PROPERTY

RELATION
- Philippine laws do not require the
agreement between the future spouses to
be registered in a government office to be
binding between the parties
- However, as a security for the properties
which may be affected by the agreement,
and in order to bind third parties,
Philippine law requires the recording of the
prenuptial agreement in the Local Civil
Registry where the marriage is celebrated,
AND at the Register of Deeds of the
province where the affected property is
- Prenuptial agreement must be writing, should be executed prior to the
located.
celebration of marriage and signed by the future spouses
- Any modification or amendment thereto may only be allowed before the
celebration of the marriage.
PROPERTY RELATIONS
- Used to distinguish a conjugal or community property from an exclusive
property. The property relationship between husband and wife shall be
governed in the following order:
1. By marriage settlements executed before the marriage
2. By provisions of law
3. By local custom

TYPES OF PROPERTY
RELATIONS
1. Absolute community of Property (ACP)
2. Conjugal partnership of gains (CPG)
3. Complete separation of property
4. Any other regime
In the event the couple had not adopted or agreed upon a system before
their marriage, the rule is

• Marriage before August 03, 1988 - CPG (governed by

provisions of the
civil code)
• On or after August 03, 1988 - ACP (governed by New Family
Code – E.O. No. 209)
ABSOLUTE COMMUNITY OF PROPERTY
(ACP)
 Most common regime in Philippine marital property relations
 If the spouses do not have a valid marriage settlement, this system will
govern the property relations of the couple
 The provisions on co-ownership shall apply to ACP
 Spouses become co-owners of all properties they bring into the
marriage and whose acquired by each or both of them during marriage,
save for the exceptions expressly enumerated by law.
 Shall commence at the precise moment that the marriage is celebrated.
Any stipulation, express or implied, for the commencement of the
community regime at any other time shall be void (Art. 88)
ABSOLUTE COMMUNITY OF PROPERTY
(ACP)
Community Property under ACP
 In general, property will be presumed to belong to the community,
unless it can be proven to be exclusive property.
 Unless provided or in the marriage settlements, the community
property shall consist of ALL property owned by the spouses at the time
of the celebration of the marriage or acquired thereafter.
ABSOLUTE COMMUNITY OF PROPERTY
(ACP)
Exclusive Property under ACP

The following shall be excluded from the community property:

1. Art. 92(1) of the Family Code – Property acquired (together with fruits
as well as income thereof) during marriage by gratuitous title, unless
the donor, testator, or grantor expressly provided that it be part of
community.
• Under ACP, the classification of fruits or income shall depend on the
classification of the principal or source of the fruits. But fruits from
labor of either spouse shall always form part of community or
conjugal property.
2. Art. 92 (2) of the Family Code – Property for personal and exclusive
use of either spouse (Note: Jewelry shall form part of the community
property)
3. Art. 92 (3) of the Family Code - Property acquired before the marriage
who has legitimate descendants by a former marriage, and the fruits
ABSOLUTE COMMUNITY OF PROPERTY
(ACP)
PROPERTY CLASSIFICATIO
N
Acquired BEFORE marriage
1 ALL properties owned before marriage or brought to the marriage Community
Acquired DURING marriage
2 Property acquired during marriage (other than inheritance or
Community
donation); Art. 91
3 Property acquired during marriage through gratuitous transfer
Exclusive
(inheritance or donation)
4 Property acquired during marriage through gratuitous transfer
(inheritance or donation) where the donor, testator or grantor
Community
provided that they shall form part of' the community property [Art.
92(1)]
5 Property acquired using common fund Community
6 Property for personal and exclusive use, except jewelry Exclusive
JEWELRY Community
NOTE: The classification of the fruit or income of the property shall follow the
CONJUGAL PARTNERSHIP OF GAINS
(CPG)
 Husband and wife place in a common fund the proceeds, products,
fruits, and income from their separate properties. It applies:
• When future spouses agree to it in the marriage settlement
• Established CPG before the effectivity of the New Family Code (Aug
03, 1988)
CONJUGAL PARTNERSHIP OF GAINS
(CPG)
Exclusive Property under CPG
1. Brought to the marriage as his/her own
2. Acquires during the marriage by gratuitous title
3. Acquired by right of redemption or by exchange with property
belonging to only one of the spouses
4. Those purchased with the exclusive money of husband/wife
CONJUGAL PARTNERSHIP OF GAINS
(CPG)
Conjugal Property under CPG
1. Acquired by onerous title during the marriage at the expense of
common fund
2. Obtained by labor, industry, or work or profession of either or both of
the spouses
3. Fruits received or due during the marriage coming from the common
property or from the exclusive property of each spouse. (Note: under
CPG, fruits regardless of the source, are classified as conjugal
property)
4. Share in the hidden treasure discovered during marriage
5. Property acquired by occupation such as hunting or fishing by spouses
or by either of them
6. Livestock existing upon the dissolution of the partnership in excess of
the number of each kind brought to the marriage by either spouse, and
7. Those which acquired by chance, such as winnings from gambling or
betting. However, losses therefrom shall be borne exclusively by the
CONJUGAL PARTNERSHIP OF GAINS
(CPG)
PROPERTY CLASSIFICATIO
N
Acquired BEFORE marriage
1 ALL properties owned before marriage or brought to the marriage Exclusive
Acquired DURING marriage
2 Property acquired through onerous title using common fund Conjugal
3 Property acquired through gratuitous transfer (inheritance or
Exclusive
donation)
4 Property acquired using exclusive fund Exclusive
NOTE: Under CPG, the fruit or income of the property shall be classified as conjugal
property (Art 106 of FC)
A decedent died on September 29, 2022. The following assets were
provided for the purpose of determining the decedent's gross estate. If
the item is an inclusion in the gross estate of the decedent, classify the
same as exclusive by writing "E" or community/conjugal property by
writing "C" under the regime of conjugal partnership of gain (CPG) and
absolute community property (ACP), If the item is an exclusion from the
gross estate, mark the item as "X"
ITEM PROPERTY CPG ACP
1 Cash owned by the decedent before the marriage E C
2 Commercial building owned before marriage E C
3 Income from item no.2 C C
4 Commercial building inherited during marriage E E
5 Income from item no.4 C E
6 Personal property received by the surviving spouse as gift before the X C
marriage
7 Income from item no.6 C C
8 Property acquired by the decedent with cash owned before the marriage E C
9 Personal belongings used exclusively by the decedent E E
10 Property unidentified when and by whom acquired C C
11 Income from item no.10 C C
12 Cash from compensation income of the decedent C C
13 Lot acquired before the marriage by the surviving spouse (surviving spouse E E
had a previous marriage and legitimate children in that previous marriage)
ITEM PROPERTY CPG ACP
14 Income from the lot (item no. 13) C E
15 Exclusive property was sold, and was repurchased using conjugal property C C
16 Residential house built using the salary of the surviving spouse during the C C
marriage. (House was built on the exclusive lot of the decedent)
17 Lot described in item no. 16 E E
18 Livestock brought into marriage E C
19 Livestock in excess of what was brought into the marriage after the C C
dissolution of the marriage
20 Property acquired by barter using the exclusive property of the decedent E E
CONJUGAL DEDUCTIONS
1. Support of the spouses, their common children, and legitimate children of
either spouse
2. All debts and obligations contracted during the marriage with the consent
of the other
3. Debts and obligations contracted by either spouse without the consent of
other to the extent that the family may have benefited
4. Taxes, liens , charges, and expenses including major and minor repairs
upon conjugal property
5. All taxes and expenses for mere preservation, made during the marriage,
upon the separate property of either spouse.
6. Expenses to enable either spouse to commence or complete a
professional, vocational, or other activity for self improvement
7. Debts before marriage of either spouse in so far as they have rebounded
to the benefit of the family
CONJUGAL DEDUCTIONS
8. Value of what is donated or promised by both spouse in favor of their common
legitimate children for the exclusive purpose of commencing or completing a
professional or vocational course or activity for self improvement
9. Expenses of litigation between spouses, unless the suit is found to be groundless
• Obligations contracted during marriage are presumed to have benefited the
family and therefore conjugal deductions. While obligations contracted by
either spouse before marriage are exclusive deductions unless shown that the
family gained benefits from the said obligations.
• Share of the surviving spouse (1/2 of net conjugal property), family home,
medical expenses, and standard deduction are deductions to be made from the
net estate (total of net conjugal estate and net exclusive estate) to arrive at
the net taxable estate.
• Other deductions are either conjugal or exclusive deductions depending on
whether chargeable against conjugal property or exclusive property, or
depending on whether the property to which the deduction is related is
conjugal or exclusive property.
• Wagering loss during marriage Shall be borne by the loser. Winnings, however,
shall form part of conjugal property.
• Fines and pecuniary damages or indemnities imposed upon either spouse shall
Pro-forma computation of Net Taxable Estate Conj./Comm. Exclusive Total
GROSS ESTATE:
Real or immovable property xx xx
Tangible personal property xx xx
Intangible property* xx xx
Certain transfers** xx xx
Total xx xx xx
LESS: ORDINARY DEDUCTIONS
Losses/Indebtedness/Taxes (xx) (xx)
Transfer for public use - (xx)
Vanishing deductions (ACP) (xx) (xx)
Vanishing deductions (CPG)*** --- (xx) (xx)
Net Community/Exclusive before special deductions xx xx
LESS: SPECIAL DEDUCTIONS
Standard deductions (xx)
Family Home (xx)
Amount received under RA4917 (xx)
NET ESTATE before share of the surviving spouse xx
LESS: 1/2 share of the surviving spouse on the net conj./comm. property (xx)
NET TAXABLE ESTATE xx
Pro-forma computation of Net Taxable Estate Conj./Comm. Exclusive Total
NET TAXABLE ESTATE xx
X Estate Tax Rate 6%
ESTATE TAX DUE xx

NOTE:
*Intangible properties including rights accruing before death, claims against insolvent
person, RA4917,
and receivable as proceeds from life insurance taken out by the decedent
**Refer to certain transfers made before death but will take effect upon death (transfer
mortis causa) as
well as revocable transfers.
***Always an exclusive deduction under CPG

Transfer for public use shall be classified as exclusive deductions unless expressly provided
otherwise.
Case A – Decedent is married; Family Home is conjugal Exclusive Conjugal Total
valued
at more than P10,000,000
Conjugal properties:
Real and personal properties P14,000,0
00
Family Home 30,000,00
0
Exclusive properties P6,000,000 _________
Gross Estate P6,000,000 P44,000,0 P50,000,0
00 00
Less: Ordinary Deductions:
Conjugal ordinary deductions (2,000,000 (2,000,00
) 0)
Exclusive ordinary deductions (1,000,000) _________ (1,000,00
0)
Net Estate before special deductions 5,000,000 42,000,00 47,000,00
0 0
Special deductions
Family Home (P30M/2); Maximum of P10M (10,000,0
00)
Standard deduction (5,000,00
0)
Case B – Decedent is married; Family Home is conjugal Exclusive Conjugal Total
valued
at below P10,000,000
Conjugal properties:
Real and personal properties P14,000,0
00
Family Home 9,000,000
Exclusive properties P6,000,000 _________
Gross Estate P6,000,000 P23,000,0 P29,000,0
00 00
Less: Ordinary Deductions:
Conjugal ordinary deductions (2,000,000 (2,000,00
) 0)
Exclusive ordinary deductions (1,000,000) _________ (1,000,00
0)
Net Estate before special deductions 5,000,000 21,000,00 26,000,00
0 0
Special deductions
Family Home (P9M/2); lower between 4.5M and max. P10M (4,500,00
0)
Standard deduction (5,000,00
0)
Net estate before share of the surviving spouse 16,500,00
Case C – Decedent is married; Family Home is exclusive Exclusive Conjugal Total
valued
at more than P10,000,000
Conjugal properties:
Real and personal properties P14,000,0
00
Family Home P30,000,000
Exclusive properties 6,000,000 _________
Gross Estate P36,000,000 P14,000,0 P50,000,0
00 00
Less: Ordinary Deductions:
Conjugal ordinary deductions (2,000,000 (2,000,00
) 0)
Exclusive ordinary deductions (1,000,000) _________ (1,000,00
0)
Net Estate before special deductions 35,000,000 12,000,00 47,000,00
0 0
Special deductions
Family Home (maximum of P10M) (10,000,0
00)
Standard deduction (5,000,00
0)
Net estate before share of the surviving spouse 32,000,00
COMPLETE SEPARATION OF PROPERTY

 The spouses shall be governed by complete separation of property

if the future spouses agree in the marriage settlements that their
property relations during the marriage shall be governed by the
regime of separation of property.
 To each spouse shall belong all earnings from his or her
profession, business or industry and all fruits, natural, industrial,
or civil, due or received during the marriage from his or her
separate property.
 Both spouses shall bear the family expenses in proportion to their
income, or, in case of insufficiency or default thereof, to the
current market value of their separate properties. The liability of
the spouses to creditors for family expenses shall, however, be
solidary.
PROPERTY REGIME OF UNIONS WITHOUT
MARRIAGE
CAPACITATED TO MARRY

When a man and a woman who are capacitated to marry each other, live
exclusively with each other as husband and wife without the benefit of
marriage or under a void marriage, the following rules shall apply:

1. Wages and salaries shall be owned by them in equal shares.

2. Property acquired by both of them through their work or industry shall be
governed by the rules on co-ownership.
 In the absence of proof to the contrary, properties acquired while they lived
together shall be presumed to have been obtained by their joint efforts, work
or industry, and shall be owned by them in equal shares.
3. Neither party can encumber or dispose by act inter-vivos his or share in
the property acquired during cohabitation and owned in common, without
the consent of the other, until after the termination of their cohabitation.
PROPERTY REGIME OF UNIONS WITHOUT
MARRIAGE
INCAPACITATED TO MARRY

1. Only the property acquired by BOTH of them through their actual joint
contribution of money, property, or industry shall be owned in common in
proportion to their respective contributions. (if silent, assume equal
shares)
2. The share of any party who is married to another shall accrue to the
absolute or conjugal partnership, as the case may be, if existing under the
valid marriage.
Classify the following as exclusive or conjugal property under Absolute Community of Property (ACOP)
and Conjugal Partnership of Gains (CPC). Write "C" in the space provided if the property is classified
as common property and write "E" if the property is classified as exclusive.
ITEM PROPERTY ACP CPG
1 Properties owned by the spouses before the marriage C E
2 Rental income on a property acquired before marriage. C C
3 Property acquired during marriage C C
4 Income on property described in #3 C C
5 Property acquired by gift before marriage C E
6 Income on property described in #5 C C
7 Property inherited during marriage E E
8 Income on property described in #7 E C
9 Property acquired during marriage from common fund C C
10 Income on property described in #9 C C
11 Car purchased during marriage using funds derived from practice of C C
profession
12 Property owned before marriage for personal and exclusive use of the E E
decedent.
13 Jewelry items during marriage for personal and exclusive use by the C E
decedent
Illustration 1

From the records of the estate of a citizen-decedent who died in 2022:

• Properties- Land inherited from mother (during marriage) P24,000,000 two (2) years
24,000,0
before death; valued at P15M when inherited
00

• Other personal property owned before marriage 16,000,0

00
• Other personal property acquired during marriage 5,000,00
0
Deductions claimed:
• Casualty losses 500,000
• Unpaid taxes 400,000
• Claims against the estate 600,000
• Funeral expenses 300,000
• Medical expenses, incurred and paid within one year before death 400,000
• Unpaid medical expenses, incurred within one year before death 300,000
• Judicial expenses 120,000
ABSOLUTE COMMUNITY OF PROPERTY Exclusive Common Total
Land inherited during marriage P24,000,000
Other personal property owned before marriage P16,000,000
Other personal property acquired during marriage __________ 5,000,000
Total P24,000,000 P21,000,000
P45,000,000
Deductions: Casualty loss (500,000)
Funeral expenses (no longer allowed under TRAIN Law) –
Judicial expenses (no longer allowed under TRAIN Law) –
Unpaid Taxes (400,000)
Claims against the estate (600,000)
Vanishing deduction** (11,600,000) ___________
(13,100,000)
Net estate before special deduction and share of the
surviving spouse P12,400,000 P19,500,000
P31,900,000
Standard deduction
(5,000,000)
Medical expenses (no longer allowed under TRAIN Law)
-
Share of the Surviving Spouse (19,500,000/2)
(9,750,000)
CONJUGAL PARTNERSHIP OF GAINS
Exclusive Common Total
Land inherited during marriage P24,000,000
Other personal property owned before marriage 16,000,000
Other personal property acquired during marriage 5,000,000
Total P40,000,000 P5,000,000 P45,000,000
Deductions:
Unpaid Taxes (400,000)
Claims against the estate (600,000)
Casualty Loss (500,000)
Funeral expenses –
Judicial expenses –
Vanishing deduction (same computation) (11,600,000)
(13,100,000)
Net estate before special deduction and share of
the surviving spouse P28,400,000 P3,500,000
P31,900,000
Standard deduction (5,000,000)
Medical expenses –
Share of the Surviving Spouse (3,500,000/2)
ILLUSTRATION 2

A non-resident alien, married, died on September 25, 2022. He left the following:
• Conjugal properties, Philippines P 5,000,000
• Exclusive properties, Philippines 2,000,000
• Conjugal properties, USA 10,000,000
• Exclusive properties, USA 5,000,000
The following deductions were claimed:
• Actual funeral expenses P1,250,000
• Judicial expenses 800,000
• Claims against the estate 1,725,000
• Transfer for public use 200,000
• Medical expenses 875,000
Included in the Philippines gross estate (conjugal) were the following:
• Domestic shares P 500,000
• Share in a partnership 1,000,000
• Other tangible personal properties 3,500,000

The Philippine exclusive properties were all tangible personal properties. These included a car, which was
inherited 3 1/2 years before the present decedent's death, and had a fair market value of P500,000.

Determine the following:

a) Net exclusive property of the decedent
b) Net community property
c) Net Taxable estate
d) Estate tax due
 Exclusive Common Total
Exclusive properties, Phils. P2,000,000
Conjugal properties, Phils.* P5,000,000 P7,000,000
LIT** (548,864)
Vanishing Deductions *** (178,604)
Transfer for Public Use **** (200,000)________________________________
Net Estate P1,621,396 P4,451,136 P6,072,532
Share of the Surviving Spouse (4,451,136/2) (2,225,568)
Standard deduction (500,000)
Net Taxable Estate P3,346,964
x Estate Tax Rate 6%
Estate Tax Due P 200,818
*The problem is silent as to reciprocity, hence, the gross estate should include tangible and intangible
properties within the Philippines.
**LIT: Funeral expenses -***VANISHING DEDUCTIONS:
Judicial expenses -Value to take
1st Deduction: Mortgage paid
P500,000
–
Claim against the estate 1,725,000
Initial basis P500,000
TOTAL ELIT 1,725,0002nd Deduction: Proportionate deduction
X 7M/22M (500/7,000) x (548,864 + 200,000) (53,490)
Final Basis P446,510
ALLOWABLE ELIT 548,864
x Vanishing rate 40%
Vanishing Deduction P178,604

**** Since the properties were already classified as exclusive and common,
it should be assumed that the exclusive properties were already inclusive of
transfer for public use
ILLUSTRATION 3

JL Cruz died intestate on September 30, 2021. He was survived by his wife and his two children. He left the
following properties:
• Land (1 ,000 sq. m.) inherited from his father 15 months before JL's death. Fair market value per tax
declaration at the time of JL's death, P20,000,000; Zonal value at the time of JL's death, P30,000 per sq.
m.
• House and lot (Family Home) acquired during the marriage, FMV, P50,000,000
• Other tangible personal properties (mode of acquisition unknown), FMV, P22,000,000;

The following were considered as deductions from the gross estate

• Actual funeral expenses, P480,000
• Judicial expenses, P1,000,000
• Other claims against the conjugal properties; P5,000,000
• Claims against insolvent persons, P500,000
• Medical expenses, P1,200,000

The estate of the decedent’s father paid the estate tax on the land at the fair value of P25,000,000. During
the marriage, JL mortgaged the inherited land for P7,000,000 for the benefit of the family. He paid
P3,500,000 before he died.
 Exclusive Conjugal Total
Land P30,000,000
House and Lot (Family Home) P50,000,000
Other tangible personal properties 22,000,000
Claims against insolvent persons 500,000 P102,500,000
Ordinary deductions:
Other claims against conjugal properties (5,000,000)
Claims against insolvent persons (500,000)
Unpaid mortgage** (3,500,000)
VANISHING DEDUCTION* (18,243,902) (13,560,976)
Net exclusive/conjugal P11,756,098 P63,500,000 P75,256,098
Special deductions:
Standard deduction (5,000,000)
Family Home (10,000,000)
Medical expenses –
Share of the surviving spouse ½ of 63.5M (31,750,000)
TAXABLE ESTATE P28,506,098
Estate Tax Due (P28,506,098 x 6%) P1,710,366
** P7,000,000 – 3,500,000 = P3,500,000
Value to take/Initial Basis*** ***The value to take shall be lower amount between the
P25,000,000 valuation at the time of death and the valuation upon inheritance
2nd Deduction: (25,000/102,500 )x 9,000,000 (P30M vs P25M). Likewise, the amount paid on the mortgage
(2,195,122) Final Basis should not be considered in computing the vanishing deduction
because the amount pertains to a mortgage entered into by
P22,804,878
Pedro during his lifetime. To be considered in computing the VD,
x VD rate
the mortgage should have been assumed on the property at the
80%
ILLUSTRATION 4

A resident alien. Single died intestate on October 10, 2022. the following data were provided to you:
House and lot. USA (family home)
P20,000,000
Investment in stock, Philippines 8,000,000
Investment in stock. USA
10,000,000
Investment in bonds, USA (85% of the business of the USA Corp. is in the Philippines)
7,000,000
Cash in bank. Philippines
3,000,000
Cash on hand. Philippines
500,000
Accounts receivable from a debtor who resides in USA (fully uncollectible)
2,000,000
Vehicles In the Philippines
8,000,000
Actual funeral expenses 1,500,000
Judicial expenses
3,000,000
Unpaid Philippine income tax for income in 2021 1,200,000
Loss on December 31, 2021 due to theft 800,000
Devise to Quezon City for children's playground 700,000
Medical expenses
5,000,000
House and lot, USA * P20,000,000
Investment in stock, Philippines 8,000,000
Investment in stock, USA 10,000,000
Investment in bonds, USA 7,000,000
Cash in bank, Philippines 3,000,000
Cash on hand, Philippines 500,000
Claim against insolvent person (fully uncollectible) 2,000,000
Car, Philippines 8,000,000
Devise to Quezon City for children’s playground** 700,000
Total Gross Estate P59,200,000
Ordinary Deductions:
Funeral expenses -
Judicial expenses -
Unpaid Philippine income tax for income in 2021 1,200,000
Loss on December 31, 2021 due to theft 800,000
Devise to Quezon City for children’s playground 700,000
Claim against insolvent person (fully uncollectible) *** 2,000,000 (4,700,000)
Special Deductions:
Standard deduction (5,000,000)
Medical expenses –
Net Taxable Estate P49,500,000
Estate Tax Due (P49,500,000 x 6%) P2,970,000

*Family home is not allowed as a deduction for single decedent

**To be deductible, the legacy/devise should be included first in the decedent’s gross estate
***Assume the debtor is an insolvent person
TRUE OR FALSE
1. FALSE 6. FALSE 11. TRUE
2. TRUE 7. TRUE 12. TRUE
3. TRUE 8. TRUE 13. TRUE
4. FALSE 9. FALSE 14. FALSE
5. FALSE 10. FALSE 15. TRUE

NOTE :
#1: The statement is applicable to CPG
#4: Under CPG, property brought into marriage is classified as exclusive property
#5: Shall be ½ of the net conjugal property
#6: The properties described in the problem shall be classified as exclusive properties.

#7: If the problem is silent or unless the type of property relationship is specifically
provided in the problem, the term “community” property is generally used in case of
Absolute Community Property regime. Thus, the statement in #7 is correct. On the other
hand, unless provided otherwise, the term “conjugal” property is generally used in case of
Conjugal Partnership of Gains regime.

#9: Shall be before marriage

#10; May be deductible from either exclusive or community properties
#14; Applicable to ACoP
MULTIPLE CHOICE
1. A 6. D 11. B 16. D 21. B 26. D
2. B 7. D 12. D 17. C 22. C 27. D
3. A 8. B 13. C 18. C 23. D 28. A
4. C 9. D 14. D 19. A 24. A 29. B
5. D 10. C 15. C 20. D 25. A 30. D

(No. 19 & 20)

Gross Estate (CPG): Exclusive Conjugal
Rest House in Batangas P2,500,000
Car 1,000,000
Commercial land 5,000,000
Income from the commercial land 500,000
Income from exclusive property of the spouse 200,000
Jewelry owned before the marriage 300,000
Other properties at the time of her death 1,000,000
Gross Estate P8,800,000 P1,700,000
(No. 21 & 22)
Gross Estate (ACoP): Exclusive Common
Rest House in Batangas 2,500,000
Car 1,000,000
Commercial land 5,000,000
Income from the commercial land 500,000
Jewelry owned before the marriage 300,000
Other properties at the time of her death 1,000,000
Gross Estate 2,500,000 7,800,000

(No. 23)
Conjugal properties 20,000,000
Conjugal Deductions**:
Funeral and judicial expenses (no longer allowed) -
Casualty losses (3,500,000)
Unpaid taxes (2,000,000)
Claim against the estate (4,500,000)
Net Conjugal properties before special deductions 10,000,000
Divide 2
Share of the Surviving Spouse 5,000,000
(No. 24)
Real property, Philippines 7,000,000
Real property, USA 5,000,000
Claim against insolvent persons 50,000
Claim against insolvent persons (50,000)
Unpaid taxes (50,000)
Balance 11,950,000
Standard Deductions (5,000,000)
Family Home (P1,500,000/2) (750,000)
Share of the surviving spouse (P11,950,000/2) (5,975,000)
Net Taxable Estate 225,000
25 Exclusive Common Total
Conjugal real properties 7,000,000
Conjugal family home 5,000,000
Paraphernal properties
(excluded; exclusive of the surviving spouse)
Exclusive properties 2,500,000 0
Total 2,500,000 12,000,000 14,500,000
Ordinary Deductions:
Unpaid taxes
Casualty losses (from excl.property) (100,000)
Other losses (P1M x 75%) (750,000) (850,000) (850,000)
Net Estate before Special Deductions 2,400,000 11,250,000 13,650,000
Special Deductions:
Standard Deductions (5,000,000)
Medical expenses -
Family Home (5,000,000/2) (2,500,000)
Share of the surviving spouse (P11,250,000/2) (5,625,000)
Net Taxable Estate 525,000
(No. 26 and 27) ABSOLUTE COMMUNITY OF PROPERTY
Exclusive Common
Properties-Land 24,000,000
Other personal property owned before marriage 16,000,000
Other personal property acquired during marriage 5,000,000
Gross Estate 24,000,000 21,000,000
Vanishing deduction (11,200,000)
Claim against the estate (2,000,000)
Losses (1,000,000)
Net conjugal before special deductions 18,000,000
Share of surviving spouse (P1,800,000/2) 9,000,000
(No. 28) CONJUGAL PARTNERSHIP OF GAINS
Exclusive Common Total
Properties-Land 24,000,000
Other personal property owned before marriage 16,000,000
Other personal property acquired during marriage**** 5,000,000
Gross Estate 40,000,000 5,000,000
45,000,000
Ordinary Deductions
Claim against the estate (2,000,000)
Losses (1,000,000)
Vanishing Deductions***** (11,200,000) 0
Net Estate Before Special Deductions 28,800,000 2,000,000
Share of the surviving spouse (P2,000,000/2)
(1,000,000)
****If silent or unless the problem clearly illustrate that it is exclusive, assume the property
is a common property.

Value to take 15,000,000

1st Deduction: Mortgage paid -
Initial basis 15,000,000
2nd Deduction: Proportionate deduction
(15,000 / 45,000) x 300,000 (1,000,000)
Final Basis 14,000,000
(No. 29 and 30) ACOP
Exclusive Common Total
GROSS ESTATE:
Real properties inherited during marriage from his father 5,000,000
Real property abroad given as gift by his uncle during marriage 15,000,000
Land received as donation during the marriage 5,000,000
House built on the donated land using communal fund 9,000,000
Income from the real property received as gift 1,000,000
Real property received by the surviving spouse before the marriage
18,000,000
Real property acquired by the spouses during the marriage
15,000,000
Personal properties acquired during the marriage 10,000,000
Claims against an insolvent person 500,000
Donation mortis causa to the City of Manila (TFPU) 1,500,000 0
TOTAL 27,500,000 52,500,000
80,000,000
ORDINARY DEDUCTIONS:
Obligations incurred that benefited the community properties (2,500,000)
Claims against an insolvent debtor (500,000)
Unpaid mortgage on inherited land (650,000)
Loss of vehicle due to theft on December 31, 2021 (3,000,000)
Unpaid realty tax on real property received as gift from his uncle (300,000)
(No. 29 and 30) ACOP
Exclusive Common Total
Net Estate Before Special Deductions and Share of the Surviving Spouse 24,191,400
46,500,000 70,691,400
SPECIAL DEDUCTIONS:
Standard Deduction
(5,000,000)
Family Home [(P5M) + (P9M/2)]
(9,500,000)
Share of the Surviving Spouse (P46.5M/2)
(23,250,000)
NET TAXABLE ESTATE
32,941,400
Multiply: Estate Tax Rate
6%
ESTATE TAX DUE
1,976,484

Vanishing Deduction – Real property inherited:

Value to take 3,000,000
1st Deduction: Mortgage paid (1,400,000)
Initial basis 1,600,000
2nd Deduction: Proportionate deduction