2.

1 The system of absolute community of property shall govern since marriage took
place on 1998. (Art.75, Family Code), thus the gross estate shall consist of all
properties (both conjugal and exclusive properties) as shown in the computation
above.
Community properties shall include all properties owned by the spoused at the time
of the marriage and all properties acquired thereafter. Exclusive properties are the
Properties acquired by gratuitous title during marriage, properties brought to the
marriage as their own, properties acquired by right of redemption, barter or
exchange with property belonging to only one of the spouses and that which is
purchased with the exclusive money of the wife or the husband.
The car bought that is registered in the name of his son shall be excluded in the
computation of gross estate, as ownership of which is with the son. Likewise, the life
insurance paid to the widow on account of his life insurance policy taken by his
employer are not subject to estate tax.
Thus, Gross Estate amounts to P25,300,000.00 in total broken down as follows:
Exclusive Properties – P2,500,000.00
Conjugal Properties – P22,800,000.00

2.2 The Net Taxable Estate amounts to (P1,625,000.00) computed as the Gross
Estate less deductions. Deductions are as follows:
a. Ordinary deductions like losses, indebtedness, and taxes in the amount of
P3,050,000.00
 Ordinary deductions are as follows, claims against the estate in the amount of
P300,000, claims against the indebtedness (P250,000.00) and the loss on
properties arising from casualty like fire, storms etc. when such losses are not
compensated for by insurance. The vacation house fair market value is
P2,500,000.00. The fire on the vacation house happened on January 1, 2022
which is occurred during the settlement of the estate up to the deadline of
the estate tax return.
b. Share of the Surviving Spouse which is one - half (1/2) of the net conjugal
properties of the spouses. Computed as one-half of P19,750,000 or in the amount of
P9,875,000.00
C. Special Deductions which is the Family Home and the Standard Deductions.

2.3 Estate Tax Due is zero as the Net Taxable Estate is Negative. The estate tax
return must be filed within one year from the death of the decedent. As a general
rule, the tax is paid upon the filing of the return payment. One the case of Mr.
Mariano, it will be zero filing and the due date of the filing of the estate tax return
shall be on January 20, 2022 The executor, administrator, or the heirs shall be
responsible for the filing of the estate tax return.