chapter 5 & 6

Question 1

Refers to all the properties, rights and obligations of a person which are not extinguished by his death and also those which have accrued thereto since the opening of the succession.

Answer 1

Estate or Inheritance.

Question 2

is an agreement created by will or an agreement under which title to property is passed to another for conservation or investment with the income therefrom and ultimately the corpus or
principal to be distributed in accordance with the directives of the creator as expressed in the governing instrument.

Answer 2

Trust

Question 3

is the person who establishes a trust.

Answer 3

Trustor or grantor

Question 4

is the person for whose benefit the trust has been created. A beneficiary has
equitable title to the property transferred to the trust, including, generally, the possession and use of the property.

Answer 4

Beneficiary

Question 5

is the general term which applies to all persons or corporations that occupy positions of peculiar confidence towards others, such as trustees, executors, guardians, or administrators,receivers, or conservators. For income tax purposes, a fiduciary is any person or corporation that holds in trust an estate of another person or persons.

Answer 5

Fiduciary

Question 6

One formed by one person for the sole purpose of exercising their common profession,no part of the income of which is derived from engaging in any trade or business.

Answer 6

General Professional Partnership

Question 7

A general partnership which is not professional partnership.

Answer 7

General co-partnership (compania colectiva).

Question 8

The items of gross income of estates and trusts are the same items of gross income of individuals as provided in the Tax Code. They include:

Answer 8

Income accumulated in trust for the benefit of unborn or unascertained person or persons
with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust. Income which’ is to be distributed currently by the fiduciary to the beneficiaries, and income
collected by a guardian of an infant which is to be held or distributed as the court may Income received by estates of deceased persons during the period of administration or direct.
Income which, in the discretion of the fiduciary, may be either distributed to the settlement of the estate. beneficiaries or accumulated.