Estate Tax Problems 2

1. Mr A, Filipino, married to B with whom he has two children died on February 14, 2018.
The
inventory of the properties of the spouses show the following:
a. House and lot in Manila owned by A before the marriage P3,000,000
b. Agricultural land owned by B before the marriage 1,200,000
c. Real property acquired during marriage 2,000,000
d. Family home acquired during marriage 2,200,000
e. Personal property acquired during marriage 1,400,000
f. Commercial properties in Makati inherited by A during marriage
from his father who died on February 14,1987 2,000,000
g. Apartment house inherited by B during marriage from his mother
who died February 14, 2003 4,000,000
h. Proceeds of life insurance where the estate A was designated as
irrevocable beneficiary 1,000,000
i. Proceeds of life insurance where the B was designated as
irrevocable beneficiary (IT MUST BE REVOCABLE) 2,000,000
Deduction claimed by the estate

1. Devise given in the favour of Philippine government in decedent’s will 300,000
2. Claims against the estate 100,000
3. Unpaid mortgage on agricultural land (letter b above) 400,000
4. Funeral expenses 180,000
5. Judicial expenses 600,000
Determine the estate tax due and payable.
2. A, Filipino, married, died on January 2018, leaving the following:

a. Family Home P 1,800,000
b. Cash and other properties 2,500,000
c. Benefits under RA 4917 1,000,000
d. Ordinary deductions for expenses, losses and taxes (ELIT) 700,000
Determine the net taxable estate of A.
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3. Mr. O, Filipino, married, died on August 1, 2018, these years after this marriage to Mrs. O. He
left the following:
a. Property inherited by Mr. O from his father who died
February 14, 2013 P3,000,000
b. Property inherited by Mrs. O from her father who died
February 14, 2014 1,200,000
c. Property inherited by Mr. O from his mother who died

February 14, 2015 1,800,000
d. Property inherited by Mrs. O from her mother who died
February 14, 2016 1,400,000
e. Property acquired thru the labor of Mr. O 2,000,000
Mrs. O 1,500,000
Mr. & Mrs. O (family home) 2,400,000
f. Other personal property 1,600,000
Deduction claimed by the estate:
a. Funeral expense 220,000
b. Unpaid mortgages on property in letters:
a. 500,000 b. 300,000 c. 180,000 d. 200,000
c. Claims against the estate 170,000
d. Accrued taxes (before the death of the Mr. O)
80 000
Determine the net taxable estate assuming
1. Conjugal partnership of gains 2. Absolute community of property
Items 4 through 7 are based in the following data:
Angelo married to Angel 3 years ago, died leaving the following properties
Condo Unit at West Tower Condominium. Makati City
acquired by him and his wife P2,500,000
Apartment unit in Vancouver, Canada inherited from his parents
who died 2 ½ years ago 3,500,000
Volvo car registered in Canada, donated to him by his mother four (4)
years ago 2,000,000
Toyota Fortuner in the Philippines, purchased by Angelo out of his
exclusive property 1,200,000
Jewelry in the Philippines, inherited last year by his wife, Angel from
her mother 550,000
Cash in bank - Banco de Oro: 50% was earned by Angelo before
marriage, 50% was earned by the spouses 840,000
Interest on bank deposit (net of witholding tax) 8,000
Interest in a domestic partnership, acquired by Angel before marriage 300,000
Investment with Acer Corp., foreign corporation, 85.5% of business is
in the Philippines 1,000,000
Dividends with Acer Corporation, date of record was made after
death of Angelo 45,000
Investment with Filipinas Company, domestic 25,000 shares, traded in
the stock exchange (highest: P23.00; lowest P22.83)
Dividends from Filipinas Company, date of record, one month before
Angelo's death (gross of dividends tax) 7,500
Receivable on a foreign insurance company for an accident
insurance suffered six months before death 50,000
Proceeds of a life insurance taken by the employer corporation of
Angelo on his life 200,000
Receivable on life insurance taken by Angelo on his own life
appointing his estate as the irrevocable beneficiary; common
funds of the spouses were used in paying the insurance premium 150,000
4. The gross estate if Angelo was a non-resident citizen under the absolute community of the
property regime –
12 127 625
5. The gross estate if Angelo was a resident alien under the conjugal partnership of gains -
11 827 625
6. The gross estate if Angelo was a non-resident alien without reciprocity under the absolute
community of property regime -
6 577 625
7. The gross estate if Angelo was a non-resident alien, with reciprocity, under the conjugal
partnership of gains -\
3 700 000
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1. Mr A, Filipino, married to B with whom he has two children died on February 14, 2018.

Deduction claimed by the estate

2. A, Filipino, married, died on January 2018, leaving the following:

c. Property inherited by Mr. O from his mother who died

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