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)
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