Introduction

In the Philippines, the law on succession, primarily governed by the Civil Code (Republic Act No. 386, as amended), outlines the transmission of property, rights, and obligations from a deceased person (decedent) to their heirs. When multiple heirs inherit property, they become co-heirs, sharing ownership until the estate is properly divided. This co-ownership raises questions about individual rights, the role of executors in managing the estate, and the use of instruments like the Special Power of Attorney (SPA) to facilitate transactions. Understanding these elements is crucial for avoiding disputes and ensuring smooth estate settlement. This article explores the comprehensive framework under Philippine law, including rights, limitations, procedural requirements, and practical considerations.

Who Are Co-Heirs and How Does Inheritance Occur?

Co-heirs are individuals who jointly succeed to the estate of the decedent, either through intestate succession (when there is no will) or testate succession (when a valid will exists). Under Article 777 of the Civil Code, the rights to succession are transmitted from the moment of death, meaning heirs acquire ownership immediately, subject to the payment of debts and taxes.

In intestate succession (Articles 978-1014), heirs are determined by law based on proximity of relationship: legitimate children and descendants first, followed by ascendants, illegitimate children, surviving spouse, collateral relatives, and finally the State. In testate succession, the will dictates distribution, but it must respect legitimes—mandatory shares for compulsory heirs (Articles 886-914), such as children and the spouse.

Upon inheritance, co-heirs become undivided co-owners of the property. This means no heir owns a specific portion until partition occurs, but each has an ideal or abstract share proportional to their inheritance right (e.g., equal shares among children unless otherwise specified).

Rights of Co-Heirs Over Inherited Property

Co-heirs enjoy several rights over the inherited property, balanced by obligations to preserve the estate and respect co-ownership principles. Key rights include:

1. Right to Possession and Use

Each co-heir has the right to possess and use the entire property, provided it does not prejudice the others (Article 493). For instance, if the property is a house, a co-heir may occupy it, but they cannot exclude others without agreement.
However, exclusive possession by one co-heir may require them to account for benefits, such as rental value, during partition (Article 494).

2. Right to Fruits and Income

Co-heirs are entitled to a proportionate share of the fruits (e.g., crops, rents) produced by the property from the time of death (Article 777). Natural and industrial fruits accrue to the estate, while civil fruits (e.g., rents) are divided based on ownership shares.
If one co-heir manages the property, they must render an account of income and expenses (Article 500).

3. Right to Preserve the Property

Any co-heir can perform acts of preservation, such as repairs to prevent deterioration, without needing others' consent (Article 489). This includes paying taxes or mortgages to avoid foreclosure.
Urgent acts to protect the property bind all co-heirs, who must contribute proportionally.

4. Right to Dispose of Ideal Share

A co-heir may sell, mortgage, or otherwise dispose of their undivided share (Article 493). However, this does not affect the physical property; the buyer steps into the co-heir's shoes and becomes a co-owner with the remaining heirs.
Disposal of the entire property requires unanimous consent; otherwise, it is void as to non-consenting heirs.

5. Right to Demand Partition

The cornerstone right is to demand partition at any time, unless prohibited by the decedent's will for up to 20 years (Article 494) or by agreement among heirs (Article 1083).
Partition can be extrajudicial (via agreement) or judicial (through court action under Rule 69 of the Rules of Court). It determines specific portions, ending co-ownership.

Limitations and Obligations

Acts of administration (e.g., leasing for over one year) require majority consent based on interest value (Article 492).
Acts of dominion (e.g., selling the whole property) need unanimity.
Co-heirs must not alter the property's substance or encumber it without consent (Article 491).
Liability for debts: The estate pays the decedent's debts first (Article 1035); heirs are liable only up to their share's value.

Violations can lead to actions for annulment, damages, or reconveyance. For real property, co-heirs should annotate their claims on the title via an Affidavit of Self-Adjudication or Deed of Extrajudicial Settlement to protect against third-party dealings.

Authority of Executors in Estate Administration

An executor is a person named in the will to administer the estate (Article 778). If no executor is appointed, the court may appoint an administrator. Their authority is derived from the will and confirmed by the court in probate proceedings (Rule 78-90, Rules of Court).

Appointment and Qualifications

The executor must be of legal age, sound mind, and not disqualified (e.g., due to conviction of an offense involving moral turpitude).
Probate is mandatory for wills; the executor petitions for allowance and issuance of letters testamentary.

Powers and Duties

Inventory and Appraisal: Prepare an inventory of assets and liabilities within three months (Rule 81).
Payment of Debts and Taxes: Settle obligations, including estate taxes under the Tax Code (Republic Act No. 8424, as amended by TRAIN Law and CREATE Act).
Management of Property: Possess and manage the estate during settlement, including collecting rents, selling perishable goods, or pursuing claims (Rule 84).
Distribution: After debts and taxes, distribute legacies and devises per the will.
Accounting: Render accounts to the court and heirs (Rule 85).

Limitations on Authority

Executors cannot sell immovable property without court approval, unless authorized by the will (Article 778).
They act as fiduciaries; personal interests conflicting with the estate lead to removal (Rule 82).
In intestate cases, administrators have similar powers but are appointed based on priority (e.g., surviving spouse, next of kin).
Co-heirs can challenge executors via court for mismanagement, with remedies like suspension or bond requirements.

The executor's authority ends upon final distribution and court approval of accounts, typically within one year, extendable for cause (Rule 90).

Special Power of Attorney (SPA) in Managing Inherited Property

An SPA is a written authorization under Article 1878 of the Civil Code, granting an agent specific powers to act on behalf of the principal (co-heir). It is essential for transactions involving inherited property, as general powers of attorney suffice only for administration, not disposition.

When SPA is Required

For acts like selling, mortgaging, or leasing real property for over one year (Article 1878).
In estate matters, a co-heir may execute an SPA to another heir or third party to handle partition, registration, or sales.

Form and Requirements

Must be in writing; for real property transactions, it should be notarized and specify powers clearly to avoid ambiguity.
If the agent is to execute deeds affecting real rights, the SPA must be a public instrument (Article 1358).
Consular authentication is needed if executed abroad.

Application in Inheritance

Among Co-Heirs: One co-heir can grant SPA to another for signing a Deed of Extrajudicial Settlement (DES) or representing in judicial partition.
For Executors: Executors may need SPA from heirs for certain acts post-probate, though their court-granted authority often suffices.
Tax and Registration: Bureau of Internal Revenue (BIR) and Registry of Deeds require SPA for transferring titles, paying taxes, or issuing new certificates.

Validity and Revocation

Valid until revoked, expired, or principal's death (Article 1927), but third parties in good faith are protected.
Revocation must be notified to the agent and recorded if the SPA was registered.

Misuse of SPA can result in civil liability for damages or criminal charges for estafa (Article 315, Revised Penal Code).

Common Issues, Disputes, and Legal Remedies

Disputes among co-heirs often arise from unequal contributions, unauthorized dispositions, or delays in partition. Remedies include:

Action for Partition: Filed in Regional Trial Court; may involve physical division, assignment, or sale.
Accounting and Reimbursement: For expenses or improvements (Articles 499-501).
Annulment of Transactions: If done without consent.
Probate Challenges: Opposing the will or executor's actions.
Tax Implications: Estate tax must be paid within one year (extendable); non-payment leads to penalties and liens.

Heirs should settle extrajudicially via DES, published for three weeks, to avoid court costs. For estates over P200,000, BIR clearance is mandatory.

Conclusion

The rights of co-heirs over inherited property in the Philippines emphasize equity and cooperation, with co-ownership serving as a temporary phase until partition. Executors play a pivotal role in orderly administration, ensuring the decedent's wishes are fulfilled while protecting the estate. The SPA provides flexibility for delegated actions, streamlining processes in a multi-heir scenario. Navigating these requires adherence to the Civil Code, Rules of Court, and tax laws to prevent conflicts. Consulting a lawyer is advisable for tailored advice, as estate matters can be complex and fact-specific.