1.Which of the following rules on "situs" of property of a decedent correct?

I.As a general rule, the situs 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 of the 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 Il only

c.I, II, and III only

d.I, II, III, AND IV

2.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.

3.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 in organized or constituted in the Philippines 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.

4.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 nonresident decedent

d.Foreign currency deposited in bank outside the Philippines

5.A Filipino decedent residing in Hawaii during his lifetime, left the following properties:

House & lot, USA 10,000,000

Mansion, Philippines50,000,000

Cars, Philippines 2,000,000

Shares of stock, Singapore 5,000,000

Accounts receivable, USA3,000,000

The gross estate of the decedent is:

a.70,000,000

b.67,000,000

c.65,000,000

d.62,000,000

6.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 nonresident alien decedent;

c.Investment in bonds in a US 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.

7.The gross estate of a decedent included the following:

CostFair Value

Land and Building, Philippines1,600,0002,000,000

House and Lot, UK1,800,0001,500,000

Personal Properties, UK1,000,000600,000

House and Lot, Philippines4,000,0003,500,000

Shares of Stocks, UK corp200,000

Shares of stocks, domestic corp 250,000

(certificate kept in UK)

Shares of stock, domestic corp 100,000

(certificate kept in ph)

Franchise exercised in the Phils.200,000

Franchise exercised in UK150,000

Receivables, debtor is from UK50,000

Receivables, debtor is from Phils.50,000

A. 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

B. 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

8.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 Corporation10,000,000

Retained earnings 2,000,000

Outstanding shares100,000

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

a.100,000 b.120,000 c. 150,000 d. 0

II.Assume that the shares were classified as preference shares, what was the value included the decedent's gross estate?

a.100,000 b.120,000 c. 150,000 d. 0

III.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.100,000 b. 110,000 c. 120,000 d. 150,000

IV.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.100,000 b. 110,000 c. 120,000 d. 150,000

9.Decedent died in 2018 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 2018, the estate left by the decedent had a fair market value of P500,000. In 2020, 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 in 2018.

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

10.Transfer in contemplation of death

I. Refers to property formerly Owned by the decedent but were no longer owned by him at the time of his death.

II.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,

III.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

IV.At the time of the decedent's death, the decedent no longer owned the property, but such property forms part of his gross estate for estate tax purposes.

a.I and II only

b.I,II, and III only

c.All

d.None

11.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 dispositions.

a.I only

b.II only

c.Both

d.Neither

12.Transfers in contemplation of death have the following in common:

I.They are ostensible transfers, usually with the purpose to evade the estate tax.

II.They are extension of interests.

III.If the transfers are in fact for a bona fide consideration, then they will not form part of the gross estate.

a.I and II only

b.I,II, and III only

c.All

d.None

13.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

14.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

15.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 or not 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 or not the insured retained the power of revocation

a.I and II

b.I and III

c.I and IV

d.Only I

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

P900,0000 From 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 beneficiary.

P400,000From Harurot Transport Company (owner of the bus involved in the accident) where settlement was his wife as irrevocable made outside court proceedings.

The gross estate of the decedent shall include

a. P900,000 b. P1,200,000 c. P2,100,000 d. P2,500,000

17.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 EstateDeduction

a.100,000100,000

b.500,000100,000

c.500,000400,000

d.NoneNone

18.The following are transactions exempt from transfer tax except

a.Transmission from the first heir or done 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 their naked title

d.All bequest, devices, legacies, or transfers to social welfare, cultural and charitable institutions

19.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 a first heir to a second heir designated by the decedent;

d.Death benefits under the GSIS and GSIS

20.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.II only

c.All of the above

d.None of the above