Quiz on Co ownership and Trust

Inheritance is subject to Income tax such as “Estate Tax”

• True

• False

Inherited property remained undivided for more than (10) years and no attempt was ever made to divide the same among the co-heirs, nor was the property under administration

proceedings nor held in trust, the property should be considered as owned by an registered partnership, consequently, taxable as corporation.

• True

• False

A tax on gratuitous transfer of property either through gift/donation (subject to donor’s tax) or through inheritance (subject to estate tax).

• Income tax

• Transfer tax

• Trust Tax

• Gratuitous tax

This refers to the period when title to their properties left by a decedent is not yet finally transferred to the heirs/beneficiaries.

• Co-ownership period

• holding period

• settlement period

• monthly period

Co-Owners are taxed individually on their distributive share in the income of the co-ownership.

• True

• False

Co-ownership does exist when two or more heirs or beneficiaries inherit an undivided property from a decedent, or when a donor makes a gift of an undivided property in favor of two or more donees

• True

• False

Inherited property remained undivided for more than ______________ and no attempt was ever made to divide the same among the co-heirs, nor was the property under administration

proceedings nor held in trust, the property should be considered as owned by an unregistered partnership, consequently, taxable as corporation.

_________ is a right on property, real or personal, held by one party for the benefit of another. It may be arranged inter-vivos or created by will under which title to a property is passed to another for conservation or investment with the income therefrom and ultimately the corpus (principal) to be distributed in accordance with the directions of the creator as expressed in the governing instrument. (write your answer in upper case)

_______ is one in whom confidence is

reposed as regards property for the benefit of another person. ( write your answer in uppercase )

The income of the trust is taxable to the “trustee” if the income is to be accumulated or held for future distribution, whether ordinary income or gain from sale of assets included in the corpus of the trust.

• True

• False