1) The core idea: why property from a deceased person can’t be transferred “just by agreement”

In the Philippines, ownership of a deceased person’s property (“estate”) may pass to heirs by operation of law, but the public records (titles, tax declarations, corporate books, bank records) won’t be updated unless heirs complete two tracks:

Succession / settlement track (who gets what):
- Extra-judicial settlement (EJS) / deed of partition / self-adjudication; or
- Judicial settlement (court), when required.
Tax clearance track (BIR permission to register transfer):
- Filing and payment of estate tax (or availing of an estate tax amnesty, if available/applicable), and
- Securing a CAR/eCAR (Certificate Authorizing Registration) from the BIR.

Without a CAR/eCAR, the Register of Deeds, LGUs, and many institutions typically will not process transfers.

2) Estate tax basics you must understand first

2.1 What is estate tax?

Estate tax is a tax on the right to transfer a deceased person’s property to heirs/beneficiaries. It applies to the net estate (gross estate minus allowable deductions).

2.2 The TRAIN-era baseline (common current framework)

For deaths governed by the TRAIN law changes, the estate tax is generally a flat 6% of the net estate, after deductions. (Older deaths may be governed by older rate structures, but in practice many estates still proceed under the current administrative environment and updated rules; the “date of death” remains legally important.)

2.3 When does it have to be filed?

As a general rule, the estate tax return is filed within one (1) year from death, with the possibility of extension in certain cases (subject to conditions). Late filing/payment can trigger surcharges, interest, and compromises.

2.4 Why “we’re not selling it” doesn’t avoid estate tax

Even if heirs keep the property and do not sell it, estate tax is still due because ownership is being transferred from the decedent to the heirs.

3) Estate tax amnesty: what it is and why it mattered

3.1 Concept

An estate tax amnesty is a time-limited program that (when available) allows settlement of estate tax liabilities of past deaths under simplified conditions and usually reduced penalties (often a preferential rate and/or removal of many add-ons), so heirs can finally transfer properties and “clean up” titles.

3.2 Typical coverage (how these amnesties are usually structured)

Estate tax amnesties are commonly aimed at:

Decedents who died on or before a specified cutoff date (program-defined), and
Estates with unpaid estate taxes or incomplete compliance.

Coverage, qualifications, exclusions, deadlines, and documentary requirements depend on the enabling law and the BIR’s implementing issuances.

3.3 A practical reality

Even when an amnesty is available, it does not eliminate the need for:

A proper settlement document (EJS/judicial), and
A CAR/eCAR to register the transfer.

It simply changes the tax payment/computation and penalty treatment, and often streamlines compliance.

3.4 “Is the amnesty still available?”

Amnesties are deadline-driven and can be extended, lapse, or be replaced. The decisive facts are the enabling law, BIR issuances, and the filing/payment date. If you are working on an estate today, treat “amnesty availability” as a threshold question because it affects cost, process, and timing.

4) Extra-judicial settlement (EJS): what it is, when it’s allowed, and how to do it

4.1 What is an extra-judicial settlement?

An extra-judicial settlement is a notarized written settlement by heirs distributing the estate without court proceedings, typically through:

Deed of Extra-Judicial Settlement / Deed of Partition, or
Affidavit of Self-Adjudication (when there is only one heir).

It is based on Rule 74 of the Rules of Court (settlement of estate without administration).

4.2 When EJS is allowed (key conditions)

EJS is generally allowed when:

The decedent left no will (intestate), or the heirs proceed as if intestate (but wills introduce complications; see judicial settlement below);
The decedent left no outstanding debts, or the debts have been paid/settled (or adequate protections are arranged); and
All heirs are of age, or minors are properly represented (minors add safeguards and often require court involvement, depending on circumstances and what’s being waived/transferred).

If these conditions aren’t satisfied, or if there’s serious dispute, judicial settlement is safer or required.

4.3 Publication requirement (often missed, often fatal to registration)

A hallmark of EJS under Rule 74 is publication of the settlement in a newspaper of general circulation for a prescribed period (commonly once a week for three consecutive weeks). Many Registers of Deeds and BIR offices look for proof of publication as part of the transfer/tax clearance package.

Skipping publication is one of the most common reasons transfers get delayed or denied.

4.4 The 2-year “Rule 74” exposure (another often misunderstood point)

Settlements under Rule 74 have a period during which they can be challenged by creditors/heirs who were excluded or prejudiced. This does not automatically stop transfers, but it’s part of the risk framework and why accuracy and completeness matter.

4.5 EJS vs Deed of Sale among heirs (don’t “shortcut”)

Heirs sometimes try to execute a Deed of Sale directly from the decedent to a buyer or to one heir. That typically fails because:

The decedent cannot sign; and
Title is still in the decedent’s name; and
The BIR will generally require estate settlement + estate tax compliance + CAR/eCAR before recognizing the transfer chain.

If the goal is to transfer a specific property to one heir, the clean route is usually:

EJS/partition (property assigned to that heir), then
Transfer title to that heir with CAR/eCAR, then
Any onward sale/donation (with its own taxes and CAR/eCAR).

4.6 Special case: Affidavit of Self-Adjudication (sole heir)

If there is truly only one compulsory/intestate heir, that heir can execute an Affidavit of Self-Adjudication (still typically with publication). “Sole heir” claims are scrutinized—errors here can explode later.

5) When judicial settlement is required (or strongly advisable)

Judicial settlement (court) is commonly required or prudent when any of these are present:

There is a will (testate succession typically requires probate);
There are minor heirs and the settlement involves waiver/partition affecting them;
There are disputing heirs or unclear heirship;
There are substantial debts/claims against the estate;
The estate involves complicated assets requiring administration (multiple businesses, contested properties, etc.);
You need court authority to perform acts (sell property to pay debts, appoint administrator, etc.).

Judicial settlement takes longer and costs more, but it can be the only defensible path when conditions for EJS don’t exist.

6) The CAR/eCAR: what it is and why it controls the transfer

6.1 Meaning

CAR (Certificate Authorizing Registration) is the BIR-issued clearance that authorizes the Register of Deeds (and other registries) to process transfer of property. Many BIR offices now issue electronic CAR (eCAR).

6.2 What CAR/eCAR covers

CAR/eCAR is commonly required for:

Real property transfers (land, buildings, condo units),
Shares of stock transfers,
Other registrable transfers where the BIR must confirm taxes are paid.

For estates, it confirms estate tax compliance (or amnesty compliance, if applicable) and related documentary requirements.

6.3 Why you can’t “just pay at City Hall”

Even if you pay:

Local transfer tax (Treasurer’s Office), and
Update real property tax (Assessor/Treasurer),

the Registry still typically needs the BIR’s CAR/eCAR before it issues a new title.

7) Step-by-step: a practical, end-to-end roadmap (typical real property estate)

Phase A — Pre-checks and document gathering

Collect and verify:

Death certificate (PSA-certified is commonly requested)
Proof of heirship
- Birth certificates, marriage certificates, IDs, and any documents showing family relations
Titles and tax declarations
- TCT/CCT, tax declaration, latest real property tax receipts
Asset list
- Real properties, bank deposits, shares, vehicles, receivables, etc.
Liabilities/claims (if any)

Practical note: Missing titles, mismatched names, and old tax declarations are common bottlenecks. Fixing them can take longer than paying the tax.

Phase B — Draft the settlement instrument

Depending on facts:

Deed of Extra-Judicial Settlement / Deed of Partition (multiple heirs), or
Affidavit of Self-Adjudication (sole heir)

The document should accurately state:

The decedent’s details and date of death,
The heirs and their civil status/addresses,
That the decedent left no will (if intestate),
That debts are settled or addressed,
The estate assets and how they are adjudicated/distributed,
Any waivers/quitclaims (handle with care—waivers can have tax consequences depending on structure).

Phase C — Publication (Rule 74)

Publish the EJS/self-adjudication in a newspaper of general circulation as required. Keep:

Publisher’s affidavit,
Copies of the newspaper issues or proof pages.

Phase D — BIR estate tax compliance (or amnesty route)

You will generally:

Secure/confirm the decedent’s and heirs’ TINs (and/or estate TIN, depending on how the office processes the case);
Prepare and file the estate tax return (or the amnesty return, if applicable);
Submit required attachments, which commonly include:
- Death certificate
- EJS/self-adjudication + proof of publication
- IDs and proof of relationship
- Inventory of assets (and valuation support)
- Certified true copy of title and tax declaration
- Certificate of no improvement / zonal valuation support may be requested depending on local practice
- Proof of deductions (funeral expenses, claims, standard deduction, family home deduction, etc., when applicable)
Pay the computed estate tax and related charges (if any).

Valuation note: For real property, the BIR commonly relies on the higher of:

Zonal value, or
Fair market value per tax declaration, subject to applicable rules and the date of death regime.

Phase E — Apply for CAR/eCAR

After filing/payment and evaluation, the BIR issues the CAR/eCAR covering the specific property (or properties). This is the “key” to registration.

Common causes of CAR delay:

Inconsistent names (middle initials, married surnames, suffixes)
Missing publication proof
Missing or outdated tax declaration data
Incomplete heirship documents (especially when heirs are abroad or there are second marriages)
Unclear partition descriptions (property technical descriptions not matching the title)
Unsettled issues on deductions/valuation

Phase F — Local transfer tax and other local clearances

After CAR/eCAR, heirs usually proceed to:

Pay local transfer tax (LGU Treasurer)
Secure tax clearance / certificates as required by the LGU
Update records with the Assessor (new tax declaration)

Local requirements vary by LGU.

Phase G — Register of Deeds: issuance of new title

Submit to the Register of Deeds:

CAR/eCAR
EJS/partition/self-adjudication + publication proof
Owner’s duplicate title (if applicable)
Transfer tax receipts and local clearances
Other RD requirements (e.g., registration fees, eDST/electronic submissions in some places)

The RD then issues:

New TCT/CCT in the name of the heir(s), as per partition/adjudication.

8) Tax traps and planning points (common Philippine scenarios)

8.1 “Waiver” can be treated as donation

If an heir “waives” their share in favor of specific co-heirs (rather than a general renunciation), the BIR may treat it as a donation (triggering donor’s tax) depending on structure and wording. The distinction between:

General renunciation (in favor of the estate / by operation of law), and
Specific renunciation (in favor of identified persons), can matter.

8.2 Multiple deaths (“layered estates”)

If property is still titled in a grandparent’s name and the parent also died, you may need to settle both estates in sequence (or an approach that correctly accounts for both successions). This is a frequent source of delays.

8.3 Foreign-resident heirs and documents executed abroad

If heirs sign from abroad:

Expect notarization/apostille/consularization requirements depending on where executed and the receiving office’s practice.
Special Powers of Attorney (SPA) must be carefully drafted (scope, property descriptions, authority to sign tax documents).

8.4 Family home deduction / standard deduction / claims

Deductions can materially reduce estate tax, but they require:

Eligibility (e.g., family home conditions), and
Documentation (proof of occupancy, valuation caps, etc., depending on the governing regime).

8.5 Property still under mortgage or with liens

Encumbrances don’t stop succession, but they complicate:

Valuation and deductions,
Registration, and
Practical partition.

9) Checklist: documents commonly asked for in estate-to-heirs CAR processing (real property)

Exact lists vary by RDO and case facts, but commonly requested are:

Civil status / heirship

Death certificate (PSA)
Marriage certificate (if relevant)
Birth certificates of heirs (PSA)
Valid IDs of heirs
If there are multiple marriages/illegitimate children issues: supporting records

Settlement

Notarized EJS/Deed of Partition or Self-Adjudication
Proof of publication + publisher’s affidavit
SPA (if representative signs), properly notarized/apostilled as needed

Property

Certified true copy of title (TCT/CCT)
Tax declaration (land and improvement, if separate)
Latest real property tax receipts / certificate of no delinquency
Vicinity map / lot plan in some cases
Other valuation support as required

Tax

Estate tax return (or amnesty return, if applicable)
Proof of payment
Other BIR forms/attachments as required by the RDO

10) Practical drafting tips for EJS/partition (to avoid rejection)

Use exact names matching PSA records and titles (including middle names/initials, suffixes).
Match the technical description and title numbers exactly (TCT/CCT numbers, lot numbers, condo unit identifiers).
Clearly state heirs and shares consistent with intestate succession rules (spouse/children/parents, etc.).
Avoid ambiguous “waiver” language unless you intend the tax consequences.
If a property is being adjudicated to one heir, spell it out with precision (and ensure other heirs’ consent language is clean and properly notarized).

11) Where people usually get stuck (and how to think about fixes)

“We can’t find the owner’s title.” Expect an RD process for reconstitution or replacement, plus safeguards; this can be a major project on its own.
“The name on the title is different from the death certificate.” This often requires supporting documents and sometimes administrative or judicial correction depending on severity.
“One heir won’t sign.” EJS becomes risky or impossible; judicial settlement/partition may be needed.
“We already sold it with a deed of sale years ago.” You may need to repair the chain: settle the estate first, then document subsequent transfers properly, often with penalties.
“The decedent died long ago.” Late filing usually means penalties unless an amnesty applies. Also expect layered estates and missing records.

12) Bottom line: the clean sequence

For most Philippine real property inherited intestate, the defensible sequence is:

Confirm heirs and assets
Execute EJS/partition (or self-adjudication)
Publish as required
File/pay estate tax (or qualify and file under estate tax amnesty, if available/applicable)
Obtain CAR/eCAR
Pay LGU transfer tax and secure local clearances
Register with the Register of Deeds and update tax declaration

This sequence aligns the legal transfer (succession) with the tax clearance (CAR/eCAR) and the public record update (title/tax declaration)—the three gates you must pass for a successful property transfer in the Philippines.