Introduction

In the Philippines, the rules governing inheritance are primarily outlined in the Civil Code of the Philippines (Republic Act No. 386), particularly in Book III, Title IV on Succession. These provisions ensure the orderly transfer of property from a deceased person (decedent) to their heirs, balancing the decedent's freedom to dispose of their estate with the protection of compulsory heirs. A key scenario arises when the decedent's children (who would typically be primary heirs) have predeceased the decedent, leaving grandchildren as potential successors. In such cases, Philippine law employs the principle of representation, allowing grandchildren to inherit in place of their deceased parents. This article comprehensively explores the legal framework, including both testate (with a will) and intestate (without a will) succession, the role of legitime, computation of shares, and related considerations such as legitimacy status, adoption, and taxation.

The Principle of Representation in Succession

Representation is a fundamental concept in Philippine succession law, codified in Articles 970 to 982 of the Civil Code. It allows descendants to step into the shoes of a predeceased ancestor, inheriting the share that the deceased parent would have received if alive. This applies exclusively in the direct descending line (from grandparents to grandchildren) and is limited to legitimate, legitimated, or adopted descendants, with certain extensions to illegitimate ones under specific conditions.

Scope of Representation: Representation occurs when a child of the decedent dies before the decedent, renounces the inheritance, or is incapacitated or unworthy to succeed (e.g., due to conviction for attempting to kill the decedent). The grandchildren then represent their deceased parent, dividing among themselves the portion that would have gone to that parent.
Per Stirpes Division: Inheritance among grandchildren is typically per stirpes (by roots or branches), meaning the share of the deceased child is divided equally among their own children (the grandchildren). For example, if the decedent had two children, A and B, and A predeceased with two children (grandchildren X and Y), while B is alive with one child (grandchild Z), the estate would be divided into two main shares: one for B (or their line), and one split between X and Y.

This principle prevents the estate from bypassing an entire branch of the family due to the premature death of an intermediate heir.

Testate Succession: Inheritance Under a Will

In testate succession, the decedent leaves a valid will that dictates the distribution of the estate, subject to the constraints of compulsory heirship.

Compulsory Heirs and Legitime: Grandchildren become compulsory heirs by representation if their parent (the decedent's child) is deceased. Under Article 887, legitimate children and descendants are primary compulsory heirs. The legitime—the portion of the estate that cannot be freely disposed of—is one-half (1/2) of the estate for legitimate children and descendants, divided equally among them or their representatives.
- Computation: The estate is divided into three parts: (1) legitime for compulsory heirs, (2) free portion for voluntary heirs or legatees, and (3) improvements or betterments. If grandchildren represent a deceased child, they collectively receive that child's legitime share, divided equally among them unless the will specifies otherwise (but without impairing the legitime).
- Limitations: The will cannot deprive grandchildren of their legitime through representation. If the will attempts to do so, it may be subject to reduction or annulment via collation (bringing back properties to the estate for fair division). Article 1025 allows representation in both legitime and free portions, but only descendants can represent.
Special Cases:
- Illegitimate Grandchildren: Illegitimate descendants can represent only if their parent was illegitimate. Their legitime is half that of legitimate descendants (Article 895).
- Adopted Grandchildren: Adopted children and their descendants have the same rights as legitimate ones (Family Code, Article 189), so adopted grandchildren can represent their adoptive parent.
- Disinheritance: A grandchild cannot be disinherited directly unless for grounds under Article 919 (e.g., conviction for adultery with the decedent's spouse). However, if the parent was disinherited, representation does not apply (Article 923), and the grandchild inherits in their own right if they qualify as a compulsory heir.
Probate Process: The will must be probated in court. Grandchildren claiming through representation must prove their lineage and the death of their parent. Disputes may involve DNA evidence or birth certificates.

Intestate Succession: Inheritance Without a Will

When there is no will, or the will is invalid, intestate succession applies under Articles 960 to 1014. The estate is distributed according to a hierarchy of heirs, with descendants taking precedence.

Order of Succession: Legitimate children and descendants exclude other relatives. If all children are deceased, grandchildren inherit the entire estate by representation.
- Division Rules: The estate is divided equally among the children’s lines (per stirpes). For instance:
  - Decedent with three predeceased children: Child A (two grandchildren), Child B (one grandchild), Child C (three grandchildren).
  - Each child's line gets 1/3 of the estate.
  - Grandchildren of A split 1/3 equally (1/6 each); B's grandchild gets 1/3; C's grandchildren split 1/3 (1/9 each).
Concurring Heirs: If there is a surviving spouse, they concur with descendants. The spouse receives a share equal to one child's portion in the free half, but the legitime half goes fully to descendants (Article 999). Grandchildren represent in this context as well.
Illegitimate Descendants in Intestacy: Illegitimate grandchildren inherit half the share of legitimate ones if concurring (Article 983). Representation applies similarly.
Absence of Descendants: If no grandchildren or further descendants, the estate ascends to parents/ascendants, then collaterals (siblings, nephews/nieces), and ultimately to the state.
Iron Curtain Rule: Under Article 992, illegitimate children cannot inherit ab intestato from legitimate relatives of their parent (and vice versa), potentially barring illegitimate grandchildren from certain lines.

Computation and Partition of the Estate

Net Estate Calculation: Before division, debts, taxes, and expenses are deducted. The net estate is then partitioned.
Collation: Advances or donations to children (or their representatives) are collated to ensure equality (Article 1061). Grandchildren must account for what their parent received.
Partition Process: Heirs can agree extrajudicially if no debts exist (Article 1083); otherwise, judicial partition via court. Grandchildren participate as co-heirs.
Examples:
- Simple Case: Decedent's estate: PHP 6,000,000. Two predeceased children: A (two grandchildren), B (one grandchild). Legitime (1/2): PHP 3,000,000 divided per stirpes—PHP 1,500,000 to A's line (PHP 750,000 each), PHP 1,500,000 to B's grandchild. Free portion follows will or intestacy.
- With Spouse: Estate PHP 10,000,000. Spouse gets PHP 1,250,000 (equal to one child's share in free half); grandchildren divide the rest per stirpes.

Other Considerations

Legitimacy and Proof: Birth certificates, marriage records, or court acknowledgments establish status. Unacknowledged illegitimate grandchildren may need judicial recognition.
Adoption Effects: Full adoption severs ties with biological family for succession purposes (Family Code), so biological grandchildren lose representation rights if adopted out.
Renunciation: If a grandchild renounces, their share accrues to co-representatives in the same line (Article 977).
Incapacity: Minors or incapacitated grandchildren need guardians for partition.
Taxation: Estates are subject to estate tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Law (Republic Act No. 10963), with a PHP 5,000,000 exemption and 6% flat rate on excess. Grandchildren file as heirs.
Muslim Personal Laws: In regions under the Code of Muslim Personal Laws (Presidential Decree No. 1083), Islamic rules may apply, emphasizing male heirs with different representation norms, but only for Muslims.
Recent Developments: Amendments via the Family Code (Executive Order No. 209) and jurisprudence (e.g., Supreme Court cases like Estate of Ruiz v. Court of Appeals) clarify representation in complex family structures, including same-sex or common-law scenarios, though succession remains gender-neutral.

Conclusion

The division of inheritance among grandchildren when parents are deceased in the Philippines safeguards family continuity through representation, ensuring equitable distribution while respecting compulsory shares. Whether testate or intestate, the law prioritizes descendants, with per stirpes allocation preventing branch disenfranchisement. Heirs should consult legal professionals for specific applications, as nuances like legitimacy, adoption, and collation can significantly impact outcomes. This framework reflects the Philippine emphasis on family solidarity in property transmission.