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At the time death of the donor at the lifetime of

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At the time death of the donorAt the lifetime of both the donor and thedoneeKnown as “donation mortis causa”Known as“donation inter vivos”Subject to ESTATE TAXSubject to DONOR’S TAX
Nature of Transfer TaxesThe subject matter of a transfer tax is theprivilegeof the transferor togratuitouslytransferproperty or rights which takes effect at the date of death of the transferor (known as transfer mortiscausa subject to estate tax) or during the lifetime of the donor and the donee (known as transferinter vivos subject to donor's tax). Although the amount of transfer tax is based on net estate ornet gifts, it shall not be construed as a property tax. On this basis, transfer tax is classified as"excise tax" or privilege tax imposed on the act of passing the ownership of property and not onthe value of the property or right.The Law that Governs the Imposition of Estate TaxIt is a well settled rule that estate taxation is governed by the statute in force at the time ofdeath of the decedent. The es(ate tax accrues as the date of death of the decedent and theaccrual of the tax ts distinct from the obligation to pay the same. Upon the death of the decedent,succession takes place and the right of the State to the tax the privilege to transmit the estatevests instantly upon death (Section RR 2-2003). In the Philippines, succession itself (excludingthe tax aspect) is governed by the new civil code.
Kinds of Succession (Art. 778 NCC):Whenever a person dies leaving property (inheritance), a question normally arises as tohow his property or estate will be dealt with by those he/she left behind. The answer dependson whether or not a decedent left a “will” at the time of his death. Inheritance are transmittedeither by:His will (with last will and testament)Operations of law (in the absence of a last will and testament, the provisions of the civilcode on succession will apply)A person is normally said to have:DIED INTESTATEDIED INTESTATEIf he left a will at the time of his/her deathIf he died without leaving a willTo summarize, succession may be classified as:Testamentary or testate succession. A type of succession that results from thedesignation of an heir,made in a willexecuted in the form prescribed by law.Legal or intestate succession. A type of succession which is effected by operations oflaw (based on the provisions of the civil code regarding succession) since the decedentdid not execute awillor if the last willand testament executed by him is void.Mixed succession. A type of succession which is effected partly by“will”and partly byoperation of law.
CAUSES OF LEGAL SUCCESSION OR INTESTACY1. If a person dies without a will, or with a void will or one which has subsequently lostits validity.
2. Whenthe “Will” does not institute an heir.3. Partial institution of heir. Consequently,intestacy takes placeas to the undisposedportion.

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Term
Spring
Professor
Ana sy
Tags
Inheritance, Gross Estate

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