In the Philippines, the transmission of property, rights, and obligations from a deceased person to their heirs is governed primarily by the Civil Code of the Philippines. Succession is a legal process where the property of a decedent (the person who died) is transferred to others either through a will (testate) or by operation of law (intestate).
Under Philippine law, children occupy a protected status as compulsory heirs. This means they cannot be easily deprived of their inheritance, as the law reserves a specific portion of the estate for them.
1. The Concept of the Legitime
The most critical concept in Philippine succession is the legitime. This is the part of the testator's property which he cannot dispose of because the law has reserved it for certain heirs, called compulsory heirs.
- Primary Compulsory Heirs: Legitimate children and their descendants.
- Secondary Compulsory Heirs: Legitimate parents and ascendants (who only inherit in the absence of children).
- Concurring Compulsory Heirs: The surviving spouse and illegitimate children.
Children, whether legitimate or illegitimate, are guaranteed a legitime which the parent cannot give away to others via a Will.
2. Shares of Legitimate Children
Legitimate children are those born within a valid marriage. Their rights are the most robust under the law.
In Testate Succession (With a Will)
If the parent leaves a Will, the legitimate children are entitled to one-half ($1/2$) of the entire estate. This $1/2$ is divided equally among all legitimate children. The remaining half is the "free portion," which the parent may give to anyone else, subject to the rights of the surviving spouse and illegitimate children.
In Intestate Succession (Without a Will)
If there is no Will, the entire estate is divided among the compulsory heirs. If only legitimate children survive, they divide the entire estate in equal shares.
3. Shares of Illegitimate Children
The Family Code and the Civil Code recognize the successional rights of illegitimate children (those born outside a valid marriage). However, their shares are generally smaller than those of legitimate children.
- The 2:1 Ratio: Under the law, the share of each illegitimate child consists of one-half ($1/2$) of the share of a legitimate child.
- Satisfaction of Shares: The shares of illegitimate children must be taken from the "free portion" of the estate. The legitime of the legitimate children must always be satisfied first.
4. Interaction with the Surviving Spouse
The presence of a surviving spouse affects the distribution but does not exclude the children.
- One Legitimate Child: If there is only one legitimate child and a surviving spouse, the child gets $1/2$ of the estate as legitime, and the spouse gets one-fourth ($1/4$).
- Multiple Legitimate Children: If there are multiple legitimate children, the surviving spouse is entitled to a share equal to the share of each legitimate child.
| Heir Composition | Share of Legitimate Child | Share of Surviving Spouse |
|---|---|---|
| 1 Child + Spouse | $1/2$ | $1/4$ |
| 2 Children + Spouse | $1/3$ each | $1/3$ |
| Multiple Children + Spouse | Equal shares for all | Equal to one child |
5. The Right of Representation
If a child predeceases (dies before) the parent, the child’s own descendants (the grandchildren) may inherit the share that the parent would have received. This is called the Right of Representation.
- This right only applies to the legitimate line of descent in most cases.
- In the illegitimate line, an illegitimate child may represent their parent, but they cannot represent a legitimate parent to inherit from the latter's legitimate relatives (the "Iron Curtain Rule").
6. Disinheritance of a Child
A parent can legally deprive a child of their legitime only through a valid disinheritance specified in a Will. For a disinheritance to be legal, it must meet these criteria:
- It must be made in a valid Will.
- It must be for a cause specified by law.
- The cause must be stated in the Will.
- The cause must be certain and true.
Legal grounds for disinheriting a child include:
- Attempting to take the life of the parent.
- Accusing the parent of a crime that carries a penalty of six years or more, if the accusation is found groundless.
- Conviction of adultery or concubinage with the spouse of the parent.
- Using fraud, violence, or intimidation to force the parent to make or change a Will.
- Maltreatment of the parent (by word or deed).
- Leading a dishonorable or disgraceful life.
- Conviction of a crime which carries the penalty of civil interdiction.
7. The "Iron Curtain Rule" (Article 992)
A significant provision in Philippine law is Article 992, which creates a barrier between the legitimate and illegitimate families. It states that an illegitimate child has no right to inherit ab intestato (without a will) from the legitimate children and relatives of their father or mother; nor shall such legitimate children or relatives inherit in the same manner from the illegitimate child.
8. Summary of Steps for Inheritance
When a parent passes away, the children generally undergo the following process:
- Settlement of Estate: Debts, taxes (Estate Tax), and funeral expenses are paid first.
- Identification of Heirs: Determining who among the children are legitimate, illegitimate, or if the spouse survives.
- Partition: The remaining assets are partitioned. This can be done extrajudicially (if all heirs agree and there are no debts) or judicially (if there is a dispute or a Will to be probated).
- Payment of Estate Tax: In the Philippines, the Bureau of Internal Revenue (BIR) requires the payment of estate taxes before the properties can be transferred to the names of the children.