Chapter 1: Successions and Transfer Taxes (TRUE or FALSE)

Question 1

Estate tax is a tax on the right to transfer property at death and on certain transfers which are made by law the equivalent of testamentary disposition and is measured by the value of property.

Answer 1

TRUE

Question 2

Estate tax is an excise tax.

Answer 2

TRUE

Question 3

The taxpayer in estate taxation is the estate of the decedent as a juridical person.

Answer 3

TRUE

Question 4

Estate tax accrues as of the date of the actual possession or enjoyment of the estate by the beneficiary.

Answer 4

FALSE

Question 5

Executor is the person appointed by a court to carry out the directions and requests of a decedent in his will and dispose of his property according to his testamentary provisions after his death.

Answer 5

FALSE

Question 6

Intestate succession arises when there is a transmission of properties in the absence of a will, or if there is a will, the same is void or lost its validity, or nobody succeeds in the will.

Answer 6

TRUE

Question 7

Every will may be in writing and executed in a language not necessarily known to the testator.

Answer 7

FALSE

Question 8

A holographic will is a will entirely written by a testator with his own hand and may be witnessed or attested.

Answer 8

FALSE

Question 9

The will of an alien residing abroad produces effect in the Philippines if made in conformity with the formalities prescribed by law of the place in which he resides

Answer 9

TRUE

Question 10

A person has unlimited right to make donations in his last will or testament

Answer 10

FALSE

Question 11

The right to succession is transmitted from the moment the heirs receive their share in the inheritance.

Answer 11

FALSE

Question 12

The law presumes that every person is of sound in the absence of proof to the contrary

Answer 12

TRUE

Question 13

Brothers and Sisters (whether half or full blood) of the decedent are not compulsory heirs.

Answer 13

TRUE

Question 14

Brothers and sisters (whether half or full blood) of the decedent can be an intestate heirs.

Answer 14

TRUE

Question 15

There cannot be a disinheritance for compulsory heirs.

Answer 15

FALSE

Question 16

Relatives by affinity are strangers for estate tax purposes

Answer 16

TRUE

Question 17

An heir who inherits a specific personal property by will is known as devisee

Answer 17

FALSE

Question 18

A codicil is a supplement or addition to a will, made after the execution of a will and annexed to be taken as a part thereof, by which any disposition made in the original will is explained, added, or altered.

Answer 18

TRUE

Question 19

Under the law on legitime, if the only survivor is the widow or the widower, she or he shall be entitled to one-half of the hereditary estate of the deceased spouse, and the testator may freely dispose of the other half

Answer 19

TRUE

Question 20

Representation is a right created by fiction of law by virtue of which the representative is raised to the place and degree of the person represented and acquires the rights which the latter would have if he were living or if he could have inherited.

Answer 20

TRUE