1) The legal starting point: what “estate settlement” means

When a spouse dies, everything that belongs to the decedent (the person who died) forms the estate. Estate settlement is the legal process of (a) identifying what properties, rights, and obligations the decedent left, (b) paying enforceable debts and expenses, and (c) distributing what remains to the heirs in accordance with Philippine law.

Two important ideas control the entire discussion:

Not everything the family is holding becomes part of the estate. Some properties never enter the estate because they already belong to the surviving spouse, or they pass by contract to a named beneficiary.
Heirs’ rights attach only after determining the correct property regime and what truly belongs to the decedent. You must first “separate” the spouses’ property, then compute the net estate, then distribute.

This article focuses on the rights of the surviving spouse and the child (legitimate, illegitimate, adopted, and in some cases descendants by representation) and the practical steps and pitfalls in Philippine estate settlement.

2) First question: What property regime governed the marriage?

Your rights depend heavily on the property relations between spouses, which are generally one of the following:

A. Absolute Community of Property (ACP)

This is the default regime for marriages without a valid prenuptial agreement, for marriages celebrated after the Family Code took effect, and in many situations unless proven otherwise.

General effect: Most property owned by either spouse before and during the marriage becomes community property, with certain exclusions.

B. Conjugal Partnership of Gains (CPG)

This is common in marriages celebrated before the Family Code, or where the applicable rules and facts point to CPG.

General effect: Each spouse keeps ownership of property brought into the marriage; the “gains” or fruits and many acquisitions during marriage become conjugal.

C. Complete Separation of Property (or another regime by marriage settlement)

If there is a valid prenuptial agreement, the spouses may have separation of property or another regime.

General effect: Each spouse owns their property separately, though there may still be co-owned acquisitions depending on the agreement and circumstances.

Why this matters: Before talking about inheritance shares, you must know whether the decedent owned (1) a share in a marital mass (community or conjugal) and/or (2) exclusive properties.

3) Step one in every settlement: Dissolution and liquidation of the spouses’ property

When a spouse dies, the marital property regime is dissolved, and the law requires liquidation before final distribution.

Under ACP (Absolute Community)

Typical sequence:

Inventory all properties presumed community and all exclusions.
Pay community obligations (community debts, expenses, etc.).
Return exclusive properties to each spouse (if any are proven exclusive).
Divide the net community into two halves:
- Half belongs to surviving spouse (not inheritance)
- Half pertains to the decedent’s share and becomes part of the estate for distribution to heirs.

Key right: In ACP, the surviving spouse is already owner of one-half of the net community after liquidation. That half is not something “inherited”; it is property already belonging to the survivor.

Under CPG (Conjugal Partnership)

Typical sequence:

Identify each spouse’s exclusive properties.
Identify conjugal properties (generally gains).
Pay conjugal obligations.
Determine the net conjugal partnership.
Divide net conjugal assets:
- Half belongs to surviving spouse (not inheritance)
- Half belongs to the decedent and becomes part of the estate.

Key right: Same principle—surviving spouse gets their one-half of the net conjugal partnership before inheritance is computed.

Under Separation of Property

There is no community/conjugal mass to divide, but you still identify:

Decedent’s separate properties (estate)
Any co-ownership arrangements that must be partitioned

4) What belongs to the estate vs. what does not

A. Included in the estate

Decedent’s exclusive properties
Decedent’s share in net community/conjugal property (after liquidation)
Receivables (credits) owed to the decedent
Claims and rights with monetary value
Shares of stock, interests in partnerships, etc.
Real property titled in the decedent’s name (subject to proof of actual ownership and regime)

B. Common items that may be excluded (or treated differently)

Surviving spouse’s half of community/conjugal property (after liquidation).
Properties with valid beneficiary designations that transfer by contract, such as certain insurance proceeds payable to a named beneficiary (subject to limited exceptions).
Certain retirement or employment benefits payable directly to a beneficiary under specific rules or plans (often outside the probate estate).
Properties held in trust where the decedent had no beneficial ownership (depends on trust structure).

C. The family home (special protection)

Philippine law gives the family home special treatment. Practically, it is often:

given a degree of exemption from execution for most debts (subject to exceptions),
and it is generally treated with preference to keep it for the family, especially where minor children are involved.

However, it is not a magic shield against every claim, and its status depends on facts (use as family dwelling, constitution, value caps in some contexts, timing, and applicable rules).

5) Who are the heirs when a spouse dies?

Philippine succession law recognizes heirs by will (testate) or by law (intestate). Even with a will, compulsory heirs cannot be deprived of their legitimes except in cases of valid disinheritance.

A. Compulsory heirs relevant here

Legitimate children and legitimate descendants
Surviving spouse
Illegitimate children (with different legitime rules)
Parents and ascendants (only if no legitimate children/descendants)
Adopted children (generally treated like legitimate children for succession)

This article focuses on situations involving a surviving spouse and a child, which commonly means at least one child exists—often a compulsory heir.

6) Testate vs. intestate: the two settlement tracks

A. If there is a valid will (testate succession)

The will controls distribution only to the extent it does not impair the legitimes of compulsory heirs.
The surviving spouse and children have legitimes—minimum shares reserved by law.
The estate is divided into:
1. Legitime portions (reserved)
2. Free portion (the part the testator may dispose of)

If the will gives less than the legitime, the disposition is reduced to satisfy legitimes.

B. If there is no will, or the will is invalid (intestate succession)

Distribution is determined by law. This is where standard “shares” are commonly discussed.

7) Intestate shares: surviving spouse and child

Because family structures vary, it’s important to distinguish:

Scenario 1: Surviving spouse + legitimate child/children (no other complications)

General rule: The surviving spouse shares with the legitimate children.

A commonly applied approach in basic intestate cases:

The surviving spouse takes a share equal to the share of one legitimate child.
Legitimate children divide the remainder equally among themselves, with the spouse counted as “one share.”

Example: Decedent’s net estate = ₱1,000,000 and there are 2 legitimate children and a surviving spouse.

Total “equal shares” = 3 (Child A, Child B, Spouse)
Each share = ₱333,333.33
Spouse gets ₱333,333.33; each child gets ₱333,333.33

Scenario 2: Surviving spouse + illegitimate child/children

Illegitimate children inherit, but the proportions differ from legitimate children. In practice, shares must be computed under the rules applicable to illegitimate children’s successional rights, and the spouse’s share is computed accordingly.

Because mixing legitimate and illegitimate children creates multiple interacting fractions, computation is fact-sensitive. The safest way to think of it is:

Identify which children are legitimate vs. illegitimate
Apply the lawful shares so that each class receives what the law assigns
Ensure compulsory legitimes are satisfied if testate

Scenario 3: Surviving spouse + adopted child

Adopted children generally inherit as legitimate children. Thus, in many standard computations, an adopted child is treated like a legitimate child.

Scenario 4: Child is predeceased but has descendants (grandchildren)

Succession may proceed by representation, meaning the grandchildren step into the place of their parent and take the share their parent would have taken.

Scenario 5: No children, but surviving spouse and ascendants exist

If there are no children or descendants, the spouse inherits with the decedent’s parents/ascendants, under a different allocation.

8) Legitimes: the “cannot be taken away” minimum shares

Even if a will exists, compulsory heirs have legitimes. Key points:

The law reserves fixed minimum portions for compulsory heirs.
A will may distribute the free portion, but not reduce legitimes.
Disinheritance is allowed only for specific legal causes and must comply with strict formalities; otherwise, the disinheritance fails and legitimes must be restored.

In practice, many estate disputes are really legitime disputes: a will, donation, or “advance transfer” may be attacked for impairing legitimes.

9) The surviving spouse’s layered rights: property, inheritance, and protection

The surviving spouse’s rights usually arise in layers:

Layer 1: Property rights from the marriage

One-half of net community/conjugal property (if ACP/CPG), after liquidation.

Layer 2: Inheritance rights as a compulsory heir

A successional share in the decedent’s net estate (intestate share or legitime/testate share).

Layer 3: Protective rights (often practical, sometimes litigated)

Rights connected to the family home and continued occupancy, especially where minor children exist.
Rights in settlement procedure: the spouse often has standing to initiate settlement, oppose improper dispositions, demand accounting, and protect legitimes.

Important caution: remarriage and property mixing

Remarriage does not erase inheritance rights already vested, but it can complicate property boundaries and management. Prompt liquidation and clear documentation help prevent later conflicts.

10) The child’s rights: compulsory heir protections and equality rules

Legitimate (and adopted-as-legitimate) children

Generally inherit in equal shares among themselves.
Share with the surviving spouse in intestacy, commonly on an equal-share basis (spouse equals one child’s share).

Illegitimate children

Are compulsory heirs in their own right, but their shares are governed by different rules than legitimate children.
Their rights are commonly the subject of contest, particularly when the parentage is disputed or recognition is incomplete.

Minor children: special considerations

A minor’s share must be protected. Courts may require guardianship arrangements, bonds, or approvals for compromises, sales, or waivers affecting the minor’s property.
Extrajudicial settlements are restricted in practice when minors are involved unless properly represented and compliant with requirements.

11) Settlement pathways: extrajudicial vs. judicial

A. Extrajudicial settlement

Typically possible when:

The decedent left no will, and
There are no outstanding debts (or they are settled/covered), and
The heirs are in agreement, and
Legal requirements (such as publication and proper documentation) are satisfied.

Common forms:

Deed of Extrajudicial Settlement (all heirs divide the estate)
Affidavit of Self-Adjudication (only if there is a sole heir)
Deed of Partition (often combined with extrajudicial settlement)

Rights impact: The surviving spouse and child must be properly included, their shares correctly stated, and the spouse’s own half of the conjugal/community must be distinguished from inheritance.

B. Judicial settlement

Necessary or strongly advisable when:

There is a will (probate is required),
Heirs disagree,
There are contested issues (validity of marriage, legitimacy/recognition of child, legitimacy of transfers, ownership disputes),
There are significant debts or creditor claims,
There are minors or incapacitated heirs and the settlement cannot safely proceed extrajudicially.

Judicial settlement can be:

Testate proceedings (probate and settlement)
Intestate proceedings (court-supervised administration)

Rights impact: Court supervision provides structure: appointment of an administrator/executor, inventory, notice to creditors, approval of sales, and final distribution.

12) Debts, claims, and expenses: what gets paid first

Before heirs receive anything, the estate must satisfy enforceable obligations, such as:

Funeral and burial expenses (within reason)
Judicial expenses of settlement (if any)
Taxes and fees (including estate tax requirements and related charges)
Valid debts of the decedent chargeable against the estate

In ACP/CPG, some obligations may be chargeable against the community/conjugal mass depending on the nature of the debt (family obligations vs. personal obligations). This is why classification matters.

Practical right of the surviving spouse and child: They can challenge improper claims and insist that only lawful, properly proven debts are paid.

13) Common dispute points and how the law typically approaches them

A. “Everything is in the decedent’s name, so it’s all the estate.”

Not necessarily. Title is evidence, but property regime and funding sources matter. A property acquired during marriage may be community/conjugal even if titled in one spouse’s name.

B. “The surviving spouse gets everything because they’re the spouse.”

Not correct. The spouse has strong rights, but children are compulsory heirs. The spouse’s inheritance share is distinct from their marital property share.

C. “The child can be excluded because the spouse needs the property.”

A compulsory heir’s legitime generally cannot be removed except by valid disinheritance.

D. “The property was ‘donated’ before death, so it’s untouchable.”

Inter vivos donations can be examined, especially if they impair legitimes. Collation and reduction principles may apply, depending on circumstances.

E. Second families, overlapping claims

Disputes often involve:

Validity of the marriage(s)
Bigamy implications
Who is the lawful surviving spouse
Whether a child is legitimate/illegitimate/recognized These are high-stakes issues usually requiring judicial settlement.

14) Documentation essentials (what the surviving spouse and child typically need)

Death certificate
Marriage certificate (and proof of dissolution of any prior marriage if relevant)
Birth certificates of children (and adoption decree if adopted)
Titles, tax declarations, deeds of sale/donation
Bank records, stock certificates, business records
List of debts and supporting documents
Evidence of exclusive property claims (if asserting exclusions from community/conjugal property)
If testate: the will and evidence of its proper execution

15) Taxes and transfers: estate tax compliance in practice

Estate settlement in the Philippines commonly intersects with:

Estate tax filing/payment requirements (and applicable deadlines, extensions, penalties if late)
Transfer processes at the Registry of Deeds (real property) and corporate transfer agents (shares)
Bank release requirements

Heirs’ rights can be frustrated in practice if tax compliance is mishandled, because transfers and releases are often conditioned on proof of compliance and settlement documentation.

16) Practical examples tying everything together

Example 1: ACP marriage, one child

Total community assets: ₱6,000,000
Community obligations: ₱1,000,000
Net community: ₱5,000,000
Divide: surviving spouse gets ₱2,500,000 (marital share)
Decedent’s estate includes decedent’s half: ₱2,500,000 (plus any exclusive property)
If intestate with one legitimate child: spouse and child share the estate portion according to the lawful intestate rule (commonly equal shares between spouse and the one child in the decedent’s estate portion)
Final: spouse ends with marital share + inheritance share; child gets inheritance share

Example 2: Property in decedent’s name acquired during marriage

Even if titled solely in the decedent’s name, if acquired during marriage and not excluded, it may still be community/conjugal. The surviving spouse can assert that half is theirs upon liquidation.

17) Key takeaways on rights

Surviving spouse

Owns their half of net community/conjugal property (if ACP/CPG) after liquidation
Inherits as a compulsory heir from the decedent’s estate portion
Has standing to initiate settlement, demand liquidation/accounting, protect the family home, and oppose impairments of legitimes

Child

Is typically a compulsory heir (legitimate/adopted; and also illegitimate children with specific rules)
Has a protected minimum share (legitime) if testate; lawful share if intestate
Minors get additional protective mechanisms in procedure and approvals

The core principle

First liquidate the marital property regime, then distribute the decedent’s net estate to heirs—never the other way around.