ESTATE TAX

According to Article 774 of the Civil Code, what is Succession?

A) A contract where property is transferred between living persons.

B) A mode of acquisition where property, rights, and obligations are transmitted through death.

C) A legal agreement for the sale of inherited property.

D) A declaration of one's last wishes concerning personal matters.

B) A mode of acquisition where property, rights, and obligations are transmitted through death.

Rationale: Article 774 of the Civil Code states: "Succession is a mode of acquisition by virtue of which the property, rights and obligations to the extent of the value of the inheritance, of a person are transmitted through his death to another or others either by his will or by operation of law."

From what moment are the rights to the succession transmitted?

A) From the date the will is probated by the court.

B) From the date the estate tax is paid.

C) From the moment of the death of the decedent.

D) From the time the heirs agree to partition the estate.

C) From the moment of the death of the decedent.

Rationale: Article 777 of the Civil Code states: "The rights to the succession are transmitted from the moment of the death of the decedent."

Which of the following is a primary characteristic of a will?

A) It must be a bilateral act.

B) It is essentially irrevocable during the testator's lifetime.

C) It is a strictly personal act.

D) It takes effect inter vivos.

C) It is a strictly personal act.

RULES ON WILLS:

• Strictly personal acts

• Minors can’t make wills

• Testator of sound mind when making

• In writing

• In language known to testator

• Joint wills PROHIBITED

Rationale: The document lists "Strictly personal act" (Art. 784, CC) as a characteristic of a will.

How many witnesses are required for a Notarial Will?

A) Two (2)

B) Three (3) or more

C) Four (4)

D) No witnesses are required

B) Three (3) or more

Rationale: A Notarial Will "Requires three (3) witnesses" as per the summary table. Article 805 also specifies "attested and subscribed by three or more credible witnesses".

What defines an heir who succeeds by "universal title"?

A) One who receives specific personal properties.

B) One who receives specific real properties.

C) One who is called to the whole or aliquot portion of the inheritance.

D) One who is appointed by the court to manage the estate.

C) One who is called to the whole or aliquot portion of the inheritance.

heirs – universal title

legatees & devisees – particular title

Rationale: The document defines "Heirs" as "those who are called to the whole or aliquot portion of the inheritance" and succeed by universal title.

Which of the following is NOT an element of succession?

A) Decedent

B) Estate

C) Creditor

D) Transferees

C) Creditor

Rationale: The document lists "Decedent (testator)", "Estate", and "Transferees" (Heirs, Legatees, Devisees) as elements of succession. Creditor is not listed as an element.

Which of these is a compulsory heir under Philippine law?

A) Voluntary heirs designated in the will.

B) Legitimate parents and ascendants.

C) Friends of the decedent mentioned in the will.

D) Legatees.

B) Legitimate parents and ascendants.

primary – children, descendants

secondary – parents

concurring – spouse

Rationale: The document lists "Legitimate parents and ascendants (LPA)" as Secondary Compulsory Heirs.

What is the minimum age requirement for a person to make a will?

A) 16 years old

B) 18 years old

C) 21 years old

D) Any age, as long as they are of sound mind.

B) 18 years old

minors can’t write a will

Rationale: The document states that "Minors cannot make a will (Art. 797, CC)". In the Philippines, the age of majority is 18.

What is the main inquiry of the court during the probate of a will?

A) To determine the intrinsic validity of the will (e.g., distribution of shares).

B) To examine and resolve the extrinsic validity of the will.

C) To identify all the properties of the estate.

D) To pay all debts of the decedent.

B) To examine and resolve the extrinsic validity of the will.

it’s extrinsic, not intrinsic

C is determination

D is settlement of credits

Rationale: The document states regarding "Probate of Will": "The court's area of inquiry is limited to an examination of, and resolution on, the extrinsic validity of the will."

What type of will must be entirely written, dated, and signed by the hand of the testator?

A) Notarial Will

B) Holographic Will

C) Joint Will

D) Reciprocal Will

B) Holographic Will

handwritten – holographic will

joint will is PROHIBITED

Rationale: The document defines a "Holographic Will" as "Entirely handwritten (handwriting is sufficient proof)" and notes it requires no witnesses, attestation, or acknowledgment.

A will is an act whereby a person is permitted to control the disposition of his estate to take effect during his lifetime.

FALSE.

yes, you can control to a certain extent only because there are compulsory heirs but it takes effect AT THE MOMENT OF DEATH OF DECEDENT

A will is an act whereby a person controls the disposition of his estate "upon his death" (mortis causa), not during his lifetime (inter vivos).

The "four-fold test" is used to determine the existence of a will.

FALSE.

no, this is used to determine the employer-employee relationship

The "four-fold test" is used to determine the existence of an employer-employee relationship, not a will.

Legatees succeed by particular title on personal properties.

TRUE.

heirs – universal title

legatees – particular title (personal property)

devisee – particular title (real property)

"Legatees" are those who "succeed by particular title on personal properties."

Intestate succession occurs when a person dies without a will.

TRUE.

	HAS WILL?
intestate	no
testate	yes
mixed	yes, but not all prop

"Intestate Succession" is a kind of succession, occurring when a person dies without a valid will.

A testator must be of sound mind at the time of executing the will.

TRUE.

RULES ON WILLS:

• Stricly personal

• Minors cannot

• Testator of sound mind at time of execution

• In writing

• In language known to testator

• Joint wills PROHIBITED

Article 798 states that the testator "must be of sound mind at the time of the execution" of the will.

Joint wills, where two or more persons make a will in the same instrument, are allowed under Philippine law.

FALSE.

Joint wills are PROHIBITED

Article 818 of the Civil Code explicitly states that "Joint wills are prohibited."

The attestation clause in a notarial will states that the witnesses signed in the presence of the testator and each other.

TRUE.

The attestation clause includes the statement that witnesses "attested and subscribed in the presence of the testator and of one another."

A holographic will does not require an attestation clause or acknowledgment before a notary public.

TRUE.

yes, because the handwriting is sufficient proof that the testator executed the will

A holographic will does not require witnesses, attestation, or acknowledgment before a notary public.

Compulsory heirs can be disinherited for any reason, as long as it is stated in the will.

FALSE.

Compulsory heirs can only be disinherited for "just cause" and this cause must be "expressed" in the will (Art. 916). It cannot be for any reason.

The legitime is the portion of the testator's property that he cannot dispose of because the law has reserved it for certain compulsory heirs.

TRUE.

may dispose property but not those for compulsory heirs

"Legitime" is the portion of the estate that a testator cannot dispose of because it is reserved for compulsory heirs.

Mr. Dela Cruz, 70 years old, executed a document titled "Last Will and Testament." In this document, he carefully listed all his properties and designated his nephew, who had been living with him for 30 years, as the sole heir to his entire estate. The document was entirely handwritten by Mr. Dela Cruz, dated, and signed by him at the end. However, it was not attested by any witnesses, nor was it acknowledged before a notary public.

• Question: Is this document a valid will under Philippine law? Justify your answer by identifying the type of will Mr. Dela Cruz attempted to execute and its specific requirements.

Yes, it is valid. The Civil Code provides that holographic wills need not be notarized and attested by 3 witnesses. In this case, the will of Mr. Dela Cruz was entirely handwritten. No additional requirements concur with this mode; hence, the document is valid.

RULES ON WILLS	COMPLIANCE
Strictly personal	YES
Not a minor	YES
Sound mind	YES
In writing	YES
In language known to testator	YES
Not a joint will	YES

Which of the following scenarios would render a will invalid due to lack of testamentary capacity, even if all formal requisites are met?

A) The testator was under the influence of strong painkillers at the time of signing, but was still aware of the nature and extent of his property. X

B) The testator, 85 years old, had occasional moments of confusion but executed the will during a lucid interval. X

C) The testator, at the exact moment of signing the will, suffered from a mental delusion preventing him from understanding the object of his bounty.

D) The will was written in a language the testator understood, but could not personally write. X

C) The testator, at the exact moment of signing the will, suffered from a mental delusion preventing him from understanding the object of his bounty.

A & B valid. Testator is of sound mind

D is valid. The will need not be handwritten. It could also be typewritten or a notarial will wherein it shall be duly notarized and attested by 3 witnesses.

C is invalid. The testator was not of sound mind at the time of execution of will.

• Rationale: Article 799 states that to be of sound mind, the testator must "know the nature of the estate to be disposed of, the proper objects of his bounty, and the character of the testamentary act." A mental delusion specifically preventing understanding of the "object of his bounty" at the exact moment of signing directly violates the requirement of sound mind at execution (Art. 798).

• A & B are false: Occasional confusion or painkiller influence do not negate sound mind if the testator still meets the Art. 799 criteria during execution. Art. 800 allows for wills made during a lucid interval.

• D is false: The will must be in a language known to the testator, but he doesn't necessarily have to be able to write it himself if it's a notarial will where he subscribes or his agent signs.

A will was executed by a testator who was blind. Which additional requirement is specifically mandated for this particular scenario to ensure the will's validity as a Notarial Will?

A) The will must be read to the testator twice, once by the subscribing witnesses and once by the notary public.

B) The will must be entirely written in braille.

C) The attestation clause must explicitly state that the will was read to the testator, and a copy provided to him.

D) There must be at least four (4) subscribing witnesses instead of the usual three.

A) The will must be read to the testator twice, once by the subscribing witnesses and once by the notary public.

• Rationale: The "Formalities" section mentions that special rules apply for "blind" testators. In Philippine law, for blind testators, the will must be read to him twice: once by one of the subscribing witnesses, and again by the notary public. This is a common and specific requirement.

• C describes only part of the requirement. B and D are incorrect.

ARTICLE 808. If the testator is blind, the will shall be read to him twice; once, by one of the subscribing witnesses, and again, by the notary public before whom the will is acknowledged. (n)

Which of the following is TRUE regarding the characteristics of a will?

A) It is essentially revocable, but this revocability is contingent upon the consent of the designated heirs.

B) It is a unilateral act, meaning it takes effect without the need for acceptance by the transferees during the testator's lifetime.

C) While it disposes of property, it may also contain provisions for inter vivos transfers.

D) Its validity is determined by the testator's sound mind at any point after its execution, up to the time of death.

B) It is a unilateral act, meaning it takes effect without the need for acceptance by the transferees during the testator's lifetime.

A is wrong. The revocability is contingent upon the consent of the decedent. For compulsory heirs to be disinherited, there should be just cause explicitly stated in the will.

C refers to donations. Wills are only for successions and they take effect at the moment of the death of the decedent.

D is wrong. The testator’s sound mind rule applies only upon the execution of the will.

STATEMENT 1: A disposition in a will acknowledging an illegitimate child is revocable.

STATEMENT 2: A will that does not contain any disposition of property but solely acknowledges an illegitimate child is nevertheless a valid will.

A) Both statements are true.

B) Statement 1 is true; Statement 2 is false.

C) Statement 1 is false; Statement 2 is true.

D) Both statements are false.

C) Statement 1 is false; Statement 2 is true.

• Rationale:

  • Statement 1 is false: "Acknowledgment of illegitimate child" is a content of a will. However, the acknowledgment of an illegitimate child, though contained in a will, is not revocable even if the will itself is revoked. It is an independent act.

  • Statement 2 is true: A will may "contain disposition of property, disinheritance, or acknowledgment of illegitimate child." This implies that a will may primarily contain an acknowledgment even without specific property dispositions. The characteristic of a will is not solely about property distribution.

ARTICLE 834. The recognition of an illegitimate child does not lose its legal effect, even though the will wherein it was made should be revoked. (741)

An executor, duly appointed in a will, refuses to serve. What is the next logical step in the settlement of the estate, according to the prescribed process?

A) The heirs must file a new will. X

B) The court will appoint an administrator for the estate.

C) The estate immediately becomes subject to intestate succession. X

D) The estate will be distributed by operation of law without further court intervention. X

B) The court will appoint an administrator for the estate.

Rationale: The "Settlement of Estate" section states that after probate, if the will "names an executor", that person is appointed. If "the will does not name an executor... the court will appoint an administrator." If an appointed executor refuses, it falls under the same principle as if no executor was named.

What is the primary difference between a "Legatee" and a "Devisee"?

A) A legatee succeeds by universal title, while a devisee succeeds by particular title. X

B) A legatee receives personal property, while a devisee receives real property.

C) A legatee must be a compulsory heir, while a devisee can be a voluntary heir. X

D) A legatee is named in a will, while a devisee inherits by operation of law. X

B) A legatee receives personal property, while a devisee receives real property.

A is wrong. Legatee & devisee both succeed by particular title.

C is wrong. There are no restrictions as to heir classification.

D is wrong. The mode of inheritance is not a difference between legatee and devisee.

• Rationale: The document defines "Legatees" as succeeding "by particular title on personal properties" and "Devisees" as succeeding "by particular title on real properties."

• A is false: Both succeed by particular title.

• C is false: Both can be voluntary heirs, not necessarily compulsory.

• D is false: Both are named in a will.

Which formal requirement for a Notarial Will can be satisfied by a single signing from the testator or a person acting on his behalf?

A) Signing of every page by the testator and witnesses.

B) Marginal signatures on every page.

C) Subscription at the end of the will.

D) Attestation by witnesses.

C) Subscription at the end of the will.

Rationale: Article 805 states that the will must be "subscribed by the testator himself or by some other person in his presence, and by his express direction, at the end thereof." This implies a single act of subscribing the main body. Marginal signatures are on every page.

ARTICLE 805. Every will, other than a holographic will, must be subscribed at the end thereof by the testator himself or by the testator’s name written by some other person in his presence, and by his express direction, and attested and subscribed by three or more credible witnesses in the presence of the testator and of one another.

STATEMENT 1: All compulsory heirs, regardless of how they receive property from the decedent during their lifetime, are obligated to bring such property into the mass of the estate for collation.

STATEMENT 2: A remuneratory donation is exempt from collation if the value of the property exceeds the value of the service rendered.

A) Both statements are true.

B) Statement 1 is true; Statement 2 is false.

C) Statement 1 is false; Statement 2 is true.

D) Both statements are false.

C) Statement 1 is false; Statement 2 is true.

Rationale:

• Statement 1 is false: Article 1061 states that "Every compulsory heir who is an heir by compulsory succession, must bring into the mass of the estate all property received by them from the decedent during his lifetime by gratuitous title." This limits collation to compulsory heirs who are also heirs by compulsory succession and applies only to property received by gratuitous title, not all forms of acquisition.

• Statement 2 is true: Article 1067 states that "Remuneratory donations or those made for services rendered by the donee to the donor, are not subject to collation if the value of the property exceeds the value of the service rendered."

ARTICLE 1061. Every compulsory heir, who succeeds with other compulsory heirs, must bring into the mass of the estate any property or right which he may have received from the decedent, during the lifetime of the latter, by way of donation, or any other gratuitous title, in order that it may be computed in the determination of the legitime of each heir, and in the account of the partition. (1035a)

ARTICLE 1067. Expenses for support, education, medical attendance, even in extraordinary illness, apprenticeship, ordinary equipment, or customary gifts are not subject to collation. (1041)

What is the specific legal implication of a court limiting its inquiry to "extrinsic validity" during the probate of a will?

A) The court will determine if the dispositions of property are fair and equitable.

B) The court will only verify if the will complied with formal requisites, testamentary capacity, and proper execution, without examining its contents or beneficiaries' shares.

C) The court will ascertain if the testator intended to disinherit any heir.

D) The court will assess the total value of the estate before confirming the will's authenticity.

B) The court will only verify if the will complied with formal requisites, testamentary capacity, and proper execution, without examining its contents or beneficiaries' shares.

Rationale: The document explicitly states: "The court's area of inquiry is limited to an examination of, and resolution on, the extrinsic validity of the will. The due execution thereof, the testatrix's testamentary capacity, and the compliance with the requisites or solemnities by law prescribed, are the questions solely to be represented, and to be acted upon, by the court." This explicitly excludes examining content or beneficiaries' shares, which pertains to intrinsic validity.