~

ciy1:er 4
-

Property Relations

Pre-nuptia~ agreements are no longer new nowadays. This

practice, based on history, dates back to the ·ancient Egyptians and have
existed for many centuries in Anglo-American tradition. In previous times,
including the Philippines, the parents of the · bride and groort' negotiated
the agreement on the new couple's behalf. The term is also used
interchangeably with (premarital agreement_!>r ante-nuptial agreement\ .
. . .. . - - . ' -· . . - ./

Preparing a prenuptial agreement in

The pre-nuptial
the Philippines is relatively . easy since agreement, which must be
Philippin~ laws do not require the agreement in. writing, should · be
between the future spouses to be registered exe·cuted prior ~o· the
in a government office to be binding betwe_en celebration of the
the parties. However, as . security for the marriage, and signed by
properties which may b_e affected by . the the future spouses. · Any
agreement, and in order to bind third parties, modification or
Philippine law requires the rec'ording of th~ amendment theretC1.. may
prenuptiaJ agreement , iri the , Local · qivil only b'e allowed before the
Registry where the marriage is celebrated, celebration of the
and at the Register of Deeds of the province marriage.
where the affected property is located.

124
PROPERTY RELATIONS

Th system of property Art.1 Family Code

relation,. hip is applicable only to
married persons , It is used ,to
distinguish a coniugal or community
property from an exclusive property.
Under Art. 74 of the New Family Code
(as amended), the property
relationship between husband
wife shall be governed in
following order:
1) By marriage settlements executed
before the marriage.
2) By the provisions of law
3) By tt1e local custom.
Marriage is a special
contract of permanent union
between a man and a
woman in accordance with
law. It is not subject to
stipulation, except that
and marriage settlements may fix
the the property relations during
the marriage within the limits
provided by law.

, -Types o~ Property Relations (Art. 75 NFC)

The f~ture spouses may, in the marriage settlements, agree upon the
following systems of property relationship:
' · (1) Abs~lute community of Property (~CoP) / on . 1 f · · t
, (2) ConJugal partnership of gains (CPG) . ' k (,.v b l
...., (3) Compleie separation of property, or '
(4) Any other regime.

In the event the couple had !]_o_t_ad__

oflted or agreed upon a 5 t b f
their marriage, the rule is ys em e ore

Date of Marriage Property relationship

Be!or.e August 3, 1988 -+ CPG

On or After August 3, 1988 -+ ACoP

In order that any modification in the marriage settlem t ·

valid, it must be made before the celebration of the mai~ s ma~~e
marriage settlements and any modification thereof shall be i~e. T e
signed by the parties and executed before the celebration of the m;:;.r! mg,
They shall.' not_:prejudice third persons unless they are registered i~a~e.
local civil registry wherlrihe marriage contract is recorded as well as in the
proper registries of properties. e

125
 .'

Ptn ~ (l}IU .
If decedent was married w·th . . .
state need to be .. surviving spouse, property in the
_1

gross e . classified into conjugal or exclusive property to

facilitate the computatJOn of the ½ share of th . . the
·u al pro ert e survJ.Vmg spouse on
net con/ 9 . P Y as well as the net taxable estate of a married
decedent_. ConJugal. propecty is owned by both spouses while Exclusive
property is owned ei th e~ by the husband or by the wife. The exclusive
property of t~e husba nd I~ known as "capitaf' while· that of that of the wife
is known as paraphernaf property. _r _ :. , _
·• ' - I '·1: . . ·, t I , ' '

Law Governing Property Relations

, · !~respective of th~ place of the celebration of the marriage and
their residence, the provIsIons of the New Family Code (E.O. No.209)
shall govern the property relations between husband and wife whose
rnar~i~ge was cele_b~ated ~>n or after its effectivity •(August 3, 1988). ~ The
provIs1ons of the c1v1I code shall govern the property relati 9ns of husba.Qd
and wi~e w_hose marriage was celebrated -before · August 3, 1988.
Stipulations in the settlements or contracts _in consideration of a future
• -marriage, including donations b~tween the prospective spouses made
., therein, shall be rendered ·.vgid · if the marriage does not take place.
However, stipulations that do not depend upon the celebration of the
marriages shall be valid.
. U-
,,ASSOLUTE COMMUNITY OF PROPERTY (ACoP) A
This is the most common regime in Philippine marital property
relations. If the ~Qouses,_ do not have a valid marriage settlement, this
system will govern the ·property relatioos ~Of the couple an~ is m£>re in
keeping with Philippine custom and family unity. As a<geoeral rule', the
provisions on co-ownership shall apply to the -absolute community of
property between the· spouses. In a nutshell, the spouses become co- .
owners of all property they bring into the marriage and those acquired by
each or both of them during marriage; save for the exc~ptions expressly
enumerated by law. The rules on co-o~~~rs~ip applies in all ~atter~ _not
provided in the· New Family Code · ----- · _

PROPERTY ACQUIRED BEFORE MARRIAGE (Community Property):

EXCEPTION: •
In general, prop~rty owned .by Property acquired before marriage by
the spouses -efore or~P-Qn -celebratI<?n either spouse who has legitimate
descendants by the former marriage
of marriage a nd brought 'into marriage ·a·na- fhe ffufts as well as income, if
become part of the corrim~n!t.Y property. any, of such property ~hall ·be
These includes amorig oth·ers, property classified a ·exclusive property:-,
~ ---- '.. ·• - - ·- l

inherited or received as d9natid~ J?ef(!re,

. t~e marriage.

126
 I ~, f,(lf(I l~·l:tt,,J,, .,
1

RING MARRIAGE
PROPERTY AC?Ul'RED DUive Property):
(Either Community or Exclus
. . be presu med to b long to
d . g ma rnage w1 11 rt P
Property acquired urm t be exclusive prope y rope 1
community unless it can be proven of.#cfe from a co mmon fund or fr
· .
acquired dunng mamag• e by onerous
. ILJ
rty
income of either of them is community prope .

Community Property under ACo_ P d mmunity property when acquir o

As a rule , the following are cons1de~e co
during marriage unless proven otherwise.

1. Family Home b d and wife is community

The family home constituted by hus an d not become
Property However an exclusive property oes
· property 'even 1f
community · used as f ami·1Y home ·
• 1t• 1s

2. Proceeds of life insurance (rf included in the gross estate~

• Exclusive property: if premium was paid from ex~lus,ve funds.
■ Conjugal property: if premium wa_ s paid fr?m conJugal funds or
from income of either spouse dunng marnage.

3. Claim against insolvent person is either exclusrve or conjugal

property.

Exclusive Property under ACoP

Art. 92 of the New Civil Code - The following shall be e xcluded from the
community property:
1. Art. 92( 1) of the New Family Code - Property acquired during
marriage by gratuitous title by either spouse and the fru its as w eU as
the income thereof, if any, unless the donor, testator, or grantor
expressly provided that it be part of community.

It shall be noted that under absolute community of property,

the classification of "fruits" or income shall depend on the
classification of the principal or source of the fruits. Therefore if the
income or fruit came from exclusive property, the fruits or i~come
shall likewise be classified as exclusive property. However Fruits
from "la_b or° of either spouse shall always form part of comm~nity or
conjugal property.

2. Art. 92(2) of the New Family Code - ~operty for pe.rsonaf and
exclusive use of either spouse. However, JeWelry shall form part.
of the community property.

127
 Ayv-ty 1?/,duJtt.1
Personal effects or . J
apparel, shoes and thbel~ngings such as clothing, wearing
either spouse ~re ~ hke for personal and exclusive use of
s
what was used to ~on i~ered exclusive property regardless of
acquired durin cqui~e th e property. In general, property
money or b e9 marnag~ by purchase with exclusive
considered y lxc~ange with exclusive property, shall be
exc us1ve property.

3 Property acquired before th · •

· .. e marriage by either spouse who has
legitim~te desc~ndants by a former marriage, and the fruits as well
as the income, 1f any of such property.

It

CONJUGAL ~ARTNERSHIP OF GAINS (CPG) ·, 1. ,:

Oftentimes referred . to as the CPG, it is one of the property

relations between the spouses, under which the husband and wife place
in a common fund the · proceeds, products, fruits and income from their
separate properties and those acquired by either or both spouses through
their efforts or by chance, and, upon dissolution of the marriage or of the
partnership, the net gains or benefits obtained by either or both spouses
shall be divided equally between them, unless otherwise agreed in the
marriage settlements.

CPG APPLIES:
1. When the future spouses agree to it in the marriage settlement; or
2. To conjugal partnerships of gains already established between
spouses before the effectivity of the New Family Code (August 3,
1988), without prejudice to vested rig,hts.

Exclusive property under CPG:

1. That which is brought to the marriage as ~is or her ow~. .
2. That which each acquires during the mamag~ by gratuitous title. .
3. That which is acquired by right of redemption or by exchange with
Property belonging to only one of the spouses. .
. . . h d
4. That which 1s pure a.se w i'th the exclusive money of the wife or of the
hus,band.
>
Conjugal property CP~: ,, title during the marriage at the
1. That which is acqwred by onderou:ether the acquisition be for the
. expense of the common fun • w
partnership or for only one of th e spouses. .
. dustry or work or profession of
2. That which is obtained by labor, in '
either or both of the spouses.
 3. The fruits received or due during the marriage coming from the
common property or from the exclusive property of each spouse.
Under conjugal partnership of gains, "fruits". rega~dless. of the
source (either from exclusive or conjugal property including fruits from
labor) are classified as conjugal property. . .
4. The share in the hidden treasure discovered during marriage which
the law awards to the spouses or to either of them as finder or
·proprietor.
5. Property acquired by occupation such as hunting or fishing by
spouses or by either of them.

6. Improvements on the separate property of the spouses at the expense

of the partnership or through the industry of the spouses or either of
them.
• Family home, when constituted by husband and wife, is a conjugal
property.
. An exclusive property, when used as family home ,
remains an exclusive property.
• Procee?s of life insurance policy when included in the gross
estate,_ 1s considered exclusive property if premium was paid out of
exc~us1ve funds. Otherwise, conjugal property.
• Claims . against i~solvent person can be conjugal or exclusive
prope~y depending on whether the claim is for conjugal or
exclusive.

· : MILATIES and DIFFERENCES (ACoP and CPG)

SIMILARITIES
PROPERTY Conjugal Absolute
1· Pm:perty ·n~ri~e~ or received as donation Exclusive Exclusive**
during marriage
2. ':rop~rty ~~~~ir~~ ~~ri~g marriage (other than Conjugal Community
inheritance or donation)
3. Propertr acqui!ed from labor, industry work Conjugal
profession of the spouses ' or Community
4. Fru!ts,..erjncome
· , due or derived dunng ; the
m
. arna_ge oming from comm6 Conjugal Community
5. Personal ro ert for excl . n ?roperty
DIFFERENCES us,ve use Exclusive Exclusive*~
1. Property Pefore the marri
marriage ·._ -- ag~ or brought to the
Community-
2. Fruits or income d _E~~lusive
· ue or receiv d r1 · -~-:. -.,...
** marna e comin from . e MUring ·the .
, Unless the donor te t exclusive ro ert, . ConJugal Exclusive
. , s ator or ·
Prope rties fAs provided und , grantor expressly .
er Art. 92( 1) of the New Fa~~v1ded that it shall be part of communi~
. I y Code].

129
 P,/ "'! f 1y_l/t1,l111.;
*** Jewelry shall be considered community property even if they are for the exclusive use of either
spouse [under ACoP only as provided under Art. 92(2) of the New Family Code] .

A decedent died on February 29, 2020. The following assets were provided for the purpose
of determining the decedent's gross estate. If the item is an inclusion in the gross estate of
the decedent, classify the same as exclusive by writing "E'i or community/conjugal property
by writing "C" under the regime of conjugal partnership of gains (CPG) and absolute
community property (ACP). If the item is an exclusion from the gross estate, mark the item
as "X''

ITEM PROPERTY
CPG ACP
1. Cash owned by the decedent before the marriage
2. Commercial building owned before marriage \.
3. Income from item no.2 ~

4. Commercial building inherite~_during marriage r ;

5. Income from item no.4 .., C,

6. Personal property receive~, by the surviving spouse as .
gift before the marriage ··.
7. Income from item no.6 " ' .
8. Property acquired by the decedent with cash owned . .
. t:: . •'I
before the marriage ~: . L r
, .
9. Personal belongings used exclusively by the d~cedent
"
10. Property unidentified when and by whom acquired c
.. ('

11. Income from item no.10 ...

12. nsation income of the decedent

l
Cash from compe . by the surviving
· d b fore the marriage
Lot acquire .~
13. se had a previous marriage
e (surviving spou • )
spous . . t h1'ldren in that previous marriage
and legItIma e c - . no )
14. 13
Income from the lot (item Id. and was repurchased
15. Exclusive property was so ' ·,
using conjugal prop~~t using the salary of the
16. Residential house .u, the marriage. (House was
surviving spouse ~un~;t of the decedent)
built on the ~xclusIve
17. Lot described in it~m n~a~~age
18. Livestock brought int~ hat was brought into the
19. Livestock in exces~i~s~ution of the marriag~
marriage after_the barter using the exclusive
20. Property acquired by
Rroperty of the decedent

130
AMIWAt:
I 'N
11. C 16.C
1. 6. X
12. C 17.E
2. 7. X
8. E 13.X 18.E
3. 19.C
4. 9. 14. X
10,C 15.C 20.E
5.

1. C 6. C. 11. C 16. C
2. C 7. C 12. C 17. E
,. 13. X 18. C \
3. 8. C
19. C I
4. 9. E 14. X
5. E 10,C . 15. C 20.E
I
CONJUGAL DEDUCTIONS, whether under absolute community or
property or conjugal partnership of gains:

1. The support of the spouses, their common children, and legitimate

children of either spouse.

2. All debts ·and obligations contracted during marriage by the

designated administrator - . spouse for the benefit of the conjugal
partnership, or by both spouse, or by one of them with the consent of
the other.

3. Debts and obligations contracted by either spouse without the consent

of the other to the extent that the family may have benefited .

4. All taxes, liens, charges, and expenses including major and minor
repairs upon conjugal property.

5. All taxes and expenses· for mere pre~ervation, made during the
marriage, upon the separate property of either spouse.

a. Expenses to enable either spouse to commence or complete a

professional, vocational, or other activity for self improvement.

7. Debts before marriage of either spouse in so far as they have

redounded to the benefit of the family .

131 '
8. Th~ value of what is donated or promised by both spouses in favor of
their co~mon legitimate children for the exclusive purpose of
commencing or completing a professional or vocational course or
activity for self improvement.

9. Expenses of litigation between spouses , unless the suit is found to be

groundless.

■
Oblig~tions contracted during marriage are presumed to have
be~ef1t~d the family and therefore conjugal deductions. While
obhgat,ons contracted by either spouse before marriage are
exclusive deductions unless shown that the family gained benefits
from the said obligations.

■ . Share of the surviving spouse (½ of net conjugal property), family

home, medical expenses, and standard deduction are deductions
to be made from the net estate (total of net conjugal estate and
net exclusive estate) to arrive at the net taxable estate.

• Medical expenses are neither conjugal nor exclusive deductions.

Any unpaid medical expenses cannot be deducted as claim
against the estate. To be deductible, these expenses must be
incurred within one year prior to death, substantially supported
with receipts, and the amount should hot exceed P 500,000.

• Other deductions are either conjugal o"r exclusive deductions

depending on whether chargeable against conjugal property or
exclusive property, or depending on whether the property to which
the deduction is related is conJugal or exclusive property.

■ Wagering loss during ·marriage shall be qorne by the loser.

Winnings, however, shall form part of conjugal property.

■ Fines and pecuniary damages or indemnities imposed upon either

spouse shall be charges against exclusive property._

132
 TAT : xx xx
• R al r immovable property xx xx
• Tang1b\ p r onal property xx xx
11 lntangibl . prop rty* xx xx
• · rtain transfBrs 0
xx xx
Total xx xx xx

LES : ORDINARY DEDUCTIONS

• lo .. s/\ndebtedness/T axes (LIT) (xx) (xx)
• Transfer for public use (xx)
• Vanishing deduction (ACOP) (xx) (xx)
• Vanishing deduction(CPG)*** - ------ ----
xx (xx)
• Net Community/Exclusive xx xx
before special deductions

LESS: SPECIAL DEDUCTIONS

• Standard deduction (xx)
• Farni\y home (xx)
• Amount received under RA4917 xx
NET EST ATE before share of the surviving spouse xx

LESS: ½ SHARE OF THE SURVIVING SPOUSE on the net (xx)

conjJcomm. property before special deductions
NETT AXABLE ESTATE Pxx
x Estate Tax Rate 6%
'ESTATE TAX DUE Pxx
"intangible properties including rights accruing before death, claims against insolvent persons, RA 491 .
and receivable as proceeds from life insurance taken out by the decedent.

....Refer to certain transfers made before death but will take effect upon death (transfer rnortis causa) as
well as transfer under general power of appointment

*0 Always an ex.elusive deduction un~er CPG. . .

Transfer for public use shall be classified as ex.elusive deductions ~nless expressly provided otherwise.
Amount received under RA4917 shall be included In the decedents gross estate as part of community or
conjugal property .

r}

133
 fL[usiRAr,oN 2 ,eased on RR 12-201a): -

proper Presentation of FAMILY HOME and STANDARD DEDUCTION under TRAIN Law
! (Other amounts are assumed for illustration purposes only)
I

CASE A - Decedent is unmarried,· Familv Home (FH) is more than P10,000,000:

,! _
i
Real and personal properties P14 ,000 ,000
Family Home 30 000 0000
I I

Gross Estate P44 ,000,000

Deductions:
Ordinary Deductions
Unpaid Real estate tax (2,000,000)
Special Deductions
Family Home (10,000,000)
Standard Deduction (5,000,000) (17,000,000)
Net Taxable Estate P27,000,000

W Although the value of the Family Home is P30,000,000, the allowable

deduction from the gross estate as provided in the Tax Code (as amended) is
· P10,000,000 only.
i
; CASE B- Decedent is unmarried; Family Home {FH) is below P10,000,000:
Real and personal properties P14,000,000
Family Home 9,000,0000
Gross Estate P23,000,000
Deductions:
Ordinary Deductions
Unpaid Real estate tax (2,000,000)
Special Deductions
Famify Home (9,000,000)
Standard Deduction (5,000,000) (16,000,000)
Net Taxable E$tate P7,000,000

/ CASE C Decedent is married; FH is coniugal valued at more than P10,000,000:

Exclusive Conjugal
Conjugal ·properties:
Real and personal properties P1·4·,oo.o,ooo
Family Home 30,000,000
Exclusive properties P6,000,000
Gross Estate P6,000,000 P44,000,000 P50,000,000
LESS:
Ordinary Deductions:
(2,000,000)
Conjugal Ordinary Deductions
Exclusive Deductions (1,000,000)
(3,000,000)
PS,000,000 P42,000,000 P47,000,000
Net estate before Special Deductions
1_ __ _

------ ----- -- .
---- ---- --- ----

134
1-
l special Deductions p 10M r 0.0oo. rr1
Family Home (P30M/2): Max - _2 .00 ,UJui
1P32,0oo
1
Standard Deduction
2 ,00 0
Net estate (P 42 w2) - - _ 00, Of
Share of the Surviving Spouse . . - ~!1,00O,oot
Net Taxable Estate . . . ial deductions are neither classifi ed as excl usive
CJ If decedent is ma med. 5pee n0
common deductions.
; . . al valued below P10 000 000:
, CASED Decedent is mamecl' FH ,s con u Exclusive Con jugal To al
--:.

Conjugal properties: . P14 ,000 ,000

Real and personal properties 9,000,000
Family Home P6,000,000
Exclusive properties P6,000,000 P23,ooo,ooo P29,ooo,ooo
Gross Estate
LESS:
Ordinary Deductions: (2 ,000 ,000)
Conjugal Ordinary Deductions
(1 ,000,000)
Exclusive Deductions
(3,000.0001
Net estate before Special Deductions P5,000,000 P21 ,000,000 P26,000,000
Special Deductions
Family Home (P9M/2) (4,500,000)
Standard Deduction (5,000,0001
Net estate P16,500,000
Share of the Surviving Spouse (P21 M/2) (10,500,000)
Net Taxable Estate P6,000,000

CASE E - Decedent is married; FH is exclusive valued at more than P10,000, 000:

. Exclusive Conjugal Total
Conjugal properties:
Real and personal properties P14,000 ,000
Exclusive properties:
Family Home P30,000,000
Other exclusive properties 6,000,000
Gross Estate P36,000,000 PS0,000,000
P14,000,000
LESS:
Ordinary Deductions:
Conjugal Ordinary Deductions
Exclusive Deductions (2,000,000)
(1,000,000)
Net estate before Special Deductions - ~:-;:-::~
3
- - - - -- - -~(3~,~ooMQ.QL
Special Deductions P 5,000,000 P12,000,000 P47,000,000
Family Home (Max P10M)
Standard Deduction (10,000,000)
NetEstate ~
Share of th~ Surviving Spouse (P42 M/ ) p32,ooo,OOO
Ne! Taxable Estate
2
~
- - - - - - - - - - --~P2~6,000,00Q

135
r

coMPLETE SEPARATION OF PR
OPERTY
The spouses shall be
roperty if the future spouses a go~erned by complete separation of
P . gree ,n the m .
property re Ia tions during the ma . arnage settlements that their
separation of property. To each rnage shall be governed by the regime of
or her profession, business or inipotse shall bel~ng all earnings from his
ciVil, due or received during th~s ry a~d all frwts, natural, industrial, or
property. marriage from his or her separate

Both spouses shall bear the famil . . .

·ncome or in case of insutt,·c· Y expenses in proportion to their
' ' ,ency or default th f t h
'
value of their separate prop rt· . . . ereo , o t e current market
e 1es. The l1ab1l1ty of the t· d't
for family expenses shall h . spouses o ere , ors
, owever, be sol1dary.

PROPERTY REGIME OF UNIONS WITHOUT MARRIAGE

CAPACITATED TO MARRY
.When a ~an an_d a woman who are capacitated to marry each_
other, live exclusively with each other as husband and wife without the
benefit of . mar:~iage or under a void marriage, the following rules shall
apply: ·
1. Wages and ·salaries shall be owned by them in equal shares.

2. Property acquired by both of -them through their work or industry

shall be governed by the rules on co-ownership.

3. Neither party can encumber or dispose' by act inter-vivos his or

share in the property acquired during cohabitation and owned in
common, without the consent of the other, until after the
termination of their cohabitation

In the absence of proof to the A party who .did not participate in the
contrary, · properties acquired acquisition by the other party of any ·
while they lived together shall be property shall be .deemed to . ~~ve
presumed to have been obtained contributed jointly m the acquis1t1on
· thereof if the former's efforts consisted _in
by their joint efforts, work or the care and maintenance of the family
industry, and shall be owned by and of the household.
them in equal shares.

136
,,
IN APACITATEO TO MARR~ by both of them through their actual joint
1. On\y th property acquire operty or industry shall be owned
contribution of money, pr . ·b t· . n 1

. . rt·
ornm n m propo ,on o t their respective contn u ions. (If silent ,
s ume equal shares).

h f an party who is married to another shall accrue to the

2. The s are O Y . h' the case ma b · •
abso\ute community or con1ugal partners ,p, as Y e, 1f
existing under the valid marriage.

ESTATE TAX RETURN PREPARATION

Mr. P,m Musay, Filipino and married, died in 2019, leaving his estate in favor of his surviving
spouse. The following information were made available:

Real µroperty ii;. Qu.ezon City, ac uired during marriage. Said property is supported by a barangay
certification that the spouses resided in this property at the time of Mr. Musay's death. The fair
market value of this property as per latest tax declaration i P15,000,000 while the ~anal valuation
as of the time death is P 20 000 000. Said-re.aLpJQ~rty was held as a mortgage in a loan applied by
the spouses. As of the time of death, the outstanding balance of the mortgage payable amounted to
P5.000.000.

Real property in Batangas, inherited by Mr. Musay during marriage, two and half years ago, from his
late father. The fair market value pe~ ~~ deg~ ti.on as of his death i PB 000,000 while th~ 1_01391
valua ·on is P.!_2 000,000. Said property was previously taxed at a value of P10,000,00 when Mr.
M sa innen1ed the property from his father.

Real prope~ in Cawe, d~~ed to Mrs. Musay, 10 years a o (.b.~ore marriage) by his parents-in-
la . The f 1r market val1,1e as per latest tax dee ra IOI\ as of the time of Mr. Musay's death is
P3 '000 '00 while the~ zonal valuation is P4.0 , iOO.

Q!)er ,~elusive properties of Mr._Musay P1 ,OOQ,QOO; ; O~er propectie~ of Mr. and Mrs. Musay-
P3,000 ,000. Funeral expenses incurred by the estate dunng the wake and burial of Mr. Musay
amounted to P1 ,900,000.

Req ired:
. Compute item 34 (Gross Estate) of BIR form no. 1801 ; Ans.• P40,ooo,ooo
2. Compute Sch dule V (Ordinary deductions) of BIR Form no. 0801 ; Answer = P10,250,000
3. Compute item 40 (Net Taxable Estate) of BIR from no. 1801 : Answer • P31750,000
4. Compute item 20 (Estate Tax Payable) of BIR from no. 1801 ; Answer • P225,000

137
 Solution:
·xc/11sivo ,,omJnon T2ta,J
RPOC
P20,000,000
RP Batanga
, ,
RP avite
" 12. ooo.noo
r· 4,000,000
ther excl 1,000,000
Other common
_3.(!_9~,000
GROSS ESTA TE mDJ P22,000,000 P27,000.000 P40,000,000

ORDINARY DEDUCTIONS.
r
M011gage Payable ~ (5,000,000) (5,000,000)
Vanishing deduction , • 5,250,000 .._ (5,250,0002
P7,750,000 P22,000,000 P29,750,000
NET ESTATE
Share of the SS (11 ,000,000)
Standard deduction {5,000,000)
Family Home (P20M/2) (1 0,000.0002
P3,750,000
NET TAXABLE ESTATE rml})
Estate tax rate 6%
Estate Tax Payable [mD P225,000

Value to take/initial basis P10,000,000

• Value in the GE of the decedent - P12M
• Value upon inheritance - P1 OM
Proportional deduction:
10/40 x PS,000,000 (1,250,000)
Final Basis PB,750,000
X 60%
Vanishing Deduction PS,250,000**

138
17~TaxR.IE

2 2 5
1'1..ess.:Taic
~FmiglE5'aeTiiX Pai
198Tai:Pilil i\ REiln~AE,d. l ti. is .wi Mll!lledRelnl

23 Mt Penalies •
DASudlilige
2.38!rwest

0 0

PAMPAM MUSA.Y

~-~
~

»~oeiiiMtlM

139 ·
 B-IR Fam No.

1801
Jilf&IY :,OHi (ctel
PIQl2
Estate Tax Return

I I I I I I l J I I I J I

' ,. f ~ly Hoo'lt ~""" •. &d\o,j ~

t:2.000 ooo C. Totll
r--
24.000 0J)0 I
J'l Per5CNI ~
I l316 1010 101 01010 ~
- "'1V ~ Z&!14! 1,000,000 l I I I I I l 1 I I _j_
32 1 :uat,lt Tran~
,t,... ~.... . -
3 000 000 I 14 10 10 101010 10
' 33 ~ ll"tffcs.
..... J,! J I µl&
1 I I I I I I I l l µ_
13,000 ,000 l I I I I J I J I I µ_
27,000,000
s e.tn "1!f Ol'l:l11u!Y DetN:aaiir,
5,250,000 5,000 ,000
I. I l 410 I Ol O10 J OI Q I 0 M
I I l 110 I 2 l 5 IOJ OI OI 0
,_;i,i.... ,...,~.
17 ~ 51lleelill D{s!IJl'lll;jnr,
7,750.000
22,000,000 ~
I I J 21917 I 5 IOJ0101 0 t_QiQ
37A Sbr!llartl ~ (~-.lab>.lr,C111e,a~,mRy;,;roa-n,san1tJ'~--., r-----
J I 5 IOIOJOJ OIO IQ µ11.Q_
I I
I I J 1 IOI 01010 I O I Q IQ
~
w nu S p e j a ~ isw,rem m 1>:m~ I I I I I I l J I I µ_
31 MET ESTATE (tem l lJ ~n t11e,i m,, l I I 1 15 I OI OI OIO10 10 ~
I I , 1 141 7t 510_1 01010 ~
e NET TAXABLE ESTATE /llrm 301.=; lzm 51.'J (To Fu a ~ I® l I I 1 I1 I OI OI O10 10 fJ [.illL
I I l 13 I 7 I 5 IOI 01 01 Q_ ~
Schedule 1-Derajls of Property . REAL PRQPERTIES} fA"fiialac1!1t11ria1~r~
OCT/l'C ~ Ilk). /.,.. -~ ITT:l1 i>oJ_ . ~
l/17 _., ?"'· , , t1 ', 1 r_l.,.:'-,"' ,.,,. CJEZON _91.T' •CAVITE C l'TY
~, -L f!J243620{; 6 ...T...NGA-., CITY
Sch@dl.de t Details of Prooertv EAL PROPERTES (cootinua.iooJ
f;a&r Marte! Valtx! (FM\/) per TO Fllfo/ pe!'BIR [ZonalValUet fMV lflk:IE\ler Iii Ill/Iler
EICI:UJ8r.: l ~ '(';()MMIMM.
10 000 000 20 000 1)()1; 24.0CO DJO
~.aoo ooo t 2 00000~ •-·'·"'"'" ,,., .... , I
TOTAL (To - !Vliem 19/
Schedule 11.- Detllits of f amily Home
oc-::m::t1 nn·~ I Loclifi:ln Far M.net varue
CCTltl. (1Dj ND. I acu.ef'.IE I~
I I
I I -1 l _J
I
TOTAl(.lbl'r. i)l'll'em~ - " S OF STOCKl /Attal;/l ~ ~. r r ~ry
Schedule 2 Persot'l,1.f "ropemes f.aHARE
~an I 1!1Dc) G.erll!ICR
No at
l!lllRs
I - -"""'J !I00!t
total Fair 11,!nef ValUE I Eid Val1I:
tw!IP.of~ ~U:,;llodj No. I EXCUJSM< ~

I
I I

TOTAL (To hrl ,v _, 3fJ _ addflS/7llil ~ tr~

Sd!edule 2A Other Personal Frooerues {Aftit<JI
Fair Maft@t valle
Par1loolal5 ,E),(;LUS PIE I C- 0 ~
CAS.'1 1~ r P ~ & ' _J -~ •• •1t lH R I "";-
. MOTOR 'o/EHICLE ,_071er Pr~ rttes , ] urn ~~• J
1 000 CO'.) j ,uu-; , uvu
TOTAl.(TIIPwtlY.-3'}. tAJ';ICJi ~.stJee(ll lfr~ J
Schedule 3 - T ~ TRllSfl!fs
,r.can,;,, .-... lndl:alr _ ___
parblarr,_ -=-ty;fflt,ecJ EICllilll\iE ~IA."""-

TOTAL m, - N _,,, 3l?.l ' Em:libt illld otherS not cla5si'fi!!d ~ _ . (NfacJJ atnml fta/Slt18'M3om
F-alr Malli!I: Yalle
Schedule • -Business lntl!ffst such~ Net . R~~ . /ROO CQdf EXCLUSIVE c~
~Kilne Cl(~e65l'ilaml! I I
J I
I

ElCUJl!IVE OOH•~INAL

i....- T ---~
5,11111,8111

140
 PROBLEMS

~!~!lfy the following as exclusive or conjugal prope _

. f
rty unde_r absolute
rty (ACoP) and conjugal partnership of gains (CPG
commumty o prope rt is classified a ).
Write "C" in the space provided if the p~ope y . s common
property an d wn·te "E" ·,f the property is classified as exclusive .
.
,

ACoP
1. Properties owned by the spouses before the
marriage
2. Rental income on a property acquired before
marriage.
3. Property acquired during marriage
-----
4. Income on property described in #3
5. Property acquired by gift before marriage
6. Income on property described in #5
7. Property inh~rited during marriage t, ,(
;

8. Income on property described in #7 -< "

I., V
9. Property acquired during marriage from
common fund
10. Income on property described in #9
11. Car purchased during marriage using funds
derived from practice of profession l
12. Property owned before marriage for personal
and exclusive use of the decedef1t.
13. Jewelry items during marriage for personal and
exclusive use by the decedent
14. Real property acquired during marriage with
decedent's own income V G
15. Car inherited during marriage

P4.2.
From the records of the estate of a citizen_;.decedent who died in 2018:
Properties- Land inherited from mother (td_yring marriage) two ,; P24,000,000
(2) years before death; valued at P1.5M when inherited , ·
Other personal property owned before marriage _,, Cb 16,000,000
Other personal property acquired during_ marriage _ f 5,000,000
Deductions claimed:
Casualty losses 500,000
Unpaid taxes 400,000
Clarms again.st the estate 600,000
/; C I L-- : ~~
lS ~} ,l
'!. I
_ ( S"')U i _~ _
141
( IS' I \}\)
i t\
(_Sl~i' )
. il~ , ti,)
(, "
 I )I1 jf . "/)
<'
/} ./..
I \ .fj_ltl,U /)tl,S
f uneral exp n. e
Medical xpen . in urred and paid . . 300,000
death . . wil hin one year before 400,000
unpaid medica l xp . in urred within
Judicial expen es one year before death 300 ,000
120,000
DETERMINE THE FOLLO WING under A .
a) Net exclu sive property of the bsolu~e Community of Property:
b) Net commun ity property decedent
c) Share of the surviving spouse
d) Net Taxable estate

DETERMINE THE FOLLOWING under Con·u . .

e) Net exclusive property 0 f th J gal Partnership of Gains:
e decedent
f) Net community property
g) Share of the surviving spouse
h) Net Taxable estate

P4.3.

i'\.t
•
A on-resident
,- •

t
C
· alien,
I married,
. died on September 2018 . He Ieft th e fo 11 owing.
onJuga properties, Philippines, P5,000 ooo
Exclusive properties, Philippines, 2,000,000
• Conjugal properties, USA, 10,000,000
• Exclusive properties, USA, 5,000,000 "
·
1,, . r \, r' ~ 1 •
1
· •

The following deductions were claimed:

• Actual funeral expenses, P1 ,250,000
• Judicial expenses, 800,000 ~
• Claims against the estate, 1,725,000 ,.,. l'Ji' (
• Transfer for public use, 200,900
• Medical expenses, 875,000
Included in the Phitippines gross estate (conjugal) Were the following:
• Domestic shares, 500,000
■ Share in a partnership, 1,000,000
■ Other tangible personal properties, 3,500,000

The Philippine exclusive · properties were all tangible personal properties.

These included a car which was inherited 3 ½ years before the present
1

decedent's death and had a fair market value f P500,000.

'
Determine the following:
a) Net exclusive property of the decedent
b) Net community property
c) Net Taxable estate
d) Estate tax due

{ t' '\
(\\ \H\) 142
: 11 <. h v)
 November 2, 2018 . The follow
P4~4, -- ~ -·-:~ ~ - \ cli.?d intestate ~n n~
1
A esident ah~ ?'°
1 1
, .
- - - - vide o you. P20,0oo
data were pro USA (farni\y home) . 8 oa , OJ
~ ~n~~~~;;~t'~\tock, Phi~pines - 10',oo~·~
,,, / \nvestment i~ stock, U~SA (85% of the business of the 7,000:00D
/ \nvestment m _bo~d~~ the Phi\ippines)
USA Corporation is 3,ooo,00
r-ash in bank, Phi\\ppi~es ,, soo,oao
/V hT nes •
/ Cash on hand, P 1,pp, d btor who· resides m USA - 2,000.000
/ Accounts receivab\e frort:1 a e
(fu\\y unco\lectib\e)_ . . ... 8,000,000
·/ Vehicles in the Ph1hppmes 1,soo,000
Actua\ funera\ expenses
3,000,000
Judicia\ expenses . . 2017 , 1,200,000
/ Unpaid Philippine income tax for mcome m
Loss on December 31, 2018 due to theft . ,,.
800,000
;,Devise to Quezon City for chi\dren's playground ~ ~ 700,000
/ Receivab\e u!)der RA 4917 \ 500,000
Medica\ expenses 5,000,000
, DETERMINe THE FOLLOWING:
a) Net Taxab\e ~state
b) Estate tax due

P4.5.
Pedro Cruz died intestate on September 30, 2018. He was survived by his
wife and his two chi\dren. He \eft the following properties:
• Land (1,000 sq. m.) inherited from his father 15 months before
Pedro's death. Fair market va\ue per tax declaration at the
time of Pedro's death, 2.0,000-:000· Zonal value at the time of
Pedro's death, P30,000 per sq.m. · \1 1 18 ( l'r', : )-1 1 '

• H9us.e and lot (Family Home) acquired during the marriage,

f FMV, P50,000,000~ _ - •,
·•· 1:n.fi'er · tangible · persona properties (mode of acquisition
unknown), FMV, P22,00,000;

The following were considered as deductions from the gross estate .

• Act~~' funeral expenses, P480 ,OOO ·
• Jud1c1a\ expenses, P1 ,000,000
• Other:claims against the onjuga( properties P5,000,000
--+- • Unpaid taxes; P1 ,200,000 - - - - ~-.---·
" '{ • Clai~s against insolvent persons, P500 000
1
• Med,ca\ expenses, P1 ,200,000 '

143
 I n :., ·1 11

n,. , November 2 2018 .

r• " · -., . • d \ntestate on
A s\oent .\\ej,~~g\~_dle_
U \a w~re ·provi~8t~l~~~ily home) P20.ooo ,\J\Jf
fk

-HOUil a.nd \~ ' t .K Ph\\\ppines 8,oo .aa'

,,. . \rwestment ,n s oc . ~ i O,00() Qt)
r' \nvestme.nt in stock, USAS - A '85o' of the business of the 7 .ooo.ou1
· bonds U - , ' 0
✓- \nvestcment ;;t\on \s \~ the Phi\ippines)
USA orpo 3,ooo,O0 .
.cash \n bank, Phi\ippi~es ~· 5o .aa:
-. - PhT mes .
., cash on hand.. ',ppf debtor who resides m USA 2,000.001)
/ Accounts recewab\e ram a
· (fu\\y unco\\ectib\e~ . .
s,0OO,00
/' Veh\c\es \n the Ph,hppmes
1,500,00
A.ctua\ fuoera\ expenses
3,000,000
Jud\c\a\ expenses . .
,.,,. Unpa\d Ph\\\ppine income tax for income m 2017 ' 1.200,00
.,, loss on December 31, 2018 due to theft . · soo,ooo
/ Dev\se to Quezon City for chi\dren's playground · , 700,000
1

, Rece\\lab\e UY'der RA 4917 S 500,000

Med\ca\ expenses 5,000,000
, DETERMINE? THE FOLLOWING:
a) Net Taxab\e estate
b) Estate tax due

P4.5.
Pedro Cruz d\ed intestate on September 30, 2018 . He was survived by his
wife and his two chi\dren. He left the following properties:
• land (1,000 sq. m.) inherited from his father 15 months before
Pedro's death. Fair market value per tax declaration at the
time of Pedro's death, 20,000 ,000· ZQDaLv.all.Je at the time ol
Pedro's death, P30,000 per sq.m. '\ ~ \ u~rt :}~it'
• \j,9J.lS..ELand \ot (Fa_mi\y Home) acquired during the marriage,
_\fMY_~~5~.,0?0,000~. \ \ ..
·• · O1her tang,bTEr - personal properties (mode of acquis1t1on
unknown), FMV, P22,00,000~

The following were considered as deductions from the gross estate ·

• Actual funeral expenses P480 000 ·
· • Judicial expenses, P1 ,ooo,ooo'
, • Other:claims against the onjugatproperties P5 ,000 ,000
i.: • "': ..., _ • Unpaid taxes~ P1 ,200,000 - - - - - ____,,,,
V!>'' i,. "~ C\ .
'I • a,~s against insolvent persons, P500 000
, • Medtea\ expenses, P1 ,200,000 '

1-
143
 The estate of the decf1dent' • fat~inr r1 a d ttu-, 0 t: t,:, t;Ji rm U1(, I ir1 J ,. t
the fair market. value of I '2 ., ,000 ,OU . u, Hln(J thu rfHJrr n Jo , JJ(,(Jrf'I
mortgaged th e inherit d land for p 00() ()(JO for th, b m,flt ,Jf th
1 1

family . He paid P3, ,;; 00,000 b fore hr, cJir,d .

Determine the followin g:

a) Vanishing deducti n
b) Net Taxable estate
c) Estate tax due

TRUE OR FALSE
Write True if the statement is correct, otherwise, write False,
1. Under the regime of absolute community f pr perty, the husband and
the wife place in a common fund the proceeds, producis, fruits and
income from their separate property and th se acquired by either or
both spouses through their effort or by chance.
2. The gross estate of a married decedent under the ystem of conjugal
partnership of gains during the marriage is a mixtu re of his exclusive
property and conjugal property.
3. The inclusion of claims against insolvent person in the gross estate of
the decedent spouse as either exclusive or communal property will
depend on the nature of the claim-whether it is for an exclusive or for
a communal property. ·
4. Funeral expenses are no longer deductible from the gross estate of a
decedent.
5. The share of the surviving spouse in the estate shall be deducted
equal to ½ of the gross conjugal property.

6. Properties acquired by gratuitous title during the marriage are

generally classified as conjugal properties under conjugal partnership
of gains.
7. Property inherited before, the marriage becomes community property
upon marriage.
8. In the property relationship of absolute community, the spouses are
co-owners of community properties.
9. Judicial expenses for the settlement of the estate are charges against
community property. ·
10. Under the system of absolute community of property, the vanishing
deduction is a charge against community property.

144
 ~ I'\t ;;:11(,·()fl :1
( ->1<11 /('I ' I ( ('( '/ '1'( : \(, \ 1~7,·:·ltj
11 Und r th sy ' hllll of conjuool p1Mtnun t llp . (:y' 9F1 in : thu vani :5hinf~ I

· . ,It I I ox< lu lvo pr >por ·

d . ductlon Is o dul D 1{J ' • · llw , t1tllornor ,t f an late i!1 no
1
L

1 Judicl ll xp " t 8 " urrod c1u1 no l t · ·, u c•u ·od nt.

- I r ti10 Irm.rn o , u H o
ll . f propnrly n➔(Jimo, property c: cquirt-icJ
GI '
I ng rd du tib roni
1 - Un~ r ab~ lut_~. , rnrn in
dunng th 1110 111 9 . hy grn u
i i~us title by a pou f>, nd th e fruit a~
orty of such pou e .
w II s tht i,nc n th er · or h~~ ~ -a P~~~s , property for p r on al anc1
14. Und r G nJug I partn ,r ~ · 9 con sid r d a . xclu ive prop rty
lusiv u of Ith r spou e 1 ,
x ept jewelry .. befor the marriage by either spou se who has
15. Pr~perty adcquir ddants by· a former marriage, and the fruits as well as
legitimate escen c - . . .
the income. if any, of such property are exclusive.

MULTIPLE CHOICE.

Principles
JJ\ 1. Under the law, the property relationship between husband and wife
shall be governed in what order? .
I. By marriage settlements executed before the marriage.
II. By the provisions of this Code
111 . By the local custom.
t"aJt, 11, Ill c .II, 111, I
b.l, Ill, II d. 111, II, I

~ 2. In the absence of a marriage settlement, or when the regime agreed

upon is void, the property ~elations of the spouses who married before
August 3, 1988 shall be governed by:
___a. Absolute community of properties.
1
~ Conjugal partnership of gains
c. Absolute separation of properties.
d. No property relations.

~ 3. In the absenc~ of a ma_rriage settleme~t, or, when the regime agreed

upon_ was void, the property relations of the spouses who were
,. married on or afterA~gust 3, 19~8.) would be:
a Absolute communUy of property
b. Conjugal partnership of gains
c. Absolute separation of property
d. Either absolute community or conjugal partnership of gains

145
 Properties owned by the
marriage will be classified as ·spou ses before and brought into the
Under absolute com · .
a. Community mun,ty Under conjugal partnership
b. Exclusive Conjugal
i c·) Community Exclusive
'd. Exclusive Exclusive
Conju ga l
r, 5. The fruits from exclusive prope t f .
\
during the marriage are cla 'f• r Y O each spou se due or re .,e,ved
ss1 red as ·
Under absolute community ·
Under conjugal partnership
a. Community
Conjugal
b. Exclusive
Exclusive
c. Community
Exclusive
@? Exclusive Conjugal

6. Under. the system of absolute community, the following are not

exclus~ye property, e~ t:
_a. · Rental income on a property acquired before marriage
b. Property from which the rental income in "a" was derived
c. ~eceivable arising from lending of funds inherited before
marriage
d. Property owned before marriage for personal and exclusive
use of the decedent when he was still alive

; 7. Which of the following is exclusive property under the system of

conjugal partnership of gains?
a: Property before marriage,.• ·
b. Inheritance during marriage
c. Property acquired during marriage out of exclusive money
r
Kt. All of .the above.
) 8. Under absolute community of property, which of the following is a
community property? · . . .
_,a. Property inherited by the survrvrng spouse dunng the
marriage. · · th la of the
.e. Property bought during the ~arnage using e sa ry
decedent earned before marriage . .
..,c. Personal belongings bought dunng the marriage for the
exclusive use of the decedent.
fd.
1_
None of the above

146
 . . ty of a spouse?
~., g Which is not an exclusive proper ·age as his or her own .
· -- · h · b ught to the marn
a. That wh1c 1s ro . d during the marriage by gratuitou
b. That which each acquire s
title . . .. ht of redemption.
c. That which is acquired by r_ig .ses' common fund
d-; That which is purchased with the spou .
. . · gal property from communit
1o. Which of the following distinguishes conJU Y
property? . .
Properties inherited during marriage. .
~: Those acquired through occupation during marriage.
c. Fruits of exclusive property. •age
d. Income earned by each spouse during marn ·

~ 11. The gross estate of a decedent who was married at the time of death
will be composed of:
a.
1 His capital property, the wife's paraphernal property and the
'-- common property
br His capital property and the common property
c. Common property
d. His capital property

12. Statement 1: Under the regime of absolute community of property,

property acquired during the marriage is presumed to belong to the
community, unless it is proved that it is one of those excluded
therefrom. ·
Statement 2: Under the system of conjugal partnership of gains upon
dissolution of the marriage or of the partnership, the net gains or
benefits obtained by either or .both spouses shaU be divided equally
between them. ·
a. Statements 1 & 2 are false - ~w.. \d . :o -:- 1~ nJ ~

b. Statement 1 is true but statement 2 is false •

c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true

Deductions
A. 13. Statement 1: Under the system of absolute commun·t
I
f rt
the vanishing deduction is a charge against community Y O prope Y,
..... _ Statement 2: Unde.r the system of conjugal partnersh·prope~.
re,
~ ,,,
vanishing deduction is a charge against exclusive pro iprt of gains, th e
a. Statements 1 & 2 are false. pe y.
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2.is true

147
 cty.ro· Ecfr{',(Se,s - Pyae,Y ~UNu
d. Statements 1 and 2 are true

14. Statement 1: Judicial expenses for the settlement of the estate are no
V longer deductible from the gross estate of a decedent.
Statement 2: Medical expenses incurred before death are no longer
deductible from the gross estate of a decedent.
a. Statements 1 & 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement- 2 is true
d. Statements 1 and 2 are true

1s. The following are required to be listed as part of the gross estate, but
1.; are exempted from estate tax, except
r, a. Share of the surviving spouse
I( b. Transfer for public use
c. Exclusive property of the decedent ✓
d. Amount received by heirs under RA 4917

r 16. All of the following items are allowed as deductions against exclusive
portion of the estate, except
~- Unpaid taxes
b. Claims against insolvent persons
✓~C. Vanishing deduction
✓d:· Family home

~ 17. The following are exclusiye ._p_CQperty of each spouse. Which one is
not?
That which each acquires during the marriage by lucrative title.
That which is purchased with the exclusive money of either
spouse.
c. That which is acquired by exchange with other property
belonging to the spouses.
,,er.--- That which is brought to the marriage as his or her own.
C 18. Net share of surviving spouse equals
a.Gross conjugal property less charges against conjugal
property.
b. Net conjugal property multiply by two.
@ Net conjugal property divide by two.
d. Net conjugal property divide by one-half.

148
 1·· - ·I
£,rcf tlJ·e1·
1
,• _,- L
/'"I -
J
(Jhfj /L'/ C

estions:
ext four 4 u a resident of 0 uezon City,
. data for the n . . ines and
use the fo/lo~ncitizen of the Ph1l1pp is father during P2,soo,ooo
oeceden! is the following: ·nherited from h
died 1eav1~g use in satangas I
O
h. marriage 1,000,000
.. t Rest r before is before , s,OOO,0 00
\\i \vt• marriage . f m his mothe his mother
• d as 91ft ro ift from .
Car receive d ceived as g -
, ... l commercial Ian re . soo,oo0
marriage ommercial land 1,soo,O00
Income from the c hernal property) his spouse, during 200,000·
Building (wife's parap . property of
I.
·income from exclusive •' . 300,000
100,000
mJeawr:frgyeowned before the madrrwia,.gthe his own income ~:.. .: "
. · chase · · :: 1,OOO,O0_Q_
Clothes of his wife, pur . f her death · · · '- ·
Other properties at the time o h . th
. f gains how muc is e
. . al partnership o '
I,
'"I
19. Under the regime of co~JUQ rties?
decedent's gross e~clus1ve prope ·c. PB,700,000
. a. P8,800,Q0O .;t. P1 0 300,000
b. P8,600,000 ·._,,,: '
r · al properties?
20. How much is the gross conJug P.1 500 000
a. P7,700,000 ~ p '?oo'ooo
b. P9,200,000 "°· 1' '
21 . Under the regime of absolute community of property, how much is the
decedent's gross exclusive properties?
. P2,800,000 c. P3,800,000
~ P2,500,000 d. P3,500,000

22. Using the same assumption in the preceding number, how much_is the
/
gross conjugal properties?
a. P7,500,000 - P7,800,000
b. P6,800,000 d. P6,800,000

23. ~edro died on November _1, 2_018_, leavin~ the following properties:
fYClW ff A parcel of land tlbent~ during marriage from his father who died
on December 30, 20 4 ·
• Fair market value in 2010 - P3,5Q0,00O
• Fair market value in 2014 -.J2.S.'o.0_0.oo(f'
• Mortgage assumed and paid by Pedro_ PSOO,OOO

❖ Conjugal properties valued at 2Q,Q00 QOO. 1

Deductions claimed againsflne estate:

(\ ti i! Th~<h
JV00 1 IJ
149
 ) ·o ;JI.
( /,II1.1' ,1I 11,
I '
-1 /
( ' ( .·,r :,
( ' '/ ' ' / ,,
/ /11'/1/ / 1 {' /// / (!/!Ii

Funeral expen ' (j t P400,000

Judicial XP €1 1l,H p
800 ,000
C" · ualty lo, f, incurro J t 3,500,000
Unpaid taxo " <. ori ( 10) rrmr1lh i aftr,r doath
2,000,000
Other claim , again; t tho imtalo 4, 00 ,000

~ re Or th e survivin r.,rJou .:,,<

How much is the •~1a ;)7
a. P10,000 ,000
b. P4,500,000 de. P5,250,000
. ,000 ,000

24. A married , nonre~ident citizen, di~)d during the effectivity of TRAIN

Law . . The following are the common properties obligations and
expenses ' '
Real property, Philippines P7,000,000
Real property, USA 5,000,000
Funera I expenses 300,000
Judicial expenses 200,000
Claim against insolvent persons 50,000
Unpaid taxes 50,000
Medical expenses 650,000

Additional information :
• The real property in the Philippines includes the family home
valued at R1 ,500,000. '
• Judicial exp·e-nses include P50,000 incurred to settle conflicting
claims of the heirs.
How much is the taxable net estate?
a. P225,000 i,) P2,025,000
b. P250,000 cl': P2,050,000
b ~ 25. The following data were provided by the administrator of Pedro who
died in 2018:
Conjugal real properties P7 ,000,000
5,000,000
Conjugal family home
2,500,000
Exclusive properties
,- I
3,500,000
. ../ Paraphernal .prope_rties ~ 1;, · • <
Deductions claimed:
Funeral expenses
300,000 V

Casualty losses 100,000

exclusive
50,000
Unpaid taxes
1,000,000 1,450,000
Other losses
500,000
Medical expenses
P16,050,000
Net taxable est~te

150
 Additional Information: ex enses were borne by the estate
• 25% of the funeral P, were incurred after one year from de
• 25% of "Other losses . at\
of the decedent. . to property taxes (conjugal asset )
·d taxes pertain s
■ Unpa1 th of the decedent
incurred a~er dea , were compensated by a health
5
• 50% medical expense
insurance company

The taxable net estate is c. P6, 150,000

a. P525,000 d. PB,300,000
b. P875,000

Use the following data for the next two (2) questions: . ..
From the records of the estate of a decedent who was a_- c1t1zen:
Properties-Land; inherited from the mother /4 y.e ar~ P2,400,000
before death, during marriage (valued of P1--!5O0,000 ..
f --····-·
when inherited)
Other personal property owned before marriage 1,600,000
Other personal property acquired during marriage 500,000
Cost and expenses:
Claim against the estate 200,000
\ Medical expenses incurred within one year before · 700,000
death
Losses 100,000

i' ' 26. The amount of exclusive property under absolute

property should be: community of
::) k P1 ,540,000
P3,080,000
C. P4,500,000
d. PO

27. The $hare of the surviving spouse under th

partnership of gains should be: · e syS tem of conjugal
p: P1 ,540,000 c.- P4,500,000
b. P3,080,000 d. PO

(; 28. The share of the surviving spouse under conjugal rt .

should be: . . . pa nersh1p of gains
, "
1
a. P100,000 .,e-.... P900,000
!> b. P200,000 d. P1 ,800,000

. 151
 fhe next two 2 uestions are b 1

ased on the followin :

A married decedent who,was und
on October 1~. 2018. His estate Per ~bsofute community of properties died
f Real properties inherited du _rovided t~e following information:
father nng ~arnage from his P500,000
f Real property given as gift by h. .
marriage is uncle dunng 1,500,000
r Land received as donation during th .
\. House built on the donated land us· e marriage 500,000
· f ing communal fund 900,000 ·~
\,· cash income . rom the real property receive
· d as 91ft
.
100,000 _:,
, Real properties received by the s • •
before the marriage urv,ving spouse 1,800,000

Real_ properties acquired by the spouses . d~ring the 1,500,000 -

marriage
" Personal properties acquired during the marriage 1,000,000

The following were considered ,as deductions from the gross estate:
Actual funeral expenses p 1oo 000
Judicial expenses 1so' ooo
Medical expenses 200' ooo
ObliQations incurred before marriage that benefited 2so:ooo
the community properties
Claims against an insolvent debtor · 50,000
Unpaid mortgage on inherited land '. 100,000
Loss of car through theft on December 31, 2014 300,000
(part of personal properties acquir.ed
during marriage)
· Unpaid realty tax on real property received as gift 30,000
from his uncle ,

Additional information:
- The value of the real properties at the time of inheritance was
P300,000.
- The value of the real property received as gift from an uncle was
P1 ,000,000 at the time of donation.
- The donated· land and the house built on it were certified as the family
home of the decedent and his family by the Barangay Captain in the
locality where they were situated.

29. How much was the total exclusive property?

a. P2, 100,000 c. P3, 100,00_0 .
A,. P2,600,000 d. None of the choices

152
30 How much was th• total community property?
. - p3,4so,ooo _c. ps,1so,ooo .
b. ps, so,ooo d. None of the choices
2 E

C
\
E
I

153