The transfer to the donee is irrevocable while donor is alive.
There is no conveyance of title or ownership to the donee before death of the donor.
The transferor retains the full or naked ownership and control of the property while alive.
The transfer should be void if the donor should survive the donee.

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 ...

Donor's tax
Estate tax
Income tax
Excise tax

The gross estate of a decedent shall be comprised of the following properties and interest therein at the time of his death, including revocable trans...

I only
II only
Both I and II
Neither I nor II

Which of the following shall be considered personal property? I. Obligations and actions which have for their object movables or demandable sums. II...

Both I and II
Neither I nor II
I only
II only

In determining the net estate of a decedent, which of the following rules is NOT correct?

Real estate abroad is not included in the gross estate of a decedent who is a resident alien
Vanishing deduction must be subject to limitations
Shares of stocks being intangible property shall be included in the decedent's gross estate wherever situated.
Funeral expenses are deductible to the extent of 5% of the total gross estate but not exceeding P200,000

The personal property of a non-resident, not citizen of the Philippines, would NOT be included in the gross estate if;

The intangible personal property is in the Philippines
The intangible property is in the Philippines and the reciprocity clause of the estate tax law applies.
The tangible property is in the Philippines.
The personal property is shares of stocks of a domestic corporation 90% of whose business is in the Philippines.

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

Car in the Philippines owned by a non-resident alien decedent;
Investment in stock in a US Corporation owned by a non-resident alien decedent;
Investments in bonds in a US Corporation that has acquired business situs in the Philippines, and is owned by a resident alien;
Shares owned by a non-resident alien in a partnership established in the Philippines.

The rule of reciprocity applies to: I. Non-resident alien decedent II. Intangible personal property in the Philippines

Yes; Yes
No; No
Yes; No
No; Yes

One of the ff. is NOT an intangible personal property situated in the Philippines: I. Shares, obligations or bonds issued by any corporation or socie...

I only
II only
III only
IV only

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 co...

I only
I and II only
I, II, and III only
I, II, III, and IV only

Which is NOT a test of situs?

Residence of the debtor in case of accounts receivable.
Place of storage in case of certificates of stocks.
Location of depository bank in case of bank deposit.
Place of exercise in case of copyright.

One of the following is NOT an intangible personal property situated in the Philippines:

Shares, obligations or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippines in accordance with its law;
Shares, obligations or bonds issued by any foreign corporation 85% of the business of which located in the Philippines
Shares, obligations or bonds issued by any foreign corporation if such shares, obligations or bonds have acquired business situs in the Philippines;
Shares, obligations or bonds issued by a non-resident foreign corporation.

Which of the following statements is correct?

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.
Estate taxation is governed by the statute in force at the time the return is filed.
Both "a" and "b"
Neither "a" nor "b"

Which of the following item is considered situated outside the Philippines?

Franchise in the name of the decedent which is exercised in the Philippines
Share of stock holdings of decedent in a foreign corporation whose business is 90% done in the Philippines
Bond certificate issued by a domestic corporation owned by a non-resident decedent
Foreign currency deposited in bank outside the Philippines

Pedro died on April 13, 2018, leaving the ff. properties: *Common stocks of Sunchamp Corporation (2,000 shares) - listed in the Philippine Stock Exch...

P817,500
P816,500
P824,000
P846,500

Use the following data for the next two (2) questions Following are properties in the gross estate with their FMV: *House and lot, family home in ...

P2,800,000
P2,600,000
P2,300,000
P2,000,000

If the decedent was non-resident alien and there is no reciprocity, the gross estate is valued at:

P4,300,000
P3,800,000
P3,500,000
P3,200,000

A Filipino decedent residing in Hawaii during his lifetime, left the ff properties: House & lot, USA - P10,000,000 Mansion, PH - P50,000,000 *Car...

P70,000,000
P67,000,000
P65,000,000
P62,000,000

The gross estate of a decedent included in the ff (Cost; Fair Value) Land and building, PH - P1,600,000; P2,000,000 House and lot, UK - 1,800,000;...

P1,000,000
P800,000
P600,000
P350,000

The gross estate of a decedent included in the ff (Cost; Fair Value) Land and building, PH - P1,600,000; P2,000,000 House and lot, UK - 1,800,000;...

P10,700,000
P6,600,000
P6,100,000
P5,850,000

When the property is donated in contemplation of death, the basis of the tax shall be

FMV at the time of donation
FMV in the hands of the donor before the time of the donation
FMV at the time of death of the donor
Cost when the property was acquired

As a rule, the basis of valuation of property in the gross estate is the FMV prevailing at the time of decedent's death. In the case of domestic ...

The value appearing in the schedule of fixed values from the assessor's office
Net realizable value
Acquisition cost
Issuerâ€™s book value

Which of the following is NOT used when valuing gross estate?

FMV at the time of death;
FMV at the time the estate return is filed;
Zonal value when higher than the assessed value in case of real property;
Book value in case of shares not traded in the stock exchange.

The ff statements pertain to rules on valuing the estate left by a decedent. Select the INCORRECT statement I. Values in the gross estate are based o...

I only
II only
Both I and II
Neither I nor II

A decedent left a piece of land. The ff data were available in connection with the property. *Assessed value, one (1) month before death - P2,500,000...

P3,000,000
P2,500,000
P2,000,000
Cannot be determined

A decedent left 1,000 XYZ Corporation common shares. The shares were not traded in the stock exchange. The ff data were made available: *Capital stoc...

P100,000
P120,000
P150,000
P0

A decedent left 1,000 XYZ Corporation common shares. The shares were not traded in the stock exchange. The ff data were made available: *Capital stoc...

P100,00
P120,000
P150,000
P0

A decedent left 1,000 XYZ Corporation common shares. The shares were not traded in the stock exchange. The ff data were made available: *Capital stoc...

P100,00
P110,000
P120,000
P150,000

A decedent left 1,000 XYZ Corporation common shares. The shares were not traded in the stock exchange. The ff data were made available: *Capital stoc...

P100,000
P110,000
P120,000
P150,000

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, a...

P5,000,000
P4,000,000
P4,500,000
P500,000

Decedent's interest I. Refers to the extent of equity or ownership participation of the decedent on any property physically existing and present...

I only
II only
Both I and II
Neither I nor II

Which of the ff. is NOT to be included in the gross estate of citizen decedent?

Dividend income declared, but not yet actually received at date of death
Share in partnershipâ€™s profit earned immediately after date of death
Rent income accrued before death but collected after death
None of the above

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....

I and II only
I, II, and III only
All of the above
None of the above

Which among the ff. is correct? I. There may be properties which at the time of the decedent's death are not in the estate because they were tra...

I only
II only
Both I and II
Neither I nor II

Transfers in contemplation of death have the ff. in common: I. They are ostensible transfers, usually with the purpose to evade the estate tax. II. ...

I and II only
II and III only
All of the above
None of the above

The ff. are deemed transfers in contemplation of death, except

While still alive, the decedent donated property where the donation will take effect at the time of his death.
The decedent transferred a property in the regular course of the business operation.
The decedent donated a property with the condition that he/she will enjoy the fruits of such while he/she is still alive.
The decedent transferred a property to take effect after his/her death.

Transfers in contemplation of death: Consideration received; FMV upon transfer; FMV upon death Land - P1,500,000; P1,500,000; P2,000,000 Shares of ...

P120,000
P300,000
P300,000
P350,000

An agreement created by will or an agreement under which title to property is passed to another for conservation or investment with the income therefr...

Estate
Trust
Fiduciary
Beneficiary

All of the following statements are true, except

In a revocable transfer, the decedent during his lifetime may revoke, after, amend, or terminate the terms of enjoyment or ownership of the property.
A revocable transfer is always includible in the gross estate of the decedent-transferor.
The power of Pre decedent-transferor to revoke terms may be exercised just once.
A revocable transfer shall be included in the gross estate of the decedent-transferor even though the power to revoke was not exercised.

Which of the following is NOT included in the gross estate?

Revocable transfer where the consideration is not sufficient
Revocable transfer where the power of revocation was not exercised
Transfer passing under general power of appointment
Transfer for sufficient consideration

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 we...

P100,000
P250,000
P200,000
Exempt

Which of the following statements regarding transfer under general power of appointment and transfer under special power of appointment is correct? I...

I and II only
II and Ill only
All of the above
None of the above

Which is wrong?

A power of appointment is the right to designate the person or persons who shall succeed to the property of a prior decedent.
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.
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-decedentâ€™s gross estate.
None of the above

Which of the following statements is NOT true?

A general power of appointment authorizes the donee of the power to appoint any person to possess or enjoy the property.
A general power of appointment makes the donee of the power the owner of the property.
A power of appointment is not always general.
The appointed property passing under a general power of appointment is not inaudible in the gross estate of the donee-decedent.

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 e...

I only
II only
I and II only
I, II, and III

Which of the following transfer is NOT included in the gross estate?

Transfer with reservation of certain rights
Transfer for insufficient consideration
Transfer for an adequate full consideration in money or moneys worth
Transfer in contemplation of death

Proceeds of Iife insurance includible in the taxable gross estate

Insurance proceeds from SSS or GSIS
Amount receivable by any beneficiary other than the estate, administrator or executor, irrevocably designated in the policy by the insured
Amount receivable by any beneficiary designated in the insurance policy
Proceeds of group insurance taken out by a company for its employees.

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

Revocable transfer where the consideration is not sufficient
Revocable transfer where the power of revocation was not exercised
Proceeds of life insurance where the beneficiary designated is the estate and the designation is irrevocable
Proceeds of life insurance where the beneficiary designated is the mother and the designation is irrevocable

Proceeds of life insurance where the beneficiary of the decedent is not his estate, executor or administrator is

Part of gross income if the beneficiary is revocable
Part of gross income regardless of whether the beneficiary is revocable or irrevocable
Not part of gross estate if the beneficiary is irrevocable
Part of gross estate regardless of whether the beneficiary is revocable or irrevocable

Proceeds of life insurance to the extent of the amount receivable by the estate of the deceased, his executor or administrator under policies taken ou...

I and II
I and III
I and IV
Only I

Ms. Balo, spouse of the decedent who died in a bus accident (Harurot Transport), received P2,500,000 broken down as follows: *P900,000 - From Habambu...

900,000
1,200,000
P2,100,000
P2,500,000

Which of the following is not true regarding a claim against insolvent persons?

The decedentâ€™s claim is deductible in full because the debtorâ€™s liabilities exceed his remaining assets.
The decedent's claim must be included in full in the gross estate.
The decedent's claim which cannot be collected is deductible according to the ratio of the debtor's assets to his liabilities.
Claim against insolvent person is a claim against person whose assets are not sufficient to pay his liabilities.

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 t...

I only
II only
Both I and II
Neither I nor II

Which of the following is included In the income of the estate of a decedent?

Income received by the estate of a deceased person during the period of administration or settlement of the estate.
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.
Appreciation in the value of properly passed to the executor or administrator upon death of decedent.
Delivery of property in kind to legatee or devisee.

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 P1...

100,000; 100,000
500,000; 100,000
500,000; 400,000
None; None

The following are transactions exempt from transfer tax except:

Transmission from the first heir or donee in favor of another beneficiary in accordance with the desire of the predecessor.
Transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicommissary
The merger of usufruct in the owner of the naked title
All bequest, devices, legacies, or transfers to social welfare, cultural and charitable institutions

Which of the following exempt transmissions will still require inclusion of the property in the gross estate?

Merger of the usufruct in the owner the naked title;
Legacy to a charitable institutions whose administrative expenses did not exceed 30% of the legacy;
Transfer from a first heir to a second heir designated by the decedent;
Death benefits under the GSIS and GSIS.

Following are exclusion from gross estate, except:

Transfer in contemplation of death
Transfer as a result of which there is merger of usufruct in the owner of the naked title.
Amount received from SSS or GSIS
All of the above

One of me following is included in the gross estate of a nonresident alien decedent:

Wholly uncollectible claims against a debtor who absconded, debtor resides outside the Philippines.
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.
Proceeds of life Insurance of the decedent where the decedents estate was designated as irrevocable beneficiary, the policy was procured in Manila.
Personal property situated in the Philippines donated by the decedent before he died to a son on account of the son's marriage.

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

Mhalapit Nth 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.
Mr. Matibay celebrated his 101st birthday. Feeling that death is not far, he transferred all his properties to Pedro and Juan.
Both a and b
Neither a nor b

Which of the following is a transfer under special power of appointment? I. Earl transfers his properly in trust for his son, Gabry and glen in trust...

I only
II only
All of the above
None of the above

Under which of the following situations an estate tax return is required to be tiled under the TRAIN Law?

Transfers which are subject to estate tax.
The statee consists of registered or registrable properties for which a clearance from the BIR Is required as a condition precedent for the transfer of ownership.
Both "a" and "b"
Neither "a nor "b"

Who shall file the estate tax return?

Executor, or administrator, or any of the legal heirs
Creditors of the decedent
Personal secretary of the decedent
Debtors of the decedent

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...

Statements 1 & 2 are false
Statement 1 is true but statement 2 is false
Statement 1 is false but statement 2 is true
Statements 1 and 2 are true

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Gross Estate MCQs