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BIR Ruling No 105-99
BIR Ruling No 105-99
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.
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].
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