GROSS ESTATE: MARRIED

DECENDENTS

GROSS ESTATE OF MARRIED

DECENDENTS ARE COMPOSED OF:
a. DECEDENT’S EXCLUSIVE
PROPERTIES; AND
b. COMMON PROPERTIES OF THE
SPOUSES.
COMMON TYPES OF PROPERTY RELATIONS/REGIMES
OF SPOUSES

1. Absolute Separation of Property (ASP)

2. Conjugal Partnership of Gains (CPG)
3. Absolute Community of Property (ACP)

In the absence of an agreement, then:

August 3, 1988

CPG ACP
 BASIC RULES TO REMEMBER

 1. Under ASP, properties are presumed exclusive unless

otherwise stated as common.
Under CPG and ACP, properties of the spouses are
presumed common unless otherwise stated as exclusive.
 2. Properties acquired using separate properties are still
separate properties. Likewise, properties acquired using
common properties are still common. Transformation of
properties by sale or exchange do not change their
classification.
 3. The increase in value or gains on the sale of properties
are fruits subject to the rules of the property regime agreed
upon by the spouses.
 CONJUGAL PARTNERSHIP OF GAINS

Properties of spouses including fruits before marriage-

exclusive properties
Properties of spouses acquired during marriage-
common, unless otherwise stated as exclusive.
Conjugal partnership of gains views marriage as union of
gains and fruits that accrues during marriage.
Example of fruits during marriage:
 A. Salary, profits or gains of labor or industry of either spouse;
 B. Income of properties.

EXCEPTION: Properties acquired thru donation or

inheritance are exclusive, unless the donor or the decedent
designated the transfer to both spouses.
 ABSOLUTE COMMUNITY OF PROPERTIES

Under ACP, marriage is viewed as union of the

PRESENT PROPERTY of the spouses including
fruits of labor and industries of the spouses during
marriage.
Properties acquired before marriage will be
common.
Properties acquired during marriage will be
common, unless otherwise stated as exclusive.
All Properties which the spouses may acquire during
the marriage from their SEPARATE or JOINT
LABOR or INDUSTRY shall be common.
 EXCEPTION TO THE RULE OF ACP

a. Properties acquired by way of donation or

inheritance during marriage.
b. Fruits earned by exclusive properties-fruits still an
exclusive. (FRUITS FOLLOWS THE TREE)
c. Properties for the exclusive personal use of either
spouse-exclusive property, unless otherwise stated
as common. (Exception: Jewelry-Still common)
d. Properties brought into the marriage by either
spouse with descendant by a prior marriage.
 ILLUSTRATIONS

A. Mr. and Mrs. ABC were under the CPG. Mrs. ABC
is a Chief Executive Officer of XYZ Company and is
the breadwinner of the family. Mr. ABC is
unemployed taking care of the children at home.
During marriage, Mrs. ABC acquired various
properties totalling Php 5M, from her salaries. Also,
during the marriage, Mr. ABC discovered a World
Treasure in their backyard worth Php 500M. Mr. ABC
also won Php 200M jackpot in PCSO Super Lotto.
 ANSWER TO ILLUSTRATION A

EXCLUSIVE PROPERTY OF EXCLUSIVE PROPERTY COMMON

HUSBAND OF WIFE PROPERTY

Property acquired by Mrs.

ABC 5,000,000.00

Treasure discovered by Mr.

ABC 500,000,000.00

Lotto Winnings by Mr. ABC 200,000,000.00

 ILLUSTRATION

B. Before their marriage on November 1, 1987,

Mr. and Mrs. DEF had properties of car worth
Php 1M, and a residential lot worth Php 2M,
respectively. Mr and Mrs. DEF married without
an agreed property regime.
During their marriage, Mr. and Mrs. DEF
acquired properties totalling to Php 1.3M from
their separate labor. Mrs. DEF also sold the
residential lot for Php 5M and invested the entire
proceeds in stocks.
 ANSWER TO ILLUSTRATION B

EXCLUSIVE PROPERTY OF EXCLUSIVE PROPERTY COMMON

HUSBAND OF WIFE PROPERTY

Car acquired before the marriage 1,000,000.00

Lot acquired before the marriage 2,000,000.00

Properties acquired during

marriage 1,300,000.00

Stocks acquired during marriage 3,000,000.00

 ILLUSTRATION

C. Mr. and Mrs. XYZ who were under the CPG had the
following properties.
HUSBAND WIFE
BEFORE MARRIAGE:

1. Donations or Inheritance received 100,000.00 150,000.00

2. Income of Property from No. 1 10,000.00 20,000.00

DURING MARRIAGE:

3. Properties acquired from separate labor 400,000.00 300,000.00

4. Property received b donation or inheritance 800,000.00 500,000.00

5. Income of property from No. 1 15,000.00 25,000.00

6. Income of property from No. 3 40,000.00 30,000.00

6. Income of property from No. 4 80,000.00 50,000.00

 ANSWER IN ILLUSTRATION C

EXCLUSIVE PROPERTY EXCLUSIVE COMMON

OF HUSBAND PROPERTY OF WIFE PROPERTY
BEFORE MARRIAGE:

1. Donatons or Inheritance received 100,000.00 150,000.00

2. Income of Property from No. 1 10,000.00 20,000.00

DURING MARRIAGE:
3. Properties acquired from separate
labor 700,000.00
4. Property received by donation or
inheritance 800,000.00 500,000.00

5. Income of property from No. 1 40,000.00

6. Income of property from No. 3 70,000.00

6. Income of property from No. 4 130,000.00

D. Mr. LRR died. An inventory of the properties of Mr.
and Mrs. LRR is prepared below:
HUSBAND WIFE TOTAL
Properties acquired before marriage

1. Properties inherited before marriage 200,000.00 100,000.00

2. Other properties brought into the
marriage 400,000.00 500,000.00
DURING MARRIAGE:

3. Properties inherited during marriage 250,000.00 150,000.00

4. Properties as fruit of own labor 140,000.00 160,000.00

5. Properties as fruit of common labor 250,000.00

6. Fruits of:

Properties inherited before marriage 100,000.00 50,000.00

Properties inherited during marriage 20,000.00 80,000.00

Properties acquired from own labor 20,000.00 40,000.00

Properties acquired from common labor 50,000.00

 ANSWER IN ILLUSTRATION D

EXCLUSIVE PROPERTY OF EXCLUSIVE PROPERTY COMMON

HUSBAND OF WIFE PROPERTY

Properties acquired before marriage

1. Properties inherited before marriage 200,000.00 100,000.00

2. Other properties brought into the
marriage 400,000.00 500,000.00
DURING MARRIAGE:

3. Properties inherited during marriage 250,000.00 150,000.00

4. Properties as fruit of own labor 300,000.00

5. Properties as fruit of common labor 250,000.00

6. Fruits of:

Properties inherited before marriage 150,000.00

Properties inherited during marriage 100,000.00

Properties acquired from own labor 60,000.00

Properties acquired from common labor 50,000.00

 ILLUSTRATION E

Mr. and Mrs. VID, who were under ACP, have the
following properties:
BEFORE MARRIAGE DURING MARRIAGE

RESIDENTIAL LOT - DONATED TO MR.

VID 2,000,000.00

COMMERCIAL LOT - DONATED TO MRS.

VID 5,000,000.00

INCOME OF RESIDENTIAL LOT 400,000.00 800,000.00

INCOME OF COMMERCIAL LOT 1,400,000.00

INCOME FROM OWN LABOR OF MR. VID 200,000.00 800,000.00

INCOEM FROM OWN LABOR OF MRS.

VID 300,000.00 800,000.00
 ANSWER TO ILLUSTRATION E

EXCLUSIVE EXCLUSIVE
PROPERTY OF PROPERTY OF COMMON
HUSBAND WIFE PROPERTY
RESIDENTIAL LOT -
DONATED TO MR. VID 2,000,000.00
COMMERCIAL LOT -
DONATED TO MRS. VID 5,000,000.00
INCOME OF RESIDENTIAL
LOT 1,200,000.00
INCOME OF COMMERCIAL
LOT 1,400,000.00
INCOME FROM OWN LABOR
OF MR. VID 1,000,000.00
INCOME FROM OWN LABOR
OF MRS. VID 1,100,000.00
 ILLUSTRATION F

F. Mr. and Mrs. SLR had the following personal

properties:
BEFORE MARRIAGE DURING MARRIAGE

TUXEDO OF MR. SLR 3,000.00

WRIST WATCH OF MR. SLR 2,000.00

MITSUBISHI MIRAGE OF MR. SLR 800,000.00

GOWN OF MRS. SLR 40,000.00

EARRINGS AND NECKLACE OF MRS. SLR 150,000.00

CELLPHONE 50,000.00

LOUIS VUITTON BAG OF MRS. SLR 150,000.00

DRESS, SHOES AND UNDERWEAR OF
MR. SLR 60,000.00
DRESS, SHOES AND UNDERWEAR OF
MRS. SLR 80,000.00
 ANSWER IN ILLUSTRATION F
EXCLUSIVE EXCLUSIVE
PROPERTY OF PROPERTY OF COMMON
HUSBAND WIFE PROPERTY

TUXEDO OF MR. SLR 3,000.00

WRIST WATCH OF MR. SLR 2,000.00

MITSUBISHI MIRAGE OF MR. SLR 800,000.00

GOWN OF MRS. SLR 40,000.00

EARRINGS AND NECKLACE OF MRS.
SLR 150,000.00

CELLPHONE 50,000.00

LOUIS VUITTON BAG OF MRS. SLR 150,000.00

DRESS, SHOES AND UNDERWEAR OF

MR. SLR 60,000.00
DRESS, SHOES AND UNDERWEAR OF
MRS. SLR 80,000.00
 ILLUSTRATION G

G. Ms LT, 27 years old, married Mr. NB under ACP, a

wealthy 65 year-old business man. Mr. NB had a child in a
prior marriage with his deceased wife.

Ms. LT brought into marriage properties totalling Php

50,000. Mr. NB also brought into the marriage properties
totalling Php 70M. During the marriage, Ms. Beauty
accumulated Php 300,000 from her salaries.
Mr. NB can no longer work at his so he is totally dependent
from the fruits of his properties. His properties earned Php
11M during his marriage with Ms. LT.
 ANSWER IN ILLUSTRATION G

EXCLUSIVE EXCLUSIVE
PROPERTY OF PROPERTY OF COMMON
HUSBAND WIFE PROPERTY

PROPERTIES BROUGHT
INTO MARRIAGE

BY MS. LT 50,000.00

BY. MR. NB 70,000,000.00

PROPERTIES ACQUIRED
DURING MARRIAGE

Fruit of Properties-Mr. NB 11,000,000.00

Salaries-Ms. LT 300,000.00
 ILLUSTRATION

H. Mr. and Mrs. JPR married on January 10, 1990

without agreeing on a property regime. Mr. and Mrs.
JPR brought into their properties: a Php 1M car and
Php 2M residential lot, respectively.
During the marriage, Mr. and Mrs. JPR acquired
totalling Php 500,000 and Php 800,000 respectively
from their separate labor. Mrs. JPR also sold his
residential lot for Php 5M and invested the entire
proceeds in stocks.
 ANSWER IN ILLUSTRATION H

EXCLUSIVE EXCLUSIVE
PROPERTY OF PROPERTY OF COMMON
HUSBAND WIFE PROPERTY

1,000,000.
CAR 00

1,300,000.
FRUITS OF LABOR 00

5,000,000.
STOCKS 00
 ILLUSTRATION

I. Mr. ABC died. An inventory of the properties of Mr. and Mrs. ABC
who were under ACP were as follows:
HUSBAND WIFE TOTAL
BEFORE MARRIAGE:

1. Properties inherited before marriage 200,000.00 100,000.00

2. Properties for exclusive personal use 50,000.00 60,000.00

3. Other properties brought into the marriage 350,000.00 440,000.00

DURING MARRIAGE:

4. Properties inherited during marriage 250,000.00 150,000.00

5. Properties as fruit of own labor 140,000.00 160,000.00

6. Properties acquired for exclusive personal use 30,000.00 40,000.00

7. Properties as fruit of common labor 250,000.00
8. Fruits of:

Properties inherited before marriage 100,000.00 50,000.00

Properties inherited during marriage 20,000.00 80,000.00

Properties acquired from own labor 20,000.00 40,000.00

Properties acquired from common labor 50,000.00

 ANSWER IN ILLUSTRATION I
EXCLUSIVE PROPERTY EXCLUSIVE COMMON
OF HUSBAND PROPERTY OF WIFE PROPERTY
Properties acquired before marriage
1. Properties inherited before
marriage 300,000.00
2. Properties for exclusive personal
use 50,000.00 60,000.00
3. Other properties brought into the
marriage 790,000.00
DURING MARRIAGE:
4. Properties inherited during
marriage 250,000.00 150,000.00

5. Properties as fruit of own labor 300,000.00

6. Properties acquired for exclusive
personal use 30,000.00 40,000.00
7. Properties as fruit of common
labor 250,000.00
8. Fruits of:

Properties inherited before marriage 150,000.00

Properties inherited during marriage 20,000.00 80,000.00

Properties acquired from own labor 60,000.00

Properties acquired from common
labor 50,000.00
 WHAT IF UNDER CGP?
EXCLUSIVE PROPERTY OF EXCLUSIVE PROPERTY COMMON
HUSBAND OF WIFE PROPERTY
PROPERTIES ACQUIRED BEFORE
MARRIAGE

1. Properties inherited before marriage 200,000.00 100,000.00

2. Properties for exclusive personal use 50,000.00 60,000.00

3. Other properties brought into the
marriage 350,000.00 440,000.00
DURING MARRIAGE:

4. Properties inherited during marriage 250,000.00 150,000.00

5. Properties as fruit of own labor 300,000.00

6. Properties acquired for exclusive
personal use 30,000.00 40,000.00

7. Properties as fruit of common labor 250,000.00

8. Fruits of:

Properties inherited before marriage 150,000.00

Properties inherited during marriage 100,000.00

Properties acquired from own labor 60,000.00

Properties acquired from common labor 50,000.00

DEDUCTION-NET SHARE OF SURVIVING SPOUSE

The share of the surviving spouse is one-half

of the net conjugal or community properties
of the spouses. After deducting the allowable
deductions appertaining to the conjugal or
community properties included in the Gross
Estate, the share of the surviving spouse must
be removed to ensure that only the decedent’s
interest in the estate is taxed.
 FORMULA FOR NET SHARE OF SS

COMMON PROPERTIES XXXX

LESS:

ORDINARY DEDUCTIONS PERTAINING

TO COMMON PROPERTIES ___(XXXX)___

NET ESTATE BEFORE SPECIAL XXXX

DEDUCTIONS
DIVIDE BY: ____2____

SHARE OF SURVIVING SPOUSE XXXX

ILLUSTRATION: Mr. A, a Filipino citizen, a married decedent died with the following gross
estate and allowable deductions:

Exclusive Properties of the Decedent 12,000,000.00

Common Properties 30,000,000.00

Total Gross Estate 42,000,000.00

Allowable Deductions

Funeral, Judicial & Medical Expense 1,000,000.00

Claims against the Estate - Exclusive property 400,000.00

Claims against the Estate - Common property 600,000.00

Unpaid mortgage on exclusive property 100,000.00

Unpaid mortgage on common property 400,000.00

Loss of common properties 150,000.00

Transfer for Public Use-Exclusive Property 100,000.00

Vanishing Deduction-Exclusive Property 200,000.00

Family Home-Common Property 1,000,000.00

Standard Deduction 1,000,000.00

 EXCLUSIVE COMMON TOTAL

TOTAL GROSS ESTATE 12,000,000.00 30,000,000.00 42,000,000.00

LESS: ORDINARY DEDUCTIONS

Claims against the Estate - Exclusive property 400,000.00

Claims against the Estate - Common property 600,000.00

Unpaid mortgage on exclusive property 100,000.00

Unpaid mortgage on common property 400,000.00

Loss of common properties 150,000.00

Transfer for Public Use-Exclusive Property 100,000.00

Vanishing Deduction-Exclusive Property 200,000.00    

 IF WE WILL CONTINUE TO COMPUTE THE ESTATE TAX
DUE

NET ESTATE AFTER

ORDINARY DEDUCTIONS 11,200,000.00 28,850,000.00 40,050,000.00

NET SHARE OF SURVIVNG

SPOUSE (14,425,000.00)

FAMILY HOME (500,000.00)

STANDARD DEDUCTION     (10,000,000.00)

NET TAXABLE ESTATE 15,125,000.00

END OF MEETING