The law on succession in the Philippines is primarily governed by Republic Act No. 386, otherwise known as the Civil Code of the Philippines. Succession is a mode of acquisition by virtue of which the property, rights, and obligations to the extent of the value of the inheritance of a person are transmitted through his death to another or others either by his will or by operation of law.
I. Types of Succession
In the Philippine legal system, there are three distinct ways an estate can be distributed:
- Testamentary Succession: This results from the designation of an heir, made in a will executed in the form prescribed by law.
- Intestate (Legal) Succession: This takes place by operation of law when there is no will, or if the will is void or has lost its validity.
- Mixed Succession: This occurs when a person leaves a will that does not dispose of all the property belonging to them, resulting in a portion being distributed via the will and the remainder via the rules of intestacy.
II. Testamentary Succession: The Will
A will is a personal, solemn, revocable, and free act by which a person disposes of their estate to take effect after death. Under Philippine law, there are two kinds of wills:
1. Notarial Will
This must be in writing and executed in a language or dialect known to the testator. Its strict requirements include:
- Subscription at the end by the testator themselves or by the testator's name written by another person in their presence and by their express direction.
- Attestation and subscription by three or more credible witnesses in the presence of the testator and of one another.
- Acknowledgment before a Notary Public.
2. Holographic Will
A person may execute a holographic will, which must be entirely written, dated, and signed by the hand of the testator himself. It is subject to no other form, and may be made in or out of the Philippines, and need not be witnessed or notarized.
III. The System of Legitimes
The Philippines follows a system of Legitimes, which is the part of the testator's property which he cannot dispose of because the law has reserved it for certain heirs who are, therefore, called Compulsory Heirs.
Compulsory Heirs
- Primary: Legitimate children and their legitimate descendants.
- Secondary: Legitimate parents and legitimate ascendants (only in default of legitimate children).
- Concurring: Surviving spouse and illegitimate children.
Table of Legitimes
The following ratios represent the minimum portion of the estate reserved for specific heirs:
| Heir Combination | Legitime Distribution |
|---|---|
| Legitimate Children (LC) only | $\frac{1}{2}$ of the estate divided equally among them |
| One Legitimate Child & Spouse | LC: $\frac{1}{2}$ |
| Multiple LC & Spouse | LC: $\frac{1}{2}$ |
| Legitimate Parents (LP) only | $\frac{1}{2}$ of the estate (if no LC) |
| Illegitimate Children (IC) | Each IC gets $\frac{1}{2}$ the share of a Legitimate Child |
| Surviving Spouse (SS) only | Usually $\frac{1}{2}$ (varies if marriage was in articulo mortis) |
The remainder of the estate after all legitimes are satisfied is known as the Free Portion, which the testator may give to anyone through a will.
IV. Intestate Succession (No Will)
When a person dies without a will, the law steps in to distribute the estate. The order of intestate succession is as follows:
- Legitimate Children or Descendants.
- Legitimate Parents or Ascendants.
- Illegitimate Children.
- Surviving Spouse.
- Brothers and Sisters, Nephews and Nieces.
- Other Collateral Relatives (up to the 5th degree).
- The State (Escheat).
Note: In intestacy, the entire estate is distributed. The rule of Proximity applies: the relative nearest in degree excludes the more distant ones, saving the right of representation when it properly takes place.
V. Disinheritance
A compulsory heir may be deprived of their legitime only for causes expressly stated by law. For a disinheritance to be valid, it must:
- Be made in a valid will.
- Specify the legal cause.
- Be unconditional and total.
- The cause must be true (the burden of proof rests on the other heirs if the disinherited heir denies it).
Common Grounds: Conviction of an attempt against the life of the testator, accusing the testator of a crime involving a penalty of six years or more (if found groundless), or maltreatment by word or deed.
VI. Settlement of Estate
There are two primary ways to settle the estate of a deceased person in the Philippines:
1. Extrajudicial Settlement
This is allowed only if:
- The decedent left no will.
- The decedent left no debts (or all debts have been paid).
- All heirs are of legal age (or represented by judicial/legal guardians).
- The heirs all agree on the division.
The heirs must execute a public instrument (Deed of Extrajudicial Settlement) and publish a notice of the settlement in a newspaper of general circulation once a week for three consecutive weeks.
2. Judicial Settlement
If the heirs cannot agree, or if there is a will that must be probated, the estate must be settled through the courts. Probate is mandatory; no will shall pass either real or personal property unless it is proved and allowed in accordance with the Rules of Court.
VII. Taxation (Estate Tax)
Under the TRAIN Law (Republic Act No. 10963), the estate of every decedent, whether resident or non-resident, is taxed at a flat rate of 6% based on the value of the Net Estate.
- Standard Deduction: ₱5,000,000.
- Family Home: Deductible up to ₱10,000,000 if it is the decedent's family home.
- Notice of Death: No longer required under current regulations.
- Filing: The Estate Tax Return must be filed within one year from the decedent's death.