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Estate Tax Information

There are of course those times where in some people have not yet gone over their grief or pain for the loss of a loved one and already have the hassle to deal with the tedious job of document processing in connection with the properties or the estates which are left behind by the deceased. These properties of a deceased person will not be able to be transferred to his heirs without paying the necessary estate tax. Now the so called payments to the estate tax is based on the principle that the estate of the deceased person or one who passed is one juridical personality and it has a right to transfer property to their heirs is a privilege and is thus subject to of course tax or better known as transfer tax. The return or estate tax form which is found under the BIR Form No. 1801 will need to be filed with the Bureau of Internal Revenue for the payment of the estate tax which is required. We must be hopeful that the following guidelines can aid the heirs in sorting out the extremely tiresome process of this estate taxation at such a sensitive time in their lives. This return must be filed in triplicate which is done by the executor, or administrator, or any of the legal heirs of the decedent, whether they may be a resident or non-resident of the Philippines. If there is no executor however or administrator who is appointed, qualified, and acting within the Philippines, then by chance any person in actual or constructive possession of any property of the decedent is able. Basically, a return is required to be filed in all the cases of transferees where estate tax is due. However, where no estate tax is due, a return would still be required where the gross value of the estate needs to exceed two hundred thousand (P200,000) pesos. Or if ever this is where it was regardless of the gross value of the estate, it would need to consist of registered or registrable property such as real property, motor vehicle, shares of stock or other similar property for which a clearance from the BIR is required. A good example of this would be bank deposits which as a condition is precedent for the transfer of ownership thereof in the name of the transferee.

 

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