Valuation of the estate
- To determine the value of the right of usufruct, use or habitation, as well as that of annuity, there shall be taken into account the probable life of the beneficiary in accordance with the latest Basic Standard Mortality Table.
- The estate shall be appraised at its fair market value as of the time of death. However, the appraised value of real property as of the time of death shall be whichever is higher of:
- The fair market value as determined by the Commissioner, or
- The fair market value as shown in the schedule of values fixed by the Provincial or City Assessors.
Fair market value – is the price at which property would change hands between a willing seller and a willing buyer, neither of whom is under compulsion to sell or to buy.
- Exclusive and common properties of spouses
|Absolute Community of Property||Conjugal Partnership of Gains|
|I. EXCLUSIVE PROPERTY||I. EXCLUSIVE PROPERTY|
|1. Property acquired before the marriage by either spouse who has legitimate descendants by a former marriage, and the fruits of such property.||1. That which one already owns before his or her marriage, except the fruits of such property.
|2. Property acquired during the marriage by gratuitous title by either spouse and the fruits thereof (unless it is expressly provided by the donor or testator that they shall form part of the community property).||2. That which one acquired after the marriage by gratuitous title (e.g., donation, inheritance) or by exchange with an exclusive property, except the fruits of such property.|
|3. Property for personal and exclusive use of either spouse, except jewelry.|
|II. COMMUNITY (COMMON) PROPERTY||II. CONJUGAL (COMMON) PROPERTY|
|All other properties owned by the spouses:||All other properties are presumed conjugal, e.g.:|
|1. At the time of marriage; or||1. Salary received; and|
|2. Acquired thereafter.||2. Fruits from exclusive property.|
JONATHAN RUIZ CPA, MIB