Estate Tax Obligations for Property Registered to the Surviving Spouse

Philippine legal framework as of 29 July 2025

Note: This article is for general information only and is not a substitute for advice from a Philippine lawyer, tax specialist, or the Bureau of Internal Revenue (BIR).

1. Governing Sources of Law

Area	Key Authorities	Salient Points
Taxation	• National Internal Revenue Code (NIRC), as last amended by RA 10963 (TRAIN, 2018) and RA 11956 (2023) • BIR Revenue Regulations (RR) 12‑2018, 17‑2023, et al. • BIR Revenue Memorandum Circulars (RMCs) & Orders (RMOs)	– Single 6 % estate‑tax rate on the net estate – Expanded standard deduction (₱5 million) and family‑home deduction (₱10 million) – Estate Tax Amnesty (RA 11213, extended to 14 June 2025 by RA 11956)
Property & Succession	• Civil Code of the Philippines • Family Code (property regimes of spouses) • Rules of Court (Rule 73 et seq.)	– Determines who owns what at death – Defines compulsory heirs & legitimes
Land Titling & Transfer	• Property Registration Decree (PD 1529) • LRA & Registry of Deeds circulars	– Requires Electronic Certificate Authorizing Registration (eCAR) from BIR before transfer

2. Property Regimes and Why Title Names Can Be Misleading

Absolute Community of Property (ACP) – the default for marriages after 3 Aug 1988. All property acquired during marriage— regardless of whose name is on the title— is presumed community, 50 % belonging to each spouse.
Conjugal Partnership of Gains (CPG) – default before 3 Aug 1988 or if validly chosen. Capital and exclusive assets remain separate; gains are shared 50‑50.
Separation of Property – by pre‑nup or judicial decree.

Practical effect: A parcel of land titled solely in the name of the surviving spouse may in fact be:

a ½ share of community/conjugal property (other half belongs to the decedent’s estate), or

the spouse’s exclusive property (fully excluded from the gross estate), or

a property held in trust for the decedent (fully taxable in the estate).

The key is evidence of acquisition (deed of sale, source of funds, pre‑nup, inheritance documents). The BIR will look through the Transfer Certificate of Title (TCT) name.

3. Estate‑Tax Computation Basics

Step	Description	Notes (TRAIN‑era)
1. Gross Estate	All decedent‑owned property, whether real, personal, tangible or intangible, wherever situated (Sec. 85). Property in the surviving spouse’s name is included pro‑rata if community property.	Include market value of community assets less ½ share attributable to the surviving spouse later.
2. Deductions	• ₱5 M standard deduction (no proofs) • Up to ₱10 M family‑home deduction • Funeral (≤ ₱200k), medical (last 1 year, ≤ ₱500k), debts, vanishing deduction, transfers for public use, etc.	Debt must be duly notarized before death and substantiated.
3. Share of Surviving Spouse	After allowable deductions, subtract the surviving spouse’s ½ share of ACP/CPG (Sec. 86[E]).	Applies only to ACP/CPG property.
4. Net Estate	Result after Steps 2–3.
5. Tax Rate	6 % of Net Estate.	Flat rate since 1 Jan 2018.

4. Filing & Payment Obligations

Obligation	Who Files	Deadline	Where / How
Estate Tax Return (BIR Form 1801)	Executor, administrator, or surviving spouse if settlement is extrajudicial; otherwise any heir.	Within 1 year from death (Sec. 90), extendable by BIR for meritorious reason.	Electronically via eBIRForms then pay through AABs/LandBank G‑Cash, etc. Installment allowed if net estate > cash of estate, payable within 2 years.
eCAR & Clearance	Same filer; present to concerned RDO with supporting docs.	Issued after tax is paid.	Needed for Registry of Deeds to annotate/transfer title.
Notice of Death	If gross estate > ₱5 M or required by RDO.	Within 60 days of death.	BIR District Office where decedent was domiciled.

5. Documentary Requirements When Property Is in Surviving Spouse’s Name

Certified true copy of TCT/CCT in spouse’s name
Deed of Acquisition (e.g., Deed of Sale) showing purchase date & price
Marriage Certificate & CENOMAR (to show regime)
Waiver of Rights / Extrajudicial Settlement Agreement signed by heirs & surviving spouse
Receipts proving purchase funds source (to prove exclusivity if claimed)
Sworn declaration of assets & liabilities (BIR Form 1953)
Bank certifications for liquid assets
Tax Identification Number (TIN) of each heir

6. How the BIR Reviews Spouse‑Registered Property

Scenario	BIR Treatment	Proof Needed to Exclude
Title purchased during marriage, regime = ACP/CPG	Include 100 % in gross estate; later deduct 50 % as surviving spouse share.	None—the 50 % split is automatic; but you still need the Deed of Sale and proof of price for valuation.
Title purchased before marriage	Considered exclusive of titled spouse; excluded from gross estate.	Deed of Sale + CENOMAR establishing purchase date prior to wedding.
Exclusive property donated to spouse	Excluded (belongs exclusively to donee‑spouse).	Deed of Donation duly registered & donor’s tax paid.
Benami or nominee arrangement (property actually decedent’s)	100 % taxable; BIR may require proof of funding & possession.	Evidence that decedent provided consideration (bank transfers, sworn statements).

7. Valuation Rules

Real Property: Higher of (a) Zonal Value published by BIR at date of death, or (b) Fair Market Value per latest Provincial/City Assessor schedule.
Shares of Stock:
- Listed – Average of closing price for last 5 trading days before death.
- Unlisted – Book value per latest audited FS.
Personal & Intangible Assets: Book/actual value; antiques & art by appraisal.

8. Estate Tax Amnesty (Now Lapsed)

RA 11213 (2019) covered estates of decedents who died on or before 31 Dec 2021.
RA 11956 (2023) extended the availment until 14 June 2025 at a rate of 6 % of the net undeclared estate or 6 % of fair market value, whichever is higher, without penalties/surcharges.
As of 29 July 2025, the amnesty period is over; late estates must now file regular estate tax returns with applicable penalties (25 % surcharge + 12 % annual interest).

9. Penalties and Personal Liability

Non‑Compliance	Penalty
Late filing or payment	25 % surcharge on basic tax + interest (currently 12 % p.a.)
Fraudulent return	50 % surcharge
Failure to submit supporting docs	Deficiency assessment; eCAR withheld
Registry of Deeds transfer w/o eCAR	Registrar solidarily liable for tax (Sec. 95, NIRC)

The surviving spouse may be personally assessed if (a) acting as executor/administrator and (b) the estate assets are distributed without paying tax (Sec. 92).

10. Selected Jurisprudence

Case	G.R. / Date	Doctrine
CIR v. SCA & Castro	G.R. 195909, 17 Nov 2021	“The BIR may go behind the title; registered ownership does not conclusively show beneficial ownership for estate‑tax purposes.”
CIR v. Javier	G.R. 250188, 2 Dec 2020	Taxpayer bears burden to prove exclusivity of spouse‑titled assets.
Heirs of M. Reyes	G.R. 215709, 10 July 2019	Conjugal/community presumption applies even if title is single‑spouse, absent contrary proof.

11. Practical Workflow for Surviving Spouse

Inventory & classify all assets—including those in your name—into community vs exclusive.
Secure documents early (certified titles, deeds, bank certs).
Engage a licensed appraiser if there are complex properties/businesses.
File Notice of Death (if required) within 60 days.
Prepare Estate Tax Return and attach:
- Sworn Schedule of Assets & Liabilities
- Certified list of heirs with IDs & TINs
- Proofs for deductions
Pay estate tax or apply for installment (Form 1904 for Estate TIN; Form 1905 for closure after settlement).
Obtain eCARs, secure Partition/Extrajudicial Settlement acknowledgment before a notary public, then register with Registry of Deeds, BIR, LGU, and BIR‑ONETT for capital gains‐tax clearance if subsequent sale.
Update tax declarations and pay Real Property Tax under new ownership.

12. Frequently Asked Questions

Question	Answer (Philippine Rule)
If the title is already in my name, do I still need an eCAR?	Yes. Registry of Deeds will require the eCAR before it cancels the old title and issues a new one annotated “free of estate tax.”
Can I sell property before paying estate tax?	No. BIR will not issue Certificate Authorizing Registration for the sale unless the estate tax is settled.
What if I missed the 1‑year deadline?	File the return immediately; pay surcharge & interest. Penalties stop accruing only upon full payment or approval of installment plan.
How is a bank account in joint “AND/OR” names treated?	BIR presumes 50‑50 ownership; decedent’s half is part of gross estate unless contrary proof.
Do I need the consent of all heirs to transfer a parcel titled in my name?	Yes—if it is community or conjugal property. Their legitimes attach to the decedent’s ½ share.

13. Key Take‑Aways

Title names are not decisive; the BIR looks at true ownership and property regime.
Surviving spouses are responsible for accurate inventory, timely filing, and payment—even for assets already titled in their names.
Document everything: deeds, funding sources, valuations, and sworn statements.
Penalties are steep and liens on property last until estate tax is paid.
Plan early—consider life insurance earmarked for estate tax, or deeds of donation, or partition during lifetime to minimize issues.

Final Word

Understanding the interplay between property law and estate‑tax rules is essential when a decedent’s assets are registered in the surviving spouse’s name. With diligent record‑keeping and compliance, heirs can avoid costly delays and ensure the lawful transfer of property in the Philippines.

Estate Tax Obligations for Property Registered to the Surviving Spouse