In the Philippines, the distribution of a deceased person’s estate is governed primarily by the Civil Code. Under Philippine law, succession is not merely a matter of a parent’s preference; it is a legal process that strictly protects the rights of "compulsory heirs." Children, whether legitimate or illegitimate, occupy a primary position in this hierarchy.
1. The Concept of the Legitime
The most critical concept in Philippine inheritance law is the Legitime. This is the portion of the testator’s property which is reserved by law for compulsory heirs. A parent cannot deprive their children of their legitime except through a valid legal disinheritance.
- Legitimate Children: They are entitled to one-half (1/2) of the estate of their parents, divided equally among them.
- Illegitimate Children: Under the Family Code and subsequent jurisprudence, the legitime of each illegitimate child consists of one-half (1/2) of the legitime of a legitimate child.
- The Free Portion: After the legitimes of the compulsory heirs (children and the surviving spouse) are satisfied, the remainder of the estate is called the "free portion," which the parent may dispose of via a Will to anyone they choose.
2. Intestate vs. Testate Succession
How property is transferred depends on whether the deceased parent left a valid Last Will and Testament.
A. Testate Succession (With a Will)
If there is a Will, the parent can designate how the "free portion" of their estate is distributed. However, the Will cannot impair the legitime of the children. If a Will gives away so much that a child receives less than their legal share, the disposition is considered "inofficious" and must be reduced to satisfy the child's legitime.
B. Intestate Succession (Without a Will)
If a parent dies without a Will, the law provides a default distribution:
- Only Legitimate Children: The entire estate is divided equally among them.
- Legitimate Children + Surviving Spouse: The spouse is counted as "one child." For example, if there are two children and a spouse, the estate is divided into three equal shares.
- Legitimate + Illegitimate Children: Legitimate children receive their full shares, while illegitimate children receive half of what a legitimate child receives.
3. Rights of Different Classes of Children
| Category | Legal Standing |
|---|---|
| Legitimate Children | Born during a valid marriage. They have the strongest claim to the estate. |
| Illegitimate Children | Born outside a valid marriage. They must be legally recognized (through the birth certificate or a signed document) to claim inheritance. |
| Legally Adopted Children | Under the Domestic Adoption Act, an adopted child has the exact same rights as a legitimate biological child. They inherit from their adoptive parents but lose the right to inherit from their biological parents. |
| Stepchildren | Stepchildren have no legal right to inherit from a stepparent under the law of succession unless they were formally adopted or named in a Will (from the free portion). |
4. The Right of Representation
If a child dies before their parent, the "Right of Representation" allows the grandchildren to step into the shoes of the deceased child. They will inherit the share that their parent would have received.
- In the legitimate line, representation is indefinite (grandchildren, great-grandchildren).
- In the illegitimate line, representation is also recognized, but an illegitimate child cannot inherit from the legitimate relatives of their parents (the "Iron Curtain Rule").
5. Disinheritance: The Only Way to Exclude a Child
A parent cannot simply "cut off" a child by choice. To legally exclude a child from their legitime, the parent must execute a Will specifying a valid legal cause for disinheritance, such as:
- Attempting to take the life of the parent.
- Accusing the parent of a crime punishable by 6 years or more of imprisonment, if the accusation is found groundless.
- Maltreatment of the parent by word or deed.
- Leading a dishonorable or disgraceful life.
- Conviction of adultery or concubinage with the spouse of the parent.
If the cause is not proven, or if a reconciliation occurs later, the disinheritance is rendered void.
6. The Process of Claiming Inheritance
Once a parent passes away, the heirs must settle the estate. This is usually done in two ways:
- Extrajudicial Settlement: If there is no Will and no debts, the heirs can simply sign a public instrument (deed) before a notary public dividing the property among themselves. This must be published in a newspaper for three consecutive weeks.
- Judicial Settlement: If the heirs cannot agree or if there is a Will, the estate must go through court proceedings (Probate), which can be a lengthy and costly process.
Note: No property can be transferred to the names of the children until the Estate Tax has been paid to the Bureau of Internal Revenue (BIR) and a Certificate Authorizing Registration (CAR) is issued.