This legal guide outlines the principles of succession and property ownership under Philippine law, specifically the Civil Code of the Philippines and the Family Code, regarding a house and lot titled to a deceased spouse.
1. Determining the Character of the Property
Before identifying heirs, one must determine if the house was conjugal or exclusive property. This depends on when the property was acquired and the marriage regime of the couple.
- Absolute Community of Property (ACP): For marriages celebrated on or after August 3, 1988, all property owned by spouses at the time of marriage or acquired thereafter is generally owned jointly.
- Conjugal Partnership of Gains (CPG): For marriages before August 3, 1988, property brought into the marriage remains exclusive, but the "fruits" and property acquired through joint efforts during the marriage are conjugal.
If the house is conjugal, the surviving spouse already owns 50% as their share of the joint estate. Only the remaining 50% (the deceased’s share) enters the "hereditary estate" to be distributed among heirs.
2. Who are the Compulsory Heirs?
Under Philippine law, certain relatives cannot be excluded from the inheritance (except through a valid, legal disinheritance).
The Hierarchy of Heirs:
- Legitimate Children and Descendants: They have the primary right.
- Surviving Spouse: Inherits alongside children. The spouse is entitled to a share equal to that of one legitimate child.
- Illegitimate Children: They inherit half the share of a legitimate child ( ratio).
- Legitimate Parents/Ascendants: They only inherit if the deceased had no legitimate children.
3. The Rights of Stepchildren
A common point of contention is whether stepchildren (children of the surviving spouse from a previous or subsequent relationship) have rights to the house.
- No Direct Right: Stepchildren are not "compulsory heirs" of the deceased stepparent. They have no legal claim to the property unless they were legally adopted by the deceased.
- Indirect Interest: Stepchildren only gain an interest in the property once their own parent (the surviving spouse) inherits a portion of the house and subsequently passes away. At that point, they inherit from their parent, not the stepparent.
4. Rights of Occupants
Often, one heir or a relative currently lives in the house. This does not grant them superior ownership.
- Co-ownership: Upon the death of the owner, the heirs become co-owners of the property by operation of law. No single heir can claim a specific room or part of the house as "theirs" until a formal Partition is executed.
- Right to Stay: An occupant heir cannot be summarily kicked out by another heir without legal process. Conversely, the occupant cannot prevent other co-owners from entering or selling the property unless there is a specific agreement or a judicial order.
- Rent: If one heir occupies the entire house to the exclusion of others, the other heirs may legally demand reasonable rent proportional to their shares.
5. The Process of Transferring Title
The title does not automatically move to the heirs’ names. The following steps are required:
A. Extrajudicial Settlement (EJS)
If there is no will and no debts, the heirs can sign a notarized "Deed of Extrajudicial Settlement of Estate." This document specifies how the house is divided.
- Publication: The EJS must be published in a newspaper of general circulation for three consecutive weeks.
B. Judicial Settlement
If the heirs cannot agree on how to divide the house, or if there is a Will, the matter must go to court. This is a lengthier and more expensive process.
C. Payment of Estate Tax
The Bureau of Internal Revenue (BIR) requires the payment of Estate Tax (currently a flat rate of 6% of the appraised value under the TRAIN Law). A "Certificate Authorizing Registration" (CAR) must be issued before the Register of Deeds can issue a new title.
6. Summary Table of Shares (Intestate)
If the deceased left no will, the 50% share of the house is typically divided as follows:
| Heirs Present | Distribution of the Deceased's Share |
|---|---|
| Spouse + 1 Legitimate Child | 1/2 to Spouse; 1/2 to Child |
| Spouse + Multiple Children | Spouse gets a share equal to one child (pro-rata) |
| Spouse + Illegitimate Children | 1/2 to Spouse; 1/2 shared among Illegitimate Children |
| Spouse Only | 100% to Spouse (if no children/parents exist) |
Note on the "Family Home": Under the Family Code, the family home is generally exempt from execution or forced sale for a period of ten years or as long as a minor beneficiary lives there. However, this does not prevent the heirs from settling the ownership internally.
Would you like me to draft a sample Deed of Extrajudicial Settlement of Estate for this scenario?