3-1. Discussion Questions / Problems
3-1. Discussion Questions / Problems
3-1. Discussion Questions / Problems
Note: In Case 2, no amount is to be included in the gross estate because the property
transferred for a full and adequate consideration.
11. a. The amount to be included in the gross estate of Sigurista is P450,000 (P750,000
- 300,000).
b. If the sale is discovered to be fictitious, the entire amount of P750,000 is to be
included in the gross estate of Sigurista because there was actually no payment
made to her at the time of sale.
12. The action filed by Curiadora against Atacador will prosper. The donation made by
Bonador in favor of Atacador is a donation mortis causa due to a reservation of rights
over the property in favor of Bonador. Thus, the donation made during lifetime did
not prosper. There is also no donation mortis causa because in order to be effective,
it must have been provided in the will of Bonador that the property is being donated
mortis to Atacador.
13. a. The proceeds of life insurance shall only be excluded from the gross estate if the
irrevocably designated beneficiary in the policy is not the estate of the deceased,
his executor or administrator.
These requisites are not satisfied. Therefore, the proceeds shall be part of
the gross estate of Bokdoy.
b. Even if the designation is irrevocable since the beneficiary named in the policy is
his estate, the proceeds shall form part of the gross estate of Bokdoy.
c. Since the problem does not clearly specify, it is presumed that Oyang is neither
the executor nor the administrator. However, if the designation is revocable the
proceeds of the life insurance policy shall still be part of the gross estate, subject
to estate tax.
It is shall only be exempt if (1) Oyang, the beneficiary, is not the estate, the
executor or the administrator and (2) his designation as the beneficiary is
irrevocable.
EXERCISE 3-3.