TRANSFER AND BUSINESS TAXATION

TRANSFER AND BUSINESS TAXATIONBallada & Ballada

Presented by ATTY DON ADA DUPIO11. INTRODUCTION2MODES OF ACQUIRING OWNERSHIPOccupation the property seized is without a known owner.Intellectual Creation the composer owns his musical creation while the author owns his literary, legal, historical, scientific or other works.Donation an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it.3Succession the property, rights, and obligations to the extent of the value of the inheritance, of a person are transmitted through his death to another by his will or by operation of law.Prescription one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law. In the same way, rights and actions are lost by prescription.4Some terms to remember.Property - embraces everything which is or may be the subject of ownership. The term includes not only ownership and possession but also the right of use and enjoyment for lawful purposes.Ownership is the exclusive right of possessing, enjoying, and disposing of a property.Owner the person in whom the ownership, dominion or title of property is with.Transfer taxes are taxes imposed upon the gratuitous disposition of private property.Estate encompasses the totality of assets and liabilities a decedent owns at the time of his death.

52. BASIC CONCEPTS OF SUCCESSION6Some terms to remember.Decedent is the general term applied to the person whose property is transmitted through succession, whether or not he/she left a will.Testator one who makes and executes a testament or will.Executor is a person appointed by a testator to carry out the directions and request in his will, and to dispose of the property according to his/her testamentary provisions after his death.Administrator is a person appointed by the court to administer the assets and liabilities of a decedent.7Some terms to remember.Will is an act whereby a person is permitted, with the formalities prescribed by law, to control to a certain degree the disposition of his estate to take effect after his/her death.8A. Kinds of SuccessionTestamentary or testate is that which results from the designation of an heir, made a will executed in the form prescribed by law.Legal or intestate is that effected by operation of law since the decedent did not execute a will.Mixed is that effected partly by will and partly by operation of law.9B. Elements of SuccessionDeath of the decedent or testator.Inheritance. includes all property, rights and obligations of a person which are not extinguished by his/her death.Successors. heirs, devisees and legatees.Acceptance. it may be express or tacit.10C. Testamentary Succession

Definition of termsWill is an act whereby a person is permitted, with the formalities prescribed by law, to control to a certain degree the disposition of his estate to take effect after his/her death.Codicil is an instrument that amends the provision of a will.Probate of a will is the court procedure by which a will is proved to be valid or invalid.Holographic will is a will written entirely by the testator with his own hand and not witnessed or attested.

11Institution of an heir is an act by virtue of which a testator designates in his will the person or persons who are to succeed him in his property and transmissible rights and obligations.Legitime is that part of the testators property which he cannot dispose of because the law has reserved it for certain heirs who are, therefore, called compulsory heirs.12C.1. Capacity and intent to make a will.All persons who are not expressly prohibited by law may make a will, provided that:He/she is eighteen years of age;Of sound mind at the time of the execution;He/she has the intention to make a will.

May a married woman make a will without the consent of her husband?What is the presumption on soundness of mind?13C.2. Capacity to succeed by Will or by Intestacy.Persons not incapacitated by law may succeed by will or ab intestate.A child already conceived at the time of the death of the decedent is capable of succeeding provided it be born later.Testamentary dispositions may be made to the State, provinces, municipal corporations, private corporations, organizations, or associations for religious, scientific, cultural, educational, or charitable purposes.

14C.3. Forms of WillsEvery Will must be:In writing and executed in a language or dialect known to the testator;Must be subscribed at the end by the testator or by some other persons in his presence;Attested and subscribed by three or more credible witnesses in the presence of the testator and of one another.A holographic will must be entirely written, dated, and signed by the hand of the testator himself.

15C.4. Revocation of WillsA will may be revoked by the testator at any time before his/her death. Any waiver or restriction of this right is void.Subsequent will which do not revoke the previous ones in an express manner, annul only such disposition in the prior wills as are inconsistent with or contrary to those contained in the later wills.16C.5. Compulsory Heirs.Legitimate children and descendants, with respect to their legitimate parents and ascendants;In the absence of the foregoing, legitimate parents and ascendants, with respect to their legitimate children and descendants;The widow or widower;Acknowledged natural children, and natural children by legal fiction;Other illegitimate children.17Table of legitimes for compulsory heirs.

18Table of legitimes for compulsory heirs.

19C.6. Disinheritance.Disinheritance can be effected only through a will wherein the legal cause therefor shall be specified.Sufficient causes for the disinheritance of children:When a child or descendant has been found guilty of an attempt against the life of the testator, his or her own spouse, descendants or ascendants;When a child or descendant has accused the testator of a crime for which the law prescribes imprisonment for six years or more, if the accusation groundless;When a child or descendant has been convicted of adultery or concubinage with the spouse of the testator;20When a child or descendant by fraud, violence, intimidation or undue influence causes the testator to make a will or to change one already made;A refusal without justifiable cause to support the parent or ascendant who disinherits such child or descendant;Maltreatment of the testator by word or deed, by the child or descendant;When a child or descendant leads a dishonorable or disgraceful life;Conviction of a crime with the penalty of civil interdiction.

21Causes for disinheriting a spouse:When the spouse has been convicted of an attempt against the life of the testator, his or her descendants or ascendants;When the spouse has accused the testator of a crime punishable by imprisonment of six years or more, and the accusation is false;When the spouse, by fraud, violence, intimidation or undue influence causes the testator to make a will or to change it;When the spouse has given cause for legal separation;When the spouse has given grounds for loss of parental authority;Unjustifiable refusal to support the children or the other spouse22D. Legal or Intestate Succession

Definition of termsConsanguinity is the relation of persons descending from the same stock or common ancestor. It may be lineal or collateral.Representation is a right created by fiction of law, by virtue of which the representative is raised to the place and the degree of the person represented and acquires the rights which the latter would have if he were living or if he could have inherited.When does legal or intestate succession takes place?23D.1. Order of Intestate Succession.Descending direct line (legitimate children/descendants;Ascending direct line (legitimate parents/ascendants)Illegitimate children/descendants;Surviving spouse;Collateral relatives within the 5th degree;The State.24D.2. Table of intestate shares.

25GradingGrades are based on the accumulation of points.Points are based on:Class participation (effort)Completion of assignments(daily work)Major projects, exams, and self-reflection Grades are posted online and updated every Thursday.Our Grading Scale90-100% = A80-89% = B70-79% = C60-69% = DBelow 60% = F

Grades are calculated on cumulative percentage and are rounded up whenever possible. 26My Pledge to StudentsI will trust you until you give me reason to do otherwise.I will respect you and work with you to solve problems.I will promptly correct and offer feedback on your work.I will work with you to meet learning goals.I will offer extra help and alternative assessments should you require them.27