Question

The administrator of a decedent’s estate (head of the family) provided the following data:

Property

Domestic shares of 2,000 shares inherited 6 years ago

8,000,000

House and lot, family home, located in Davao, inherited 2 years ago at a value of 1,500,000

2,000,000

Jewelry items in the Philippines at the time of death

400,000

Jewelry items kept in a vault abroad

200,000

Bank deposit in a Philippine branch of a US bank

5,000,000

Interest from bank deposits after decedent’s death

25,000

Expenses and other charges

Funeral expenses abroad

80,000

Funeral expenses Philippines

200,000

Judicial expenses abroad

100,000

Judicial expenses, Philippines

50,000

Claims against the estate with the notarized debt instrument issued in the Philippines

120,000

Donation to the Philippine government as provided in his will

250,000

Required

Determine the following if the decedent was a Filipino citizen but a resident of Australia

a. Taxable Net Estate

b. Estate Tax Due

Determine the following if the decedent was not a Filipino citizen but a resident of Davao City

a. Taxable Net Estate

b. Estate Tax Due

Answer 1

Answers: A-1 Taxable Net Estate

Property

Domestic shares of 2,000 shares inherited 6 years ago................................. P 8,000,000

House and lot, family home, located in Davao, inherited

            2 years ago at a value of P 1,500,000................................................. 2,000,000

Jewelry items in the Philippines at the time of death........................................400,000

Jewelry items kept in a vault abroad................................................................. 200,000

Bank deposit in a Philippine branch of a US bank............................................5,000,000

Interest from bank deposits after decedent’s death...........................................25,000

Donation to the Philippine government as provided in his wills.........................250,000

Gross Estate....................................................................................................P 15,875,000

Expenses and other Charges          

Funeral expenses abroad ............................................................................. -

Funeral expenses Philippines ....................................................................... -

Judicial expenses abroad............................................................................... -

Judicial expenses Philippines.......................................................................... -

Claims against the estate with notarized debt instrument issued in the

            Philippines.......................................................................................... (120,000)    

Net Taxable Estate.......................................................................................P 15,755,000