to the institution of heeir.
 Preterition – ommission in the testator’s will
of one, some or all of the compulsary heirs in
the direct line effecting the annulment of the
institution of heir.
 Fulfillment of resolutory condition
 Expiration of term or period of institution
 Non-compliance with the will
 Repudiation of the instituted heir

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ELEMENTS OF SUCCESSION

DECEDENT

 A general term applied to a person whose

property is transmitted through succession,
whether or not he left a will. He is called a
testator, if he left a will.

EXECUTOR

 A person designated in the last will and

testament to carry out the provisions of the
decedent’s will.

ELEMENTS OF SUCCESSION

ADMINISTRATOR

 a person appointed by the court and

performs the same duty, in lieu of an
executor.

INHERITANCE

 include all the property, rights and obligations

of a person which are not extinguished by death
and all which have accrued thereto since the
opening of succession. Rights which are purely
personal are extinguished by death.

ELEMENTS OF SUCCESSION

SUCCESSORS

 an heir or successor is a person who is

called to the succession either the provision
of a will or by operation of law.

DEVISEE & LEGATEE

 are persons to whom gifts of real and

personal property are respectively given by
virtue of a will.

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ELEMENTS OF SUCCESSION

COMPULSORY HEIR

 those who succeed by force of law to some

portion of the inheritance, in an amount
predetermined by law, known as legitime.

Part of a testator’s property

which he cannot dispose
because the law reserves
them for certain heirs who
are called compulsory heirs.

ELEMENTS OF SUCCESSION

VOLUNTARY HEIRS

 those instituted by the testator in his will

to succeed to the inheritance of the portion
thereof of which the testator can freely
dispose.

LEGAL OR INTESTATE HEIRS

 those who succeed to the estate of the

decedent by operation of law (decedent died
without a valid will or his estate was not
entirely disposed of by will)

KINDS OF COMPULSORY HEIR

PRIMARY
Those who have precedence over and exclude
other compulsory heirs (legitimate children and
descendants)

SECONDARY
Those who succeed only in the absence of the
primary compulsory heirs (legitimate parents
and ascendants)
CONCURRING
Those who succeed together with the primary
or secondary compulsory heirs (illegitimate
children and descendants and surviving spouse.

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ORDER OF INTESTATE
SUCCESSION

 Legitimate children or descendants

 Legitimate parents or ascendants
 Illegitimate children or descendants
 Surviving spouse
 Brothers and sisters, nephews and nieces
 Other collateral relatives within the 5th
degree
 State

DETERMINING BLOOD
RELATIONSHIP

AB

CE DF

H I

JL
GK

M N

DISINHERITANCE

 Is a testamentary disposition by which a

compulsory heir is deprived of, or excluded
from the inheritance to which he has a right.

 Disinheritance is not applicable to

voluntary heirs.

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REQUISITES FOR
DISINHERITANCE

 Effected only through a valid will

 For a cause expressly stated by law
 Cause must be stated in the will itself
 Cause must be certain and true
 Unconditional
 Total (there is no partial disinheritance)
 The heir disinherited must be designated in
such a manner that there can be no
doubt as to his identity.

PECULIAR CAUSES FOR

DISINHERITANCE

1. Children/Descendants

a). When the child or descendant has been

convicted of adultery or concubinage with
the spouse of the testator
b). Maltreatment of the testator by word or
deed by the child/descendant
c). When the child or descendant leads a
dishonorable or disgraceful life
d). When the child or descendant is convicted
of a crime which carries with it penalty of
civil interdiction.

PECULIAR CAUSES FOR

DISINHERITANCE
2. Parents/Ascendants

a). When the parents have abandoned their

children or induced their daughters to live a
corrupt or immoral life, or attempted
against their virtue
b). When the parent or ascendant has been
convicted of adultery or concubinage with
the spouse of the testator
c). Loss of parental authority for causes
specified in the Civil Code
d). Attempt by one of the parents against the
life of the other, unless there has been
reconciliation between them

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RIGHT OF REPRESENTATION

 Is a right created by fiction of law where

the representative is raised to the place and
degree of the person represented, and
acquires the rights which the latter would have
if he were living or could have inherited. This
may arise because of:

 Death
 Incapacity
 Disinheritance

RIGHT OF REPRESENTATION

Representation is not available to the

following:

 As to compulsory heirs – in case of

repudiation, the one who repudiates his
inheritance cannot be represented. Their own
heirs inherit in their own right.
 As to voluntary heirs
 Voluntary heirs, legatees and devisees who
a) predecease the testator
b) renounce the inheritance cannot be
represented by their own heirs, with
respect to their supposed inheritance

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