Personal property, also referred to as movable property, is anything other than land that can be the subject of ownership, including stocks, money, notes, Patents, and copyrights, as well as intangible property.
Real property is land and ordinarily anything erected on, growing on, or affixed to it, including buildings and crops. The term is also used to declare any rights that issue from the ownership of land. The terms real estate and real property generally refer to land. The term land, in its general usage, includes not only the face of the earth but everything of a permanent nature over or under it, including minerals, oil, and gases. In modern usage, the word premises has come to mean the land itself or the land with all structures attached. Residential buildings and yards are commonly referred to as premises.

Personal property is property owned by an individual or business which is movable and is not affixed to or associated with the land. Basically, personal property is everything except real property. Personal property for a business would include equipment, office furniture and equipment, cars/trucks purchased and used by the business, and, basically, everything that isn't "nailed down."
In other words, personal property is movable, while real property is not. Because of the mobile nature of personal property, it is more difficult for a credit to use personal property to secure a loan. For example, if a bank loans money on a building, it can be sure that the building will not be moved. But if a bank loans money on the car, the car can be driven away.
Tangible personal property is personal property that can be felt or touched. Tangible personal property includes furniture, business equipment, vehicles, household goods, collectibles, and jewelry.
Intangible personal property is personal property that cannot be felt or touched. Intangible personal property includes securities, bonds, CD's, and other intangible assets

TRANSFER TAXES AND BASIC SUCCESSION
Transfer taxes are excise or privilege taxes.
Onerous transfer of property
- the exchange of property for a monetary consideration or a transfer of goods or services inreturn for something of equal value like in sales or barter. Business tax- the tax corresponding the transfer made in the normal course of business
E.g. value-added tax, percentage tax, excise tax Gratuitous transfer of property a conveyance of property without any consideration involved in exchange for the propertygiven away.

Transfer taxes taxes which are imposed on gratuitous transfer of property

Estate tax
Basis: to tax the transfer of economic benefits and enjoyment of property from a decedent person to the heir
Justification
Redistribution of wealth theory unequal distribution of wealth; helps distribute some of theeconomic benefits Benefit-received theory government provides services for the transfer; it is just fair that thegovernment collects its equivalent compensation Privilege or state partnership theory the State is a “passive and silent partner” Ability to pay theory heir has ability to pay the tax to contribute to the government

Donor’s tax excise tax imposed on the right to transfer gratuitously, directly or indirectly, real and personal properties, tangible or intangible out of the owner’s liberality in favor of another that accepts the gift. Purpose: to prevent avoidance of estate tax through lifetime transfers of property
Effectivity - Transfer of Properties
From the moment of decedent’s death (Article 777, CCP)
Determination of the tax on property transferred is traced back to the moment of death.
Succession
Defined as a mode of acquisition by virtue of which the property, rights and obligations to the extent of the value of the inheritance, of a person are transmitted through his death to another or others either by will (testate) or byoperation of law (intestate)
(Article 774, CCP)
Basis:
Family Relation
(principle of natural law),
Implicit Ownership
(heirs assumed ownership of property left bydecedent),
Socio-economic
(wealth left by decedent should be actively used to provide economic benefit to thecommunity) Elements of Succession
Decedent(person who died)
Testator(decedent through will) Estate(property rights of decedent) Successor(heir) Persons Authorized To Take Chart of the Estate
Executor person or trust company named in the will by testator
Administrator person or trust company appointed by the court
Inheritance/Estate properties or the estates of the decedent
Successors parties who have legal rights to receive the estate (Article 887, CCP)

Primary compulsory heirs
Legitimate children and their legitimate descendants
Surviving legitimate spouse
Illegitimate children and their descendants
Secondary compulsory heirs
Legitimate parents and legitimate ascendants
Illegitimate children and their descendants

Absence of compulsory heirs
Decedents relatives up to 5thdegree
If no relatives to receive, the government inherits the whole estate
If there’s a will, decedent may name other persons to inherit the free portion Devisee–person to whom a gift of real property is given by virtue of a will (Article 782, CCP)
Legatee –a person to whom a gift of personal property (bequest) is given by virtue of a will.
Brothers and sisters are not compulsory heirs, neither are strangers-however it is not contrary to law in giving them a share of the inheritance, if the testator desired –called voluntary heirs

Inter Vivos Trust
Any trust other than a testamentary trust is an inter vivos trust. A trust may lose its status as a testamentary trust further to one of the following events: * the property or income of the trust was not distributed to beneficiaries in accordance with the terms of the will * the trust was created after November 12, 1981, and before the end of the taxation year property was contributed to the trust otherwise than by succession inter vivos (in-tur-veye-vohs) adj. Latin for "among the living," usually referring to the transfer of property by agreement between living persons and not by a gift through a will. It can also refer to a trust (inter vivos trust) which commences during the lifetime of the person (trustor or settlor) creating the trust as distinguished from a trust created by a will (testamentary trust) which comes into existence upon the death of the writer of the will.

Causa Mortis
[Latin, In contemplation of approaching death.] A phrase sometimes used in reference to a deathbed gift, or a gift causa mortis, since the giving of the gift is made in expectation of approaching death. A gift causa mortis is distinguishable from a gift inter vivos, which is a gift made during the donor's (the giver's) lifetime.
The donor of the gift of Personal Property must expect to die imminently from a particular ailment or event. This has important consequences in terms of the donor's ability to revoke the gift.
For example, an elderly man is suffering from pneumonia and believes he is going to die as a result of the sickness. He tells his grandson that if he dies, he will give the grandson his pocket watch. If the man recovers and wants to retain his watch, he will be able to do so, because a gift causa mortis is effective only if made in contemplation of death due to a known condition and the donor actually dies as a result of that condition.
A gift causa mortis is taxed under federal estate tax law in the same way as a gift bequeathed by a will. es·tate (-stt)
n.
1. A landed property, usually of considerable size.
2. The whole of one's possessions, especially all the property and debts left by one at death.
3. Law The nature and extent of an owner's rights with respect to land or other property.

Succession
The transfer of title to property under the law of Descent and Distribution. The transfer of legal or official powers from an individual who formerly held them to another who undertakes current responsibilities to execute those powers.

decedent n. the person who has died, sometimes referred to as the "deceased."
Decedent
An individual who has died. The term literally means "one who is dying," but it is commonly used in the law to denote one who has died, particularly someone who has recently passed away.
A decedent's estate is the real and Personal Property that an individual owns upon his or her death.

Testator
One who makes or has made a will; one who dies leaving a will.
A testator is a person who makes a valid will. A will is the document through which a deceased person disposes of his property. A person who dies without having made a will is said to have died intestate.

Will
A document in which a person specifies the method to be applied in the management and distribution of his estate after his death.

LEGITIME, civil law. That portion of a parent's estate of which he cannot disinherit his children, without a legal cause in Civil law and Roman law, the legitime, also known as a forced share or legal right share, of a decedent's estate is that portion of the estate from which he cannot disinherit his children, or his parents, without sufficient legal cause legacy n. a gift of personal property or money to a beneficiary (legatee) of a will. While technically, legacy does not include real property (which is a "devise"), legacy usually refers to any gift from the estate of one who has died. It is synonymous with the word "bequest." (will, beneficiary, bequest, legatee)
Device -An Invention or contrivance
Testamentary
Relating to wills.
An individual is said to have testamentary capacity to make a will when that person has sufficient mental ability to comprehend what he or she is doing, the nature and extent of his or her property, the natural objects (which means appropriate persons or recipients) of his or her bounty, and the interrelationships among these three concepts.
Intestate
The description of a person who dies without making a valid will or the reference made to this condition. intestate succession n. the distribution when a person dies without leaving a valid will and the spouse and heirs will take (receive the possessions) by the laws of descent and distribution and marital rights in the estate which may apply to a surviving spouse. Collectively these are called the laws of intestate succession
Art. 74. The property relationship between husband and wife shall be governed in the following order:
(1) By marriage settlements executed before the marriage;
(2) By the provisions of this Code; and
(3) By the local custom. (118)

Property Relations of Spouses
Art. 74 of the Family Code. The property relationship between husband and wife shall be governed in the following order:

(1) By marriage settlements or antenuptial agreement executed BEFORE the marriage;
(2) By the provisions of the Family Code; and
(3) By the local custom.

The future spouses may, in their marriage settlement, agree on:
(1) the System of ABSOLUTE Community of Property;
(2) Conjugal Partnership of GAINS;
(3) Complete SEPARATION of Property
(4) a combination of the above regimes;
(5) any other regime, like the dowry system

Notwithstanding the provisions, I shall never enter into an antenuptial agreement just in case the man of my dreams proposes marriage to me. The “one flesh” term in the Bible is much more than sex. They are “one” not only physically but also emotionally, spiritually, intellectually, financially, and in every other way; living together to meet each other’s needs. They shall become one entity sharing their lives with each other, no longer two individuals. I also believe that contracting a marriage settlement is in anticipation of divorce.

Accordingly, in the absence of a marriage settlement, or when the regime agreed upon is void, the System of Absolute Community of Property as established in the Family Code shall govern. In this regime, the husband and wife are co-owners of ALL the properties that they bring into the marriage andthose acquired during the marriage EXCEPT those exclusive property of each spouse expressly provided by Article 92, FC, such as:

(1) Property acquired during the marriage by gratuitous title;
(2) Property for personal and exclusive use of either spouse except jewelry; and
(3) Property acquired before the marriage by either spouse who has legitimate descendants by a former marriage.

System of Absolute Community of Property vs. Conjugal Partnership of Gains
(1) The System of Absolute Community of Property shall govern if the husband and wife have no marital settlement agreement. The regime of the Conjugal Partnership of Gains shall govern the property relations during marriage as agreed upon in the marriage settlement.

(2) In the Absolute Community, the ENTIRE common mass of property is divided equally between the spouses, each spouse losing the ownership of the properties brought into the marriage. While in the Conjugal Partnership of Gains, only the NET PROFITS of the partnership are divided between the spouses.