Here’s a concise-but-complete legal explainer written for the Philippine setting. It distinguishes an Extrajudicial Settlement of Estate from an Affidavit of Self-Adjudication, explains when each one is proper, and maps out the steps, risks, and practical tips.

What these instruments are (and where they come from)

Both documents come from Rule 74 of the Rules of Court (“Summary Settlements of Estates”). They are out-of-court ways to transmit a decedent’s property to heirs when a full probate/intestate case isn’t needed.

Extrajudicial Settlement of Estate (EJS) A public instrument (notarized document) signed by two or more heirs agreeing on how to divide the estate without going to court.
Affidavit of Self-Adjudication (ASA) A public instrument executed by a single heir who asserts they’re the only heir, and adjudicates the entire estate to themself.

Core legal conditions (the “Rule 74 checklist”)

These conditions apply to both EJS and ASA:

No will left by the decedent (i.e., intestate), and
No debts at the time of settlement (or all known debts have been fully paid or settled), and
All heirs are of legal age (or any minor heir is represented by a duly authorized legal/judicial representative), and
A public instrument is executed and notarized, and
Publication: A notice of the settlement must be published once a week for three (3) consecutive weeks in a newspaper of general circulation, and
Registration: If real property is involved, the instrument (with attachments) must be filed with the Register of Deeds for annotation/transfer.

Practical note: “No debts” is taken seriously. If there are outstanding claims, taxes, loans, or liabilities, do not use Rule 74 shortcuts until these are resolved. Creditors can upset the settlement.

When to use which

Use an EJS when there are two or more heirs (children, spouse, parents, collateral relatives, etc.) and everyone can agree on a partition or a buyout.
Use an ASA only when you are truly the sole heir. If there’s even a possibility of another heir (e.g., another child, prior marriage, acknowledged illegitimate child, surviving parents), don’t use ASA—use EJS or go to court.

Effects and legal risks

Immediate effect between the parties: Once notarized, published, and taxes/fees are paid, transfers can proceed (e.g., issuance of new titles).
Two-year window for challenges: Under Rule 74, creditors and omitted heirs may bring actions against the estate or heirs within two (2) years from the date of publication. Property remains subject to these claims during that period.
- After two years, other remedies (e.g., reconveyance, constructive trust) may still be available in some scenarios, especially against bad-faith holders; but buyers in good faith and for value get stronger protection.
False “sole-heir” claims in an ASA can expose the affiant to civil and even criminal liability (perjury, falsification), plus reconveyance to real heirs.

Typical workflow (end-to-end)

Heirship + asset/liability audit
- Identify legal heirs (legitimate, illegitimate, surviving spouse, ascendants, etc.) under the Civil Code on intestate succession.
- Inventory all assets (real property, bank accounts, vehicles, shares, personal property) and liabilities (loans, taxes, utility arrears, hospital bills, estate expenses).
- Confirm no will exists, or if a will exists, it must be probated (you cannot use Rule 74 to bypass probate).
Settle debts and taxes (or verify there are none)
- Pay or settle debts/claims. Obtain quitclaims/receipts where possible.
- Prepare and file the Estate Tax Return (BIR Form 1801) and pay estate tax. (TRAIN Law: flat 6% estate tax rate; standard and other deductions may apply.) Secure the eCAR(s) from the BIR covering each asset to be transferred.
Draft the instrument
- EJS: Title often “Deed of Extrajudicial Settlement of Estate (with Partition/with Sale)” depending on whether heirs are dividing or immediately selling.
- ASA: Title often “Affidavit of Self-Adjudication by Sole Heir.”
- Attach schedules (asset list), technical descriptions (for land), tax declarations, proofs of heirship (e.g., birth/marriage certificates), valid IDs, death certificate, and TINs.
Notarize
- All signatories personally appear before a notary with IDs. Ensure names match titles/IDs.
Publish
- Arrange newspaper publication of a notice of the settlement once a week for three consecutive weeks. Keep the publisher’s affidavit and newspaper issues as proof.
Register / Transfer
- Real property: Submit to the Register of Deeds: notarized instrument, publication proofs, eCAR(s), latest real property tax receipts/clearances, transfer tax receipts (LGU), and other registry forms/fees.
- Personal property:
  - Vehicles: process with LTO (present eCAR if required, deed/instrument, IDs).
  - Shares: endorse to the corporate secretary/stock transfer agent with eCAR and instrument.
  - Bank accounts: present bank-specific requirements (often eCAR, IDs, instrument, board waivers if applicable).
Post-transfer compliance
- Update tax declarations at the Assessor’s Office.
- Keep a complete set of originals and certified copies; claims can still appear within two years from publication.

Specific features, pros/cons, and drafting pointers

Extrajudicial Settlement (EJS)

Pros

Works with multiple heirs; avoids court if everyone agrees.
Can combine with a sale (EJS with Sale) if heirs are selling to a third party at once.
Flexible partitions: equal shares, unequal but justified shares (e.g., co-ownership buy-outs), or swaps of specific parcels.

Cons/Risks

Unanimity is practically required. A single dissenting heir can derail the plan.
If a minor is an heir, the minor must be represented by a legally authorized guardian; transactions adverse to a minor may need court approval to avoid being voidable later.
Hidden creditors or omitted heirs can challenge within two years from publication.

Drafting tips

Spell out the heirship basis (identify each heir’s legal relationship).
Include a full asset schedule and valuation method.
If “with sale,” state that eCAR has been or will be secured and that proceeds allocation is agreed.
Add indemnity and warranty clauses among heirs regarding undisclosed debts/heirs.
Ensure marital property regimes are respected (conjugal/absolute community exclusions, waivers by the surviving spouse where appropriate).

Affidavit of Self-Adjudication (ASA)

Pros

Fastest route when there is truly only one heir.
Simple form: assertions of status, no will, no debts; self-adjudication; request for registration.

Cons/Risks

High risk if “sole-heir” status is wrong. Any overlooked heir can nullify transfers and seek reconveyance.
Same two-year exposure window post-publication.

Drafting tips

Recite complete factual basis for sole-heir status (e.g., “decedent was single, without acknowledged or known children, parents predeceased,” etc.).
Attach civil registry documents (PSA certificates) supporting the claim.
Include a warranty/undertaking to answer for claims within the Rule 74 period.

Taxes and government fees (high-level)

Estate Tax: Flat 6% (TRAIN Law), computed on the net estate (gross assets less allowable deductions such as the standard deduction, family home up to a cap, and others). File the return within one (1) year from death (extensions may be available for cause). eCAR is required for transfers.
Local Transfer Tax/Registration Fees: LGU transfer tax for real property, plus Register of Deeds fees for registration; assessor updates tax declarations.
Documentary Stamp Tax (DST): Generally not imposed on transfers by reason of death for real property (but DST may apply to certain instruments/stock transfers).
Capital Gains/Income Tax: Not applicable on inheritance itself; but a subsequent sale by heirs is a separate taxable event.

Always confirm current BIR/LGU forms, rates, and processing notes—requirements can be updated by regulations and local ordinances.

Special situations

There is a will: Philippine law requires probate (court) to pass property under a will; you cannot use EJS/ASA to bypass probate.
There are debts: Settle first. If substantial or disputed, consider summary or regular settlement in court to marshal claims.
Foreign assets / foreign death: You may need authentication/apostille of foreign documents and possibly ancillary proceedings.
Minors or incapacitated heirs: Expect guardianship and, where dispositions are adverse to the minor, court approval to protect the deed from later annulment.
Unknown/absent heirs: Don’t use ASA. Use EJS only if you can properly represent or account for them; otherwise, go to court.

Frequently asked practical questions

1) Is publication really mandatory? Yes. Rule 74 requires publication once weekly for three consecutive weeks. Registers of Deeds and banks often ask for the publisher’s affidavit and newspaper clippings.

2) What if we discover a creditor after we already registered the titles? Creditors may still pursue claims within two years from publication, and property remains liable. Heirs should be ready to satisfy valid claims; otherwise, creditors may seek annulment/reconveyance or levy.

3) Can we partially use EJS (only for one parcel) and keep the rest undivided? Yes. You can partition some assets and keep others in co-ownership, provided the instrument is clear and taxes corresponding to the transferred assets are paid.

4) What happens if one heir refuses to sign an EJS? You cannot force EJS. File a court action for partition (or, where appropriate, probate/intestate proceedings) so the court can settle the estate.

5) Can an ASA be converted into an EJS later? If an overlooked heir surfaces within the two-year period (or even later, depending on circumstances), parties often execute a Confirmatory EJS and rectify transfers; but liability for prior misrepresentation can remain.

6) Do we need a bond? Under the typical no-will/no-debts scenario for Rule 74 settlements, a bond is not required. Where there are debts or minors, or when the court is involved, a bond may be ordered in judicial proceedings; that’s different from EJS/ASA’s usual out-of-court path.

Clean comparison

Feature	Extrajudicial Settlement (EJS)	Affidavit of Self-Adjudication (ASA)
Heirs involved	2 or more	Exactly 1 (sole heir)
Basis	Rule 74 (no will, no debts, heirs of age/represented)	Same
Form	Deed with agreement/partition (may include sale)	Affidavit asserting sole-heir status and self-adjudication
Publication	Required: 1×/week × 3 weeks	Required: 1×/week × 3 weeks
Registration	With Register of Deeds for real property; submit eCAR, taxes, etc.	Same
Main risk	Dissenting heirs; undisclosed debts/heirs	Wrong “sole-heir” claim; strongest exposure if another heir exists
Challenge window	2 years from publication for creditors/omitted heirs	2 years from publication

Sample skeleton clauses (for orientation only)

EJS opening recital (skeleton): “We, [Heir Names], all of legal age, [civil status], Filipino citizens, with principal residences at [addresses], being the only heirs of [Decedent], who died intestate on [date] in [place], and having ascertained that the decedent left no debts, hereby settle extrajudicially the estate and partition the properties described in Annex A as follows: …”

ASA core averments (skeleton): “I, [Name], of legal age, [civil status], Filipino, … hereby declare that I am the sole heir of [Decedent], who died intestate on [date] in [place]; that the decedent left no debts; that the estate consists of the properties in Annex A; and that I hereby adjudicate the same to myself pursuant to Rule 74. I undertake to publish this affidavit as required and hold myself answerable for valid claims within the statutory period.”

These are not full forms; your notary or counsel will adapt language to your facts and local registry/BIR preferences.

Quick decision tree

Is there a will? → Yes → Probate in court. (Stop.)
Multiple heirs? → Yes → EJS (if no debts and everyone is of age/represented).
Only one heir? → Yes → ASA (if truly sole heir; otherwise EJS/court).
Any debts/claims? → Yes → Settle first or consider judicial settlement.
Real property? → Yes → Don’t forget publication → taxes/eCAR → registry.

Friendly reminder: This is general information for the Philippines. Facts like hidden debts, unknown heirs, minors, foreign elements, or unusual property holdings can change the strategy. When in doubt, have a Philippine lawyer or notarial practice review your draft before you sign and publish.