1) Why “inheritance” still needs paperwork

In Philippine law, heirs generally acquire rights over the decedent’s estate from the moment of death (succession opens at death). In practice, however, banks, buyers, the Registry of Deeds, and government offices will not recognize or allow transactions over the property while the Transfer Certificate of Title (TCT) / Condominium Certificate of Title (CCT) remains in the decedent’s name. To “claim” inherited property in a way that is usable in the real world, heirs must:

Settle the estate (extrajudicially or judicially), and
Pay estate tax and secure the BIR authorization (eCAR/CAR), then
Transfer/issue a new title in the heir(s)’ name(s) at the Registry of Deeds, and
Update the tax declaration with the Local Assessor and keep real property taxes current.

That is the core workflow whether the property is a house-and-lot, vacant land, condo unit, or other registrable real property.

2) Legal framework in plain terms

Several bodies of law intersect:

Civil Code (Succession): who inherits, compulsory heirs, legitimes, intestate succession rules, wills and testate succession.
Family Code / marital property regimes: determines what portion of property belongs to the surviving spouse vs the decedent’s estate (e.g., absolute community, conjugal partnership, exclusive property).
Rules of Court (Special Proceedings): judicial settlement, probate, administration, and Rule 74 on extrajudicial settlement and self-adjudication.
National Internal Revenue Code (as amended) and BIR regulations: estate tax filing/payment, and issuance of electronic Certificate Authorizing Registration (eCAR) (or CAR) before registries and assessors accept transfers.
Property Registration Decree (P.D. 1529) and Land Registration Authority rules: requirements for registering instruments and issuing new titles.
Local Government Code (R.A. 7160): local transfer tax and real property tax processes.

3) Start with the three decisive questions

A. Was there a will?

With a will (testate succession): typically requires probate in court. Even a seemingly “simple” will generally cannot be implemented to transfer titled real property without judicial proceedings.
Without a will (intestate succession): heirs may qualify for extrajudicial settlement if other conditions are met.

B. Are there debts, disputes, or minors involved?

Extrajudicial settlement is meant for straightforward cases. Court settlement is commonly necessary if:

there is a will to probate;
there are known unpaid debts/claims that must be resolved formally;
heirs disagree on who the heirs are or how to divide property;
there are minor heirs or heirs under guardianship (court protection is typically required for compromise, partition, or sale affecting minors);
heirs cannot be located, identity is contested, or fraud is alleged.

C. What kind of property is being transferred?

Titled land/condo (TCT/CCT): transferred at the Registry of Deeds.
Untitled property (tax declaration only): cannot be “titled-transfer” in the same way; heirs update the tax declaration and may need separate land titling remedies if they want a title.
Encumbered property (mortgage, lis pendens, adverse claim): the encumbrance remains unless properly canceled.

4) Identify the correct heirs (and avoid an invalid settlement)

Compulsory heirs and legitimes (big picture)

Philippine succession strongly protects compulsory heirs (e.g., legitimate children and descendants, surviving spouse; in certain cases, illegitimate children; parents/ascendants when there are no descendants). Even if heirs sign a deed, a settlement that excludes a compulsory heir can be attacked and can create long-term problems for the title.

Intestate succession (common patterns)

While each family structure can change the shares, these are frequent scenarios:

Decedent leaves legitimate children and a surviving spouse: the spouse generally shares with the children (spouse often treated as “one child’s share” in many intestate computations).
Illegitimate children: generally inherit but with different proportions than legitimate children.
No children but parents and spouse survive: ascendants/spouse share by rules.
No spouse, no descendants, no ascendants: collateral relatives (siblings, etc.) may inherit.

Because share computation can become technical (legitime rules, representation, illegitimate status, adoption, prior marriages), it’s crucial that the deed reflects the correct roster of heirs.

Marital property regime matters

If the decedent was married, determine whether properties are:

Community/Conjugal: part belongs to the surviving spouse outright; only the decedent’s share goes into the taxable/distributable estate.
Exclusive property of decedent: fully part of the estate. This affects both division and estate tax computation.

5) Two main routes: Extrajudicial vs Judicial settlement

A) Extrajudicial Settlement (Rule 74) — when it is allowed

Typically used when:

the decedent left no will;
there are no outstanding debts (or debts are settled and undisputed);
heirs are known, competent, and in agreement.

Common extrajudicial instruments

Deed of Extrajudicial Settlement (EJS) Used when there are multiple heirs. It may be:
- EJS with Partition (dividing property among heirs), or
- EJS with Adjudication to Co-ownership (heirs keep it co-owned).
Affidavit of Self-Adjudication Used only when there is a single heir (and no will).
EJS with Sale / Deed of Sale by Heirs When heirs sell inherited property to a buyer. Structuring can vary:
- “EJS then Sale” (two instruments), or
- “EJS with Sale” (single instrument combining settlement and conveyance). Taxes and documentary requirements can be more involved because a sale triggers additional taxes separate from estate settlement.

Mandatory publication

For EJS, notice must be published once a week for three consecutive weeks in a newspaper of general circulation in the province/city where the estate is settled. Keep:

newspaper clippings, and
the publisher’s affidavit/certification of publication.

The “two-year” exposure and annotation

Extrajudicial settlement has a built-in protection for creditors and omitted heirs. In practice, registries often annotate a notation tied to the Rule 74 process. This is one reason buyers and banks scrutinize recent extrajudicial settlements.

B) Judicial Settlement — when court is the safer or required route

Testate (with will)

File a petition for probate (allowance of will) in the proper court.
Court appoints executor/administrator, inventory is filed, notices given, debts paid, then distribution per will (subject to legitimes).

Intestate (no will, but court needed)

File petition for letters of administration.
Similar process: appointment, inventory, notice to creditors, settlement of debts, then project of partition for court approval and distribution.

Judicial settlement is slower and more formal, but it’s the standard pathway when legal safeguards are necessary (minors, disputes, contested heirship, will, creditors).

6) Document checklist (Philippine practice)

A) Civil status / heirship documents

Death Certificate (PSA-certified is often preferred; local civil registry copy may be used in some steps)
Marriage Certificate (if married)
Birth Certificates of heirs (to prove filiation)
Valid government IDs of heirs (and TIN, where required)
If an heir is deceased: that heir’s Death Certificate and the documents of the heir’s own heirs (representation issues)
If adopted: adoption papers / amended birth record
Notarized Special Power of Attorney (SPA) for heirs who cannot sign in person
- If executed abroad: typically notarized abroad and apostilled (or properly authenticated, depending on jurisdiction and applicable rules at the time)
For minors/incapacitated heirs: guardianship papers and, often, court authority for settlement/partition/sale affecting their shares

B) Property documents (for each property)

For titled property:

Owner’s duplicate TCT/CCT (original title in the decedent’s name)
Tax Declaration (latest)
Latest Real Property Tax (RPT) official receipts and Tax Clearance (LGU)
If improvements/building: building tax declaration, sometimes occupancy or building info
If condo: condominium corporation clearance/statement of account (often requested in practice)
If under mortgage: loan documents and bank’s requirements (the mortgage annotation persists)

For untitled property:

Latest Tax Declaration and prior tax declarations if needed to show history
RPT receipts, barangay certification, vicinity map (requirements vary by LGU)
Proof of possession/ownership chain (deeds, affidavits), if the goal includes later titling

C) Estate settlement instrument

Deed of Extrajudicial Settlement (and Partition/Adjudication), or
Affidavit of Self-Adjudication, or
Court orders (for judicial settlement):
- Order approving the will / letters of administration
- Order approving project of partition / distribution
- Certificate of finality (often requested), and certified true copies

D) Tax and BIR requirements (core set)

Estate Tax Return (commonly BIR Form 1801, subject to current BIR forms)
Supporting attachments typically include:
- death certificate
- deed/affidavit or court orders
- proof of property values (zonal values / fair market values, tax declarations, etc.)
- proof of allowable deductions (debts, claims, etc., with documentation)
- IDs, TINs, and other BIR-required forms/schedules
Proof of payment of estate tax (or proof of qualified settlement program, if applicable)
eCAR/CAR issued by BIR for each property (and sometimes for shares/other registrable assets)

E) Registry of Deeds and Assessor documents

For RD:
- eCAR/CAR
- notarized deed / certified court orders
- proof of publication (EJS cases)
- owner’s duplicate title
- tax clearance / receipts as required
- official receipts for RD fees
For Assessor:
- new title or RD annotation (as applicable)
- deed/court order
- eCAR
- transfer tax payment proof
- tax declaration application forms

7) Taxes and government charges to expect

1) Estate tax (national)

Estate tax is imposed on the net estate (estate value less allowable deductions, excluding the surviving spouse’s share where applicable). Key practice points:

Estate tax return filing deadline is typically tied to the date of death (commonly within one year under the modern framework), with certain extension possibilities depending on rules and approvals.
Late filing/payment commonly triggers surcharge, interest, and compromise penalties.
BIR will not issue the eCAR unless estate tax compliance is satisfied (or qualified amnesty/settlement rules apply).

Valuation: Real property is typically valued using the higher of:

BIR zonal value, and/or
Assessor’s fair market value (per tax declaration), depending on the applicable rule and property class. The declared value in the deed does not automatically control.

2) Local transfer tax (provincial/city)

LGUs impose tax on transfer of real property ownership. Rates differ:

Up to 0.50% in provinces (commonly applied ceiling), and
Up to 0.75% in Metro Manila LGUs (common framework), based on the higher of consideration or fair market value (and in inheritance, commonly based on fair market value figures used for transfer).

3) Registry of Deeds fees

RD charges registration fees based on schedules and property value, plus annotation and legal research fees.

4) Notarial fees and publication cost

Extrajudicial settlements are notarized and require newspaper publication—these can be significant.

5) If heirs sell the property

A sale of inherited real property is not just an “inheritance transfer”—it is a sale transaction that triggers additional taxes, commonly:

Capital Gains Tax (for capital assets) computed from selling price or fair market value, whichever is higher, plus
Documentary Stamp Tax, plus
local transfer tax and RD fees, plus
possible withholding/expanded withholding rules depending on the classification and taxpayer type.

In many real-world timelines, the estate must still be settled and estate tax paid before the RD will process a sale that requires title transfer.

8) Step-by-step: Extrajudicial settlement and transfer of title (typical workflow)

Step 1: Inventory the estate and verify title status

List all real properties and confirm:
- are there existing TCT/CCT/OCT?
- are titles clean or annotated (mortgage, lis pendens, adverse claim)?
- are RPT payments current?
Secure the owner’s duplicate title (if missing, see problem section below).

Step 2: Confirm heirs and marital property share

Build a clear family tree: spouse, legitimate/illegitimate children, adopted children, parents, etc.
Determine if the property is conjugal/community or exclusive.
Confirm that all heirs are of age and competent (or arrange guardianship/court route).

Step 3: Prepare the correct settlement instrument

If multiple heirs: draft Deed of Extrajudicial Settlement (with partition or co-ownership).
If sole heir: Affidavit of Self-Adjudication. Drafting must include:
decedent’s details (name, citizenship, residence, date/place of death)
statement of no will (for EJS/self-adjudication)
statement that heirs are the only heirs and that the decedent left no debts (or that obligations are settled)
complete identification of heirs (names, civil status, addresses, IDs/TINs)
complete property description exactly as in title (technical description, TCT/CCT numbers)
distribution/shares and partition terms
signatures of heirs (and spouses if needed to show consent in partition arrangements)
acknowledgment before a notary public

Step 4: Secure SPAs for absent heirs; handle abroad execution properly

If an heir cannot sign: execute an SPA authorizing a representative to sign the deed and handle BIR/RD/LGU transactions.
If executed abroad: follow apostille/authentication requirements accepted in Philippine practice at the time.

Step 5: Notarize the settlement deed/affidavit

Ensure the notary has proper notarial commission for the place of notarization.
Use accurate IDs and community tax certificates (as applicable).

Step 6: Publish the required notice (EJS)

Publish once a week for three consecutive weeks in a newspaper of general circulation.
Obtain:
- publisher’s affidavit, and
- the full set of clippings.

Step 7: File the estate tax return and pay estate tax; obtain eCAR/CAR

Register or confirm the estate TIN if required by BIR procedure.
File the estate tax return with complete attachments (death certificate, deed/affidavit, property docs, valuation bases, deductions proof).
Pay estate tax and secure the eCAR/CAR.
- The eCAR is the gatekeeper document for RD/Assessor transfers.

Step 8: Pay local transfer tax and secure LGU clearances

Proceed to the City/Provincial Treasurer for transfer tax assessment and payment.
Secure tax clearance and other LGU requirements (varies by LGU).

Step 9: Transfer the title at the Registry of Deeds (RD)

Submit:

owner’s duplicate title
notarized EJS / self-adjudication affidavit
proof of publication (for EJS)
eCAR/CAR
transfer tax receipt and clearances
RD application forms and fees

Result: RD cancels the old title in the decedent’s name and issues:

a new title in the name of all heirs as co-owners, or
separate titles per partition plan (when partition is registrable and the land configuration supports it), or
a title in the sole heir’s name (self-adjudication).

Step 10: Update the Tax Declaration with the Local Assessor

Present the new title (or RD documents), deed/court order, eCAR, transfer tax receipt.
Secure a new tax declaration in the name of the heir(s).
Continue paying RPT promptly to avoid penalties and transfer complications later.

9) Step-by-step: Judicial settlement and transfer of title (high-level)

Step 1: File the proper petition in court

Testate: petition for probate and allowance of will.
Intestate: petition for letters of administration.

Step 2: Court appointment and estate administration

Executor/administrator appointed.
Inventory of assets filed.
Notice to creditors and claims period.
Debts and expenses paid, as approved by court.

Step 3: Project of partition / distribution

Heirs submit proposed partition.
Court approves distribution by order.

Step 4: Estate tax compliance and eCAR/CAR

File estate tax return and pay tax (and comply with BIR documentation).
Obtain eCAR/CAR.

Step 5: Register the court order and transfer title at RD

Submit certified true copies of court orders, certificate of finality, eCAR/CAR, title, and other RD requirements.
RD issues new titles according to the court-approved distribution.

Step 6: Update tax declaration with Assessor

Same as extrajudicial: title/court order + eCAR + transfer tax proof, etc.

10) Special situations and common problems (and what usually happens)

A) Lost owner’s duplicate title

If the owner’s duplicate title is lost:

RD will not simply “transfer” without it.
The usual remedy is a court petition for reissuance of owner’s duplicate title (or other appropriate relief), including publication and proof of loss, before RD can issue a replacement and proceed with transfer.

B) Property is still titled under someone who died earlier (multiple deaths, “skipped transfers”)

A very common issue: the property is still in the name of a grandparent, but the parent and grandparent have both died.

Each estate generally must be settled in sequence to complete the chain of title, unless a legally acceptable consolidation method is available under current practice and facts.

C) Missing or uncooperative heir

Extrajudicial settlement requires participation (or proper representation) of heirs; missing heirs create serious risk.
Judicial settlement may be necessary to bind parties through notice and court orders.

D) Minor heirs

Any partition, waiver, or sale affecting minors can be scrutinized and may be voidable without court approval/guardianship safeguards.
Judicial route is often used to protect minors’ interests.

E) One heir “waives” in favor of another

A “waiver” can be:

a pure waiver (renunciation) in favor of the estate/co-heirs generally, or
a waiver in favor of a specific person (which can be treated like a donation/sale depending on form and consideration). The tax consequences can change significantly based on how it is worded and whether consideration is involved.

F) Heirs want to sell immediately

When a buyer is involved, offices typically require:

settlement proof + estate tax eCAR, and
then sale taxes eCAR requirements (if applicable) before final transfer to the buyer. Structuring “EJS with Sale” may reduce document layers but does not automatically remove tax layers.

G) Unregistered land (no TCT/CCT)

The assessor can transfer the tax declaration to heirs after estate settlement/tax compliance, but this is not the same as a Torrens title.
If heirs want a title, they may need separate legal processes (e.g., judicial confirmation of imperfect title, free patent where eligible, or other administrative/judicial routes depending on land classification and facts).

H) Encumbered properties

Mortgage stays annotated until the lender issues a release and RD cancels the encumbrance.
For inherited mortgaged property, banks often require estate settlement documents and updated borrower arrangements.

11) Practical drafting pointers for an Extrajudicial Settlement deed

A deed that repeatedly causes rejection is one that is vague. A robust EJS commonly includes:

Clear declaration of intestacy: “left no will”
Clear declaration of no debts or that debts are fully paid (and undisputed)
Complete heir identities and proof-ready details
Exact property descriptions matching the title, including boundaries/technical descriptions and title numbers
Partition plan: which heir gets what; if co-owned, specify undivided shares
Undertaking/indemnity clauses among heirs (common in practice)
Attachments list (titles, tax declarations, death certificate, etc.)
Proper notarization, witnesses if needed by local practice

Where heirs are abroad, the SPA must be drafted to cover:

signing the deed
filing with BIR and securing eCAR
paying transfer taxes
signing RD/assessor forms
receiving documents and titles

12) A clear, consolidated checklist

Before drafting

PSA death certificate
Determine if a will exists
Identify all heirs and gather PSA birth/marriage records
Confirm marital property regime and which properties are conjugal/community vs exclusive
Gather titles, tax declarations, RPT receipts, tax clearance
Check for liens/encumbrances

Extrajudicial settlement package

Notarized EJS (or self-adjudication)
SPA(s), apostilled if abroad
Proof of publication (EJS)
Estate tax return + attachments
Proof of estate tax payment
eCAR/CAR

Transfer and post-transfer

LGU transfer tax payment and clearances
RD filing, fees, issuance of new title
Assessor tax declaration transfer
Continue RPT payments; keep records

13) Key takeaways (the “must not miss” points)

Settlement first, title transfer next: Inheritance rights exist, but registrable ownership requires settlement + BIR authorization + RD transfer.
Extrajudicial settlement is not for every estate: wills, disputes, minors, or creditor issues commonly push the case into court.
BIR eCAR/CAR is the gatekeeper: without it, registries and assessors generally do not process the transfer.
Publication and completeness protect the title: missing heirs or defective documents can haunt a property for decades.
Tax compliance is part of title cleanliness: estate tax (and sale taxes if selling) must be handled correctly for a marketable title.