1. Why This Matters for Filipinos Abroad

Millions of Filipinos live overseas but retain property, bank accounts, businesses, or family homes in the Philippines. When an owner dies, those assets do not automatically pass to heirs. Philippine law requires a legal settlement of the estate before property can be transferred to beneficiaries. If heirs are abroad, extra layers—like consular notarization and conflict-of-laws rules—come into play.

2. The Core Law Governing Philippine Inheritance

Inheritance in the Philippines is mainly governed by:

Civil Code of the Philippines (Book III, Title IV on Succession)
Family Code (for marriage, legitimacy, adoption, property relations)
Rules of Court (procedures for probate and settlement of estates)
Tax Code/NIRC (especially estate tax rules)
Related special laws (land registration, corporate law, banking rules)

Key idea: Succession happens at death, but transfers require settlement.

3. Who Inherits Under Philippine Law?

Philippine law protects certain heirs called compulsory heirs who cannot be completely disinherited except for specific legal causes.

3.1 Compulsory Heirs (in order / categories)

Depending on the family situation, these can include:

Legitimate children and descendants
Legitimate parents and ascendants (if no legitimate children)
Surviving spouse
Illegitimate children (always compulsory heirs, but with smaller legitime)
Adopted children are treated as legitimate children

3.2 Default (Intestate) Heirs

If there is no valid will, the estate is distributed by intestate succession rules. Generally:

Children (legitimate and illegitimate) + spouse share first.
If no children, parents + spouse.
If none, collateral relatives (siblings, nieces/nephews, etc.).
If no heirs, the State inherits.

4. “Legitime”: The Protected Share

Legitime is the portion reserved by law for compulsory heirs. A will cannot reduce this unless there is valid disinheritance.

Very simplified guide:

Legitimate children: usually get half of estate divided among them as legitime.
Surviving spouse: has a legitime share that varies depending on who else survives.
Illegitimate children: typically receive half of what a legitimate child gets, taken from the free portion / combined share rules.

The remaining portion is called the free portion, which the decedent can allocate by will.

Because legitime computations depend on the family mix and property regime, they should be computed case-by-case.

5. Property Regime and Its Impact

Before dividing the estate, you must know what part is conjugal/community property and what part is exclusive.

5.1 For marriages after Aug. 3, 1988 (Family Code default)

Default regime: Absolute Community of Property (ACP) unless a prenuptial agreement says otherwise.
In ACP, most property acquired before and during marriage becomes common, with some exceptions.

5.2 For marriages before Aug. 3, 1988

Default regime: Conjugal Partnership of Gains (CPG) unless modified.

Why it matters: When one spouse dies, the estate includes only the decedent’s share, not the surviving spouse’s half of the community/conjugal property.

6. Wills: Ability to Control Distribution

6.1 Kinds of Wills Recognized

Notarial Will
- In writing
- Signed by testator in presence of three credible witnesses
- Notarized
Holographic Will
- Entirely handwritten, dated, and signed by the testator
- No witnesses required
- Easier to make, but often contested for authenticity

6.2 If You’re Abroad

A Filipino abroad may make a will:

Following Philippine forms, or
Following the law of the place where executed, under conflict-of-laws rules, so long as it doesn’t violate Philippine legitime rules for Philippine estate distribution.

To be safe, many overseas Filipinos execute a will:

Before a Philippine consul (consular notarization), or
Before a local notary abroad following local law, then have it authenticated/apostilled and translated if needed.

6.3 Probate is Still Required

Even with a valid will, Philippine assets generally require probate in Philippine courts to transfer title. Foreign probate may help but usually does not replace local probate for Philippine property.

7. No Will? Intestate Settlement Options

If the decedent had no will, heirs settle via:

7.1 Extrajudicial Settlement (EJS)

Allowed when:

No will
No outstanding debts, or debts are settled
All heirs are of age, or minors are represented
Heirs agree on division

Steps include:

Draft Deed of Extrajudicial Settlement (or partition)
Sign by all heirs
- If abroad, via SPA + consular notarization/apostille
Publish notice in a newspaper of general circulation for three consecutive weeks
Pay estate taxes
Transfer titles / accounts

7.2 Judicial Settlement

Required when:

There is a will (probate)
Heirs don’t agree
There are creditor claims or debts
Estate is complex
Minors or incapacitated heirs without proper representation

Judicial settlement can be:

Testate proceedings (with will)
Intestate proceedings (no will)

8. Special Rule for Small Estates

If the estate is below a statutory threshold (adjusted by law/policy over time), heirs may use a summary settlement under court supervision, faster and cheaper. This still needs court filing and proof of value.

9. Cross-Border / Conflict-of-Laws Rules

9.1 Nationality Rule

Under the Civil Code:

Succession is governed by the nationality of the decedent at death, regardless of where they live.

So:

If the decedent was a Filipino citizen, Philippine inheritance rules apply to their estate worldwide, including legitime.
If they became a foreign citizen, their national law governs succession, but Philippine property still requires local settlement procedure and must respect certain Philippine public policy limits.

9.2 Place of Property (Lex Rei Sitae)

While succession law follows nationality, transfer and registration of Philippine property follow Philippine law/procedure.

Meaning:

You may rely on foreign law for who inherits,
But you follow Philippine processes for titles, probate/EJS, and taxes.

10. What Assets Can Be Inherited and How They Transfer

10.1 Real Property (land, condo, house)

Transfer requires:

EJS or court order/probate
Estate tax clearance
Updated titles via Registry of Deeds
If condo: coordinate with condominium corporation

10.2 Bank Accounts

Banks require:

Death certificate
EJS/probate
BIR estate tax clearance
Proof of heirship
Sometimes a surety bond (especially for small withdrawals)

10.3 Shares in Corporations

Transfer requires:

EJS/probate
Estate tax clearance
Corporation’s transfer book updates
Board/secretary certification

10.4 Businesses / Sole Proprietorship

Heirs may:

Continue operations via settlement and re-registration
Or liquidate; proceeds form part of estate

10.5 Vehicles / Personal Property

Transferred through:

EJS/probate
LTO transfer documents
Estate tax clearance

11. Estate Tax: A Critical Gatekeeper

No transfer of Philippine assets is allowed without estate tax compliance.

General points:

Estate tax return must be filed for taxable estates.
Estate tax must be paid before transfer (unless qualified for relief/extension).

Heirs abroad should prepare early because:

Delays can create penalties, interest, and practical roadblocks.

Even if tax is zero (due to deductions/exemptions), a BIR Certificate Authorizing Registration (CAR) or equivalent clearance is still required.

12. Documents Typically Needed (Heirs Abroad)

Expect to assemble:

Death certificate (PSA copy if death in PH; foreign death certificate apostilled + PSA report of death if abroad)
Proof of relationship (birth/marriage certificates, adoption papers, etc.)
List of assets and valuations
Tax identification numbers (TINs) of heirs
Deed of Extrajudicial Settlement or court documents
SPA for heirs abroad authorizing someone in PH
- Signed abroad
- Consular notarized or apostilled
If foreign docs:
- Apostille/authentication
- Certified translations if not in English/Filipino

13. SPAs and Consular Notarization (Practical Overseas Tool)

If an heir can’t travel, they usually grant a Special Power of Attorney to a trusted person in the Philippines to:

Sign EJS
Represent them before BIR, banks, Registry of Deeds
Receive proceeds (if authorized)

Best practice: Make the SPA very specific about powers to avoid rejection by institutions.

14. Dealing With Minors or Incapacitated Heirs

Minors cannot validly waive or sell inheritance without court approval.

Settlement involving minors needs:

A legal guardian
Court approval for partition/waiver
Judicial settlement is often safer here

15. Disinheritance, Waiver, and Renunciation

15.1 Disinheritance

Possible only for causes listed in law (e.g., serious misconduct against the decedent). Must be:

Explicit in a will
With a legal cause
Otherwise invalid

15.2 Waiver/Renunciation by Heirs

Heirs may renounce inheritance:

Before settlement (pure renunciation)
In favor of someone (treated as donation/sale, possibly taxed)

Waivers should be carefully worded because they change tax consequences.

16. Common Pitfalls for Families Abroad

Assuming a will avoids probate – It doesn’t; PH probate is still needed for PH assets.
Not publishing EJS – Publication is mandatory; skipping it can void settlement.
Ignoring debts – Estates are liable for debts; creditors can challenge EJS.
Late tax filing – Penalties snowball; transfers freeze.
Unclear property regime – Leads to wrong division and later lawsuits.
Heirs not all signing – EJS requires all heirs’ participation.

17. Step-by-Step: Typical Transfer Roadmap for Heirs Abroad

Confirm heirs and family tree
- Identify compulsory heirs
- Check legitimacy/adoption status
Inventory assets and determine property regime
- Separate community/conjugal vs exclusive property
Check if there is a will
- If yes → prepare for probate
- If none → EJS may be possible
Execute SPAs for overseas heirs
- Consular notarize / apostille
Draft settlement document
- EJS / partition deed, or file court case
Publish EJS notice (if EJS)
File and pay estate tax; obtain BIR clearance
Transfer assets
- Titles, banks, corporations, vehicles
Distribute estate to heirs

18. When You Absolutely Need a Lawyer

While some estates are straightforward, you should get legal help if:

There is a will
A child/spouse is omitted
There are minors
Heirs disagree
There are big debts or unclear ownership
There are foreign citizenship or dual-law issues
Property is unregistered or has title problems

19. Planning Tips for Filipinos Abroad

Make a Philippine-compliant will early
- Especially if you have multiple heirs or blended families.
Keep titles, tax declarations, and bank records organized.
Clarify beneficiaries in life insurance, retirement plans, and payable-on-death accounts, where applicable. These may pass outside the estate.
Consider a family holding corporation for major properties; succession of shares can be cleaner than multiple land transfers.
Tell your heirs where documents are. A “death folder” (physical or encrypted digital) avoids chaos.

20. Bottom Line

For Filipinos living abroad, inheritance rights over Philippine assets stay rooted in Philippine succession law as long as you remain Filipino. The heirs’ rights begin at death, but ownership transfer needs settlement and estate tax compliance. Whether through a will (testate) or without one (intestate), the estate must pass through probate or extrajudicial settlement, with overseas heirs typically acting through consular-notarized SPAs.

If you want, I can draft a practical checklist or sample clause set for wills/SPAs tailored to a typical overseas-Filipino scenario (no personal data needed).