When a person passes away without leaving a valid Last Will and Testament, they are said to have died intestate. In the Philippines, the distribution of their estate is governed by the New Civil Code, specifically the provisions on Legal or Intestate Succession.
Under Philippine law, the state essentially "writes a will" for the deceased, based on the presumed affection of the decedent for those closest to them.
1. The Concept of Compulsory Heirs
Even without a will, the law prioritizes Compulsory Heirs. These are individuals whom the law protects and ensures a portion of the estate, known as the legitime. In an intestate setting, the entire estate is distributed among these heirs according to specific hierarchies and proportions.
Primary Compulsory Heirs
- Legitimate Children and Descendants: They have the primary right to the estate.
- Surviving Spouse: Often inherits a share equal to that of one legitimate child.
Secondary Compulsory Heirs
- Legitimate Parents and Ascendants: They only inherit if the deceased left no legitimate children or descendants.
Other Heirs
- Illegitimate Children: Under the Family Code and Civil Code, they are entitled to successional rights, usually receiving half the share of a legitimate child.
2. The Order of Intestate Succession
Philippine law follows a strict order of preference. The presence of heirs in a higher category generally excludes those in lower categories (except for the surviving spouse and illegitimate children, who concur with others).
| Hierarchy | Heir Category |
|---|---|
| 1st Priority | Legitimate Children and their descendants |
| 2nd Priority | Legitimate Parents and ascendants (only if 1st priority is absent) |
| 3rd Priority | Illegitimate Children and their descendants |
| 4th Priority | Surviving Spouse |
| 5th Priority | Brothers, Sisters, Nephews, and Nieces |
| 6th Priority | Other Collateral Relatives (up to the 5th degree of consanguinity) |
| 7th Priority | The State (Escheat) |
3. Common Sharing Scenarios
The distribution of the estate depends on the combination of survivors. Here are the most frequent scenarios:
- Legitimate Children + Spouse: The estate is divided equally. If there are three children and a spouse, the estate is divided into four equal parts.
- Legitimate Children + Illegitimate Children: Each illegitimate child receives 1/2 (half) of the share of one legitimate child.
- Spouse + Parents: If there are no children, the spouse gets 1/2 and the parents get 1/2.
- Spouse Only: The surviving spouse inherits the entire estate.
- Brothers and Sisters Only: They inherit the entire estate in equal shares (subject to the "half-blood" rule, where full-blood siblings get double the share of half-blood siblings).
4. Key Legal Principles
To navigate inheritance without a will, one must understand three fundamental rules:
The Rule of Proximity
In the same line of inheritance, the relative nearest in degree excludes the more distant ones. For example, a child excludes a grandchild, unless the right of representation applies.
The Right of Representation
If a child dies before the parent, that child’s own children (the grandchildren) can "step into the shoes" of their deceased parent to inherit their share. This applies in the direct descending line but never in the ascending line.
The "Iron Curtain" Rule (Art. 992)
There is a legal barrier between the legitimate family and the illegitimate family. An illegitimate child cannot inherit intestate from the legitimate relatives of their parents (like a legitimate grandparent or sibling), and vice versa.
5. The Process: How to Claim the Inheritance
When there is no will and no dispute among the heirs, the process is typically handled through an Extrajudicial Settlement of Estate.
- Agreement: All heirs must agree on how the property is divided.
- Public Instrument: The agreement is formalized in a notarized document called a "Deed of Extrajudicial Settlement."
- Publication: A notice of the settlement must be published in a newspaper of general circulation once a week for three consecutive weeks.
- Taxes: The Estate Tax must be paid to the Bureau of Internal Revenue (BIR) within one year of the death (unless extensions apply).
- Registration: Once taxes are paid and a "Certificate Authorizing Registration" (CAR) is issued, the titles or accounts can be transferred to the heirs.
Note: If the heirs cannot agree on the partition, they must file an Action for Partition or a Judicial Settlement of Estate in court, which is a significantly longer and more expensive process.
6. Summary of Rights
In the absence of a will, the law ensures that the immediate family is not left empty-handed. Rights are determined by blood relationship, legitimacy, and marriage. While the decedent loses the power to specify who gets which specific asset, the Civil Code provides a structured, albeit rigid, framework to ensure the orderly transmission of properties and obligations.