Professional Documents
Culture Documents
TRANSFER TAXES
DEFINITION OF TRANSFER
TRANSFER refers to any transmission of property from one person to
another.
Rule on RECIPROCITY
Application: Only to NON-RESIDENT ALIENS and only to INTANGIBLE PERSONAL PROPERTIES.
Rule: No transfer tax shall be collected in respect of intangible personal property in the
following instances:
1. If the transferor, at the time of transfer, was a citizen and resident of a foreign
country which did not impose a transfer tax of any character in respect of
intangible personal property of citizens of the Philippines not residing in that
foreign country.
2. The laws of the foreign country of which the transferor at the time of transfer
allows a similar exemption from transfer taxes of every character or description in
respect of intangible personal property owned by citizens of the Philippines not
residing in that foreign country.
FAMILY RELATIONS
Family Relations
PROPERTY RELATIONS
BETWEEN SPOUSES
Property Regimes
Property Regime the system by which properties are governed by spouses
during their marriage.
Order of System of Property Relations:
Property
Regimes
Under
Family Code
of the
Philippiness
Property Regimes
Aug.
3,
1988
Date of
Marriage
Date of
Marriage
CONCEPT OF SUCCESSION
Succession
Succession - a mode of acquisition by virtue of which the property, rights
and obligations to the extent of the value of the inheritance, of a person are
transmitted through his death to another or others either by his will or by
operation of law.
The right of the succession are transmitted from the moment of the death of
the decedent.
Elements of Succession
DECEDENT
Primary Heirs
INHERITANCE/ESTATE
SUCCESSION
Secondary Heirs
HEIRS/SUCCESSORS
Concurring Heirs
ACCEPTANCE
Collateral Heirs
EXECUTOR
ESTATE MANAGEMENT
ADMINISTRATOR
Types of Succession
TESTAMENTARY SUCCESSION
SUCCESSION
INTESTATE SUCCESSION
MIXED SUCCESSION
Will
Will an act whereby a person is permitted, with the formalities prescribed
by law, to control to a certain degree the disposition of this estate, to take
effect after his death.
The making of a will is a strictly personal act; it cannot be left in whole or in
part of the discretion of a third person, or accomplished through the
instrumentality of an agent or attorney.
Only persons who are not expressly prohibited to by law may make a will.
Will
Persons Expressly Prohibited by Law to Make a Will:
1. Those below 18 years of age;
2. Those who are not of sound mind at the time of execution.
Persons Disqualified from being witnesses to a will:
3. Any person NOT DOMICILED in the Philippines;
4. Those who have been convicted of FALSIFICATION OF A DOCUMENT,
PERJURY or FALSE TESTIMONY.
Types of Will
NOTARIAL WILL
WILL
HOLOGRAPHIC WILL
CODICIL
INHERITANCE/ESTATE
LEGACY
DEVISEE
HEIRS/SUCCESSORS
LEGATEE
LEGITIME
ESTATE
FREE PORTION
Compulsory Heirs
LEGITIMATE CHILDREN AND DESCENDANTS
LEGITIMATE PARENTS AND ASCENDANTS
COMPULSORY HEIRS
SURVIVING SPOUSE
ACKNOWLEDGED NATURAL CHILDREN AND
NATURAL CHILDREN BY LEGAL FICTION
OTHER ILLEGITIMATE CHILDREN
Legitimate
Legitimate
Children/
Parents/
Descendants Ascendants
Spouse
Illegitimate
Children/
Descendants
Free
Portion
1/3
2/3
Legitimate
Legitimate
Children/
Parents/
Descendants Ascendants
Spouse
Illegitimate
Children/
Descendants
Free
Portion
of the share
of each
legitimate
children/
descendant
varies
Legitimate
Legitimate
Children/
Parents/
Descendants Ascendants
Spouse
Illegitimate
Children/
Descendants
Free
Portion
Equal to the
share of each
legitimate
children/
descendants
varies
Legitimate
Legitimate
Children/
Parents/
Descendants Ascendants
Spouse
Illegitimate
Children/
Descendants
Free
Portion
1/3
1/3
1/3
1/8
1/8
Legitimate
Legitimate
Children/
Parents/
Descendants Ascendants
Spouse
Illegitimate
Children/
Descendants
Free
Portion
Equal to the
share of each
legitimate
children/
descendants
of the share
of each
legitimate
children/
descendant
varies
Disinheritance
A compulsory heir may, in consequence of disinheritance, be deprived of his
legitime, for causes expressly stated by law.
Disinheritance can be effected only through a will wherein the legal cause
therefor shall be specified.
The burden of proving the truth of the cause for disinheritance shall rest upon the
other heirs of the testator, if the disinherited heir should deny it.
Disinheritance without a specification of the cause, or for a cause the truth of
which, if contradicted, is not proved, or which is not one of those set forth in this
Code, shall annul the institution of heirs insofar as it may prejudice the person
disinherited; but the devises and legacies and other testamentary dispositions
shall be valid to such extent as will not impair the legitime.
SHARE
whole
whole
whole
whole
whole
Whole
SHARE
whole
Whole
SHARE
each
1/3 each
each
*Spouse considered as one legitimate descendant. Add the total of the number of legitimate
descendants plus the spouse to serve as the denominator in dividing the estate.
SHARE
each
each
CONCEPT OF DONATION
Donation
Donation an act of liberality whereby a person disposes gratuitously of a thing
or right in favor of another, who accepts it.
DONOR
PARTIES TO DONATION
DONEE
Capacity of the
Donor
Intention to
Donate
Donation
Donative Act or
Delivery
Acceptance by
the Donee
Types of Donation
Void Donations
1. Those made between persons who were guilty of adultery or concubinage at the
time of the donation;
2. Those made between persons found guilty of the same criminal offense, in
consideration thereof;
3. Those made between spouses during the marriage, except moderate gifts which
the spouses may give each other on the occasion of any family rejoicing.
4. Those made between persons living as common-law spouses.
5. Those made to a public officer or his wife, descendants and ascendants, by reason
of his office.
6. Donations to incapacitated persons.
7. Donation of future property.
Donations
Gratuitous Portion
of Complex
Transfers
On Account of Debtors
Services
Without Consideration
Donations in Trust
General Renunciation
Renunciation of
Inheritance
Specific Renunciation
Renunciation of the
Surviving Spouses Share in
the Common Property