Transferring ownership of a motor vehicle registered in the name of a deceased person is one of the most common but also one of the most document-heavy transactions at the Land Transportation Office (LTO). The process combines succession law, estate tax compliance, and LTO registration rules. Done correctly, it is straightforward; done incorrectly, it can drag on for years and expose heirs or buyers to liability.

This article covers every scenario, all required documents, BIR requirements, LTO procedures, fees (as of 2025), common pitfalls, and practical tips used by lawyers and fixers nationwide.

Legal Basis

Articles 774–1105, Civil Code of the Philippines (Succession)
Rule 74, Rules of Court (Extrajudicial Settlement of Estate)
Sections 75–90, Republic Act No. 10963 (TRAIN Law) – Estate Tax Amnesty and current estate tax rules
BIR Revenue Regulations No. 2-2003, RR 6-2013, RR 12-2018 (Certificate Authorizing Registration requirements)
LTO Memorandum Circular No. VDM-2021-2320 and JMC No. 2018-001 (Joint LTO-BIR guidelines on transfer due to death)
Republic Act No. 4136 as amended (Land Transportation and Traffic Code)

Two Main Scenarios

Scenario A: Vehicle is transferred to an heir or co-heirs (no sale to third party)

Scenario B: Heirs sell the vehicle to a third-party buyer

The documentary requirements are almost identical; the only difference is the presence or absence of a Deed of Absolute Sale executed by the heirs.

Estate Settlement Options

1. Extrajudicial Settlement of Estate (EJS) – Most Common and Fastest

Conditions (all must be present):

Decedent left no will
Decedent left no debts (or all debts have been paid)
All heirs are of legal age OR minors are represented by judicial guardians
All heirs agree on the division

Procedure:

Draft Deed of Extrajudicial Settlement of the Estate (must include the vehicle with plate number, MV File No., engine/chassis no.)
All heirs sign before a notary public
Publish the EJS once a week for three (3) consecutive weeks in a newspaper of general circulation
File with BIR and pay estate tax / obtain Certificate Authorizing Registration (CAR)
If real properties are also involved, annotate the EJS at the Register of Deeds

Time frame: 2–6 months depending on BIR processing.

2. Judicial Settlement (required in any of the following cases)

There is a will (testate succession)
There are unpaid debts
Heirs disagree
There are minor or incompetent heirs
The estate is large and creditors are contesting

This can take 1–5 years or longer. The court will issue a Letter of Administration or Testamentary and eventually an Order of Distribution/Partition.

BIR Requirements (Mandatory in Almost All Cases)

Since January 1, 2018 (TRAIN Law), the estate tax rate is a flat 6% on the net estate after deductions.

Deductions allowed:

Standard deduction – ₱5,000,000
Family home – up to ₱10,000,000
Medical expenses (incurred within 1 year before death, up to ₱500,000)
Claims against the estate, etc.

If total net estate ≤ ₱5,000,000 + family home exemption, estate tax is often zero.

For motor vehicles alone (no real property), if the vehicle’s current market value is below ₱2–3 million, many BIR offices will issue an Electronic Certificate Authorizing Registration (eCAR) even with minimal or zero tax.

Required documents for BIR CAR/eCAR:

Death Certificate (PSA-authenticated)
Deed of Extrajudicial Settlement or Court Order
Affidavit of Self-Adjudication (if sole heir)
Original OR/CR of the vehicle
Proof of valuation (LTO MVIS appraisal or sworn declaration)
TIN of decedent and all heirs
Proof of publication (for EJS)
Special Power of Attorney if an heir is abroad (consularized or apostilled)

BIR will issue eCAR usually within 3–30 days depending on the Revenue District Office (RDO).

LTO Requirements and Procedure (2025)

Common Documents for Both Scenarios A and B

PSA Death Certificate (original or certified true copy)
One of the following:
a. Notarized Deed of Extrajudicial Settlement of Estate with proof of publication and BIR eCAR, or
b. Judicial Order of Distribution/Partition + Letter Testamentary/Administration + BIR eCAR
Original Certificate of Registration (CR) and latest Official Receipt (OR)
Compulsory Third-Party Liability (CTPL) insurance
Certificate of Emission Compliance (CEC) from an LTO-accredited PETC
PNP-Highway Patrol Group (HPG) Motor Vehicle Clearance Certificate (macro-etching/stencil appraisal)
Taxpayer Identification Number (TIN) of the transferee (heir or buyer)
Valid government ID of transferee and two witnesses
Duly accomplished and notarized Deed of Absolute Sale (if Scenario B – sold to third party) executed by ALL heirs as vendors
If one heir is buying out the others: Deed of Sale with Extrajudicial Settlement attached
Special Power of Attorney (notarized/consularized) if an heir cannot personally appear
Joint Affidavit of Two Disinterested Persons attesting to the heirship (sometimes required by LTO)
Certificate of No Pending Case from the Office of the Clerk of Court (if judicial settlement)

Additional Notes on Deed of Sale When Seller Is Deceased

The Deed of Sale must be executed by ALL the heirs (or the judicial administrator/executor) as sellers, with wording such as:

“WE, [names of all heirs], heirs of the late [name of deceased], by virtue of a Deed of Extrajudicial Settlement dated ___ do hereby SELL, TRANSFER and CONVEY unto [buyer] the motor vehicle described as follows…”

If only one heir is receiving the vehicle, the other heirs must still sign a Deed of Donation or Deed of Sale with nominal consideration (₱1.00) to the receiving heir.

Step-by-Step Procedure at LTO (2025)

Secure all documents listed above
Have the vehicle stenciled and inspected at PNP-HPG (get MV Clearance)
Have the vehicle smoke emission tested (PETC)
Proceed to LTO branch with jurisdiction over the vehicle’s last registration or transferee’s residence
Submit documents at the Evaluation/Assessment window
Pay the transfer fees (see table below)
Undergo actual vehicle inspection (stencil verification)
Wait for release of new Certificate of Registration (CR) and Official Receipt (OR) in the name of the new owner (usually same day or within 3–7 days)

LTO Fees (2025 Schedule – Approximate)

Transfer fee: ₱300–₱500
MVUC (depending on GVW): ₱1,600–₱8,000 (passenger cars usually ₱2,400–₱3,500)
Computer fee: ₱112–₱224
HPG clearance: ₱300–₱500
Emission test: ₱500–₱900
Notarial fees, publication, etc.: ₱15,000–₱40,000 (biggest variable)

Total cost excluding professional fees: ₱20,000–₱60,000 depending on vehicle type and whether publication is required.

Special Cases and Common Problems

Heirs are abroad
→ Execute consularized or apostilled Special Power of Attorney appointing a representative in the Philippines.
Minor heirs
→ Judicial appointment of guardian required; cannot use pure extrajudicial settlement.
Vehicle is financed/chattel-mortgaged
→ Bank must issue Release of Chattel Mortgage first; bank may require full payment or substitution of borrower.
OR/CR is lost
→ File Affidavit of Loss + request for duplicate from LTO before transfer.
Plate number is personalized or vanity
→ Heirs must decide whether to retain (additional fee) or surrender.
Vehicle is more than 15 years old (potential ban in some areas)
→ Still transferable, but may no longer be allowed on certain roads under local ordinances.
No death certificate yet (presumptive death)
→ Must file court petition for declaration of presumptive death (takes 2–4 years).

Practical Tips from Lawyers Who Handle 50+ Cases Per Year

Always publish the EJS even if the estate consists only of a vehicle — LTO and BIR strictly require it.
Secure the BIR eCAR first before going to LTO — 99% of rejections are due to missing or defective eCAR.
If the vehicle is low-value (< ₱1M) and there are many heirs, it is cheaper and faster to have all heirs sign a Deed of Sale directly to the buyer rather than adjudicating the vehicle to one heir first.
Use the LTO’s LTMS portal to check if the vehicle has alarms/encumbrances before starting the process.
Engage a lawyer or reputable fixer only after you have the death certificate and list of heirs — this saves ₱15,000–₱30,000 in professional fees.

By following the above procedures and securing the BIR eCAR and proper estate settlement document, the transfer of ownership of a deceased person’s vehicle in the Philippines can be completed within 3–8 months in uncomplicated cases. Delays almost always stem from incomplete heir signatures, missing publication, or failure to settle estate tax obligations.