Overview

When a spouse dies, the estate becomes a separate taxpayer. Heirs (including the surviving spouse) must: (1) file an estate tax return, (2) pay the estate tax (or secure an approved extension/installment plan), and (3) obtain eCARs (electronic Certificates Authorizing Registration) to transfer title to the heirs. This article covers deadlines, documentary requirements, valuation, deductibles, how the surviving spouse’s share is carved out, payment/extension rules, penalties, and post-BIR title transfer steps.

Who must file and where

Executor/administrator, or if none, any heir files the return with the RDO that will host the estate’s TIN. Use BIR Form 1801 (Estate Tax Return). (Bir Cdn)

Deadlines & extensions

File within one (1) year from the date of death. (Bir Cdn)
Pay upon filing, unless the BIR grants:
- Extension to file (up to 30 days for meritorious cases), and/or
- Extension to pay and/or installments if immediate full payment causes undue hardship. Installments may be allowed within 2 years from filing; frequency and schedule must be pre-approved and indicated in the return. Amounts paid within an approved extension accrue interest but no surcharge. (RESPICIO & CO.)

Tip: Submit extension requests before the original due date, at the RDO where the estate is registered, and keep the BIR approval with the file. (RESPICIO & CO.)

The estate vs. the surviving spouse’s share

Identify the property regime of the marriage (e.g., Absolute Community by default under the Family Code, unless there’s a valid marriage settlement).
Split the conjugal/community properties: first remove the surviving spouse’s one-half (½) share; only the decedent’s share enters the gross estate.
Add the decedent’s exclusive properties (paraphernal/capital).
From the gross estate, apply allowable deductions to arrive at net estate (tax base).

What’s taxable and how to value

Real property: use the higher of zonal value (BIR) or fair market value per tax declaration as of date of death.
Personal property (deposits, securities, vehicles, business interests): use fair values as of date of death; listed shares typically at closing price; unlisted equity based on book value/valuation.
Worldwide property is taxable for a resident citizen decedent; non-resident aliens are taxed on Philippine-situs assets. (Valuation and situs rules are applied in practice through the 1801 instructions and RR 12-2018 framework.) (KPMG Assets)

Rate and deductibles (TRAIN-era rules)

Estate tax rate: flat 6% of the net estate. (KPMG Assets)
Key deductions (illustrative, subject to substantiation under RR 12-2018):
- Standard deduction: ₱5,000,000 (no receipts required).
- Family home deduction: up to ₱10,000,000 of the family home’s FMV.
- Claims against the estate, unpaid mortgages, losses, transfers for public use, vanishing deduction (property previously taxed), and other TRAIN-retained items.
- CPA certification is required when gross estate > ₱5,000,000 (attach a CPA itemized statement of assets, deductions, and tax due). (National Tax Research Center)

Note: TRAIN removed the old fixed funeral/medical caps; rely on the current standard deduction and allowable specific claims under RR 12-2018. (National Tax Research Center)

Core documentary requirements

Expect the RDO to ask for the following (BIR checklists and RR 12-2018):

BIR Form 1801 (latest version) and payment forms. (Bir Cdn)
Estate TIN (secure via BIR Form 1904 if the estate has no TIN).
PSA/Certified true copy of Death Certificate.
Proof of relationship of heirs (e.g., marriage/birth certificates).
Inventory & valuation of assets and liabilities (with zonal value printouts/tax declarations; bank certifications; brokerage statements; car OR/CR; business financials).
CPA report if gross estate > ₱5M. (Bir Cdn)
If settled extrajudicially: Deed of Extrajudicial Settlement (EJS) and Affidavit of Publication; if judicial, relevant court orders.
Other RDO checklist items before eCAR release (bank certifications, loan docs, etc.). (bir.gov.ph)

Notice of Death? Under RR 12-2018, the prior “notice of death” requirement was removed for deaths on/after Jan 1, 2018; older BIR checklists still show the notice only for deaths before 2018. Some practitioners report local RDO practices on “BIR Form 1949”, but the official Annex B3 checklist ties the notice to pre-2018 deaths. Check your RDO’s current written checklist. (Bir Cdn)

Paying the tax

When: Upon filing (unless the BIR grants extension/installments). (PwC)
Where/How: Authorized Agent Banks of the RDO; government e-payment channels where enabled (follow current BIR payment advisories).
Installments: If cash-poor, BIR may approve cash installments within 2 years from filing; the schedule must be in the return and pre-approved. Partial disposition of estate assets with proceeds applied to the tax is also a recognized option. (Bir Cdn)

Penalties if late (absent amnesty/compromise): surcharge, interest, and compromise per the NIRC; interest applies even within approved extension to pay (but surcharge is waived). (PwC)

Estate Tax Amnesty (status)

The Estate Tax Amnesty under RA 11213, as amended by RA 11569 and RA 11956 (implemented by RR 10-2023), covered estates of decedents who died on or before May 31, 2022 and extended the availment period to June 14, 2025. In practice, the final acceptance ran to the next working day (June 16, 2025). The window has lapsed. (National Tax Research Center)

After BIR payment: releasing eCARs and transferring title

eCAR issuance (one per property category) after BIR verifies payment and documents.
Real property: present eCAR, EJS/court order, tax clearances, and transfer tax receipts to the Registry of Deeds to cancel/issue new titles.
Vehicles: LTO transfer with eCAR and estate documents.
Bank accounts/securities: banks/brokers require eCAR to release/retitle. (BIR’s public Estate Tax page centralizes process links and related issuances.) (bir.gov.ph)

Special issues after a spouse’s death

Waiver among heirs/donation risk. If an heir (including the surviving spouse) waives more than their lawful share without consideration, the excess is a donation subject to donor’s tax (separate from estate tax). Plan partitions carefully.
Family home: to claim up to ₱10M deduction, prove it was the family home of the decedent at death (e.g., barangay/utility proofs, tax dec). (National Tax Research Center)
Debts/claims against estate: must be legally enforceable and properly substantiated (e.g., notarized promissory note/loan contract; if to related parties, expect stricter proof). (Bir Cdn)
CPA requirement: mandatory if gross estate > ₱5M (attach the certified statement). (Bir Cdn)
Foreign assets: prepare apostilled docs/valuations; treaty relief, if any, requires treaty basis and disclosures.

Practical step-by-step (checklist)

Secure documents: death certificate; marriage/birth certificates; titles/TDs; bank/broker certificates; vehicle OR/CR; business financials.
Get an estate TIN (BIR Form 1904) and open an estate bank account.
Inventory & valuation as of date of death; identify regime, split the community, and mark the surviving spouse’s ½ out of the taxable base.
Prepare deductions (standard ₱5M, family home up to ₱10M, claims, mortgages, etc.); gather proofs. (National Tax Research Center)
File BIR Form 1801 within 1 year (earlier if needed for urgent transfers). Ask for extension/installments in writing if needed. (Bir Cdn)
Pay (AAB/e-channels) and track interest if under approved extension. (PwC)
Secure eCARs per asset, then transfer titles/registrations with the relevant registries. (bir.gov.ph)

Frequently asked

Is there still a “Notice of Death”? For deaths on/after Jan 1, 2018, the old notice requirement was removed under RR 12-2018; some legacy checklists still mention notice only for pre-2018 deaths. Verify your RDO’s current written checklist. (Bir Cdn)

Can we pay in installments? Yes—up to 2 years from filing, subject to prior BIR approval and scheduling inside the return; interest applies if beyond the statutory due date but within the approved extension. (Bir Cdn)

What if we missed the amnesty? The amnesty lapsed mid-June 2025 (statutory end June 14, 2025; practical last working day June 16, 2025). You now follow regular rules; consider installments, compromise (if eligible), and correct valuation/deductions to minimize exposure. (Bir Cdn)

Key takeaways

File within 1 year of death; pay upon filing unless you secure approved extensions/installments. (Bir Cdn)
Compute net estate correctly: (a) remove surviving spouse’s ½ of community; (b) apply TRAIN-era deductions (₱5M standard; family home up to ₱10M; substantiated claims). (National Tax Research Center)
eCARs are essential to transfer titles; complete BIR checklists and valuations to avoid delays. (bir.gov.ph)

This article gives general information on current Philippine practice. Complex estates (foreign assets, family corporations, special regimes) should be modeled with a Philippine tax counsel/CPA for precise computations and filings.