{"id":42,"date":"2006-09-19T00:01:18","date_gmt":"2006-09-18T16:01:18","guid":{"rendered":"http:\/\/jlp-law.com\/blog\/basic-concepts-estate-proceedings-tax\/"},"modified":"2020-05-05T15:11:12","modified_gmt":"2020-05-05T07:11:12","slug":"basic-concepts-estate-proceedings-tax","status":"publish","type":"post","link":"https:\/\/pnl-law.com\/blog\/basic-concepts-estate-proceedings-tax\/","title":{"rendered":"Basic Concepts in Estate Proceedings and Estate Tax"},"content":{"rendered":"\n<p>Among the inescapable facts in life, something which everyone shares regardless of status, race, sex or creed, is <strong>death<\/strong>. A person may leave properties (or liabilities) upon death, so a discussion on the basic concepts on estate proceedings is in order.<\/p>\n\n\n\n<!--more-->\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Inheritance<\/strong> &#8211; Inheritance includes all the property, rights and obligations of a person which are not extinguished by his death. (Civil Code, Art. 776)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Testate Estate<\/strong> &#8211; An estate of a deceased person which is settled or to be settled with a valid last will and testament.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Intestate Estate<\/strong> &#8211; An estate of a deceased person without a will. [See <a href=\"https:\/\/pnl-law.com\/blog\/extrajudicial-settlement-of-estate-basic-discussion\/\">Extrajudicial Settlement of Estate<\/a>]<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Will<\/strong> &#8211; An act whereby a person is permitted, with the formalities prescribed by law, to control to a certain degree the disposition of his estate. (Civil Code, Art. 783) [See <a href=\"https:\/\/pnl-law.com\/blog\/last-will-and-testament-basic-discussion\/\">Basic concepts in last will and testament<\/a>; <a href=\"https:\/\/pnl-law.com\/blog\/notarial-wills-form-and-requirements-of-last-will-and-testament\/\">Notarial wills<\/a>; and <a href=\"https:\/\/pnl-law.com\/blog\/holographic-wills-form-requirements-for-validity-and-probate\/\">Holographic wills<\/a>]<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Testator<\/strong> &#8211; The deceased person who made a last will and testament. (Civil Code, Art. 775)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Probate<\/strong> &#8211; A special proceeding to establish the validity of a will. Probate is mandatory, which means that no will passes either real or personal property unless it is proved and allowed in a proper court.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Reprobate<\/strong> &#8211; A special proceeding to establish the validity of a will previously proved in a foreign country.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Legatee<\/strong> &#8211; One who is given personal property through a will. (Civil Code, Art. 782)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Devisee<\/strong> &#8211; One who is given real property in a will. (Civil Code, Art. 782)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Executor<\/strong> &#8211; The person named in the will who is entrusted to implement its provisions. (Rules of Court, Rule 78)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Executrix<\/strong> &#8211; A female executor.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Administrator<\/strong> &#8211; The person entrusted with the care, custody and management of the estate of a decedent until the estate is partitioned and distributed to the heirs, legatees and devisees, if any. (Rules of Court, Rule 78)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Administratrix<\/strong> &#8211; A female administrator.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Special proceedings<\/strong> &#8211; A remedy by which a party seeks to establish a status, a right, or a particular fact. (Rules of Court, Rule 1, Sec. 3 [c]). Among the subject matters of special proceedings are escheat and settlement of estate of deceased persons. (Rules of Court, Rule 72, Sec. 1)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Escheat<\/strong> &#8211; A proceeding whereby the state, by virtue of its sovereignty, steps in and claims the real or personal property of a person who dies intestate leaving no heir. In the absence of a lawful owner, a property is claimed by the state to forestall an open &#8220;invitation to self-service by the first comers&#8221;. (Republic vs. CA, G.R. No. 143483)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Estate tax<\/strong> &#8211; A tax on the transfer of the net estate of the decedent. (Tax Reform Act of 1997, Sec. 84)<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Gross estate<\/strong> &#8211; The total value of all property belonging to the decedent at the time of death, wherever situated. <\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Net estate<\/strong> &#8211; Gross estate less allowable deductions and exemptions. <br \/><\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Among the inescapable facts in life, something which everyone shares regardless of status, race, sex or creed, is death. A person may leave properties (or liabilities) upon death, so a discussion on the basic concepts on estate proceedings is in order.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,478,7,4],"tags":[80,504,502,501,503],"class_list":["post-42","post","type-post","status-publish","format-standard","hentry","category-family-law","category-property-estate-law","category-special-projects","category-tax-law","tag-death","tag-deceased","tag-estate","tag-estate-tax","tag-taxation"],"_links":{"self":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/42","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/comments?post=42"}],"version-history":[{"count":6,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/42\/revisions"}],"predecessor-version":[{"id":5813,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/posts\/42\/revisions\/5813"}],"wp:attachment":[{"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/media?parent=42"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/categories?post=42"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pnl-law.com\/blog\/wp-json\/wp\/v2\/tags?post=42"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}