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Business and Transfer Taxation

This document discusses succession and transfer taxes, wills, and related legal concepts. It defines key terms like donation mortis causa, donation inter vivos, testator, executor, devisees, legatees, compulsory heirs, and legitime. It also outlines the different types of succession (testamentary, intestate, mixed) and wills (notarial, holographic). The document provides information on probating wills, revoking wills, codicils, and disinheriting compulsory heirs.

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Cenelyn Pajarilla
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24 views2 pages

Business and Transfer Taxation

This document discusses succession and transfer taxes, wills, and related legal concepts. It defines key terms like donation mortis causa, donation inter vivos, testator, executor, devisees, legatees, compulsory heirs, and legitime. It also outlines the different types of succession (testamentary, intestate, mixed) and wills (notarial, holographic). The document provides information on probating wills, revoking wills, codicils, and disinheriting compulsory heirs.

Uploaded by

Cenelyn Pajarilla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Chapter 1: Succession and Transfer Taxes

Transfer Taxes - Taxes imposed upon the gratuitous disposition of private properties or rights.
Gratuitous transfer is onerous and is subject to business taxes.
Donation Mortis Causa - Transfer took effect at time of death of donor.
- Subject to estate tax.
Donation Inter Vivos - transfer took effect during lifetime of both donor and donee.
- Subject to donor’s tax
A person is said to have died testate if he left a will.
A person is said to have died intestate if he didn’t left a will.
Succession may be:
1. Testamentary or testate succession. Made in a will.
2. Legal or intestate succession. Effected by operation of law.
3. Mixed succession. Type of succession which is effected partially by will and by operation
of law.
Decedent - Person whose property is transmitted through succession.
Testator - if he left a will.
Executor - person who carry out the provisions of the decedent’s will.
- Fiduciary duty - performed by the executor by taking care of the decedent’s estate prior
to final disposition to the heirs.
- Administrator - person appointed by the court and performs the same duty.
Successors - called to the succession either by provision of a will or by operation of law.
Devisees - inherits real property.
Legatee - inherits personal property.
Compulsory heirs - those who succeed by force of law to some portion of the inheritance, in an
amount predetermined by law known as legitime.
Legitime - part of a testator’s property which he cannot dispose of because the law has reserved
it for certain heirs -compulsory heirs.
Free portion - portion of the estate which the testator can freely dispose of.
Consanguinity - blood relatives.
Lineal Consanguinity - Persons of whom one is descended in a direct line from the other.
Collateral Consanguinity - Persons who have the same ancestors, but who do not descend or
ascend one from the other.

Will - A documentary whereby a person, called the testator, disposes of his or her properties or
estate to take effect upon his or her death.
Kinds of will:
1. Notarial or ordinary or attested will - one which is executed in accordance with the
formalities prescribed by Art. 804.
2. Holographic Will - It is a written will which must be entirely written, dated and signed by
the hand of the testator himself. It need not be witnessed, in case of insertion,
cancellation, erasure, or alteration the testator must authenticate the same by his full
signature.
Codicil is a supplement or addition to a will, made after the execution of a will and annexed to
be taken as a part thereof, by which any disposition made in the original will is explained, added
to or altered.
Probate of a will is a court procedure by which a will is proved to be valid or invalid.
The proceedings in the absence of a last will and testament is called intestate proceedings.
Revocation of wills and testamentary dispositions
- A will may be revoked by the testator at any time before his death any waiver or
restriction is void.
Disinheritance
- Is a testamentary disposition by which a compulsory heir is deprived of, or excluded from
the inheritance to which he has a right.

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