Hi Tutor!

Can help me in this assignment about the gross estates. Thank you in advance.

I. Pedro suffered an unexpected heart attack causing his death on November 1, 2020. His estate composed of the following:

Cash in Bank: P1,000,000

Commercial Building: P5,000,000

Cars: P1,000,000

House and Lot: P3,000,000

Juan is the only heir of the decedent. Pedro's remains were cremated on November 8, 2020. The executor of Pedro's estate filed the estate tax return and paid the corresponding estate tax on April 30, 2021. The properties left by the decedent were finally distributed to Juan on June 2021.

(Answer the following with explanation)

1. When will the transfer of ownership from the decedent to the heir effect? Discuss. (5 Points)
2. When should the estate tax accrue? (5 points)
3. Assume that Pedro's total outstanding liabilities as of the time of his death amounted to P12,000,000. How much of the outstanding liabilities of the decedent should be assumed by Juan? (10 points)

II. A life insurance worth worth P10,000,000 was taken out by Pedro upon his life. He designated his friend, Juan, as beneficiary. Should the proceeds be included in the gross estate of Pedro upon his death? Yes or No? Explain. (10 points)

III. Pedro died in 2021. At the time of his death, he has a collectible sum of P1,000,000 from a debtor who was subsequently declared by court as insolvent for having a total liabilities of P4,000,000 against his total properties valued P800,000 only.

1. How much should be included in the gross estate of Pedro?(10 points)
2. How much may be claimed as deduction from the gross estate of Pedro? Show your solution. (10 points)