1.
Decedent, Jose Aguinaldo has the following information:
Value of property at the time of sale P 1,200,000
Value of consideration when sold 1,000,000
Value of the property at the time of death 1,500,000
What is the amount to be included in the gross estate of Jose Aguinaldo ?
a) P 100,000
b) P 200,000
c) P 300,000
d) P 500,000
2. 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
3. One of the following donations is not included in the computation of the gross estate
a) Revocable transfers
b) Transfers with reservation of certain rights
c) Transfers under special power of appointment
d) Transfers in contemplation of death
4. Estate tax is an excise tax – TRUE
5. Devisees and legatees are persons to whom gifts of real or personal property are respectively
given
by virtue of a will. – TRUE
6. Mortis causa transfer of property is effected upon payment of estate tax. – FALSE
7. Which is not authorized to take charge of the estate during intestate period ?
a) Administrator
b) Executor
c) Court
d) Heirs
8. Which of the following is not included in the gross estate ?
a) Revocable transfer where the consideration is not sufficient
b) Proceeds of life insurance where the beneficiary designated is the estate and the designation
is irrevocable
c) Revocable transfer where the power of revocation was not exercised
d) Proceeds of life insurance where the beneficiary designated is the mother and the designation
is
irrevocable
9. Assume that the shares were traded in the stock exchange. Assume further that the quoted
price at the time of death was P110 per share. What was the value included in the decedent’s
gross estate ?
a) P100,000
b) P110,000
c) P120,000
d) P150,000
10. A person has unlimited right to make donations in his last will and testament. – FALSE
11. The following are properties in the gross estate with their fair market values:
House & lot, family home in Quezon City, P 1,800,000
Bank deposit in the foreign branch of a domestic bank, P 600,000.
Bank deposit in Manila branch of a foreign bank, P 400,000
Shares of stock issued by San Miguel Corp, a domestic corporation certificate kept in the
USA, P1,200,000
Franchise exercised in Makati, Philippines, P700,000
Receivable, debtor from the Visayas, P250,000
How much is the value of the property to be excluded from the gross estate if decedent is a
nonresident alien and there is reciprocity ?
a) P4,300,000
b) P3,150,000
c) P2,900,000
d) P2,500,000
12. 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
13. It deprives an heir to inherit properties by the decedent through the issuance of a will
a) Disinheritance
b) Distributable share
c) Legitimate
d) Disqualification
14. 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. – TRUE
15. An heir who inherits a specific personal property by will is known as devisee. – FALSE
CHONG SY, Filipina, died in the Middle East leaving the following properties:
House and lot in the Middle East
- 1,000,000
Vacant lot in Manila
- 2,000,000
Shares of stock, Domestic Corp., 60% of the business is located in the Philippines -
200,000
Shares of stock in a Foreign Corp., 70% of the Business is located in the Philippines -
300,000
Car in Manila
- 500,000
How much is Ms. SY's gross estate ?
a) P 4,000,000
b) P 3,500,000
c) P 3,200,000
d) P3,000,000
16. Legitimate children and their descendants succeed the parents and other ascendants,
without
distinction as to sex or age, and even if they should come from different marriages. – FALSE
17. Succession which results from the designation of an heir, made in a will executed in the form
prescribed by law is known as
a) Legal or intestate succession
b) Testamentary succession
c) Mixed succession
d) Ordinary succession
18. Which of the following is regarded as an intestate succession ?
a) The will is designating the State as beneficiary of the free portion.
b) The will was subsequently rendered void by circumstances.
c) The will designate a part of free portion to a stranger.
d) The will disposed the legitime to its rightful heir.
19. If the surviving heirs in an intestate succession are the parents and a legitimate child of the
decedent, what is the share of the parents in the legitimes ?
a) 1/3
b) 1/2
c) 1/4
d) None
20. The following transfers were made in contemplation of death:
Consideration FMV upon FMV
upon
Received Transfer Death
Land P 1,700,000 P 1,700,000 P
2,300,000
Shares of stock 150,000 100,000
175,000
Vintage motor vehicle 75,000 105,000 125,000
Painting 300,000 450,000
550,000
What is the correct amount of the gross estate ?
a) P 250,000
b) P 300,000
c) P 550,000
d) P 850,000
21. DINA NATUTO, Filipina, died in the USA with the following properties:
Condo unit in New York City - P2,500,000
Shares of stock in a foreign corporation - 800,000
Interest in a partnership business, domestic - 400,000
Bank deposit in a New York City bank - 100,000
Car in Cebu, donated inter vivos 5 years ago to her son - 350,000
Assume the decedent is a nonresident alien (no reciprocity), how much is her gross estate ?
a) P1,200,000
b) P 800,000
c) P 400,000
d) Zero
22. ransfer tax is classified as national tax. – TRUE
23. A holographic will is a will entirely written by the testator with his own hand and may be
witnessed or attested. – FALSE
24. In which of the following cases a will becomes invalid ?
a) When no heir has been instituted
b) When the will was executed in a language not known to the testator
c) When the institution does not cover the entire estate
d) When the instituted heir is incapacitated to succeed
25. The following information of the properties of a decedent, Mr. Waldo Magtanggol is given
below:
o
FMV at the time of transfer - P 5,000,000
FMV at the time of death - 6,000,000
Consideration received - 5,000,000
26. What is the amount to be included in the computation of Mr. Magtanggol’s gross estate ?
a) P 6,000,000
b) P 5,000,000
c) P11,000,000
d) Zero
27. The elements of succession are:
I. Decedent
II. Estate
III. Heirs
IV. Administrators/Executors
a) I and II only
b) I, II and III only
c) All of the above
d) None of the above
28. DINA NATUTO, Filipina, died in the USA with the following properties:
Condo unit in New York City - P2,500,000
Shares of stock in a foreign corporation - 800,000
Interest in a partnership business, domestic - 400,000
Bank deposit in a New York City bank - 100,000
Car in Cebu, donated inter vivos 5 years ago to her son - 350,000
How much should be included in the gross estate of Ms. NATUTO ?
a) P 2,500,000
b) P3,300,000
c) P 3,700,000
d) P3,800,000
29. The following are causes for disinheriting a spouse, which is not ?
a) When the spouse justifiably refuses to support the children or the other spouse.
b) When the spouse has accused the testator of a crime for which the law prescribes
imprisonment for six years or more, and the accusation has been found to be false.
c) When the spouse by fraud, violence, intimidation or undue influence causes the testator to
make a will or to change one already made.
d) When the spouse has given cause for legal separation.
30.A surviving spouse is a compulsory heir classified under
a) Primary heir
b) Secondary heir
c) Concurring heir
d) Voluntary heir
