Answer whether each statement is True or False 1.Amounts withdrawn from deposit accounts of a decedent subjected to the 6% final withholding tax shall be included in the gross estate for estate tax purposes. 2. Transfer taxes provide income to the government. 3. It is possible that a transfer may be inter vivos in form but mortis causa in substance. 4. A power of appointment is the right to designate the person or persons who shall succeed to the property of a prior decedent. 5. A special power of appointment authorizes the donee of the power to appoint only from among a designated class or group of persons other than himself. 6. The donee-decedent of a special power of appointment only holds the property in trust; hence, the property shall form part of the donee-decedent's gross estate. 7. The designation of beneficiary in a life insurance is irrevocable unless expressly stated as revocable. 8. An insolvent person is one whose liabilities exceed his assets. 9. Only the property located in the Philippines of a non-resident alien decedent form part of his gross estate. 10. A non-resident alien decedent's intangible personal property shall not be included in his gross estate if the decedent at the time of his death was a resident of a foreign country which at the time of death did not impose a transfer tax or death tax of any character in respect of intangible personal property of citizens of the Philippines not residing in that foreign country. 11. A non-resident alien decedent's intangible personal property shall not be included in his gross estate if the laws of the foreign country of which the decedent was a resident at the time of his death allow a similar exemption from transfer taxes or death taxes of every character in respect of intangible personal property owned by citizens of the Philippines not residing in that foreign country. 12. The fair market value of units of participation in any association, recreation or amusement club shall be the bid price nearest the date of death in any newspaper or publication of general circulation. 13. Whenever there is death, there is estate tax payable. 14. Property may be perceived to include rights, other intangibles and physical things. 15. Values in the gross estate are based on values at the time of the decedent's death because it is at this time that the heir legally succeeds to the inheritance. 16. Notes and accounts receivables are appraised on the basis of the amount of the principal and interests due and unpaid at the time of death. 17. Only intangible personal property of a non-resident alien decedent may be subject to reciprocity rule. 18. The value of real property for inclusion in the gross estate shall be the higher amount between the current fair market value as shown in the schedule of values fixed by the Provincial and City Assessors and the fair market value as determined by the Commissioner of Internal Revenue. 19. As a general rule, the situs of real property is the place or country where it is situated. 20. As a general rule, the situs of tangible personal property is the place or country where such is actually located at the time of the decedent's death. 21. The rule that the situs of intangible personal property is the domicile or residence of the owner does not apply when the property has a situs elsewhere. 22. The test of situs of property of a non-resident alien decedent is not important at all because only the transmissions of property located in the Philippines are subject to estate tax.
Answer whether each statement is True or False
1.Amounts withdrawn from deposit accounts of a decedent subjected to the 6% final withholding tax shall be included in the gross estate for estate tax purposes.
2. Transfer taxes provide income to the government.
3. It is possible that a transfer may be inter vivos in form but mortis causa in substance.
4. A power of appointment is the right to designate the person or persons who shall succeed to the property of a prior decedent.
5. A special power of appointment authorizes the donee of the power to appoint only from among a designated class or group of persons other than himself.
6. The donee-decedent of a special power of appointment only holds the property in trust; hence, the property shall form part of the donee-decedent's gross estate.
7. The designation of beneficiary in a life insurance is irrevocable unless expressly stated as revocable.
8. An insolvent person is one whose liabilities exceed his assets.
9. Only the property located in the Philippines of a non-resident alien decedent form part of his gross estate.
10. A non-resident alien decedent's intangible personal property shall not be included in his gross estate if the decedent at the time of his death was a resident of a foreign country which at the time of death did not impose a transfer tax or death tax of any character in respect of intangible personal property of citizens of the Philippines not residing in that foreign country.
11. A non-resident alien decedent's intangible personal property shall not be included in his gross estate if the laws of the foreign country of which the decedent was a resident at the time of his death allow a similar exemption from transfer taxes or death taxes of every character in respect of intangible personal property owned by citizens of the Philippines not residing in that foreign country.
12. The fair market value of units of participation in any association, recreation or amusement club shall be the bid price nearest the date of death in any newspaper or publication of general circulation.
13. Whenever there is death, there is estate tax payable.
14. Property may be perceived to include rights, other intangibles and physical things.
15. Values in the gross estate are based on values at the time of the decedent's death because it is at this time that the heir legally succeeds to the inheritance.
16. Notes and
17. Only intangible personal property of a non-resident alien decedent may be subject to reciprocity rule.
18. The value of real property for inclusion in the gross estate shall be the higher amount between the current fair market value as shown in the schedule of values fixed by the Provincial and City Assessors and the fair market value as determined by the Commissioner of Internal Revenue.
19. As a general rule, the situs of real property is the place or country where it is situated.
20. As a general rule, the situs of tangible personal property is the place or country where such is actually located at the time of the decedent's death.
21. The rule that the situs of intangible personal property is the domicile or residence of the owner does not apply when the property has a situs elsewhere.
22. The test of situs of property of a non-resident alien decedent is not important at all because only the transmissions of property located in the Philippines are subject to estate tax.
Step by step
Solved in 6 steps
