ESTATE AND TRUST Flashcards
1
Q
- The property, rights and obligations of a person which are not extinguished by his death and those
which accrued thereto since the opening of succession
a. Assets
b. Capital
c. Estate
d. Income
A
2
Q
- A person whose property is transmitted through succession, whether or not he left a will
a. Decedent
b. Transferor
c. Transferee
d. Testator
A
3
Q
- A decedent who has a will upon death
a. Transferor
b. Grantor
c. Donor
d. Testator
A
4
Q
- The person called to the succession either by the provision of the will or by operation of law
a. Heir
b. Devisee
c. Legatee
d. Trustor
A
5
Q
- An heir who inherits personal property by will is called
a. Legatee
b. Devisee
c. Trustor
d. Beneficiary
A
6
Q
- An heir who inherits real property by will is called
a. Legatee
b. Devisee
c. Trustor
d. Beneficiary
A
7
Q
- Statement 1: Where the estate is under judicial administration, the income of the estate shall be
taxable to the fiduciary of trustee.
Statement 2: Where the estate is not under judicial administration, the income of the estate shall
be taxable to the heirs and beneficiaries.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statement 1 is false but statement 2 is true
A
8
Q
- Income received by the estate during the period of administration or settlement of the estate, for
tax purposes is known as
a. Income of the estate
b. Income of the heirs
c. Income of the trustee
d. Income of the testator
A
9
Q
- Statement 1: The amount of income of the estate for the taxable year, which is properly paid or
credited during such year to any legatee, heir or beneficiary, is a special item of deduction from
the gross income of the estate.
Statement 2: An allowance paid to a widow or heir out of the corpus of the estate is not deductions
from the gross income of the estate.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
A
10
Q
- Statement 1: When an estate, under administration, has income-producing properties, the annual
income of the estate becomes part of the taxable gross estate.
Statement 2: When an estate, under administration, has income-producing properties and its
income during the year is distributed to the heirs, the income so distributed is taxable to the heirs
as part of their gross income for the year.
a. Statements 1 and 2 are false
b. Statement 1 is true but statement 2 is false
c. Statement 1 is false but statement 2 is true
d. Statements 1 and 2 are true
A
11
Q
- The following statements refer to the rules in determining the taxable income and the applicable
income tax liability of an estate. Which of the statements is/are correct?
I. The items of gross income of the estate are the same items as the items of gross income of
individual taxpayers.
II. In addition to the allowable deductions under the Tax Code, the estate is allowed to deduct
the amount of income of the estate during the taxable year that is paid or credited to the
legatee, heir or beneficiary
III. The amount of income of the estate during the year that is paid or credited to the legatee, heir
or beneficiary is subject to final withholding tax of 15%
a. I and II only
b. I and III only
c. II and III only
d. None of the above
A
12
Q
- An arrangement under which title to property is passed to another for investment with the income
and ultimately the principal to be distributed in accordance with the direction of the creator is
a. A will
b. A trust
c. An inheritance
d. Pacto de retro
A
13
Q
- The person who establishes a trust
a. Heir
b. Devisee
c. Legatee
d. Trustor
A
14
Q
- The person in whom the confidence is reposed as regards property for the benefit of another
person
a. Devisee
b. Trustee
c. Legatee
d. Trustor
A
15
Q
- The person for whose benefit the trust has been created
a. Legatee
b. Heir
c. Beneficiary
d. Trustee
A