Estate Tax Payment by a Single Heir-Representative

(Philippine law and practice, updated to 11 June 2025)

Quick view: When only one heir (or one among several heirs) takes on the job of dealing with the Bureau of Internal Revenue (BIR), that person—called the heir-representative—steps into the shoes of an executor or administrator for estate-tax purposes. Philippine tax law allows this, but also loads the representative with personal, solidary liability for any deficiency, interest, and penalties. Below is a practitioner-style guide that covers every legal and procedural angle currently in force.

1. Legal Foundations

Source	Key points for a single heir-representative
National Internal Revenue Code (NIRC), as amended — §§ 84–97 (Estate Tax)	• Estate tax is imposed on the net estate of every decedent resident of the Philippines or on Filipino-situs property of a non-resident alien. • Executor, administrator or heir must file BIR Form 1801 and pay the tax. • Solidary liability (§95); lien on property (§95, second paragraph).
Republic Act No. 10963 (TRAIN) (2018)	• Single flat rate 6 % on the net estate. • Standard deduction ₱5 million; family-home deduction ₱10 million; removal of graduated schedule.
Revenue Regulations (RR) 12-2018, 17-2023	• Procedural rules for TRAIN computations; documentary requirements when only one heir files.
Estate Tax Amnesty (R.A. 11213 as amended by R.A. 11569 and R.A. 11956)	• Covers deaths on or before 31 May 2022; amnesty rate 6 % of net estate or minimum ₱5,000 per estate. • Filing/payment period extended until 14 June 2025.
Civil Code of the Philippines	• Defines heirs, executors, administrators; rules on acceptance/repudiation of inheritance; extra-judicial settlement (Art. 1773, 1774).
Rules of Court, Rule 74	• Extra-judicial settlements: publication, bond (when there are debts).
Key jurisprudence	Heirs of Malate v. Lelis (G.R. 216607, 2022); Kalaw v. CIR (G.R. 160054, 2015); De Borja v. CIR (G.R. 168083, 2010) ― all affirm solidary liability of heirs who receive property.

2. Who May Act as “Heir-Representative”?

Sole heir – If the decedent left only one compulsory/taking heir, that heir is automatically the personal representative.
One of several heirs – The heirs may execute a Special Power of Attorney (SPA) designating one heir to file BIR Form 1801, sign returns, pay taxes, and secure Certificates Authorizing Registration (CARs).
Heir-representative vs. Court-appointed executor – If a probate has not yet appointed an executor/administrator, the BIR accepts the heir-representative pro tempore. Once the court appoints someone else, the new fiduciary assumes primary liability.

Tip: The BIR will require the SPA to be notarized and apostilled if executed abroad, together with copies of valid IDs of all heirs.

3. Time Lines & Extensions

Action	Ordinary rule	Extensions / Relief
Estate return & payment	Within 1 year from date of death (§90 NIRC).	• BIR may grant 6-month extension to file and/or pay upon Philippine peso bond or acceptable guaranty, if meritorious (§91). • Estate tax amnesty: filing until 14 Jun 2025 for covered deaths.
CAR processing	5–20 working days after complete submission, varying by RDO.	No statutory extension, but practical delays common; follow-up letter may be filed.
Installment payment (ordinary regime)	Up to 2 years from statutory due date, without penalty/interest, if tax exceeds the value of personal property and sufficient bond posted (§91 C).	BIR often caps installments at equal quarterly payments; interest applies beyond 2 years.

4. Step-by-Step Procedure

Secure a Tax Identification Number (TIN) for the Estate. Submit BIR Form 1904 with death certificate and ID of heir-representative.
Prepare the asset inventory. Date-of-death values are required: • Real properties – zonal value or FMV per provincial/city assessor, whichever is higher, or fair market value for CGT references. • Personal properties – latest FMV for listed shares; book value per audited FS for unlisted shares; appraised value for jewelry, vehicles, art.
Compute allowable deductions (TRAIN).
- Standard deduction ₱5 million (no substantiation).
- Family-home deduction up to ₱10 million.
- Actual funeral expenses (max 5 % of gross estate or ₱200,000).
- Medical expenses within one year before death (max ₱500,000).
- Claims against the estate (valid, enforceable debts).
- Vanishing deduction, transfers for public use, etc.
Complete BIR Form 1801. Use eBIRForms if amount due ≤ ₱1 million; otherwise file manually at the RDO covering the place of the decedent’s domicile.
Pay the tax.
- Cash, manager’s check, or debit/credit via eFPS/eGOVPay within BIR acceptance limits.
- For installment: write “1st installment” on BIR Form 0605 and attach bond approval.
Submit documentary requirements.
- Death certificate (PSA).
- Birth & marriage certificates of heirs (to prove relationship/legitime).
- Notarized Extra-Judicial Settlement (EJS) or Court Order of partition.
- SPA from other heirs (if applicable) designating the representative.
- Certified list of assets and liabilities; appraisals; latest tax declarations; OCT/TCT/CCT copies; stock certificates; bank certifications.
- Proof of claimed deductions (receipts, doctor’s statements, loan documents).
Wait for Electronic Letter of Authority (eLA) & Review. Some RDOs issue preliminary notice for under-valuation; respond within 5 days.
Receive and sign the Assessment Notice (if any); pay deficiency within 30 days to avoid further interest.
Obtain CARs and eCAR list. These are required for transfer of real property titles, vehicle registrations (LTO), stock transfers (SEC/transfer agents), and bank withdrawals.
Distribute estate properties; register titles.
- Register Deed of Settlement + CAR + tax clearance at Registry of Deeds, BIR ONETT RCC, LTO, SEC.
- Keep originals for at least 10 years (§203 NIRC prescriptive period).

5. Liability Profile of the Heir-Representative

Aspect	Consequence
Personal & solidary liability (§95 NIRC)	The heir-representative and any heir who has received property share equal responsibility up to the value of property received for (a) unpaid tax, (b) surcharge (25 % or 50 %), and (c) 20 % p.a. interest.
Criminal exposure	Willful failure to file or pay estate tax → up to ₱10,000 fine + 1–10 years imprisonment (§255). Prosecution is rare but possible.
Lien on estate	The estate tax is a prior lien—must be settled before distribution. Titles remain encumbered; Register of Deeds will not cancel old titles without CAR.
Bond requirement (§91 B)	For extensions/installments beyond the due date, the heir-representative must post a surety bond covering the tax plus 25 % surcharge and interest for 2 years.
Effect of amnesty	Choosing amnesty extinguishes criminal liability, interest, and penalties, but waives right to a refund of any amounts previously paid.

6. Choosing Between Ordinary Regime & Amnesty (2025 Window)

Criteria	Ordinary 6 % Estate Tax	Estate Tax Amnesty (R.A. 11213/11956)
Decedent date of death	Any date	On or before 31 May 2022
Tax base	Net estate (after deductions)	Either (a) net estate, or (b) minimum ₱5,000 per estate
Rate	6 %	6 % or ₱5,000
Penalties/interest	Applies after due date	No penalties/interest
Last day to file	Within 1 year of death, extendible	14 Jun 2025 (statutory)
Documentary coverage	Full substantiation of deductions	Simplified list of properties & heirs; SPA still required
Loss of rights	N/A	Waives right to judicially contest valuation; waives any refund claims.

Planning note: If the decedent died on or before 31 May 2022 and the estate’s true 6 % liability exceeds ₱5,000, the amnesty almost always costs less and avoids penalties.

7. Special Topics for Single-Heir Filers

Bank Deposit Access.
- Banks require the CAR or a BIR Clearance for Bank Deposit Withdrawals (RMC 62-2017) for deposits ≤ ₱50,000; the heir-representative must execute an Under-taking of Anti-Money-Laundering compliance.
Real Property with Multiple TCTs.
- A separate CAR is issued per TCT/CCT; filing fees accrue per title, so bundling assets into one EJS but separate schedules expedites approval.
Foreign-situated Heirs or Representative.
- SPA must be consularized or apostilled; BIR now accepts DocuSign in pilot RDOs but still needs a notarized “wet-signature” copy eventually.
Minor Heirs.
- The lone adult heir may represent minors but guardianship or court approval is prudent; BIR accepts a letter-guaranty plus birth certificates.
Estate with Ongoing Business.
- For corporate shares, BIR will ask for the company’s Update of Unlisted Shares (AITEID) to verify book value; the heir-representative often becomes interim corporate secretary to sign these.

8. Penalties and Common Pitfalls

Pitfall	Effect	How to avoid
Late filing (> 1 year)	25 % surcharge + 20 % p.a. interest	File even a tentative return and pay partial tax; request extension with bond.
Under-valuation of property	Deficiency assessment, same penalties	Use the higher of zonal or FMV; secure recent appraisal for high-value items.
Missing SPA/waiver from co-heirs	RDO rejects return	Prepare SPA early; send couriers for remote signatures.
Unpaid donor’s taxes on transfers during decedent’s life	Estate tax credit for donor’s tax paid; otherwise BIR may assess both taxes	Obtain donor’s tax returns when computing gross estate.
Not publishing extra-judicial settlement	Partition deed void vs. creditors; may delay CAR	Publish Rule 74 notice in a newspaper once a week for three weeks.

9. Summaries & Checklists

Essential Documents for Single-Heir Estate Tax Return

BIR Form 1801 (filed & signed by heir-representative).
SPA (if not sole heir) + IDs.
Death certificate (PSA).
Birth/marriage certificates proving relationship.
EJS or court order.
Certified asset list with valuations.
Deduction proofs (receipts, debts, medical, etc.).
Tax clearance for bank withdrawals or bank certifications.
Tax declarations, recent tax receipts, TCTs/CCTs, OR/CR for vehicles.
Proof of residency of decedent (barangay cert, IDs).

One-Page Timeline

Week	Task
1–2	Get PSA death certificate; secure TIN for estate; gather heirs for SPA.
3–6	Inventory assets; request zonal values; appraise personal property.
7–8	Draft & notarize EJS; publish if extra-judicial.
9	Prepare Form 1801; compute tax; request installment if needed.
10	File & pay; submit complete docs.
10–12	Respond to BIR queries; pay any deficiency.
13–15	Receive CARs; transfer titles; close bank accounts.

10. Frequently Asked Questions

Question	Answer (Philippine rules)
Can the sole heir sign the EJS alone?	Yes, if truly the only heir. If there are other heirs—even if they waive in the representative’s favor—they must sign or at least execute a waiver/SPA.
If the estate is insolvent, is the heir-representative still liable?	Liability is limited to the value of property actually received. If no property is received, the BIR can pursue the estate but not the heir personally.
Does the heir-representative need a CPA valuation?	Not required, but large estates (> ₱10 million) or estates with unlisted shares/foreign assets usually submit CPA-signed schedules to avoid disputes.
What happens if a remote heir appears after settlement?	The CAR is voidable only on grounds of fraud. New heir may sue in civil court; BIR rarely re-opens an estate unless under anti-tax-avoidance investigation.

11. Practical Tips for 2025 Filings

Beat the amnesty deadline: Aim to file by May 2025—RDOs get swamped the last month.
Digitalize: Use the BIR’s Online CAR System (OCAR) pilot; upload PDFs to cut queue time in large RDOs (Makati, Quezon City, Cebu).
Anticipate e-receipts: From 2024, certain banks issue electronic proofs of payment that the BIR now accepts; print and attach confirmation.
Keep a master file: Single heir-representatives often need to prove compliance years later when selling inherited property; store signed copies, eCARs, and ORs in cloud and a fireproof box.

Final Word

Acting as the single heir-representative streamlines estate settlement but comes with heavy fiduciary duties. Mastery of the timelines, documents, and tax computations—and judicious use of the 6 % flat rate or amnesty—can save money and prevent years of title problems. When in doubt, obtain written rulings from the BIR or advice from a Philippine tax lawyer; estate tax controversies are one of the few BIR areas where errors can personally haunt an heir long after the loved one’s passing.

(This article provides general information only and does not constitute legal advice. For specific cases, consult a qualified Philippine tax professional.)