Basic concepts in estate proceedings and estate tax 

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 discussionon the basic concepts on estate proceedings is in order.

Inheritance ± Inheritance includes all the property, rights and obligations of a person which arenot extinguished by his death. (Civil Code, Art. 776)

Testate Estate ± An estate of a deceased person which is settled or to be settled with a valid last

will and testament.

Intestate Estate ± An estate of a deceased person without a will.

Will ± 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)

Testator ± The deceased person who made a last will and testament. (Civil Code, Art. 775)

Probate ± 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.

Reprobate ± A special proceeding to establish the validity of a will previously proved in a

foreign country.

Legatee ± One who is given personal property through a will. (Civil Code, Art. 782)

Devisee ± One who is given real property in a will. (Civil Code, Art. 782)

Executor ± The person named in the will who is entrusted to implement its provisions. (Rules of 

Court, Rule 78)

Executrix ± A female executor.

Administrator ± 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

 

)

Administratrix ± A female administrator.

Special proceedings ± 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)

 

Escheat ± A proceeding whereby the state, by virtue of its sovereignty, steps in and claims thereal 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 ³invitation to self-service bythe first comers´. (Republic vs. CA, G.R. No. 143483)

Estate tax ± A tax on the transfer of the net estate of the decedent. (Tax Reform Act of 1997,

Sec. 84)

Gross estate ± The total value of all property belonging to the decedent at the time of death,wherever situated. (Tax Reform Act of 1997, Secs. 85, 104)

Net estate ± Gross estate less allowable deductions and exemptions. (Tax Reform Act of 1997,Secs. 84, 85 and 86)