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  • BIR Ruling No 105-99

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    Cristelle Elaine Collera
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    1. Antigono Rosil died without a will, leaving bank accounts totaling 150K to his wife and 3 children. 2. A month after his death, the heirs executed an agreement waiving the children's rights to the bank accounts in favor of their mother. 3. The BIR ruled that the children's renunciation did not constitute a donation to their mother because the property never became theirs, and that accretion applies when heirs of the same degree renounce shares in an inheritance.

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    1. Antigono Rosil died without a will, leaving bank accounts totaling 150K to his wife and 3 children. 2. A month after his death, the heirs executed an agreement waiving the children's rights to the bank accounts in favor of their mother. 3. The BIR ruled that the children's renunciation did not constitute a donation to their mother because the property never became theirs, and that accretion applies when heirs of the same degree renounce shares in an inheritance.

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    85 views1 page

    BIR Ruling No 105-99

    Uploaded by

    Cristelle Elaine Collera
    1. Antigono Rosil died without a will, leaving bank accounts totaling 150K to his wife and 3 children. 2. A month after his death, the heirs executed an agreement waiving the children's rights to the bank accounts in favor of their mother. 3. The BIR ruled that the children's renunciation did not constitute a donation to their mother because the property never became theirs, and that accretion applies when heirs of the same degree renounce shares in an inheritance.

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    © All Rights Reserved
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    Effect of Renunciation by or Among Heirs of Same Degree

    BIR Rul. No. 105-99 – July 13, 1999 DISPOSITIVE PORTION

    Antigono Rosil died without a will, survived by his 3 children and his wife. He left behind an OTHER NOTES
    estate consisting of bank accounts with a total amount of 150K. A month after his death,
    his heirs (i.e. wife and kids) executed an Extra-Judicial Settlement of Estate with Waiver of
    Rights, whereby the 3 kids waived their rights to the bank accounts in favor of their mother. DIGESTER: Xave Libardo
    They sought the ruling of the BIR on the tax liability of the estate. The BIR held that the
    renunciation by the heirs of the inheritance does not constitute a donation in favor of the
    mother because the property/share never became their own.

    DOCTRINE
    In legal succession, accretion takes place in case of repudiation among heirs of the same
    degree. In other words, when heirs renounce their share in the inheritance in favor of
    another, they do not donate the property/share to the latter, since the said
    property/share has never become their own.

    FACTS
    1. Antigono Rosil died without a will. He was survived by his wife and 3 legitimate
    children.
    a. His estate consists mainly of bank accounts with Land Bank, with a total
    amount of P153,478.01.
    2. A month after his death, an Extra-Judicial Settlement of Estate with Waiver of
    Rights was executed by his heirs (wife and kids).
    a. The parties agreed that the 3 legitimate children will waive their rights to
    the bank accounts in accordance with the rule on intestate succession, in
    favor of their mother.
    3. One of the children wrote to the BIR, requesting on behalf of the other heirs for a
    ruling as to whether or not his father’s estate is exempt from the payment of estate
    tax.

    ISSUE with HOLDING


    1. Whether or not the estate is exempt from estate tax. YES.
    a. Considering that the gross estate of Antigono consists merely of bank
    accounts in the total amount of P153,478.01, which is even lower than the
    P200,000.00 tax exempt portion of the net estate bracket as imposed under
    Section 84 of the Code, the estate of the late Antigono A. Rosil is indeed
    exempt from estate tax.
    b. However, the executor, administrator or any of the legal heirs of Antigono
    shall be required to file the corresponding estate tax return within six (6)
    months from the decedent's death with the Revenue District Officer (RDO)
    of the revenue district where the decedent was previously registered.

    2. Whether or not the waiver by the 3 children of their shares in favor of their mother is
    subject to donor’s tax. NO.
    a. In legal succession, accretion takes place in case of repudiation among
    heirs of the same degree.
    b. In other words, when the three (3) legitimate children renounced their share
    in the inheritance, they did not donate the property/share to their
    mother, since the said property/share has never become their own [BIR
    Ruling No. DA251-99 dated April 23, 1999].
    1

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