pertains to all the property, rights and obligations of a deceased person, including those that accrue since the opening of succession.

is the arrangement created by will or an arrangement under which title to property is passed to another for consideration or investment with the income therefrom and ultimately the corpus to be distributed in accordance with the directions of the creator as expressed in the governing instrument.

the one who establishes the trust

the one in whom confidence is reposed as regards the property for the benefit of another person

for whose benefit the trust has been established.

Kinds of trust

one where at any time the power to revest (return) in the grantor title to any art of the corpus of the trust is vested

where no such right exists or cannot be exercised after an agreed period

1. If the income is distributed regularly, such will form part of the taxable income of the beneficiary.
2. If the trust is revocable, the income of the trust forms part of the taxable income of the trustor.
3. Only when the trust is irrevocable and the income is kept in the trust, would there be a need to compute for the income tax liability of the Trust. 4. If the Trust is treated as a separate taxable unit, the rules on individuals are the same, except that the Distribution of INCOME to the beneficiary shall be deductible for purposes of computing the taxable income of the Trust subject to 15% withholding tax, and the amount distributed (gross of the withholding tax) will form part of the beneficiary’s taxable income.

KINDS OF PARTNERSHIPS;

are formed by persons for sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business.

are those formed by persons for purposes of profits.

are taxed similar to a corporation and the rules on deductions, as well as Capital Gains Tax, Final Tax and Minimum Corporate Income Tax are likewise applicable.

There is co-ownership whenever the ownership of an undivided thing or right belongs to different persons.

are generally not taxable because the activities are usually limited to the preservation of the property owned in common and collection of the income therefrom.

The mere sharing of gross returns does not in itself establish a partnership, whether or not the persons sharing them have a joint or common right or interest in any property from the returns are divided.