Extrajudicial Settlement for Claiming the Pension of a Deceased Person in the Philippines Everything you need to know, from legal theory to agency-specific filing practice (as of August 2025)

1. What is an “extrajudicial settlement” (EJS)?

An extrajudicial settlement of estate is an out-of-court agreement by the heirs of a decedent to divide the estate without opening a probate case. In pension matters it is used to:

establish who the lawful heirs are, and
authorize one or more of them to receive (a) accrued pension/lump-sum balances that became payable up to the date of death, or (b) continuing survivorship benefits where the agency wants proof that the heirs have agreed on how to share the money.

2. Core Legal Bases

Provision	Key Points for Pension Claims
Rule 74, § 1–4, Rules of Court	Allows self-adjudication by a sole heir, or a deed of EJS by two or more heirs, if (a) the decedent left no will, and (b) either had no debts or all debts have been paid/waived. Publication for 3 consecutive weeks in a newspaper of general circulation is mandatory. Estate remains liable to creditors for 2 years after publication.
Civil Code (Arts. 777, 960–1106)	Defines succession, legitimes, and order of intestacy. Determines who must sign the deed.
Tax Code, as amended by TRAIN (RA 10963)	Estate-tax return and payment (if any) are prerequisites to releasing bank deposits and registering deeds affecting property—pension agencies often require the BIR’s Electronic Certificate Authorizing Registration (eCAR) or a “Certificate of No Estate Tax Due.”
Agency-specific laws & rules	– GSIS: RA 8291, its IRR, latest Board Resolutions on survivorship
– SSS: RA 11199, 2022 Rules on Survivorship & Funeral Benefits
– PVAO: RA 6948 & amendments, 2024 PVAO Pension Manual
– AFP-RSBS/PNP-PRBS: PD 1638, RA 8551, implementing circulars

3. When do you actually need an EJS for a pension?

Scenario	Is EJS normally required?	Why
Survivorship pension where the agency already recognizes a primary beneficiary (e.g., lawful spouse)	No.	Death certificate + marriage/birth certificates usually suffice.
*There are multiple* heirs claiming unpaid lumpsum/accrued pension** (e.g., last month’s uncredited GSIS pension, or a 5-year lumpsum not yet released)	Yes.	The unpaid amount forms part of the probate estate, so the agency needs proof of agreement among all heirs.
The only heir is of legal age and there are no debts	Optional: the heir may file an Affidavit of Self-Adjudication instead of a full EJS.
Minor heirs are involved	EJS still possible, but minors must be represented by a legal guardian or the surviving parent under Art. 225 Civil Code, or the deed must be court-approved.
Existence of debts	Either settle the debts first or file the EJS but post a bond equal to the value of the personal estate.

4. Who must sign?

All compulsory heirs under intestacy:
- Surviving spouse
- Legitimate children and descendants
- Legitimate parents/ascendants if no descendants
- Illegitimate children (share taken from free portion)
Voluntary heirs named in any previous deed of donation mortis causa (rare).
Guardian / attorney-in-fact if an heir is a minor or abroad (attach SPA or letters of guardianship).

Tip: Attach PSA-issued birth & marriage certificates to prove each heir’s status.

5. Pre-conditions and mandatory steps

Step	Practical notes & typical fees*
Draft the Deed of Extrajudicial Settlement (or Self-Adjudication).	Use clear identification of heirs, description of the pension credit (e.g., “accrued survivorship pension at GSIS under Claim No. ______”).
Notarization	₱500–₱1,500 depending on pages/location.
Publication in a newspaper of general circulation (once a week for three consecutive weeks).	₱4,000–₱10,000 depending on newspaper. Keep the publisher’s affidavit & tear sheets.
Estate Tax Return (BIR Form 1801) & payment/clearance.	Pensions paid directly to heirs are generally exempt from estate tax (NIRC §87), but accrued lump-sum balances can form part of taxable estate if not expressly exempt under the agency’s charter. File the return to obtain eCAR or Certification of No Estate Tax Due.
Submit deed & attachments to the pension agency.	Requirements vary (see § 7). Agencies seldom require registry recording because pensions are intangible, but some still ask for the Registry of Deeds annotation page as proof of publication/processing.

* Indicative Metro Manila rates, 2025.

6. Agency-specific filing checklists

6.1 Government Service Insurance System (GSIS)

Document	Notes
Original death certificate	PSA-issued
GSIS Application Form (Survivorship/Accrued Benefits)	Latest 2024 version
Deed of EJS or Affidavit of Self-Adjudication	Notarized; include newspaper proofs
PSA-issued certificates proving relationship	Marriage certificate and/or children’s birth certificates
Two valid IDs per claimant	Government-issued
BIR eCAR / Certification of No Estate Tax Due	If claiming unpaid cash value

GSIS pays survivorship pension directly to the primary beneficiary (lawful spouse or minor children). Accrued pension from date of last payment to date of death is payable to the estate—hence the EJS.

6.2 Social Security System (SSS)

Additional documents	Remarks
SSS DDR-2 or Survivor Claim Form	2024 version
Funeral benefit receipt (if already reimbursed)	To avoid duplication
Bank passbook or Disbursement Account Enrollment	Accredited banks

SSS usually releases the first 12 months of survivor pension in lump sum; heirs may execute an EJS to decide who will be the account holder receiving it on behalf of all.

6.3 PVAO (veterans), AFP-RSBS, PNP-PRBS

Agencies are strict on succession order under RA 6948 / PD 1638. Where multiple children of legal age claim, PVAO requires either:

A collective SPA designating one child as payee, or
A notarized EJS expressly dividing the accrued pension and naming the bank accounts for each heir.

7. Taxes, liens, and creditors’ remedies

Estate Tax Exemption: RA 10963 preserved exemptions under special laws. GSIS survivorship and SSS pension payments are not subject to estate tax, but accrued GSIS/SSS pension credited before death may be treated as ordinary estate property.
Rule 74, § 4 lien: Creditors have two (2) years from publication to sue the heirs to collect unpaid debts. If in doubt, post a bond or settle debts first.
Documentary Stamp Tax (DST): Deeds of partition are exempt under Sec. 196 (DST levied only on conveyances for value).

8. Special situations & practical work-arounds

Situation	Work-around
Sole surviving spouse wants to start pension ASAP but other heirs are abroad.	File Affidavit of Self-Adjudication limited to pension proceeds only, state that other heirs’ shares will be held in trust; secure SPA via Philippine consulate so that a full EJS can be filed later.
Estate worth ₱10 million but only ₱150,000 accrued pension is left.	File the EJS specific to the pension credit; estate tax still computed on total estate, but BIR tends to process “no tax due” certifications faster for intangible credits.
Minor child is sole primary beneficiary.	Surviving parent/legal guardian must open a fideicommissary trust account or savings account “in trust for (ITF)” the minor; attach guardian’s undertaking to render annual account.
Disinherited illegitimate child contests EJS.	He/she has 4 years to file an annulment of the deed on grounds of fraud; agencies will suspend release of balances once they receive a copy of the petition.

9. Alternatives to an EJS

Option	When advisable	Caveats
Judicial Settlement (Special Proceedings)	Heirs are in dispute; estate has sizeable real property or debts; minor heirs’ interests conflict with guardians’.	Costs, court delays (1–3 years typical).
Summary Settlement of Small Estates (A.M. 02-06-02-SC)	Gross estate ≤ ₱10,000 (rule unchanged since 1963, rarely invoked).	Still requires court approval; threshold unrealistic today.
Court-appointed estate administrator + letters of administration	Needed if the pension agency requires an Estate Tax Clearance in the name of an administrator rather than heirs.	Administrator’s bond & inventory required.

10. Frequently Asked Questions (FAQs)

Is the EJS filed with the Registry of Deeds if there is no real property? No. You simply keep the notarized deed and publication proof and present certified copies to the pension agency.
Does the EJS expire? It remains valid but can be attacked within 4 years (Art. 1391 Civil Code) if executed by mistake, fraud or intimidation.
Can an heir refuse to sign? Yes; the dissenting heir may force a judicial settlement. An EJS signed without him/her is voidable.
Can the notarized SPA of an overseas heir be emailed? No. Agencies require the original consularized or apostilled SPA.
What if the deceased had pending GSIS salary loan deductions? GSIS will offset the balance against the accrued pension before release; ensure the EJS acknowledges this.

11. Step-by-step Checklist (quick reference)

💀 Secure PSA death certificate.
👪 Collect birth/marriage certificates of all heirs.
📝 Draft Deed of EJS (or Self-Adjudication).
✍️ Notarize.
🗞️ Publish 3 weeks, keep publisher’s affidavit.
🏦 Pay estate tax / get BIR certification.
📑 Compile agency-specific forms & IDs.
📬 File at GSIS/SSS/PVAO; get claim stub.
💸 Wait for payment release; distribute according to deed.
📚 Keep all originals for 2 years in case of creditor claims.

12. Sample Outline of a Deed of Extrajudicial Settlement (Pension-Only)

DEED OF EXTRAJUDICIAL SETTLEMENT OF ESTATE (Accrued GSIS Pension of the Late JUAN D. CRUZ)

Parties and Capacities – “We, MARIA R. CRUZ, of legal age, Filipino, widow…”

Antecedents – “Juan D. Cruz died intestate on 15 March 2025 in Quezon City…”

Description of Estate – “Accrued survivorship pension from 01 February 2025 to 14 March 2025, estimated at ₱32,500, under GSIS Claim No. _____.”

Statement of Conditions – No will; no outstanding debts; all heirs are parties/signatories.

Manner of Partition – “The parties agree that the entire amount shall be received by MARIA R. CRUZ in trust, to be divided as follows: …”

Waiver of Bond – Citing Rule 74, § 1.

Publication Undertaking – That deed will be published in The Manila Standard for three consecutive weeks.

Signature block & notarization.

(Attach heirs’ IDs, newspaper proofs, SPA/guardian appointments, BIR tax clearance.)

13. Common Pitfalls & How to Avoid Them

Pitfall	Prevention
Using a generic deed template that includes land descriptions when the estate consists only of pension credits.	Tailor the Object of Settlement section; omit land registry clauses to avoid BIR queries.
Skipping publication because “it’s just money.”	Agencies sometimes cross-check publication; creditors can later attack the deed. Cheapest local weekly paper still satisfies the rule.
Filing EJS before estate tax return (even when no tax is due).	File Form 1801 and secure “No Tax Due” notation; attach to the agency claim to avoid delays.
Leaving out illegitimate children (“outside families”).	They have a legitime equal to ½ of a legitimate child’s share (Art. 895); excluding them voids the deed.
Not addressing minor heirs properly.	Include guardian’s undertaking or court-approved compromise; agencies reject deeds signed only by minors.

14. Final Take-aways

EJS is a powerful, low-cost substitute for probate—but only where the estate is intestate, debts are settled, and heirs cooperate.
Pension agencies treat accrued benefits as part of the estate, so expect them to ask for a deed before releasing any lump-sum balance beyond the automatic survivorship pension.
Publication, tax clearance, and careful drafting protect heirs from future creditor suits and from agency rejection.
When in doubt—especially if minors, overseas heirs, or contested shares are involved—consult a Philippine lawyer before signing.

(This article is for informational purposes only and is not a substitute for legal advice. Laws and agency regulations may change; always confirm the latest circulars before filing.)