Inheritance Rights to a Deceased Parent’s House in the Philippines — A Comprehensive Guide (2025)
This article explains the Philippine rules that govern what happens to a parent’s residential real property when they pass away. It is written for general information only and is not a substitute for personalized legal advice.
1. Governing Law and Basic Concepts
| Source of Rule | Key Provisions |
|---|---|
| Civil Code of the Philippines (Arts. 774-1106) | Defines heirs, legitime, compulsory heirs, intestate vs. testate succession, collation, partition, disinheritance, representation, and co-ownership. |
| Family Code (E.O. 209, Arts. 88-162) | Characterizes property regimes between spouses (ACPR, CPG, CPN), creates and protects the family home. |
| Constitution, Art. XII §7 | Foreigners may acquire land only by hereditary succession (i.e., by law, not by purchase or donation). |
| RA 10963 (Tax Reform “TRAIN” Law, 2018) | Imposes a flat 6 % estate tax on the net estate; family-home exemption up to ₱10 million; standard deductions. |
| Rules of Court, Rule 74 | Governs extrajudicial settlement if (1) no will, (2) no outstanding debts, and (3) all heirs are of age or represented. |
2. Step 1 — Characterize the House
Exclusive or Community/Conjugal Property?
- If acquired before marriage, by inheritance/donation, or from exclusive funds, it is exclusive.
- If acquired during marriage with community or conjugal funds, it belongs to the property regime (ACPR/CPG/CPN) and only the decedent’s one-half share enters the estate.
Is it a Family Home?
- Automatically constitutes the family home from the time it is occupied by the family, without need of filing (Fam. Code Art. 153).
- Exempt from execution except for estate taxes, liens, or obligations contracted before constitution.
- Up to ₱10 million of its current FMV is deductible from the gross estate (TRAIN Law).
3. Step 2 — Identify the Heirs
| Rank | Compulsory Heir | Notes |
|---|---|---|
| 1 | Legitimate children and descendants | Share equally in legitime. |
| 2 | Legitimate parents and ascendants | Only if no legitimate descendants. |
| 3 | Surviving spouse | Always compulsory; legitime varies with competing heirs. |
| 4 | Illegitimate children | Each gets ½ of a legitimate child’s legitime (Civil Code Arts. 895-897). |
| 5 | Collateral relatives (siblings) | Only if no descendants, ascendants, or spouse. |
Representation Rule: Grandchildren inherit per stirpes the share their predeceased parent would have received.
Foreign Heirs: A child who is not a Filipino citizen may inherit land by operation of law but cannot convey it to non-Filipinos except by further hereditary succession.
4. Step 3 — Determine Testate vs. Intestate Succession
| Scenario | Distribution of House |
|---|---|
| With a valid will | Testator may freely dispose of the free portion (portion after reserving legitimes). House may be: (a) specifically devised to an heir; (b) sold and proceeds divided; or (c) remain in co-ownership. |
| No will or void will | Intestate rules apply (Civil Code Arts. 960-1016). Shares are fixed: • Spouse + children: spouse gets share equal to a legitimate child. • Spouse + ascendants (no children): spouse gets ½, ascendants ½. • Sole surviving child: child gets 100 %. • Siblings alone: divide equally. |
5. Step 4 — Compute Legitime vs. Free Portion
- Legitime table (simplified):
| Heirs Present | Legitime of Each Heir | Free Portion |
|---|---|---|
| Spouse & 1 child | ½ estate to child, ¼ to spouse | ¼ |
| Spouse & ≥2 children | ½ estate to children (equal), ¼ to spouse | ¼ |
| Spouse only | ½ estate | ½ |
| 1 legitimate child only | ½ estate | ½ |
| Ascendants only | ½ estate | ½ |
| Illegitimate child only | ½ estate | ½ |
- House worth more than estate? Heirs may (a) co-own the house and divide other assets, (b) sell the house and divide proceeds, or (c) have one heir buy-out the others (possible via partition with reimbursement).
6. Step 5 — Settle the Estate
6.1. Extrajudicial Settlement (EJS) under Rule 74
Conditions: No will, no debts, all heirs agree, all of age (or with guardians).
Requirements:
- Deed of Extrajudicial Settlement (EJS) or “Settlement with Sale” if selling immediately.
- Publish a notice once a week for 3 consecutive weeks in a newspaper of general circulation.
- File Estate Tax Return within one (1) year from death; pay 6 % estate tax.
- Secure Certificate Authorizing Registration (CAR) from the BIR.
- Transfer Certificate of Title (TCT/CCT): annotate EJS, cancel old title, issue new title(s).
6.2. Judicial Settlement
- Necessary if: there is a will, debts, a minor/absentee heir, or disagreement among heirs.
- Filed as a Special Proceeding in the RTC. Court approves project of partition and orders issuance of titles.
7. Taxes, Fees, and Deductions
| Item | Rate/Amount | Basis/Notes |
|---|---|---|
| Estate Tax | 6 % of net estate | Net = Gross – Allowable Deductions. |
| Standard Deduction | ₱5 million | Automatic under TRAIN Law. |
| Family-Home Deduction | Up to ₱10 million FMV | Excess value is part of estate. |
| Funeral/Medical | Actual, up to ₱500k total. | Receipts within 1 year pre-death. |
| Transfer Fees | 0.5 % – 0.75 % | Local transfer tax (LGU-specific). |
| Registration Fees | ≤ ₱8k | Register of Deeds schedule. |
| Publication | ₱3k-₱8k | Newspaper rates vary. |
Payment extensions: The BIR may grant up to 5 years (with interest) if estate is illiquid.
8. Co-Ownership Pending Partition
- Use and Fruits: Each heir may use the property in proportion to their ideal share, but changes (e.g., lease, major repairs, sale) require approval of heirs holding at least > 50 %.
- Improvements: Expenses for preservation are chargeable to the co-ownership. Useful improvements may be reimbursed if approved by the majority.
- Right to Partition: Any heir may demand partition any time unless prohibited by will (maximum 20 years). Partition can be (a) amicable, (b) judicial, or (c) via sale and division of proceeds when physical division impairs value.
9. Special Situations & Doctrines
Advancements & Collation
- Lifetime donations to compulsory heirs are presumed advancements and must be collated (imputed back) unless the donor stated otherwise.
Disinheritance (Arts. 919-921)
- Must be express in a will, citing a legal cause (e.g., maltreatment, attempt on life).
- Disinherited heir’s descendants succeed by right of representation.
Preterition
- Total omission of a compulsory heir in a will annuls the dispositive portions that impair legitime.
Waiver/Renunciation
- An heir can renounce his share only after the decedent’s death and the estate has opened; renunciation is taxable as a donation unless in favor of co-heirs or spouse.
Void & Voidable Marriages
- Children from a void marriage are considered illegitimate (half-share). RA 9858 legitimated children of void cohabitation by subsequent validation of union.
Reconstitution of Lost TCT/CCT
- If title is missing, heirs must first reconstitute under RA 26 before transfer.
10. Procedural Timeline (Typical Extrajudicial Scenario)
| Time from Death | Action |
|---|---|
| 0-3 months | Secure death certificate, gather titles, check debts/loans. |
| < 1 year | Prepare & file Estate Tax Return; pay taxes. |
| Same period | Draft and sign EJS; publish 3 weeks. |
| After CAR issued | Pay local transfer tax; lodge EJS + CAR with Register of Deeds; obtain new TCT/CCT. |
| Post-transfer | Update tax declaration (City Assessor) and RPT records; distribute copies to heirs. |
Failing to file within one year triggers surcharges (25 %–50 %) and interest (12 % p.a.). The BIR may abate penalties for “late-discovered” estates under its compromise program.
11. Practical Tips for Heirs
- Secure all originals: Owner’s duplicate title, tax declarations, mortgage clearances.
- Check for liens: Verify annotations (mortgage, lis pendens) before dividing.
- Pay real-property tax (RPT) yearly to avoid penalties while estate remains unsettled.
- Consider a buy-out: If one heir wishes to keep the house, agree on FMV and execute Deed of Absolute Sale among heirs after issuance of new titles.
- Keep receipts: Documentary stamp tax, transfer tax, publication fees are deductible from gross estate if paid before filing the return.
- Consult early: A short meeting with a notary or tax professional can prevent filing mistakes that lead to BIR assessments or title rejections.
12. Conclusion
Philippine law gives compulsory heirs an automatic, protected stake in a deceased parent’s house. The ultimate division depends on (1) the property regime, (2) the presence or absence of a will, and (3) the roster of heirs. Regardless of the scenario, heirs must still settle the estate—judicially or extrajudicially—and pay estate taxes before a new title can be issued. Handling these steps correctly preserves property value, avoids family disputes, and ensures compliance with the BIR and Register of Deeds.
When in doubt, consult a Philippine lawyer experienced in estate settlement to tailor the process to your family’s specific circumstances.