Dealing with the estate of a deceased loved one is often a daunting task. In the Philippines, when a person dies without a will (intestate) and leaves no debts, the law provides a simplified way to settle the estate without going to court. This process is known as Extrajudicial Settlement.
If there is only one surviving heir, this process is specifically called an Affidavit of Self-Adjudication.
What is an Affidavit of Self-Adjudication?
Under Rule 74, Section 1 of the Rules of Court, if a person dies leaving no will and no debts, and there is only one sole heir, that heir may adjudicate the entire estate to themselves by means of an affidavit filed in the office of the Register of Deeds.
Legal Requirements for Validity
For this document to be legally binding and accepted by government agencies (like the BIR or Register of Deeds), the following conditions must be met:
- Sole Heir: The affiant must be the only surviving compulsory heir (e.g., an only child, or a surviving spouse if there are no children/parents).
- No Will: The deceased must have died intestate (without a last will and testament).
- No Debts: The estate must have no outstanding debts. If there are debts, they must be settled first.
- Public Instrument: The affidavit must be notarized.
Documentary Requirements
To successfully transfer titles or withdraw bank deposits using this affidavit, you will typically need the following:
- Original Death Certificate: Issued by the PSA.
- Proof of Relationship: PSA Birth Certificate (if the heir is a child) or Marriage Contract (if the heir is the spouse).
- Titles/Evidence of Ownership: Original Transfer Certificate of Title (TCT) for real estate, or stock certificates/bank books for personal property.
- Tax Declarations: For real property.
- Certification of No Improvement: From the Assessor’s Office (if applicable).
Step-by-Step Procedure
1. Preparation and Notarization
The heir executes the Affidavit of Self-Adjudication, identifying the deceased, describing the properties involved, and declaring themselves as the sole heir. This must be notarized.
2. Publication
Even though there is only one heir, the law requires the affidavit to be published in a newspaper of general circulation once a week for three (3) consecutive weeks. This serves as notice to any potential creditors or other heirs who might have been overlooked.
3. Payment of Estate Taxes
File the Estate Tax Return (BIR Form 1801) at the Revenue District Office (RDO) having jurisdiction over the deceased's residence. Upon payment (or if exempt), the BIR will issue a Certificate Authorizing Registration (CAR).
4. Registration with the Register of Deeds
Submit the notarized affidavit, proof of publication, and the CAR to the Register of Deeds to transfer real property titles to the heir’s name.
Sample Format: Affidavit of Self-Adjudication
AFFIDAVIT OF SELF-ADJUDICATION I, [Name of Heir], of legal age, Filipino, [Civil Status], and a resident of [Address], after having been duly sworn to in accordance with law, do hereby depose and state:
- That [Name of Deceased] died intestate on [Date of Death] at [Place of Death], as evidenced by the attached Death Certificate;
- That the said deceased died without leaving any will and without any pending debts;
- That the deceased left certain real/personal property/ies described as follows: (Insert Technical Description of Land or Details of Personal Property)
- That I am the sole surviving heir of the deceased, being the [Relationship, e.g., only son/daughter/spouse];
- That pursuant to Rule 74, Section 1 of the Rules of Court, I hereby adjudicate unto myself the above-described property/ies;
- That this affidavit is being executed to attest to the truth of the foregoing facts and for the purpose of requesting the Register of Deeds/Bank/Company to transfer the said property/ies in my name.
IN WITNESS WHEREOF, I have hereunto set my hand this [Date] at [Place].
[Name and Signature of Heir] (JURAT/NOTARIZATION)
Important Considerations
- Two-Year Bond: Under the law, the property remains subject to a lien for two years in favor of any heir or creditor who may have been deprived of their lawful participation in the estate.
- Mistake in "Sole Heir" Status: If it is later discovered that there are other heirs, the Affidavit of Self-Adjudication can be contested, and the affiant may face criminal charges for perjury or estafa.
Would you like me to create a detailed checklist of the specific BIR forms and attachments needed to get the Certificate Authorizing Registration (CAR)?