CHAPTER 2

TRUE OR FALSE

Inclusion in the Gross Estate (P)

1. Estate tax is a tax imposed on the privilege that a person is given in the
disposition of his property, either by will or by operations of law, to take
effect upon death.

2. Estate tax is an ad-valorem tax.

3. The accrual of the estate tax is distinct from the obligation to pay the
Same.

4. Delivery and acceptance are essential elements of estate taxation.

5. Under the “ability to pay theory”, the imposition of estate tax is justifiable
because it reduces the property received by the successor, thus, helping to
promote equitable distribution of wealth in society.

6. Regardless of situs, the tax code excludes intangible personal property of

a non-resident alien decedent in determining his taxable estate.

7. Section 85 of the Tax Code provides that the value of the gross estate of a
nonresident alien should be determined by including the value at the time of
his death, of all property, real or personal, tangible or intangible, wherever
situated.

8. There is reciprocity if the decedent at the time of his death was a resident
citizen of a foreign country which at the time of his death did not impose an
estate tax of any character in respect of tangible.

9. For estate tax computation, real estate, in general, shall be valued at Fair
market value at the date of death of the decedent.

10. If zonal value of a real estate is available at date of death, and this is
higher than the fair market value per assessor’s listings of values, then

The amount to be reported in the gross estate is the zonal value.

11. Donation mortis causa are transfers intended to take effect at the time of
the decedent’s death. Hence, the property should be valued at the fair
market value of the property at the date of the actual transfer 12. Donation
to the national government is an exempt transaction but should still require
inclusion of the property in the gross estate.
13. Juan devised in his will a piece of land; naked title to Pedro and usufruct
to Ana for as long as Ana lives, thereafter to Pedro. The transmission from
Juan to Pedro and Ana is subject to estate tax but the merger of the usufruct
and the naked title to Pedro upon the death Of Ana is exempt.

14. Ron devised in his will real property to his brother Bert who is entrusted
with the obligation to preserve and transmit the property to Jay, son of Bert,
when Jay becomes of age. The transmission from Bert to his son Jay is
subject to estate tax.

15. When an estate, under administration, has income-producing property,

the annual income of the estate becomes part of the taxable gross estate.

16. When an estate, under administration, has income-producing property

and its income during the year is distributed to the heirs, the income so
distributed is taxable to the heirs as part of their gross income for The year.

17. A special power of appointment authorizes the donee of the power to

appoint only from among a designated class or group of persons other Than
himself.

18. The donee-decedent of a special power of appointment only holds the

property in trust, hence, the property shall form part of the donee-
decedent’s gross estate.

19. The Tax Code as amended under RA10963 (TRAIN Law) provides that the
filing of estate tax return should be done within one (1) year From the
decedent’s death.

20. The payment of estate tax could only be extended up to the maximum of
thirty (30) days from the date of filing.

MULTIPLE CHOICE

1. An excise tax on transfers inter-vivos

a. Donor’s tax

b. Estate t

c. Income tax

d. VAT

2. An excise on transfers mortis causa

a. VAT
b. Estate tax

c. Income tax

d. Donor’s tax

3. Which among the following statements is not correct?

I. Estate taxation is governed by the statute in force at the time of death of

the decedent.

II. Estate tax accrues as of the death of the decedent.

III. Succession takes place and the right of the State to tax the privilege to
transmit the estate vests instantly upon death.

a. I only

b. Il only

c. III only

d. None of the above

4. Estate tax is a tax on the right of the deceased person to transmit

his estate to his lawful heirs and beneficiaries. Hence, it is

I. A tax on property.

II. An excise tax

a. I only

b. Il only

c. Both I and II

d. Neither I nor II

5. Estate tax is imposed upon the:

a. Decedent

b. Property or rights transferred

c. Right to transfer property upon death

d. Privilege to receive inheritance

6. When will the transfer through succession be effective?

a. Upon the signing of a written will.

b. Upon payment of estate tax.

c. Upon death of the testator

d. Upon registration in the register of deeds.

7. Which of the following is not a characteristic of donation

mortisCausa?

a. The transfer to the donee is irrevocable while donor is alive.

b. There is no conveyance of title or ownership to the doneeebefore the

death of the donor.

c. The transferor retains the full or naked ownership and controlof the
property while alive.

d. The transfer should be void if the donor should survive thedonee.

8. Mr. Wais thought that due to old age, death may be imminent.
Knowing that the value of estate tax is high, he disposed his
properties to his rightful heirs prior to his death (transfer in
contemplation of death). To prevent undue avoidance of tax, inter
vivos disposition in contemplation of death is subject to:

a. Donor’s tax

b. Estate tax

c. Income tax

d. Excise tax

9. The gross estate of a decedent shall be comprised of the

following properties and interest therein at the time of his death,
including revocable transfers and transfers for insufficient
consideration, etc.:

I. Residents and citizens: All properties, real or personal or

intangible, wherever situated.

II. Nonresident aliens: Only properties situated in the Philippines,

that, with respect to intangible personal property, its inclusion the
gross estate is not subject to the rule of reciprocity

a. I only

b. Il only
c. Both I and II

d. Neither I nor II

10. The personal property of a non-resident, not citizen of the

Philippines, would not be included in the gross estate if;

a. The intangible personal property is in the Philippines.

B. The intangible property is in the Philippines and the reciprocity clause of

the estate tax law applies.

c. The tangible property is in the Philippines.

d. The personal property is shares of stocks of a domestic corporation 90% of

whose business is in the Philippines.

11. Which of the following is subject to the rule of reciprocity?

a. Car in the Philippines owned by a non-resident alien decedent.

B. Investment in stock in a US Corporation owned by a non-resident alien

decedent.

c. Investment in bonds in a U.S.-Corporation that has acquired business situs

in the Philippines, and is owned by a resident alien

d. Shares owned by a non-resident alien in a partnership established in the

Philippines.

12. The rule of reciprocity applies to:

Non-resident alien Decedent Intangible personal property in the

Philippines

a. Yes Yes

b. No No

C. Yes No

d. No Yes

13. Intangible Personal Property of Non-Resident Alien Decedent

with Situs in the Philippines shall be Exempt from Taxation if:

I. The decedent, at the time of his death was a resident citizen of A

foreign country which at the time of his death did not impose an
estate tax of any character in respect of intangible personal
property of citizens of the Philippines not residing in that foreign
country.

lI. The laws of the foreign country of which the decedent was a
resident citizen at the time of his death allow a similar exemption
from estate taxes of every character, in respect of intangible
personal property owned by citizens of the Philippines not residing
in that foreign country.

a. I only

b. Il only

c. Either I or II

d. Neither I nor II

14. One of the following is not an intangible personal property

situated in the Philippines:

I. Shares, obligations or bonds issued by any corporation or

sociedad anonima organized and constituted in the Philippines in
accordance with its laws.

II. Shares, obligations or bonds issued by any foreign corporation

where 85% of its business is located in the Philippines.

III. Shares, obligations or bonds issued by a foreign corporation if

such shares, obligations or bonds have acquired business in the
Philippines.

IV. Shares or rights in any partnership, business or industry

established outside the Philippines.

a. I only

b. Il only

c. Ill only

d. IV only

15. Which of the following rules on “situs” of property of a decedent

Situs of Estate Correct?

I. As a general rule, the situs of real property is the place or Country

where it is situated.
II. As a general rule, the situs of tangible personal property is the
place or country where such is actually located at the time ofThe
decedent’s death.

III. The rule that situs of intangible personal property is the domicile
or residence of the owner does not apply when the property has a
situs elsewhere.

IV. The test of situs of property of a non-resident alien decedent is

not important at all because only the transmissions of property
located in the Philippines are subject to estate tax.

a. I only

b. I and II only

c. I, II and III only

d. I, II, III, and IV

16. Which is not a test of situs?

a. Residence of the debtor in case of accounts receivable.

b. Place of storage in case of certificates of stocks.

c. Location of depository bank in case of bank deposit.

d. Place of exercise in case of copyright.

17. One of the following is not an intangible personal property

situated in the Philippines:

a. Shares, obligations or bonds issued by any corporation or sociedad

anonima organized or constituted in the Philippines in accordance with its
law,

b. Shares, obligations or bonds issued by any foreign corporation 85% of the

business of which is located in the Philippines;

c. Shares, obligations or bonds issued by any foreign corporation if such

shares, obligations or bonds have acquired business situs in the Philippines;

d. Shares, obligations or bonds issued by a non-resident foreign corporation.

18. Which of the following statements is correct?

a. The estate tax accrues as of the death of the decedent and the accrual of
the tax is distinct from the obligation to pay the same
b. Estate taxation is governed by the statute in force at the time the return is
filed.

c. Both “a” and “b”

d. Neither “a” nor “b”

19. Which of the following item is considered situated outside the

Philippines?

A. Franchise in the name of the decedent which is exercised in the Philippines

b. Share of stock holdings of decedent in a foreign corporation whose

business is 90% done

in the Philippines

C. Bond certificate issued by a domestic corporation owned by a non-

resident decedent

d. Foreign currency deposited in bank outside the Philippines

20. Pedro died on April 13, 2023, leaving the following properties:
Common stocks of Sunchamp Corporation (2,000 shares) – listed in
the Philippine Stock Exchange (highest – P40; lowest – P39).
Common stocks of AgriNurture Corporation (1,500 shares) – not
listed in the stock exchange. Cost – P50 per share; book value – P45
per share.

Preferred stocks of Greenergy Inc. (3,000 shares) – not listed in the

stock exchange. Cost – P70 per share; book value – P60 per share;
par value – P50 per share

Car (cost P600,000; book value – P350,000; market value P400,000)

Real properties (zonal value – P120,000; assessed value – P72,000)

The gross estate of Pedro is-

a. P817,500

b. P816,500

c. P824,000

d. P846,500

Use the following data for the next two (2) questions
21. Following are properties in the gross estate with their fair
market values:

House and lot, family home in Quezon City 1,500,000

Bank deposit in the foreign branch of a domestic bank 500,000

Bank deposit in Makati branch of a foreign bank 300,000

Shares of stock issued by a domestic corporation 1,000,000

(certificate kept in Canada)

Franchise exercised in Manila 800,000

Receivable, debtor from Mindanao 200,000

a. P817,500

b. P816,500

c. P824,000

d. P846,500

22. If the decedent was non-resident alien and there is no gross

estate is valued at

a. P4,300,000

b. P3,800,000

c. P3,500,000

d. P3,200,000

23. A Filipino decedent residing in Hawaii during his lifetime, left

the following properties:

House and lot, USA P10,000,000

Mansion, Philippines 50,000,000

Cars, Philippines 2,000,000

Shares of stock, Singapore 5,000,000

Accounts receivable, USA 3,000,000

The gross estate of the decedent is :

a. P70,000,000

b. 67,000,000

c. P65,000,000

d. P62,000,000

24. If the decedent was a nonresident alien and his country exempts
a Filipino citizen from estate tax, how much of his assets would be
Subject to reciprocity?

a. P1,000,000
b. P800.000

C. P600,000

d. P350,000

25. If the decedent was a nonresident alien and assuming there is

no reciprocity, how much is the gross estate?

a. P10,700,000

b. P6,600,000

c. P6,100,000

d. P5,850,000

26. When the property is donated in contemplation of death, the

basis of the tax shall be

a. Fair market value at the time of donation

b. Fair market value in the hands of the donor before the time of the
donation.

C. Fair market value at the time of death of the donor

d. Cost when the property was acquired

27. As a rule, the basis of valuation of property in the gross estate

is the fair market value prevailing at the time of decedent's death.
In the case of domestic shares of stock not traded thru the stock
exchange, the fair market value is

a. The value appearing in the schedule of fixed values from the assessor's
office

b. Net realizable value

c. Acquisition cost

d. Issuer's book value.

28. Which of the following value is not used when valuing gross
estate?

a. Fair market value at the time of death;

b. Fair market value at the time the estate return is filed;

c. Zonal value when higher than the assessed value in case of real property:

d. Book value in case of shares not traded in the stock exchange.

29. The following statements pertain to rules on valuing the estate

left by a decedent. Select the incorrect statement.

I. Values in the gross estate are based on values at the time of the
decedent's death because it is at this time that the heir legally succeeds to
the inheritance.

II. Receivable are appraised on the basis of the amount of the principal and
interests due and unpaid at the time of death.

a. I only

b. Il only

c. Both I and II

d. Neither I nor II

30. A decedent left a piece of land. The following data were

available in connection with the property.

Assessed valued, one (1) month before death P2,500,000

Zonal value, time of death 2,000,000

FMV at the time of filing estate tax return 3,000,000

What would be the value of the piece of land in the gross estate?

a. P3,000,000

b. P2,500,000

c. P2,000,000

d. cannot be determined

Use the following data for the next four (4) questions:

A decedent left 1,000 XYZ Corporation common shares. The shares were not
traded in the stock exchange. The following data were made available

Capital stock, XYZ Corporation P10,000,000

Retained earnings -2,000,000

Outstanding shares 100,000

31. What was the value included the decedent's gross estate?

a. P100,000

b. P120,000

c. P150,000

d. P0

32. Assume that the shares were classified as preference shares,

what was the value included the decedent's gross estate?

a. P100,000

b. P120,000

c. P150,000

d. P0

33. Assume that the shares were traded in the stock exchange.
Assume further that the average value at the time of death was
P100 per share. What was the value included the decedent's gross
estate?

a. P100,000

b. P110,000

C. P120,000

d. P150,000

34. Assume that the shares were traded in the stock exchange.
However, the quoted price at the time of death was not
determinable. Nonetheless, the highest and lowest quotations of
the shares in the market were P140 and P80, respectively, what was
the value included the decedent's gross estate?

a. P100,000

b. P110,000

C. P120,000

d. P150,000

35. Decedent died in 2022 leaving a will which directed all real
estate owned by him not to be disposed or sold for a period of 2
years after his death, and ordered that the property be given to
Juan Dela Cruz after 2 years. In 2022, the estate left by the
decedent had a fair market value of P500.000. In 2024, the fair
market value of the said estate increased by P4,500,000 and the BIR
Commissioner assessed thereon estate tax based on assessed value
of P4,000,000. What would be the correct amount of the gross
estate?

a. P5,000,000

b. P4,000,000

c. P4,500,000

d. P500,000

36. Decedent's Interest

I. Refers to the extent of equity or ownership participation of the
decedent on any property physically existing and present in the
gross estate, whether in his possession, control or dominion.

II. Refers to the value of any interest, having value or capable of

being valued or transferred, in property owned or possessed by the
decedent at the time of his death.

a. I only

b. Il only

c. Both I and II

d. Neither I nor II

37. Which of the following is not to be included in the gross estate

of citizen decedent?

a. Dividend income declared, but not yet actually received at date of death

b. Share in partnership's profit earned immediately after date of death

c. Rent income accrued before death but collected after death None of the
above

d. Transfer in Contemplation of Death

38. Transfer in contemplation of death

I. Contemplates a situation where the transferor during his lifetime,

transfers property in contemplation of or intended to take effect in
possession or enjoyment at or after his death.

II. Includes situations where the transferor retains for life the
possession or enjoyment, or the right to the income from the
property, or the right to designate the person who shall possess or
enjoy the property, or the income therefrom. At the time of the
decedent's death, the decedent no longer owned the property, but
such property forms part of his gross

a. I only
b. I and II only

c. All of the above

d. None of the above

39. Which among the following is correct?

I. There may be properties which at the time of the decedent's

death are not in the estate because they were transferred by him
during his lifetime.

II. The gross estate, for purposes of the estate tax, may exceed the
actual value of his assets at the time of his death as it includes the
value of transfers of property by him during his lifetime that
partake of the nature of testamentary

a. I only

b. Il only

c. Both I and II

d. Neither I nor II

40. Which of the following shall be included in the gross estate of a

decedent?

I. Transfer of property in favor of another person, but the

transfer was intended to take effect only upon the
transferor's death.
II. Transfer by gift intended to take effect at death, or after
death, or under which the donor reserved the income or the
right to designate the persons who should enjoy the income.

III. Transfer with retention or reservation of certain rights. The

decedent had transferred his property during his lifetime, but
retained for himself beneficial enjoyment of the thing or the right to
receive income from the same.

a. I and II only

b. II and III only

c. All of the above

d. None of the above

41. The following are deemed transfers in contemplation of death,
except

a. While still alive, the decedent donated property where the donation will
take effect at the time of his death.

b. The decedent transferred a property in the regular course of the business

operation.

c. The decedent donated a property with the condition that he/she will enjoy
the fruits of such while still alive.

d. The decedent transferred a property to take effect after his/her death

42. Transfers in contemplation of death:

c. P350,000

d. P400,000

a. P120,000

b. P300,000

43. An agreement created by will or an agreement under which title

to property is passed to another for conservation or investment with
the income therefrom and ultimately the corpus to be distributed in
accordance with the directives of the creator as expressed in the
governing instrument

a. Estate

b. Trust

c. Fiduciary

d. Beneficiary

44. All of the following statements are true, except

a. In a revocable transfer, the decedent during his lifetime may revoke, alter,
amend, or terminate the terms of enjoyment or ownership of the property.

b. A revocable transfer is always includible in the gross estate of the

decedent-transferor.
c. The power of the decedent-transferor to revoke terms may be exercised
just once.

d. A revocable transfer shall be included in the gross estate of the decedent-

transferor even though the power to revoke was not exercised.

45. A revocable transfer was made for a consideration of P100,000.

Fair market values of the property at the time of transfers and at
the time of death were P250,000 and P300.000, respectively. In the
gross estate, the value of the property was

a. P100,000

b. P250,000

c. P200,000

d. Exempt

46. Which of the following statements regarding transfer under

general power of appointment and transfer under special power of
appointment is correct?

I. There are three persons involved under this rule; the transferor,
the first transferee, and the second transferee. The first transferee
is the decedent.

II. If authority is granted by the transferor to the first transferee to

determine the person, who, upon the latter's death, would next
possess or enjoy the property transferred, his authority emanates
from a general power of appointment.

III. If the transferor himself had determined beforehand who upon

the death of the first transferee, would next possess or enjoy the
property, then the authority of the first transferee emanated from a
special power of appointment.

a. I and II only

b. II and III only

c. All of the above

d. None of the above

47. Which is wrong?

a. A power of appointment is the right to designate the person or persons
who shall succeed to the property of a prior decedent.

b. A special power of appointment authorized the donor of the power to

appoint only from among a designated class or group of persons including
himself.

c. The done-decedent of a special power of appointment only holds the

property in trust, hence, the property shall not form part of the done-
decedent's gross estate.

d. None of the above

48. Which of the following statements is not true?

a. A general power of appointment authorizes the donee of the power to

appoint any person to possess or enjoy the property.

b. A general power of appointment makes the donee of the power the owner
of the property.

c. A power of appointment is not always general.

d. The appointed property passing under a general power of appointment is

not includible in the gross estate of the donee-decedent.

49. The power of appointment may be exercised by the donor-

decedent through the following modes

I. By will

II. By deed to take effect in possession or enjoyment at or after his

death.

III. By deed under which he has retained for his life or any period
not ascertainable without reference to his death or for any period
which does not in fact end before his death.

a. I only

b. Il only

c. I and II only

d I, II and III

50. Which of the following transfer is not included in the gross

estate?
a. Transfer with reservation of certain rights

b. Transfer for insufficient consideration

c. Transfer for an adequate full consideration in money or money's worth

d. Transfer in contemplation of death

51. In determining whether the value of a property transferred

onerouslyby a decedent during his lifetime should be included in his
estate, ask yourself, was the consideration insufficient?

If yes, then add the excess of the FMV at the time of death over the
consideration received.

Exclude the property in

II. If no, then it was a bona fide sale. determining the decedent's
gross estate.

a. I only

b. Il only

c. Both I and II

d. Neither I nor II

52. Proceeds of life insurance includible in the taxable gross estate

a. Insurance proceeds from SSS or GSIS

b. Amount receivable by any beneficiary other than the estate, administrator

or executor, irrevocably designated in the policy by the insured

c. Amount receivable by any beneficiary designated in the insurance policy

d. Proceeds of group insurance taken out by a company for its

employees.

53. Amounts receivable by the estate of the deceased, his executor

or administrator as an insurance under policy taken by the decedent
Upon his own life is:

a. Excluded from the gross estate.

b. Part of the gross estate whether the beneficiary is revocable or

irrevocable.
c. Part of the gross estate if the beneficiary is revocable.

d. Part of the gross estate if the beneficiary is irrevocable.

54. Which of the following is not included in the gross estate?

a. Revocable transfer where the consideration is not sufficient

b. Revocable transfer where the power of revocation was not exercised

c. Proceeds of life insurance where the beneficiary designated is the estate

and the designation is irrevocable

d. Proceeds of life insurance where the beneficiary designated is the mother

and the designation is irrevocable.

55. Proceeds of life insurance where the beneficiary of the decedent

is not his estate, executor or administrator is

a. Part of gross income if the beneficiary is revocable

b. Part of gross income regardless of whether the beneficiary is revocable or

irrevocable

c. Not part of gross estate if the beneficiary is irrevocable

d. Part of gross estate regardless of whether the beneficiary is revocable or

irrevocable

56. Proceeds of life insurance to the extent of the amount

receivable by the estate of the deceased, his executor or
administrator under policies taken out by the decedent upon his
own life shall be

I. Part of the gross estate irrespective of whether the insured

retained the power of revocation

II. Not part of the gross estate if the beneficiary is irrevocable.

III. Part of the gross income if the designation of the

beneficiary is revocable

IV. Not part of the gross income irrespective of whether the insured
retained the power

a. I and II
b. b. I and III

c. I and IV
d. only I

57. Ms. Balo, spouse of the decedent who died in a bus accident (Harurot
Transport), received P2,500,000 broken down as follows:

P900,000From Habambuhay Life Insurance Company. A life insurance taken

out by the decedent designating his wife as revocable beneficiary.

P1,200,000 From Walang Hangganan Life Insurance Company taken out by

the decedent designating his wife as irrevocable beneficiary.

P400,000 From Harurot Transport Company (owner of the bus involved in

the accident) where settlement was made outside proceedings. The gross
estate of the decedent shall include :

a. P900,000

b. P1,200,000

c. P2,100,000

d. P2,500,000

58. Which of the following is not true regarding a claim against

insolvent persons?

a. The decedent’s claim is deductible in full because the debtor’s liabilities

exceed his remaining assets.

b. The decedent’s claim must be included in full in the gross Estate.

C. The decedent’s claim which cannot be collected is deductible according to

the ratio of the debtor’s assets to his liabilities.

d. Claim against insolvent person is a claim against person whose assets are
not sufficient to pay his liabilities.

59. Which is correct?

I. In a claim against insolvent person, the insolvency of the debtor

must be proven and not merely alleged.

II. It could be that the amount to be included as part of the gross

estate in a claim against insolvent person is less than the full
arnount owed.

a. I only

b. Il only
c. Both I and II

d. Neither I nor II

60. Which of the following is included in the income of the estate of

a Decedent?

a.Income received by the estate of a deceased person during the period of

administration or settlement of the estate.

B. Excess of selling price over the appraised value placed upon the property
at the time of death, where the property was sold After the settlement of the
estate.

c. Appreciation in the value of property passed to the executor or

Administrator upon death of decedent.

d. Delivery of property in kind to legatee or devisee.

61. One of the items in the gross estate of a decedent is a claim

against an insolvent person amounting to P500,000. The insolvent
debtor can still pay P100,000 out of the P500,000. How much will be
included in and deducted from the gross estate?

GROSS ESTATE DEDUCTION

a. 100,000 100,000
b. 500,000 100,000
c. 500,000 400,000
d. None None

62. The following are transactions exempt from transfer tax except:

a. Transmission from the first heir or donee in favor of another beneficiary in

accordance with the desire of the predecessor

b. transmission or delivery of the inheritance or legacy by the fiduciary heir

or legatee to the fideicommissary.

c. The merger of usufruct in the owner of the naked title.

D. All bequest, devices, legacies, or transfers to social welfare, cultural and

charitable institutions

63. Which of the following exempt transmissions will still require

inclusion of the property in the gross estate?

a. Merger of the usufruct in the owner the naked title;

b. Legacy to a charitable institutions whose administrative expenses did not
exceed 30% of the legacy;

c. Transfer from decedent; first heir to a second heir designated by the

d. Death benefits under the GSIS and GSIS.

64. One of the following is included in the gross estate of a

nonresident alien decedent:

a. Wholly uncollectible claims against a debtor who absconded, debtor

resides outside the Philippines.

b. Partially collectible claims against an insolvent person who resides in

Manila, the country of the nonresident alien decedent does not impose
transfer taxes of any kind.

c. Proceeds of life insurance of the decedent where the decedent’s estate

was designated as irrevocable beneficiary. The policy was procured in Manila.

d. Personal property situated in the Philippines donated by the decedent

before he died to a son on account of the son’s marriage.

65. Which of the following is a transfer in contemplation of death?

A. Mhalapit Nha has been fighting for his life since he was diagnosed to have
a terminal illness. Accepting his fate, he sought the assistance of Atty. Lho
Yer, and made his will.

B. Mr. Matibay celebrated his 101st birthday. Feeling that death is not far, he
transferred all his properties to Pedro and Juan.

C. Both “a” and “b”

d. Neither “a” nor “b”

66. Which of the following is a transfer under special power of

appointment?

I. Earl transfers his property in trust for his son, Gabry and then in
trust for anybody whom Gabry may, by will, appoint or designate.

II. Mr. Byahero frequently travels due to the nature of his

profession. He thinks that he is not spared from meeting accidents
considering the rampant occurrence of accidents these days. He
decided to execute his last will and testament appointing his
properties to his children.

III. Georgia designated his special friend, E. Garcia as beneficiary of

an insurance which he took upon his own life.

a. I only

b. Il only

c. All of the above

d. None of the above

67. Under which of the following situations an estate tax return is

required To be filed under the TRAIN Law?

a. Transfers which are subject to estate tax.

b. The estate consists of registered or registrable properties for which a

clearance from the BIR is required as a condition precedent for the transfer
of ownership.

c. Both “a” and “b”

d. Neither “a” nor “b”

68. Who shall file the estate tax return?

a. Executor, or administrator, or any of the legal heirs

b. Creditors of the decedent

c. Personal secretary of the decedent

d. Debtors of the decedent

69. Statement 1: The estate tax imposed under the Tax Code shall
be paid by the executor or administrator before the delivery of the
distributive share in the inheritance to any heir or beneficiary.

Statement 2: The executor or administrator of an estate has the

primary obligation to pay the estate tax but the heir or beneficiary
has subsidiary liability for paying that portion of the estate
corresponding to his distributive share in the value of the total net
estate.

A. Statements 1 and 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

70. Statement 1: The Commissioner or any of the Revenue Officer

authorized by him pursuant to the tax code shall have the authority
to grant, in meritorious cases, a reasonable extension not exceeding
thirty (30) days for filing the return.

Statement 2: The application for the extension of time to file the

estate tax return must be filed with the RDO where the estate is
required to secure its TIN and file tax return of the estate.

a. Statements 1 and 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