GACHE, ROSETTE L.

III-BSA-1 BUSINESS TAXATION

MODULE 2

Activities/Assessments

1. Enumerate and discuss each of the type of succession.

The three types of succession include testate or testament, legal or intestate and mixed
succession.

 In the Testate or Testamentary succession, the decedent created a will to his

heirs that is prescribed by the law.
 Whereas, the Legal or Intestate succession happens due to several causes such
as if there is no created will originally, but if there is, it is void or subsequently
lost its validity, does not institute an heir, or heir instituted in the will is
incapable of succeeding, etc. By these implications, the operation of law prevails
on the transfer, the default provision of the Civil Code.
 The mixed succession, however, is partly effected by the decedent’s will and
partly by operations of law. It happens when other properties of the decedent
are not written in the will in the reason that such properties are acquired after
the date the will is created. Therefore, the portion not included in the will shall
be distributed under the operations of the law.

2. Briefly discuss the types of compulsory heirs and their order of succession.

The compulsory heirs are those who succeed by force of law some portion of
inheritance. The law predetermines the amount of their inheritance through the legitime.
Compulsory heirs can be primary, secondary and concurring. Primary heirs are legitimate
children and their direct descendants that have precedence over other heirs. Regardless if there
is an existing last will and testament or not, primary heirs cannot be deprived of such
inheritance by law except when there is a properly effected disinheritance. On the other hand,
secondary heirs only succeed on the absence of primary heirs. These secondary heirs are the
legitimate or illegitimate parents and ascendants of the decedent. Lastly, concurring heirs are
those who succeed together with the primary/secondary compulsory heirs. Concurring heirs are
the surviving spouse and illegitimate descendants of decedent.

3. What is a legitime? Explain.

A legitime is a part of the gross estate reserved by law to compulsory heirs.

Disinheritance of the compulsory heirs is the only way that such heirs will be deprived of their
share in the property of the decedent. The law established legitime for these heirs to know their
predetermined portion on the inheritance left by the decedent.

Specifically, the legitime shows that half of the left gross estate is for the legitimate
children regardless of how many are they, one quarter to surviving spouse, half of the share of
legitimate children for the illegitimate one and so on and so forth (still based on the situation).
4. Discuss Succession and Inheritance.

Succession is a mode of acquisition that arises when properties, rights and obligations to
the extent of the value of inheritance are transferred to another (heir) by death of the
transferor or “decedent”. It can be based on the decedent’s will (testamentary), the operations
of the law (intestate) or both (mixed). Succession is one of the modes of acquiring properties in
taxing purposes set by the law. The properties, rights and obligations are then called the
inheritance (estate) that are not extinguished by death of the decedent. This inheritance
(estate) immediately accrues to the heir/s upon death of decedent. In detail, personal rights are
not transmissible as it is extinguished upon death of any person.

5. Enumerate and discuss the causes of legal succession.

Causes of legal (intestate) succession mainly focuses on the lack of last will and
testament of a person who died with properties, right or obligations. The State provides laws to
effectuate transfers specifically stated in the legitime. Legal succession arises also when the will
created by the decedent is void which means the said will did not meet the requirements set by
the law. A will that does not institute an heir or if there is one, that heir is incapable of
succeeding, automatically prompts the operations of law in succession. There are wills who have
suspensive and resolutory condition that if not fulfilled and fulfilled respectively, the legal
succession arises. In some cases, the created will omitted one, some or all of the compulsory
heirs in the direct line also known as, “preterition”. Therefore, this situation needs the law to
end the deprivation of the omitted rightful heirs of the properties by the application of the
legitime in legal succession; unless the said heirs are properly disinherited.

Moreover, the decedent’s will if reached the expiration and the non-compliance or
impossibility of compliance is evident, the said will is automatically invalidated rendering the
need for legal succession. There are also times that the heir repudiates his inheritance for some
reason that shall be made in a public or authentic instrument, or by petition presented to the
court having jurisdiction. In this case, the repudiated properties will be distributed by the
legitime through legal or intestate succession.
TRUE OR FALSE

1. True
2. True
3. False
4. False
5. False
6. True
7. False
8. True
9. True
10. False
11. False
12. True
13. True
14. False
15. False
16. True
17. False
18. True
19. False
20. True