1) What “conjugal property” means in Philippine estates

When one spouse dies, Philippine law treats the couple’s property as belonging to a property regime. The two most common:

A. Absolute Community of Property (ACP)

Default regime for marriages celebrated on or after August 3, 1988 (Family Code), unless a valid pre-nuptial agreement provides otherwise.
General rule: Most properties acquired before and during the marriage become community property, with notable exclusions (e.g., gratuitous acquisitions under certain conditions).

B. Conjugal Partnership of Gains (CPG)

Common for marriages before August 3, 1988 (under the Civil Code), unless changed by agreement/law.
General rule: Each spouse retains exclusive property brought into marriage; fruits/income and net gains during marriage become conjugal.

Other possibilities:

Complete separation of property (via pre-nup or court order).
Void/voidable marriages, legal separation, annulment can change or unwind property relations—this affects what is taxable and transferable.

Why this matters: Estate tax applies to the decedent’s net estate, which—when there is ACP/CPG—requires liquidation of the regime first. Only the decedent’s share (plus exclusive property) is taxed as part of the estate.

2) The big idea: liquidation first, then estate tax

In conjugal/community situations, you do not automatically tax “everything in both names.” You generally do this sequence:

Identify all properties and obligations of the spouses (and classify as community/conjugal vs exclusive).
Pay regime obligations (and, in many cases, community/conjugal debts) from community/conjugal assets.
Split the net remainder:
- ½ to surviving spouse (not part of the decedent’s taxable estate), and
- ½ to the decedent (goes into the estate), plus any exclusive properties of the decedent.
From the decedent’s gross estate, apply allowable deductions to arrive at the net taxable estate.
Compute and pay estate tax, then secure the BIR clearance (eCAR) for transfers.

3) “Without children” changes heirs, not the tax base

“No children” primarily affects who inherits the decedent’s share—not the mechanics of liquidation or the need to file/pay estate tax.

Intestate succession (no will): common outcomes when there are no children

Assuming the marriage is valid and the surviving spouse exists:

If the decedent has no descendants (children/grandchildren) and no ascendants (parents/grandparents):
- The surviving spouse typically inherits the entire estate of the decedent (the decedent’s share after liquidation, plus exclusive assets).
If the decedent has surviving parents (ascendants), but no children:
- The surviving spouse and the parents share the estate (commonly ½ to spouse, ½ to parents in intestacy).
If no children and no parents, but there are siblings (or their descendants):
- The surviving spouse shares with them (commonly ½ spouse, ½ siblings/nieces/nephews).

Important notes:

Illegitimate children, if any, are still “children” for succession purposes and change shares.
A common-law partner (not a legal spouse) does not inherit as a spouse under intestacy rules.
A spouse who is disqualified (e.g., certain situations under succession law) can affect distribution.

Even if the surviving spouse ends up as the sole heir, you still generally must file the estate tax return and obtain the BIR’s authority/clearance to transfer titles.

4) Estate tax in the Philippines (core rules)

Estate tax rate

The estate tax is generally a flat 6% of the net taxable estate.

Filing deadline

Estate Tax Return is generally due within one (1) year from the decedent’s date of death.
Extensions may be available in certain circumstances, but do not assume an extension is automatic.

Payment extensions (when allowed)

Payment may be allowed on installment/extended basis in certain settlements, commonly longer for judicial settlement than extrajudicial settlement, subject to conditions and BIR approval.

Clearance for transfer (eCAR)

To transfer real property, shares of stock, and other registrable assets, you typically need an Electronic Certificate Authorizing Registration (eCAR) issued by the BIR after compliance and payment (or proof of exemption/zero tax due, as applicable).

5) Step-by-step: estate tax when property is conjugal/community and there are no children

Step 1 — Determine the governing property regime

You’ll need:

Marriage certificate
Pre-nuptial agreement (if any)
Facts on when the marriage took place and property acquisitions

Step 2 — Build the inventory and classify assets

Classify each asset as:

Community/Conjugal property
Exclusive property of decedent
Exclusive property of surviving spouse

Typical assets:

Real property (house/lot, condo, land)
Bank deposits and cash
Vehicles
Shares of stock (listed/unlisted), business interests
Insurance proceeds (depending on beneficiary designation and ownership)
Receivables, claims, refunds
Household/other personal property

Step 3 — Identify debts and obligations

Commonly considered:

Loans (bank/personal), mortgages
Unpaid taxes, utilities
Credit card balances
Hospital and medical bills
Funeral expenses (note: there are special deduction rules)
Claims against the estate, obligations incurred before death

Debt classification matters: some are chargeable to the community/conjugal mass; others may be personal to the decedent.

Step 4 — Liquidate the community/conjugal mass

Compute:

Total community/conjugal assets
Less: allowable community/conjugal obligations
Equals: Net community/conjugal assets
Split: ½ surviving spouse, ½ decedent

Step 5 — Compute the decedent’s gross estate

Add:

Decedent’s ½ share in net community/conjugal assets
Exclusive properties of decedent
Certain transfers considered part of the estate under tax rules (depending on facts)

Step 6 — Apply deductions to arrive at net taxable estate

Common deductions (subject to statutory limits and conditions):

Standard deduction
Family home deduction (if qualified)
Claims against the estate
Unpaid mortgages
Medical expenses (subject to rules/limits)
Transfers for public use
Other allowable deductions under the Tax Code and regulations

If deductions exceed the gross estate, tax due can be zero, but filing and clearance may still be required for transfers.

Step 7 — File the Estate Tax Return and pay tax (if any)

Use the BIR estate tax forms and comply with attachment requirements.
Pay through authorized channels as applicable.

Step 8 — Secure eCAR(s) for each transferable asset

You typically need separate eCARs per property/transaction type, used to transfer:

Real property at the Registry of Deeds / Assessor
Shares of stock with the corporation/transfer agent
Vehicles (as applicable)
Bank releases (banks often require BIR clearance)

6) Key documents commonly required (practical checklist)

Exact requirements vary by RDO and asset type, but commonly requested:

A. Basic civil documents

Death certificate
Marriage certificate
Birth certificates of heirs (even if no children, for spouse/parents/siblings as heirs)
TIN of decedent and heirs (and/or BIR registration documents)
Valid IDs of heirs and authorized representative
SPA if someone is filing for heirs

B. Settlement documents (depending on scenario)

Extrajudicial Settlement (EJS) (notarized) if no will and settlement is outside court
Deed of Partition (if multiple heirs)
Affidavit of Self-Adjudication (if there is a sole heir, commonly used when surviving spouse is the only heir)
Judicial settlement documents (if court proceedings)

EJS typically requires publication in a newspaper of general circulation and sometimes a bond (commonly in Rule 74 contexts).

C. Proof of assets and valuations

Real property

Transfer Certificate of Title / Condo CCT
Tax Declaration
Latest zonal value reference (BIR) and/or fair market value (FMV) from Assessor
Location map or lot plan sometimes requested
Condominium documents (as applicable)

Bank deposits

Bank certification of balances as of date of death
Account details

Shares of stock / business interests

Stock certificates
Secretary’s certificate
Audited financial statements (for valuation of unlisted shares)
General information sheet/corporate records (as required)

Vehicles

OR/CR
Appraised value as required

D. Proof of liabilities/deductions

Promissory notes, loan statements, mortgage documents
Official receipts/invoices for funeral and medical expenses (if claimed)
Proof of family home qualification (if claiming family home deduction)
Proof of payments and outstanding obligations

E. Tax clearances and returns

Estate Tax Return and proof of payment
eCAR application forms and supporting schedules/inventories

7) Valuation rules that often decide the numbers

Real property

BIR commonly looks at fair market value determined under rules that compare:

Zonal value (BIR) and
Assessor’s FMV (per tax declaration)

Many processes use the higher of these values for tax purposes.

Shares of stock

Listed shares: often based on market values around date of death per applicable rules.
Unlisted shares: valuation may rely on book value or other regulated valuation methods using financial statements.

Bank deposits and cash

Typically the balance as of date of death.

8) Deductions that commonly matter for married decedents (including “no children” cases)

Standard deduction

A large standard deduction is available and often eliminates tax for modest estates.

Family home deduction

If the decedent’s estate includes a qualified family home, a separate deduction up to a statutory cap may apply, subject to conditions:

It must qualify as a family home under law (actual residence of the family)
Ownership and occupancy conditions matter
Documentary proof is critical

Claims against the estate / unpaid mortgages

Must be properly documented and may require that the creditor is identifiable and the debt is valid and unpaid.

Medical expenses

Usually limited to those incurred within a specific period before death and subject to a cap and substantiation.

Because these are technical and documentation-heavy, many estate tax filings succeed or fail on whether the deductions are properly supported.

9) Special situation: surviving spouse is the only heir (no children, no parents, no siblings)

This is common in practice.

What happens to ownership?

Surviving spouse already owns ½ of the net community/conjugal property by liquidation.
The decedent’s ½ (plus exclusive property) is inherited by the spouse as sole heir.

Settlement instrument

The spouse may execute an Affidavit of Self-Adjudication (if truly sole heir), together with the liquidation/accounting of the property regime.

Still required

Estate tax filing (even if zero tax due)
eCAR to transfer the decedent’s titled share into the spouse’s name (for real property and registrable assets)

10) Extrajudicial vs judicial settlement (why it matters)

Extrajudicial settlement (no will)

Allowed when:

The decedent left no will, and
There are no outstanding disputes requiring court intervention

Common requirements in practice:

Notarized settlement deed
Publication (typically once a week for three consecutive weeks)
Bond in some cases
Clear identification of heirs

Judicial settlement

Used when:

There is a will (testate settlement), or
Heirs are in conflict, or
Complex issues exist (e.g., legitimacy disputes, missing heirs, contested properties)

Judicial proceedings generally take longer and often require more formal documentation.

11) Common pitfalls in conjugal/community estates without children

Skipping liquidation and trying to transfer “100%” as if it were all the decedent’s estate.
Wrong heir assumptions (e.g., spouse inherits all even when parents are alive).
Incomplete titles/tax declarations or mismatched property descriptions.
Unsubstantiated deductions (funeral/medical/claims) rejected for lack of official receipts or proper creditor proof.
Bank release issues: banks often require BIR clearance even for small balances.
Ignoring exclusive vs community classifications, especially for inherited property, donated property, or property purchased before marriage.
Late filing/payment causing penalties.

12) Penalties for late filing or late payment (why deadlines matter)

If filing/payment is late, the BIR may impose combinations of:

Surcharges
Interest
Compromise penalties

These can become substantial relative to the original tax due.

13) Worked example (simplified illustration)

Facts (ACP/CPG principles simplified):

Community/conjugal real property FMV: ₱8,000,000
Community/conjugal bank deposits: ₱2,000,000
Community/conjugal debts (mortgage/loans): ₱1,000,000
Decedent’s exclusive property: none
Deductions: standard deduction and (if applicable) family home, etc.

Liquidation:

Total community assets = ₱10,000,000
Less debts = ₱1,000,000
Net community = ₱9,000,000
Surviving spouse share (½) = ₱4,500,000
Decedent share (½) = ₱4,500,000

Gross estate (decedent) = ₱4,500,000 Apply deductions → net taxable estate may be zero if deductions exceed ₱4,500,000. Even with ₱0 tax due, filings and eCAR processes may still be needed to transfer the decedent’s share.

(Actual computations can vary based on valuation rules, classification, and which deductions properly apply.)

14) Quick “what you must do” summary (no children, conjugal property)

Confirm the property regime (ACP/CPG/separation).
Make a complete inventory and classify assets.
Liquidate community/conjugal property and split.
Determine heirs under intestacy (spouse alone vs spouse + parents/siblings).
Prepare the correct settlement document (EJS/partition/self-adjudication or judicial).
File the Estate Tax Return within the statutory period and pay any tax due.
Obtain eCAR and complete transfers with the Registry of Deeds, banks, corporations, and local assessors as needed.