1. When does the regime of conjugal partnership of gains begin to exist?

a. At the moment the parties take and declare each other as husband and wife before
officiating officer.
b. At the time the spouses acquire properties through joint efforts.
c. On the date the future spouses executed their marriage settlements because this is the
starting point of their marital relationship.
d. On the date agreed upon by the future spouses in their marriage settlements since their
agreement is the law between them.

2. Which is not a documentary requirement of estate tax?

a. Certified true copy of the Death Certificate

b. Court Orders/Decision, if the estate is settled judicially
c. Certified true copy of the latest Tax Declaration of real properties at the time of death, if
applicable
d. Certificate of Income Tax withheld

3. Mr. D with stage 3 cancer, made a last will and testament disposing of properties mentioned in
the last will and testament. On the same day, he made gifts inter vivos to his children. A few days
later he died. Are the donated properties to be included in the gross estate?

a. No, because they were not his properties anymore at the time of death.
b. Yes, because the donations were donations mortis causa, and should be governed by the
rules on estate tax.
c. No, if the donor’s tax had been paid already on the donations.
d. No, because they were not transfers in contemplation of death, since the donations were
not simultaneous with the execution of the last will and testament.

4. Which is not a conjugal property?

a. Those acquired using the common fund for the use of the husband
b. Net fruits from exclusive property of the wife
c. Winnings from gambling by the husband
d. Those purchased with the exclusive money of the husband

5. Which of the following losses is deductible?

a. Destruction of a house by an earthquake which seriously injured the decedent who died
after several days.
b. Shipwreck which occurred before the death of the decedent but was only discovered after
his burial.
c. Total wreckage of a car in an accident but was fully compensated by a comprehensive
insurance.
d. Theft which occurred during burial of the decedent.

6. In default of testamentary heirs, the law determines who are to succeed to the inheritance of
the deceased. Which of the following ranks first in order of succession?

a. Legitimate children
b. Surviving spouse
c. Legitimate parents
d. Illegitimate children
7. Which of the following is correct?

File
Notice
Estate Need CPA
Decedent Gross Estate of
Tax Certificate
Death
Return
a. Mhike Car – P150,000 YES NO NO
b. Brix Jewelry – P200,000 YES YES NO
c. Kevin Shares of Stock (SMC) – P170,000 YES YES NO
d. Chuck Agricultural Land (Bulacan) – P1M YES YES YES

8. A died leaving a farm land. In his will, he transferred the ownership thereof to B but subject to
the condition that C will have the right to use the land for a period of ten years (usufruct). In the
seventh year, however, C died and C’s will he surrendered his right over the land to B.

a. The transfer is subject to donor’s tax.

b. The transfer is subject to estate tax.
c. The transfer is both an inclusion from the gross estate.
d. The above is a tax exempt transfer.

9. Zia, a resident citizen, died on November 10, 2016. She died leaving three condominium units
in Quezon City valued at ₱5,000,000 each. Hoshi was her only heir. He reported her death on
December 5, 2016 and filed the estate tax return on March 30, 2017. Because he needed to sell
one unit of the condominium to pay for the estate tax, he asked the Commissioner of Internal
Revenue to give him one year to pay the estate tax due. The Commissioner approved the request
for extension of time provided that the estate tax be computed on the basis of the value of the
property at the tie of payment of the tax. Does the Commissioner of Internal Revenue have the
power to extend the payment of estate tax?

a. Yes, the Commissioner of Internal Revenue may extend the payment of estate tax for
a maximum period of 30 days for meritorious cases.
b. Yes, the Commissioner of Internal revenue may extend the payment of tax for 2 years
in case of extra-judicial and for 5 years in case of judicial settlement.
c. No, the Commissioner of Internal Revenue has no power to extend payment of a tax
otherwise it will be encroachment upon exclusive legislative authority.
d. No, the Commissioner of Internal Revenue has no power to extend payment of tax
under all conditions.

10. When a person dies and during the marriage the property relationship between the husband
and wife was that of conjugal partnership of gains, the gross estate of the estate would include
(RPCPA)

a. His exclusive properties only

b. His exclusive properties and one-half of the conjugal properties
c. All the properties of husband and wife
d. His exclusive properties and all conjugal properties

11. Which of the following is NOT true regarding a claim against insolvent person?

a. The decedent's claim is deductible in full because the debtors liabilities exceed his
remaining assets.
b. The decedent's claim must be included in full in the gross estate.
c. The decedent's claim which cannot be collected is deductible according to the ratio of
debtor's assets to liabilities.
d. Claim against insolvent person is a claim against a person whose assets are not sufficient
to pay his liabilities.
12. 1st Statement – A died giving B power to appoint who will inherit A’s house and lot. B
however can only choose among C, D, E and F. B decided to transfer the property to C, in B’s.
The transfer from B to C is subject to Estate tax.
2nd Statement – During A’s lifetime, he decided to give B as gift his (A) car subject to condition
that if B does not become a CPA within 3 years, A shall revoke the transfer. In the second year
however, A died. The car can no longer form part of A’s gross estate.

a. True, True
b. False, False
c. True, False
d. False, True

13. Mahina Puso is a Filipino Citizen. He died intestate in San Diego, California, his last
residence and domicile. He left properties situated in the Philippines and in U.S.A. An
administrator who is registered in Quezon City RDO was appointed to oversee his estate. The
appointed administrator lives in manila. For Phil. Income tax purposes, the estate tax return shall
be filed in the:

a. RDO in QC
b. RDO in Manila
c. Office of the Commissioner
d. None of the above

14. The personal representative of an estate may not:

a. Take possession and control of the decedent's property

b. Obtain title to the decedent's property in trust for the benefit of creditors and devisees
c. Operate a single proprietorship of the decedent indefinitely if the proprietorship is
profitable
d. Allocate revenue and expenses of the estate to principal and income as provided by the
will or by law

15. One of the following is included in the gross estate

a. Benefits received from GSIS

b. Benefits received from U.S. Veterans Administration
c. Benefits received from damages during World War 2
d. Benefits received from a tax exempt employer as a consequence of death of the employee

16. To escape a liability for a deficiency estate tax, after paying the estate tax, must secure a
written discharge of personal liability from:

a. The heirs
b. The commissioner
c. The probate court
d. The court where the estate is being settled

17. The following are the motives of a taxpayer that preclude the transfer in contemplation of
death, except one

a) To relieve the taxpayer of the burden of management

b) To save income and property taxes
c) To avoid payment of estate tax
d) To make dependents financially independent
18. Deductions from gross estates for transfers for public purposes, except

a. Means legacy in a last will and testament to the government

b. Means device in the last will to the government
c. Include any kind of transfer in favor of the government
d. Do not include legacies to charitable institutions

19. Sol, Ledad, a bachelor, bought a parcel of land on installment basis measuring 200 sq.
meters. In the deed of sale, the ownership shall be vested in him even before full payment of the
purchase price. A year before he could fully pay the price, Sol got married to Jenelyn Mercado
and out of the conjugal funds, the balance was paid. Who owns the land?

a. Sol because he paid more than what was assumed by the conjugal fund.
b. Jenelyn because she is the wife of Sol.
c. The conjugal partnership because the full payment was made during the marriage.
d. Sol because the ownership was vested to him before the marriage.

20. Which of the following properties of Cello who died April 19, 2016 is subject to Vanishing
Deduction?
Property 1- Car purchased 3 years ago from Bass, his father
Property 2- Land inherited from Violin, his mother, in 2013; the estate tax therein is not yet paid
Property 3- Donation from Viola, his friend, in 2012
Property 4-Community property inherited before marriage from Piano, his grandfather who died
April 18, 2011

Property 1 Property 2 Property 3 Property 4

a. No Yes Yes No
b. No No Yes No
c. Yes No No Yes
d. Yes Yes No No

21. Mr. Happy, the executor appointed by Mr. Sad in his will, incurred the following expenses
after Mr. Sad’s death:

1. Administrative expenses to gather the assets P 30,000

2. Administrative expenses to pay debts and taxes 20,000
3. Costs of preserving and distributing the estate 100,000
4. Fees charged by Mr. Happy 10,000
5. Publication charges for death notices 15,000

Which of the following is not deductible from the gross estate under judicial expenses?
a. 5 only c. 1,2 and 3
b. All of the above except 5 d. None of the above
22. Mr. Brian O’Conner, testator, appointed Mr. Dominic Toretto as the executor of the estate. Mr.
O’Conner was a citizen of Argentina and a resident of Quezon City. He was in California, USA visiting
his son when he died. He owned a Mercedes sports car and had several bank deposits in the USA. The
executor asked you whether or not the car and the bank deposits in the USA will still have to be declared
as part of the Philippine gross estate of Brian O’Conner. Argentina does not impose transfer taxes of any
kind. What answer will you give him?

1) The car and the bank deposits in the USA have to be declared as part of the Philippine gross estate
because the decedent was a resident at the time of his death and, as such, properties wherever situated
are included in the gross estate.
2) The car and the bank deposits in the USA need not be declared as part of the Philippine gross estate
because when Mr. Santos died he was in California, USA making him a non-resident alien.
3) The car and the bank deposits in the USA have to be declared as part of the Philippine gross estate
only when the decedent specified in his will and testament that such properties must form part of his
gross estate.
4) The car and the bank deposits in the USA need not be declared as part of the Philippine gross estate
because Argentina does not impose transfer tax of any kind.

23. The following are the law that governs the imposition of Estate Tax, which is the exception:
a. Estate taxation is governed by the statute in force at the time of death of the decedent
b. Estate tax accrues as of the death of the decedent. The accrual of the tax is distinct from the
obligation to pay the same.
c. Succession takes place upon the death of the decedent. The right of the Estate to tax privilege to
transmit the estate vests instantly upon death
d. Tax rates prescribed under R.A 8424 apply to estate taxes falling due or have accrued beginning
January 1, 1988, the effectivity of the said law otherwise known as The Tax Reform Act of 1987.

24. In 2009, J. Cruz gave a loan of P150, 000 to Sexy, his secretary. In 2012, as an act of
generosity, J. Cruz condoned the debt of Sexy in his last will and testament and J. Cruz died in
2015 The condonation of the debt of Sexy is a (RPCPA)
a. donation inter vivos subject to donor’s tax
b. payment or compensation for the services rendered
c. deduction from the gross estate of J. Cruz
d. donation morits causa subject to estate tax
25. Which of the following is correct? In claims against insolvent persons
a. As deduction from gross estate, only the entire amount of uncollectible claims shall be
included in the gross estate of the decedent.
b. As deduction from gross estate, the full amount of receivable including uncollectible,
must be included in the gross estate.
c. Such claim is not deductible from the gross estate if the decedent was also insolvent at
the time of his death.
d. If the entire debt is uncollectible, it may be omitted in the gross estate and as deduction
therefrom.