Extra-Judicial Settlement of Estate in the Philippines when an Heir Lacks a TIN and the Instrument Must Pass BIR Review

1. What is an Extra-Judicial Settlement (EJS)?

An EJS is the simple, out-of-court division of a deceased person’s property by the lawful heirs. It is available only when:

The decedent left no will (intestate).
All known debts have been paid (or there are none).
Every heir is of full age or is duly represented/assisted.
The heirs execute a public instrument (a notarised “Deed of Extra-Judicial Settlement and Adjudication of Estate”) and publish it in a newspaper of general circulation once a week for three consecutive weeks (Rule 74, Rules of Court).

2. Why does the Bureau of Internal Revenue (BIR) get involved?

Transferring any property from the estate—real, personal, or mixed—triggers estate-tax compliance under the National Internal Revenue Code (NIRC). The BIR will not issue a Certificate Authorising Registration (CAR)—needed by the Registry of Deeds, LTO, banks, etc.—unless:

The estate has a Taxpayer Identification Number (TIN); and
A BIR Form 1801 (Estate-Tax Return) is properly filed and the tax (plus penalties, if any) is paid; and
Supporting documents, including the EJS deed, are examined and found sufficient.

3. Who needs a TIN in an estate settlement?

Person / Entity	Governing Rule	Practical BIR Requirement
Decedent	NIRC §§ 84, 87 (estate tax), BIR ONETT rules	Always needs an Estate TIN (obtained via BIR Form 1904), even if the decedent had a personal TIN while alive.
Executor / Administrator	NIRC § 87(B), §90	Must quote his/her own personal TIN in filings.
Each Heir	NIRC § 236 (any person required to file a return must register for a TIN)	Since Revenue Memorandum Circular (RMC) 55-2016, most RDOs insist that every adjudicatee or waivee appearing in the deed have a TIN—including minor heirs (via their guardians).

4. The Core Problem: No TIN for One (or More) Heirs

Older circulars allowed the placeholder “000-000-000-00000” for an heir without a TIN, so long as the estate TIN was present. Since mid-2016, however, frontline examiners routinely disallow an EJS package if any living heir listed in the deed lacks a personal TIN. Reasons:

Audit trail – The heir may later dispose of inherited assets, triggering capital-gains or donor’s-tax monitoring.
NIRC § 236(A) – All persons “required by law to make, render or file a return, statement or other document” must register.
Uniformity – CARs are printed with the taxpayers’ TINs that the Registry of Deeds and banks encode.

5. Options When an Heir Has No TIN

Scenario	Practical Course of Action
Heir is resident, of age	Secure TIN via BIR Form 1904 («one-time taxpayer»). Requirements: PSA birth certificate, valid ID, proof of address; guardian’s ID if minor. Processing time: same day at the RDO where the decedent last resided.
Heir is abroad	Appoint an attorney-in-fact in the Philippines (consularised SPA) to apply for the TIN; attach passport copy.
Heir is a minor	Guardian applies, presents minor’s birth certificate plus guardianship proof (or parental IDs).
Heir waives inheritance	Execute a separate Waiver of Rights (still notarised & published) before submitting to BIR; even waivees now customarily need TINs because the deed lists them as a party.
No legal capacity yet proven (e.g., illegitimate child not yet formally acknowledged)	Secure judicial recognition or late registration first, then apply for TIN.

6. Will BIR Ever Accept an EJS Deed Without All Heirs’ TINs?

Technically possible but uncertain. Some RDOs still allow a “TIN 000-000-000” placeholder if the heir’s share is (a) donated to the estate, or (b) subject to reconveyance after a judicial clarification.
No uniform policy – Acceptance hinges on the RDO Chief’s discretion; expect delays, a Memorandum for the Regional Director, and a request to submit the missing TIN within a fixed period.
Risk – The CAR may be issued “for annotation only” but later tagged for audit, exposing heirs to surcharges and the deed to possible rescission by dissatisfied heirs/creditors.

7. Effect of Missing TIN on the Deed’s Validity

Between the heirs – The deed remains a binding contract (Civil Code Art. 1315), provided the essential elements (consent, object, cause) exist.
Against third persons – Until the CAR is issued and the deed is annotated on the titles, third parties may treat the decedent (or the estate) as still the owner.
Prescription of taxes – Estate-tax assessment normally prescribes within three (3) years after the return is filed. Failure to file due to missing TIN keeps the assessment window open indefinitely.

8. Practical Roadmap for Compliance

Gather: Death certificate, last ITR of decedent (if any), list of assets & liabilities.
Apply:
- Estate TIN – BIR Form 1904 (estate name: “Estate of Juan Dela Cruz”).
- Heirs’/waivees’ TIN – also via Form 1904.
Prepare: Deed of EJS (with complete TINs) + Waiver deeds; notarise.
Publish: Three consecutive weekly issues; retain the entire newspaper pages plus publisher’s affidavit.
File Estate-Tax Return (BIR 1801): within one (1) year of death (extendible). Attach:
- CAR checklist docs (certified photocopies of titles, tax declarations, bank certs, vehicle CRs, etc.);
- Deed of EJS & proofs of publication;
- Proof of valuation (zonal values, appraisals);
- Payment slip or availment of Estate-Tax Amnesty (RA 11213, as extended) if within the amnesty window.
Secure CARs: Estate CAR plus separate CARs per property if properties are split.
Register:
- Real property – Registry of Deeds (RD) issues new titles.
- Vehicles – LTO re-registers.
- Shares – Stock transfer agent issues new certificates.
File notice with BIR of transfer within 60 days after registration, if applicable (NIRC § 90).

9. Key Doctrines and Circulars

Rule 74, Rules of Court – Governs EJS formalities and liabilities for unpaid debts.
Civil Code Arts. 777, 960–962, 1311 – Transmission of rights, partition rules, effect of contracts to heirs.
NIRC §§ 84-97, 236, 248-249 – Estate tax, registration, penalties.
RMO 15-2003 & ONETT Manuals – Checklist for one-time transactions.
RMC 55-2016; RMO 41-2016 – Reinforce mandatory TIN disclosure for ALL parties in deeds requiring CAR.
Heirs of Malate v. Gamboa (G.R. No. 170338, April 23 2008) – Publication defect does not void EJS vis-à-vis third parties who did not timely contest.
Heirs of Mijares v. Court of Appeals (G.R. No. 128578, April 12 2006) – Creditors may attack an EJS within two years despite prior CAR issuance.

10. Frequently-Asked Questions

Question	Short Answer
Can we omit the minor-heir’s name to avoid a TIN?	No. Doing so is succession fraud and may nullify the partition.
What if an heir refuses to get a TIN?	You may compel through a judicial settlement (Rule 73) or treat the share as held in trust, but BIR will still require a TIN for the trustee.
Does a TIN lapse?	No. Once issued, a TIN is permanent.
Is the CAR still needed if we avail of the Estate-Tax Amnesty?	Yes. Amnesty merely reduces or removes the tax; you still need a CAR to register property transfers.

11. Take-Away Pointers for Practitioners

Secure TINs first—don’t draft the deed until every heir has one.
Use the estate TIN consistently on bank and LGU clearances.
Check RDO practice; some require “e-CAR appointment” slots before filing.
Explain to clients that a missing TIN can halt registration even if estate tax is paid.
Keep originals of newspaper issues; RD examiners often reject mere photocopies.
Advise prompt settlement—surcharges (25 %) and interest (currently 6 % p.a.) accrue daily.

Conclusion

A Philippine extra-judicial settlement is meant to be quick and inexpensive, but a single heir without a TIN can derail the entire process. Since 2016, the BIR has treated TIN disclosure as a non-negotiable anti-tax-evasion measure. The safest practice is therefore to obtain all heirs’ TINs up-front, complete the estate’s tax compliance, and only then sign and publish the deed. Doing so protects the heirs from avoidable penalties, prevents title-registration hiccups, and ensures the estate is swiftly and lawfully transferred.