"SECTION 87. Exemption of Certain Acquisitions and Transmissions. - The following shall not be taxed:

"(A) The merger of usufruct in the owner of the naked title;

"(B) The transmission or delivery of the inheritance or legacy by the fiduciary heir or legatee to the fideicommissary;

"(C) The transmission from the first heir, legatee or donee in favor of another beneficiary, in accordance with the desire of the predecessor; and

"(D) All bequests, devises, legacies or transfers to social welfare, cultural and charitable institutions, no part of the net income of which inures to the benefit of any individual: Provided, however, That not more than thirty percent (30%) of the said bequests, devises, legacies or transfers shall be used by such institutions for administration purposes.

"SECTION 88. Determination of the Value of the Estate. -

"(A) Usufruct. - 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, to be approved by the Secretary of Finance, upon recommendation of the Insurance Commissioner.

"(B) Properties. - 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 the higher of -

"(1) The fair market value as determined by the Commissioner, or

"(2) The fair market value as shown in the schedule of values fixed by the Provincial and City Assessors.