Inheritance law in the Philippines is primarily governed by the Civil Code of the Philippines (Republic Act No. 386), which outlines the rules for the transmission of property, rights, and obligations upon a person's death. This framework distinguishes between testate succession, where the deceased leaves a valid last will and testament, and intestate succession, which applies in the absence of a will or when a will is invalid. Central to both systems are the rights of heirs, particularly the protection of compulsory shares known as legitimes. This article explores these concepts in depth, including their legal foundations, processes, and implications.

Fundamental Concepts in Philippine Inheritance Law

Inheritance, or succession, refers to the transfer of the estate of a deceased person (decedent) to their heirs or devisees. The estate includes all property, rights, and obligations that are not extinguished by death. Key principles include:

Unity of the Estate: The estate is considered a single mass until partitioned among heirs.
Transmission Upon Death: Rights to the estate vest immediately upon the decedent's death, subject to administration and settlement.
Reserved Portions: Certain heirs are entitled to legitimes, which cannot be entirely disposed of by the testator.
Taxes and Debts: The estate must settle obligations, including estate taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law and subsequent amendments, before distribution.

The Bureau of Internal Revenue (BIR) administers estate taxes, with rates ranging from 6% on estates valued over PHP 5 million, subject to deductions for funeral expenses, judicial costs, and standard allowances.

Testate Succession: The Role of a Last Will and Testament

Testate succession occurs when the decedent leaves a valid will that dictates the distribution of their estate. A will is a unilateral act whereby a person (testator) disposes of their property to take effect after death. It allows the testator to exercise freedom of disposition, but this is limited by the rights of compulsory heirs.

Types of Wills

The Civil Code recognizes two main types of wills:

Notarial Will (Attested Will): This is the most common form. It must be in writing, executed in a language or dialect known to the testator, and signed by the testator and at least three instrumental witnesses on each page. The will must be acknowledged before a notary public. Witnesses must be of sound mind, at least 18 years old, able to read and write, and not blind, deaf, or dumb. Disqualifications include being a spouse, parent, or child of the testator (for credibility reasons).
Holographic Will: This is entirely handwritten, dated, and signed by the testator. No witnesses or notary are required, making it simpler but riskier due to potential forgery disputes. It must be in the testator's handwriting and can be probated without formalities if authenticity is proven.

Special wills include those for persons in imminent danger (e.g., oral wills under Article 810, valid only if death occurs within a specified period) and wills executed abroad, which must comply with Philippine law or the law of the place of execution.

Validity and Formalities

For a will to be valid:

The testator must be at least 18 years old and of sound mind (capable of understanding the nature of the act).
It must not be procured by undue influence, fraud, or violence.
Joint wills (by two or more persons in one document) are prohibited.
Codicils (amendments) must follow the same formalities as the original will.

Invalid wills revert to intestate succession.

Probate Process

A will must undergo probate, a judicial process to prove its validity. This is initiated by filing a petition in the Regional Trial Court of the decedent's last residence. The process includes:

Notice to heirs and creditors.
Hearing to establish authenticity.
Allowance or disallowance of the will.

If allowed, an executor (named in the will) or administrator (court-appointed) manages the estate, pays debts, and distributes assets. Probate is mandatory for notarial wills and advisable for holographic ones to prevent disputes.

Limitations on Testamentary Freedom

Even with a will, the testator cannot freely dispose of the entire estate due to legitimes:

Legitime: The reserved portion for compulsory heirs, which is half of the estate for legitimate children and descendants, plus shares for the surviving spouse and parents if no children.
Free Portion: The remaining part that can be given to anyone, including non-heirs or institutions.

Disinheritance is possible but only for specific grounds (e.g., attempts on the testator's life, unjust refusal of support) and must be stated in the will.

Intestate Succession: Distribution Without a Will

Intestate succession applies when there is no valid will, the will is revoked, or the testator dies without disposing of all property. It follows a rigid order based on blood relations and marital ties, ensuring equitable distribution.

Order of Intestate Heirs

The Civil Code prioritizes heirs as follows, with closer degrees excluding remoter ones:

Legitimate Children and Descendants: They inherit the entire estate equally, with representation (descendants standing in place of a predeceased child).
Legitimate Parents and Ascendants: If no children, parents inherit equally; ascendants if parents are deceased.
Illegitimate Children: They inherit half the share of legitimate children if concurring with them.
Surviving Spouse: Concurs with children (sharing equally) or inherits alone if no descendants, ascendants, or illegitimate children.
Collateral Relatives: Siblings, nephews/nieces (up to the fifth degree), preferring full-blood over half-blood.
The State: If no heirs, the estate escheats to the municipality or city of the decedent's residence.

Key rules:

Representation: Applies to descendants but not ascendants or collaterals.
Proximity: Nearest relatives exclude farther ones.
Iron Curtain Rule: Illegitimate descendants cannot represent in the legitimate line, but vice versa is allowed.
Equality: Shares are equal among heirs of the same class, with adjustments for illegitimacy.

Special Considerations

Adopted Children: Treated as legitimate children under the Domestic Adoption Act (Republic Act No. 8552).
Illegitimate Children: Recognized under the Family Code (Executive Order No. 209), with rights strengthened by Republic Act No. 9255 (allowing use of father's surname).
Common-Law Spouses: No inheritance rights unless legally married.
Foreigners: Subject to Philippine law if domiciled here; otherwise, national law applies to movable property.

Settlement of Intestate Estate

Similar to testate, but always requires a court-appointed administrator. The process involves:

Inventory of assets.
Payment of debts and taxes.
Partition via agreement or judicial order.

Heirs’ Rights in Both Succession Types

Heirs are classified as compulsory (entitled to legitime), voluntary (named in the will), or legal (intestate). Rights include:

Protection of Legitime

Compulsory heirs (legitimate children/descendants, spouse, parents/ascendants) cannot be deprived of their legitime except through valid disinheritance. If the will impairs legitime, it is reduced proportionally (collation brings back donations).

Right to Contest

Heirs can challenge a will on grounds of invalidity, forgery, or undue influence within five years from probate. In intestacy, disputes over heirship can be raised.

Collation and Advances

Lifetime donations to compulsory heirs are collated (added back fictitiously) to compute legitime, ensuring equality.

Partition and Co-Ownership

Post-settlement, heirs become co-owners until partition. Any heir can demand partition, subject to agreements or court intervention.

Rights Against the Estate

Heirs can claim against debts, but personal obligations die with the decedent unless guaranteed. Creditors have priority over distributions.

Special Heirs’ Rights

Surviving Spouse: Entitled to usufruct (use) over certain properties and support.
Minor Heirs: Guardianship required.
Incapacitated Heirs: Special protections under guardianship laws.

Comparison: Last Will vs. Intestate Succession

Control Over Distribution: A will allows customization, such as favoring one heir or donating to charity, while intestacy follows strict rules, potentially leading to unwanted distributions.
Efficiency: Testate succession can be faster if the will is clear, but probate delays are common in both. Intestacy often involves more disputes over heirship.
Costs: Both incur legal fees, but wills may reduce conflicts, lowering overall expenses.
Flexibility: Wills accommodate modern family structures (e.g., bequests to partners), unlike rigid intestacy.
Risks: Invalid wills default to intestacy; intestacy risks exclusion of intended beneficiaries.

Advantages of a will include avoiding family disputes, providing for non-relatives, and tax planning (e.g., through trusts, though limited in the Philippines).

Other Relevant Aspects

Revocation and Alteration

Wills can be revoked by destruction, a new will, or implied acts. Intestate rules are irrevocable.

Estate Administration

Executors/administrators handle:

Asset collection.
Debt payment.
Tax filing (within six months of death, extendable).

Non-compliance leads to penalties.

Taxation and Deductions

Estate tax is filed with the BIR; exemptions include PHP 10 million standard deduction. Donations inter vivos (during life) may reduce taxable estate.

Judicial and Extrajudicial Settlement

Small estates (under PHP 200,000 gross value) can be settled extrajudicially via affidavit if no debts and heirs agree.

Impact of Family Code

The Family Code integrates with succession, affecting spousal rights and child legitimacy.

In summary, Philippine inheritance law balances testamentary freedom with heir protection, emphasizing family solidarity. Understanding these rules aids in effective estate planning.