Updated for the TRAIN-era estate tax and the currently extended Estate Tax Amnesty. This is a general guide, not legal advice.

Big Picture

Estate Tax is a national tax on the transfer of the decedent’s estate to the heirs. For deaths on or after 1 January 2018, the rate is a flat 6% on the net estate (TRAIN Law).
Estate Tax Amnesty is a time-bound program that lets estates of earlier deaths settle unpaid/deficient estate taxes at a 6% amnesty rate, with immunity from penalties and certain cases. (The coverage has been expanded and the availment period has been extended by subsequent laws and BIR regulations.)
Extra-Judicial Settlement (EJS) is a procedure to divide and transfer estate assets without going to court (Rule 74, Rules of Court), if legal conditions are met. EJS is not a tax, but you cannot complete EJS and transfer title without first paying estate tax (or availing of amnesty where applicable) and securing the eCAR (electronic Certificate Authorizing Registration) from the BIR.

Think of it this way: EJS = “How heirs agree to divide and document the estate.” Estate tax (or amnesty) = “What must be paid so government permits the transfer.”

Part I — Estate Tax (Regular Regime)

Who is liable and when is it due?

Liable party: The estate (through the executor/administrator, or in their absence, the heir(s)).
Deadline to file and pay: Within 1 year from death (TRAIN extended the original 6-month rule), with possible extensions for meritorious cases.

Rate and computation (deaths on/after 1 Jan 2018)

Gross Estate: All properties owned at death (real, personal, tangible, intangible).
Deductions:
- Standard deduction: ₱5,000,000
- Family home: Up to ₱10,000,000 (net of any mortgage)
- Claims/mortgages/debts, unpaid taxes, casualty losses, certain medical expenses (subject to current rules), transfers for public use, etc.
Net Estate = Gross – Deductions
Tax Due = 6% × Net Estate

Tip: If the family home plus standard deduction already cover the estate’s value, the resulting net estate may be zero—but you still file to obtain the eCAR and transfer title.

Filing and paying (regular estate tax)

BIR forms:
- BIR Form 1801 (Estate Tax Return)
- TIN of the Estate (separate from the heirs’ TINs)
Where/How to pay: Authorized Agent Banks/Revenue Collection Officers/ePayment channels of the RDO that has jurisdiction over the decedent’s domicile at death or where the largest portion of the estate is located (per BIR rules).
Installments/Extensions: Possible in meritorious cases (administrative extensions by BIR; judicial extensions may also be available), with interest considerations per the NIRC as amended.

Documents typically required (regular)

Death certificate; marriage/birth certificates of heirs
Certified true copies of titles (TCT/CCT), tax declarations, certificate of zonal/fair market values
Bank certifications of balances at death; stock/bond certifications; motor vehicle OR/CR
Proof of debts/mortgages; proof of prior taxes paid
EJS deed (if already executed) or court documents, if judicial
Any other BIR-requested schedules/attachments

Output you need from the BIR

eCAR (electronic Certificate Authorizing Registration) for each real property (and for each transfer of shares/vehicles, as applicable). The Registry of Deeds, stock transfer agents, LTO, etc., require the eCAR before they will transfer title.

Part II — Estate Tax Amnesty

What the amnesty does

Who may use it: Estates of decedents within the amnesty coverage period (expanded by later laws to include more recent dates of death than the original 2019 law).
What you pay: 6% based on the net estate at the time of death (as declared), without surcharges and penalties.
What you get: Immunity from civil, criminal, and administrative cases arising from non-payment or deficiency of estate tax for covered periods/estates upon full compliance.
What it’s for: Ideal for overdue/undone estates where the regular filing deadline lapsed, documents are incomplete, penalties/interest are daunting, or there were family delays.

Practical rule of thumb: If the death date falls within the current amnesty’s coverage, compare (A) paying under regular 6% now (with possible penalties if late) vs. (B) amnesty’s 6% with immunities and no penalties. The amnesty often wins for older, non-compliant estates.

Filing and paying (amnesty)

BIR forms (amnesty track):
- Estate Amnesty Return (ETAR) — commonly referenced as BIR Form 2118-EA
- Acceptance Payment Form — commonly referenced as BIR Form 0621-EA
Process outline:
1. Determine amnesty eligibility (based on date of death and exclusions)
2. Reconstruct estate at time of death (assets/liabilities/values)
3. Prepare ETAR + APF and supporting documents
4. Pay the 6% amnesty amount
5. Secure eCAR and proceed to transfers (same as regular path thereafter)

Key limitations and exclusions

Amnesty does not cover properties or taxpayers with cases involving assets from unlawful activities, or cases finally decided by courts (and other exclusions under the law and BIR rules).
Full and truthful declaration is essential. Material omissions can jeopardize the immunity.

Action point: Always validate the death date against the current amnesty coverage window and deadline before choosing the track. (Coverage and deadlines have been extended by later laws and BIR issuances.)

Part III — Extra-Judicial Settlement (EJS)

What is EJS?

A non-judicial way for heirs to divide the estate when:

No will, or the will has been allowed and heirs agree;
No outstanding debts, or debts are paid (or assumed with creditors’ consent); and
All heirs are of legal age (or minors are duly represented) and agree on the partition.

Forms of EJS:

Deed of Extrajudicial Settlement (EJS) by two or more heirs; or
Affidavit of Self-Adjudication (ASA) by a sole heir.

Mandatory publication & bond

Publication: The EJS (or ASA) must be published in a newspaper of general circulation once a week for three (3) consecutive weeks.
Bond (Rule 74, Sec. 1): A bond may be required when personal property is involved, typically in an amount equivalent to the value of the personal property for two (2) years, to answer for claims. (Practice varies; coordinate with counsel and the RDO/Registry as needed.)

EJS vs. Taxes

EJS does not transfer title by itself.
Estate tax (or amnesty) must be paid and eCAR issued before registries (Registry of Deeds, LTO, stock transfer agents) will record the transfer.
In practice, execute EJS first (so parties/allocations are clear), file/pay estate tax (or amnesty), get eCAR, then register/transfer with the relevant registries.

Part IV — When to Use Which Path

Scenario	Best Path	Why
Death on/after 1 Jan 2018, within 1 year and documents ready	Regular 6% estate tax	On-time filing; avail of TRAIN deductions; no need for amnesty
Death on/after 1 Jan 2018, late filing but manageable penalties	Assess regular vs. amnesty	Compute both; if within amnesty coverage and penalties are high, amnesty may be cheaper/cleaner
Death within amnesty coverage window, no prior filing, big documentation gaps, penalties looming	Estate Tax Amnesty	Immunities + no penalties; simplified closure for old estates
Only one heir	ASA + pay estate tax/amnesty	Simplifies documentation; still requires eCAR
Multiple heirs and no debts	EJS + pay estate tax/amnesty	Non-judicial, faster than court; then register with eCAR
Heirs disagree, minors without representation, contested debts	Judicial settlement/probate	Court supervision needed; pay estate tax per court process

Part V — How to Execute, Step by Step

A. If proceeding under Regular Estate Tax (death on/after 1 Jan 2018)

Assemble facts & docs: death, family tree, asset list at death, liabilities.
Draft and notarize the EJS/ASA (or prepare court docs, if judicial).
Secure valuations: BIR zonal values/RDO certifications; fair market values from the city/municipal assessor on death date.
Compute: apply TRAIN deductions (₱5M standard + up to ₱10M family home + others) → 6% on net estate.
File BIR Form 1801 and pay at the proper RDO/authorized bank/ePayment.
Obtain eCAR(s).
Register/transfer:
- Real property: Registry of Deeds (ROD) — submit eCAR, EJS/ASA, tax clearances, transfer tax (local), registration fees, updated tax declaration.
- Bank deposits: bank’s release protocol + eCAR.
- Shares: stock transfer agent + eCAR.
- Vehicles: LTO + eCAR.

B. If proceeding under the Estate Tax Amnesty

Check eligibility: death date within coverage and not excluded.
Reconstruct the estate as of death (assets/liabilities; may use secondary proof).
Prepare ETAR (BIR Form 2118-EA) and APF (BIR Form 0621-EA) with attachments.
Pay the 6% amnesty; comply with any post-payment verification.
Receive eCAR(s) and transfer assets as in A(7).

Part VI — Special Issues & Practical Tips

Multiple properties in different RDOs: The eCAR is property-specific. Coordinate sequencing; some RDOs centralize via the decedent’s domicile RDO and route eCARs to property RDOs.
Foreign assets / dual nationals: Philippine estate tax generally covers citizens’ worldwide estates and non-residents’ Philippine-situs property; consider foreign death taxes and foreign tax credits.
Community vs. separate property: Identify the property regime (absolute community, conjugal partnership, or separation). The surviving spouse’s share is not part of the estate; only the decedent’s share is.
Mortgaged properties: Deduct outstanding principal (document properly).
Unlocated titles / lost records: For amnesty, the BIR allows reasonable reconstruction; attach affidavits/secondary evidence.
Heirs abroad: Use apostilled consularized special powers of attorney; remote notarization rules may apply depending on venue.
Publication timeline: Start publication (3 consecutive weeks) early so that ROD recording won’t be delayed. Keep affidavit of publication ready.
Local Transfer Tax: Cities/municipalities impose a transfer tax (often up to 0.5% of FMV/zonal value) payable before ROD transfer; get the Mayor/Assessor’s clearances.
Capital Gains Tax? Not due on succession (there is no sale); the estate tax is the national tax due.
Documentary Stamp Tax (DST): Generally not imposed on mere partition via EJS/ASA; but DST may apply to certain instruments (e.g., deeds of assignment of intangible assets, or assumption of mortgage parts). Ask the RDO if your deed’s clauses trigger DST.

Part VII — Quick Decision Checklist

What is the date of death?
- If within amnesty coverage, evaluate amnesty first.
- If not covered, go regular 6% and check for penalties/extension options.
Are heirs all of age and in agreement?
- Yes: EJS/ASA.
- No: Judicial route.
Any debts?
- Yes: Pay/assume with consent; reflect in EJS; deduct valid debts.
- No/settled: proceed.
Do you have valuations and documents for each asset?
- If lacking, reconstruct; for older estates, amnesty may be more forgiving.
Have you planned the registration sequence?
- eCAR → Local transfer tax → ROD/LTO/STA → new titles/certificates.

Part VIII — Frequently Asked Questions

Q1: Can we do EJS first and pay estate tax later? You may execute EJS early to memorialize agreement, but registries will not transfer until eCAR is presented. Practically, file/pay estate tax (or amnesty) soon after EJS.

Q2: The estate has only the family home worth ₱10M and no debts. Will there be tax? With the ₱5M standard deduction and up to ₱10M family home deduction, the net estate could be zero. File the ETR and secure eCAR to transfer title.

Q3: We missed the one-year deadline. Are we doomed by penalties? Not necessarily. If the death is within the amnesty coverage, the amnesty can wipe surcharges/penalties (subject to full compliance). Otherwise, seek extension/compromise options with the BIR.

Q4: The decedent died decades ago; records are incomplete. That is a classic amnesty use-case. Affidavits, secondary evidence, ROD abstracts, assessor certifications, bank letters, and heir declarations help reconstruct the estate.

Q5: Do we need a lawyer? While not strictly required for EJS, counsel is strongly advisable, especially if there are minors, complex assets, foreign property, or disputes.

Model Templates (Plain-English Starters)

A. EJS (Multiple Heirs)

Parties: All heirs (list and prove filiation/marriage)
Recitals: Death facts; no debts or debts settled; property list; shares/partition; mortgage assumptions if any
Covenants: Indemnity under Rule 74; publication undertaking; tax compliance
Signatures/Notarization; Attachments (IDs, CTCs, valuations)

B. ASA (Sole Heir)

Sole heir’s status; reasons (predeceased spouse/children, adoption decrees, etc.)
Same covenants and attachments; notarize and publish

(Have your counsel adapt to your specific facts and the RDO/ROD practices.)

Final Takeaways

EJS is the non-judicial settlement tool; Estate Tax/Amnesty is the payment path. You generally do both (EJS + pay) to complete a transfer.
For older, non-compliant estates, the amnesty typically provides the cleanest closure (single 6% rate, no penalties, immunity).
For newer deaths, file on time under the regular 6% regime to maximize TRAIN deductions and avoid penalties.
Always validate the death date vs. current amnesty coverage and deadlines, gather complete valuations, and sequence your eCAR and registrations.

If you want, I can draft a fill-in-the-blanks EJS/ASA template tailored to your facts (assets, heirs, dates), and a BIR filing checklist you can print and bring to the RDO.