Professional Documents
Culture Documents
1. Rhett donated a house and lot to Scarlet. Rhett reserved the right to
live in the house and lot until he dies.
Estate tax – transfer at the contemplation of death; control does not end
until the death of the person.
5. Britney, from #4, reserved the right to enjoy the property until she
dies because at the time of sale, she is suffering from full blown AIDS.
Income tax – P1 million, sale of property more than its acquisition cost.
Estate tax – transfer in contemplation of death.
8. Michael took a life insurance policy for his own life naming Prince, his
son, as the irrevocable beneficiary.
Donor’s tax – proceeds are actual value of the amount to be transferred
inter vivos; proceeds of a life insurance deemed as complete gift.