The death of a parent triggers the legal process of succession under Philippine law, primarily governed by the Civil Code of the Philippines (Republic Act No. 386, as amended), the Family Code (Executive Order No. 209), and tax provisions under the National Internal Revenue Code (Republic Act No. 8424, as amended by the TRAIN Law or Republic Act No. 10963 and subsequent regulations). The process involves identifying the heirs, settling debts and taxes, and distributing the remaining estate—particularly real properties such as land, houses, and condominiums.
This article comprehensively explains the entire procedure, covering both testate (with will) and intestate (without will) succession, extrajudicial and judicial settlement options, tax obligations, title transfers, and practical considerations that arise in most Filipino families.
1. Preliminary Steps After Death
Secure the Death Certificate
The death must be registered with the Philippine Statistics Authority (PSA) through the local civil registrar within 30 days. Multiple authenticated copies (PSA-certified) will be required for all subsequent transactions.Identify All Assets and Liabilities
Heirs should immediately inventory bank accounts, real properties (via titles from the Register of Deeds), vehicles (LTO), shares of stock (stock certificates or broker statements), insurance policies, receivables, and debts (loans, unpaid taxes, utilities, credit cards).Secure the Properties
Change locks if necessary, notify condominium administrations or village associations, and inform banks to freeze accounts (except joint accounts with right of survivorship).
2. Types of Succession
A. Intestate Succession (No Valid Will)
Applies when the deceased died without a will or the will is invalid.
Order of Intestate Heirs (Article 978–1014, Civil Code):
- Legitimate children and descendants (share equally)
- In their absence: legitimate parents and ascendants
- In their absence: illegitimate children and descendants (receive ½ the share of a legitimate child)
- In their absence: surviving spouse
- In their absence: brothers/sisters and nephews/nieces (by representation)
- In their absence: other collateral relatives up to the 5th degree
- In their absence: the State
Concurrent Heirs (most common scenario when a parent dies):
- Legitimate children + surviving spouse → children divide the estate equally; the spouse receives a share equal to one legitimate child.
- Illegitimate children + legitimate children + spouse → illegitimate children receive ½ the share of each legitimate child; the spouse’s share is still equal to one legitimate child.
- No children, only surviving spouse + parents of deceased → parents get ½, spouse gets ½.
B. Testate Succession (With a Valid Will)
The will must be probated (judicially validated). The testator can only freely dispose of a portion of the estate; the rest is reserved for compulsory heirs (legitimate children, or in their absence, legitimate parents and surviving spouse).
Legitime (Reserved Shares – Articles 886–914, Civil Code):
| Compulsory Heirs | Legitime (Portion of Estate Reserved) |
|---|---|
| 1 legitimate child + spouse | Child: ½, Spouse: ¼ (free portion: ¼) |
| 2 or more legitimate children + spouse | Children combined: ½ (divided equally), Spouse: share equal to 1 child |
| Legitimate children only | Children combined: ½ |
| Illegitimate children + legitimate children | Illegitimate: ½ the share of each legitimate child |
| No descendants, only legitimate parents + spouse | Parents: ½, Spouse: ¼ |
Any disposition that impairs the legitime can be reduced through an action for reduction of excessive donations or legacies.
3. Modes of Settling the Estate
A. Extrajudicial Settlement of Estate (Most Common and Recommended When Possible)
Requirements (Rule 74, Rules of Court):
- Decedent died intestate (no will)
- No outstanding debts (or all debts have been paid)
- All heirs are of legal age (or minors are represented by judicial guardian)
- All heirs agree on the division
Procedure:
- Heirs execute a notarized Deed of Extrajudicial Settlement of Estate (EJS), describing all properties and how they are divided.
- Publish the EJS once a week for three consecutive weeks in a newspaper of general circulation (required if real property is involved and the estate value exceeds certain thresholds in some registries).
- Pay the estate tax and obtain Certificate Authorizing Registration (CAR) from the BIR.
- File the EJS + CAR + other documents with the Register of Deeds (RD) to transfer titles to heirs.
- Pay transfer taxes (if any) and secure new TCTs/OCTs in the heirs’ names.
Advantages: Fast (3–12 months), inexpensive, no court intervention.
B. Judicial Settlement (Required in These Cases)
- There is a will (must be probated)
- There are debts
- Heirs disagree
- There are minors or incapacitated heirs
- The will is lost or contested
Two Main Types:
Probate of Will (Rule 75–77, Rules of Court) – If there is a will.
- File petition in the Regional Trial Court (RTC) of the last residence of the deceased.
- Court issues notice to heirs and publishes notice.
- After hearing, court issues order allowing the will and appointing an executor/administrator.
Intestate Proceedings / Settlement of Estate with Debts (Rule 73–90)
- File petition for letters of administration.
- Court appoints administrator (usually the surviving spouse or most capable heir).
- Administrator files inventory, pays debts (court approval required for sale of properties), submits project of partition.
- Court approves partition and orders distribution.
Duration: 2–10 years or longer if contested.
4. Estate Tax and Other Tax Obligations (BIR)
Under the TRAIN Law (effective January 1, 2018):
- Estate tax rate: flat 6% on the net estate (gross estate minus allowable deductions).
- Exemption: First ₱5,000,000 of net estate is exempt (standard deduction).
- Additional deductions: family home up to ₱10,000,000, medical expenses (up to ₱500,000 if incurred within 1 year before death), claims against the estate, unpaid mortgages, losses, etc.
Filing and Payment Deadline:
- File Estate Tax Return (BIR Form 1801) and pay within 1 year from death.
- Extension of 6 months possible if judicial settlement.
- Late payment: 25% surcharge + 12% interest per year + possible compromise penalties.
Certificate Authorizing Registration (CAR/eCAR)
Issued by BIR after full payment; required by Register of Deeds before any title transfer.
Other Taxes Upon Transfer:
- If heirs sell inherited property within a short period: Capital Gains Tax (6% of selling price or zonal value, whichever is higher).
- Documentary Stamp Tax (1.5% on transfer).
- Local transfer tax (up to 0.75% in most LGUs).
5. Transferring Titles of Real Properties
For Extrajudicial Settlement:
Documents to submit to Register of Deeds:
- Notarized Deed of Extrajudicial Settlement (original + copies)
- CAR/eCAR from BIR
- Certified true copy of death certificate (PSA)
- Tax declarations (from Assessor’s Office)
- Real property tax clearance (from Treasurer’s Office)
- Publication proof (if required)
- Payment of registration fees
New titles will be issued in the names of the heirs according to the agreed shares (e.g., “Juan Dela Cruz, married to Maria, ½ share; Pedro Dela Cruz, single, ½ share”).
For Judicial Settlement:
Instead of EJS, submit the court-approved Project of Partition and Order of Distribution.
If Property is Untitled Land:
File for original registration under PD 1529 with the RTC (land registration case) or administrative titling via DENR if public land previously occupied.
6. Special Situations and Common Issues
- Joint Bank Accounts with Survivorship – Automatically belong to the surviving co-depositor; not part of estate.
- Insurance Proceeds with Named Beneficiary – Go directly to beneficiary; not part of estate.
- Conjugal Properties vs. Exclusive Properties – Only the deceased’s ½ share in conjugal properties and 100% of exclusive properties form the estate.
- Overseas Properties – Governed by Philippine law for movable property; situs law for immovables (so foreign realty follows foreign law).
- OFW or Absent Heirs – Must execute Special Power of Attorney (SPA) authenticated by Philippine Consulate abroad.
- Minor Heirs – Require court-appointed guardian and bond.
- Contested Succession – Common grounds: forgery of will, incapacity, preterition (omission of compulsory heir), undue influence.
- Holographic Wills – Must be entirely handwritten, dated, and signed by testator; probate requires three witnesses to identify handwriting.
7. Practical Timeline (Typical Extrajudicial Case)
| Month | Action |
|---|---|
| 0–3 | Obtain death certificate, inventory assets |
| 3–6 | Prepare EJS, secure signatures/SPAs |
| 6–9 | File estate tax return, pay tax, get CAR |
| 9–12 | Register EJS with RD, get new titles |
Judicial cases often take 3–10 years.
Conclusion
Settling a deceased parent’s estate in the Philippines can be straightforward through extrajudicial settlement when heirs cooperate and there are no debts or will, but becomes complex when disputes, minors, or debts are involved. Early payment of the 6% estate tax and proper documentation are critical to avoid penalties and delays in transferring titles.
Engaging a lawyer experienced in estate settlement is almost always advisable, especially when the estate exceeds ₱10 million or involves multiple heirs. Proper planning—executing a valid will, organizing titles and records, and discussing inheritance openly with family—remains the best way to minimize conflict and expense for the next generation.