Quick answer

Heirs cannot simply use the deceased person’s ATM card, PIN, cheque, mobile-banking access, or online credentials. The bank must first establish who is legally entitled to act for the estate and comply with tax and succession rules.

There are generally two lawful ways to obtain the funds:

Withdraw within one year from the date of death under the special tax route. The executor, administrator, or legal heirs may request withdrawal without an electronic Certificate Authorizing Registration (eCAR), but the bank must withhold 6% of the amount withdrawn. The estate must have a Tax Identification Number (TIN), and the bank will require the estate’s BIR Form No. 1904 received by the BIR. This 6% final withholding tax is not refundable or creditable against the estate tax.
Settle the estate tax and present an eCAR. The deposit is declared as part of the estate, the proper return and tax are filed and paid, and the BIR issues an eCAR covering the personal property. Withdrawal covered by the eCAR is no longer subject to the separate 6% final withholding tax.

These are tax-release routes, not automatic awards of ownership. The bank may still require proof of death, heirship, consent of the heirs, an extrajudicial settlement, letters testamentary or of administration, a court order, or other documents necessary to identify the proper claimant.

Why the account cannot simply be emptied

Successional rights arise at death, but that does not mean one heir immediately owns the entire bank balance. When there are several heirs, the estate is generally owned by them in common before partition and remains subject to the deceased person’s debts. These principles appear in Articles 777 and 1078 of the Civil Code.

A withdrawal by one person can therefore prejudice:

Other compulsory or legal heirs
Beneficiaries under a will
The surviving spouse’s property rights
Creditors of the estate
The estate’s tax obligations
A true co-owner of funds in a joint account

Using the deceased person’s card or credentials may also violate the bank’s terms, conceal an estate asset, and expose the user to demands for restitution, damages, or possible criminal proceedings depending on the circumstances. Inform the bank of the death and follow its deceased-depositor procedure.

First, determine who may act for the estate

The correct claimant depends on how the estate will be settled.

If there is a will

The will must ordinarily be proved and allowed by the proper court. Rule 75 provides that a will cannot pass real or personal property unless it has been probated. The court may issue letters testamentary to the qualified executor named in the will or letters of administration with the will annexed to another qualified person.

The bank will usually look for the relevant court orders, letters testamentary or of administration, the representative’s identification, and the tax documents required for release.

Do not distribute the deposit based only on an unprobated copy of a will.

If there is no will and the heirs agree

An extrajudicial settlement may be used under Section 1, Rule 74 of the Rules of Court only when:

The deceased left no will;
The estate has no outstanding debts;
All heirs participate;
All heirs are of legal age, or minors are properly represented by authorized judicial or legal representatives; and
The settlement complies with the required public instrument, filing, bond, and publication rules.

The fact of settlement must be published in a newspaper of general circulation once a week for three consecutive weeks. The instrument is filed with the proper Register of Deeds, and Rule 74 requires a bond equivalent to the value of the personal property involved.

An extrajudicial settlement does not bind an heir or other interested person who did not participate or had no notice. The rule also preserves remedies for creditors and omitted heirs during the two-year period stated in Rule 74. Publication is not a substitute for identifying and including every heir.

If there is only one heir

A sole heir may use an affidavit of self-adjudication if the requirements of Rule 74 are genuinely satisfied. The affidavit does not cure a false claim of sole heirship. The same publication and creditor-protection concerns apply.

If there is disagreement, debt, uncertainty, or a missing heir

Judicial settlement is usually necessary or safer when:

A will exists;
The heirs dispute their status or shares;
An heir is missing, unknown, or omitted;
There are unpaid debts or competing claims;
A minor’s representative has a conflict of interest;
The validity of a marriage, adoption, filiation, waiver, or will is disputed;
The estate may be insolvent; or
The bank receives conflicting claims.

The court can appoint an executor, administrator, or temporary special administrator and determine who may collect, preserve, and eventually distribute the money.

The two tax routes for releasing the deposit

Route 1: Withdrawal within one year, with 6% final withholding tax

Section 97 of the Tax Code, as amended by the TRAIN Law, permits withdrawal from a deceased depositor’s account within one year from death, subject to a final withholding tax of 6% of the amount withdrawn.

Under Revenue Regulations No. 12-2018 and Revenue Memorandum Circular No. 62-2018:

The claimant may be the executor, administrator, or a legal heir.
The estate must first obtain its own TIN.
The bank must be given the estate’s BIR Form No. 1904, duly received by the BIR.
The bank withholds 6% from the amount withdrawn.
The bank issues BIR Form No. 2306 as evidence of the withholding.
The withheld tax cannot be refunded or credited against the estate tax.
The amount subjected to this final withholding tax is excluded from the gross estate for estate-tax computation.

For a joint account, the final withholding tax applies to the deceased depositor’s share, not automatically to the entire balance.

This route can provide cash before completion of the full estate-tax process, but it may be expensive. For example, withdrawing ₱1,000,000 under this route results in ₱60,000 final withholding tax. The ordinary estate-tax computation might produce a different—and sometimes lower—amount because estate tax is imposed on the net taxable estate after applicable deductions.

The one-year tax route does not authorize a claimant to disregard co-heirs, a will, creditors, or a court case. Banks must still verify the identity and right of the heirs or their representative. This is expressly reinforced for joint accounts by BSP Circular No. 1163.

Route 2: Estate-tax filing and eCAR

Under the regular route, the deposit is included in the estate-tax return. After the return is processed and the required tax is paid, the BIR may issue an eCAR covering the personal property. The executor, administrator, or heirs then present the eCAR and the bank’s other required documents. No separate 6% final withholding tax should be imposed on a deposit already declared and covered by the eCAR.

For deaths on or after January 1, 2018, estate tax is generally 6% of the net taxable estate, not 6% of every asset. The law in force at the time of death must be checked for older estates.

The estate-tax return is generally due within one year from death. A filing extension of up to 30 days may be granted in meritorious cases. A return showing a gross estate exceeding ₱5 million must be supported by the prescribed CPA-certified statement. Current filing and payment provisions allow electronic or manual channels subject to BIR rules under the Ease of Paying Taxes Act.

Late filing or payment may result in applicable interest and penalties. Consult the BIR estate-tax page and the responsible Revenue District Office because documentary and filing procedures can change.

The estate-tax amnesty is no longer open to new applications. For estates that timely availed of it, BIR RMC No. 33-2026 clarifies that proof of estate settlement may still be submitted later, although it remains necessary for processing and issuance of the eCAR.

Documents to prepare

Ask the bank’s branch or estate/deceased-depositor unit for a written, account-specific checklist. Common requirements include:

PSA-certified death certificate
Valid identification and TINs of the claimant and heirs
Birth certificates, marriage certificate, adoption records, or other documents proving the relationship
Passbook, certificate of time deposit, account records, or other proof of the deposit
Bank certification of the balance as of the date of death
Estate TIN and the BIR-received Form No. 1904
BIR Form No. 2306 if the one-year withholding route is used
Estate-tax return, proof of payment, and eCAR if the regular route is used
Notarized deed of extrajudicial settlement or affidavit of self-adjudication, with proof of publication when applicable
Original or certified court orders and letters testamentary or of administration for a judicially settled estate
The will and probate orders, if applicable
Bank claim, release, indemnity, or bond documents
Special power of attorney if someone is acting for an heir
Apostille or appropriate consular authentication for documents executed abroad

The current BIR Form No. 1904 is used to obtain a TIN for an estate with no proprietary activities. The BIR’s requirements for personal property also call for a certificate of the deceased person’s deposit, investment, or indebtedness when applicable.

A bank may request additional documents because of conflicting names, incomplete civil-registry records, unusual account terms, anti-fraud concerns, loans, liens, garnishment, or competing claims.

A practical step-by-step process

1. Notify the bank and secure the account

Give the bank written notice of death and request:

Its deceased-depositor checklist;
The office or officer handling the claim;
Instructions for obtaining a balance certificate as of death;
Confirmation of whether the account is sole, joint “and,” joint “or,” trust, or subject to a survivorship clause; and
Information about loans, holds, automatic debits, or other restrictions affecting the account.

Keep a received copy or reference number.

2. Inventory the estate before choosing a tax route

List all known deposits, investments, debts, real property, vehicles, shares, insurance proceeds, and other assets. Determine whether the bank balance is sufficient to cover the estate’s taxes, debts, and administration expenses.

Do not choose the 6% final-withholding route solely because it appears faster. Compare it with the likely estate-tax result, preferably with advice from a Philippine tax professional.

3. Identify every heir and check for a will

Gather civil-registry documents and conduct a careful family inquiry. A deed signed only by the most visible relatives may fail if a spouse, child, adopted child, descendant of a predeceased child, parent, or testamentary beneficiary was omitted.

Do not assume that the eldest child, surviving spouse, account co-holder, or person who paid the funeral expenses is automatically entitled to the entire deposit.

4. Select the proper settlement procedure

Use:

Probate and court administration if there is a will;
Extrajudicial settlement if all Rule 74 conditions are met;
An affidavit of self-adjudication for a genuine sole-heir estate; or
Judicial settlement when the estate, heirs, debts, or ownership are disputed.

5. Register the estate with the BIR

Obtain the estate’s TIN through the proper RDO and preserve the BIR-received Form No. 1904. Obtain the bank’s certificate of deposit as of death for the estate-tax records.

6. Complete the chosen tax process

If still within one year, decide whether to request withdrawal subject to 6% final withholding tax. Otherwise—or if the eCAR route is preferable—file the appropriate estate-tax return, pay the amount due, and secure the eCAR.

7. Submit a complete bank claim

Submit the documents together, obtain an inventory or acknowledgment of what the bank received, and ask for any deficiency to be stated in writing. Do not surrender an original court order, will, or civil-registry record without receiving a proper acknowledgment.

8. Account for and distribute the money correctly

Unless a valid agreement or court order provides otherwise, money released to an executor, administrator, or heir should be treated as estate money—not that person’s personal funds. Maintain a separate record of:

The gross amount released;
Tax withheld;
Bank charges;
Estate debts and expenses paid;
Amounts advanced by family members;
Each distribution; and
Signed receipts from recipients.

Pay or provide for valid estate obligations before distributing the residue. If a relative advanced necessary expenses, preserve official receipts and proof of payment rather than reimbursing an unsupported amount.

Special rules for joint accounts

A joint “and” or “or” account does not always mean the surviving co-depositor owns the deceased person’s share.

Relevant evidence may include:

The account-opening documents and terms;
A written survivorship agreement;
Deposit slips and fund-transfer records;
The source of the money;
The purpose for opening the account; and
The parties’ actual conduct.

In In the Matter of the Intestate Estate of Reynaldo Guzman Rodriguez, the Supreme Court examined the source and ownership of money in a joint account rather than treating the account name alone as conclusive. The decision is available through the Supreme Court E-Library.

BSP Circular No. 1163 requires banks, after a joint depositor’s death, to observe applicable law and verify the identity and right of heirs or their authorized representative before permitting withdrawal. A surviving co-depositor should therefore ask the bank which portion remains accessible and what proof is required for the deceased person’s claimed share.

Common mistakes to avoid

Using the deceased person’s ATM card, PIN, cheque, or online-banking credentials
Waiting until the one-year withdrawal and estate-tax deadlines have nearly expired
Treating the separate 6% withholding tax as if it were automatically the cheapest option
Assuming an “and/or” account belongs entirely to the survivor
Signing an extrajudicial settlement without identifying all heirs
Publishing a settlement but failing to obtain the consent of a known heir
Ignoring loans, credit-card balances, taxes, or other estate debts
Distributing the full bank balance before paying estate obligations
Mixing released estate funds with an heir’s personal account without complete records
Using a waiver, quitclaim, or special power of attorney without understanding its effect
Relying on an unprobated will
Paying a fixer or submitting altered civil-registry or bank documents
Accepting only an oral rejection from the bank instead of requesting the exact missing requirement in writing

When legal help is urgent

Consult a Philippine succession or probate lawyer promptly if:

Someone has already withdrawn money after death without the other heirs’ knowledge;
The one-year period is about to expire;
A bank receives competing demands;
An heir was omitted from a settlement;
A will, signature, marriage, adoption, or filiation is questioned;
An heir is a minor or legally incapacitated person and the representative may have a conflict;
The estate has substantial or disputed debts;
The deposit may be conjugal, community, trust, or third-party money;
An account is garnished, pledged, or subject to a bank loan;
A document appears forged;
The executor or administrator refuses to account for funds; or
Immediate court relief may be needed to preserve the account or prevent dissipation.

For a service complaint, first use the bank’s formal consumer-assistance channel. If the bank does not resolve it, the matter may be escalated through the BSP Consumer Assistance Mechanism. BSP assistance does not replace probate proceedings or decide disputed heirship.

If the bank has been closed and placed under receivership, contact the Philippine Deposit Insurance Corporation immediately. Claims by legal heirs of deceased depositors generally require formal filing, and the claim deadline is tied to PDIC’s takeover date—not the date of death.

Frequently asked questions

Can the surviving spouse withdraw the money?

Not automatically. The spouse may have rights as an heir and may also own a portion under the applicable marital-property regime, but the bank must still verify those rights. The result depends on the account terms, source of funds, marriage documents, other heirs, and estate-settlement procedure.

Can one heir withdraw without the others?

The tax regulations allow an executor, administrator, or legal heir to seek withdrawal within one year subject to 6% final withholding tax. However, this does not make the withdrawing heir the sole owner. The bank may require collective consent, settlement documents, or court authority, and the recipient must account to the estate and co-heirs.

Is an eCAR always required?

Not for a withdrawal validly completed within one year under the 6% final-withholding route. An eCAR is ordinarily used when the deposit has been declared for estate-tax purposes and the corresponding tax process has been completed. The bank’s non-tax requirements still apply in either case.

Does the bank account disappear after one year?

No. The one-year period is the deadline for the special 6% final-withholding route and is also the ordinary deadline for filing the estate-tax return. Missing it does not transfer the money to the bank or government, but it can make release slower and may expose the estate to tax consequences.

Is the 6% withholding tax the same as estate tax?

No. The special withholding tax is 6% of the amount withdrawn and is final, nonrefundable, and noncreditable. Ordinary estate tax is computed on the net taxable estate under the law applicable at death.

What if the heirs need money for funeral expenses?

Ask the bank whether it has a documented procedure for the situation, but do not assume an emergency creates authority to use the deceased person’s card or account. A relative who advances necessary expenses should preserve receipts and proof of payment for proper estate accounting.

What if the bank keeps changing its requirements?

Ask for the current checklist and every deficiency in writing. Escalate first to the bank’s consumer-assistance unit, then to BSP if the service issue remains unresolved. If the difficulty is disputed ownership or heirship, a court order—not a regulatory complaint—may ultimately be necessary.

This article provides general Philippine legal information, not advice for a particular estate. Account terms, family relationships, documents, debts, date of death, and applicable tax law can change the result. Primary legal and government sources were checked as of July 20, 2026.