Inheritance Share Distribution of Land in the Philippines

A comprehensive legal-practitioner’s guide (updated to June 2025)

1. Constitutional & Statutory Foundations

Source	Key Provisions on Land Succession
1987 Constitution	• Art. XII §7: Only Filipino citizens and Philippine-owned corporations (≤40 % foreign equity) may own land. • Alien heirs may inherit land by operation of law but must promptly divest or assign it because ownership (not succession) is constitutionally restricted.
Civil Code of the Philippines (Republic Act No. 386, arts. 774-1134)	Governs testate and intestate succession, legitimes, collation, partition, co-ownership, and prescription.
Family Code (E.O. 209)	Determines marital-property regimes that define which land forms part of the estate.
Land Registration Act/PD 1529	Rules on transfer of certificates of title (TCT/CTC) after settlement.
Tax Code as amended (NIRC, Title III, Chap. I)	Estate-tax rates, deductions, requirements for electronic Certificate Authorizing Registration (eCAR).
Agrarian Reform Laws (RA 6657, RA 9700, EO 75-2019)	Retention limits, compulsory distribution duties, and prohibitions on fragmenting land already awarded to agrarian reform beneficiaries.
Indigenous Peoples’ Rights Act (RA 8371)	Customary rules control distribution of ancestral domains, subject to NCIP validation.

2. What Enters the Estate? ― Land & Property Regimes

Absolute Community of Property (ACP) – default for marriages 3 Aug 1988 onward. All land acquired before or during marriage (except exclusively donated or inherited land with contrary stipulation) becomes common property.
Conjugal Partnership of Gains (CPG) – marriages before 3 Aug 1988 unless spouses opted for separation of property. Land owned before marriage remains exclusive; subsequent acquisitions/gains are conjugal.
Separation of Property – everything remains exclusive.
Property Acquired by Common-Law Spouses – each owns pro-indiviso share proportionate to contribution (Art. 147-148 Family Code).
Special Rules
- CARP-awarded land: transmission limited to heirs who will personally till or manage.
- Homestead patents: five-year non-alienation; may descend to heirs regardless of debts.
- Condominium units (land interest via “undivided interest”): subject to Condominium Act (RA 4726) foreign ownership cap.

3. Testate Succession (With a Valid Will)

3.1. Formalities

Notarial or holographic will under Civil Code arts. 804-809. Land may be disposed of only within the disposable free portion after reserving legitimes.

3.2. Compulsory Heirs & Legitimes (Land or other assets)

Compulsory Heirs	Legitime (by value of estate after debts, including land)
Legitimate children & descendants	½ of estate, divided equally.
Legitimate parents & ascendants (if no legitimate descendants)	½ of estate.
Surviving spouse	Conjugal share (if ACP/CPG) plus legitime equal to portion of a legit. child (if children exist) or ¼ (if parents/ascendants) or ½ (if none).
Illegitimate children	Share = ½ of a legitimate child (“4:2 ratio”) but aggregate together.
Acknowledged natural children under old code	Same as illegitimate.
Other heirs	Only from free portion.

No will provision may impair the legitime. Any excess devise of land is reduced by inofficiousness; grantee must refund or lose the excess parcel.

4. Intestate Succession (No Will or Void Will)

Priority order (Civil Code arts. 960-1016):

Legitimate children & descendants (per stirpes; right of representation) ― estate divided equally.
Legitimate parents & ascendants (if no Tier 1).
Illegitimate children together with surviving spouse.
Surviving spouse alone (if no descendants, ascendants, or illegitimate children).
Collateral relatives within fifth degree.
State (escheat) - land reverts to municipality/city where situated.

Illegitimate children inherit ½ of each legitimate child’s share. Representation applies in direct descending line and in collateral line for nephews/nieces of a pre-deceased sibling.

5. Estate Settlement & Transfer of Land

5.1. Basic Roadmap

Death certificates → ✔
Estate tax return & payment (within one year of death, but automatic 2-year extension on request; 6 % flat rate since TRAIN Law).
BIR eCAR issuance (requires deed of extrajudicial settlement or court order).
Registration with Registry of Deeds:
- Deed of Partition/Settlement + eCAR + Owner’s Duplicate TCT/ OCT + documentary stamps + transfer fees.
- New TCTs generated for each heir.
DAR clearance if agricultural land >5 ha or under CARP notice.
Local Assessor updates tax declarations.

5.2. Extrajudicial vs Judicial Settlement

Mode	When allowed	Advantages / Risks
Extrajudicial Settlement (EJS)	• No will, or will admits no debts • All heirs are of age or represented • Estate is solvent	Fast, inexpensive, only notarized Deed + three-week newspaper publication. However, heirs answer solidarily for undisclosed debts for 2 years.
Judicial Settlement / Probate	• Contested estate, minors, unknown creditors, foreign heirs • Partition by the court (Rule 74-90, Rules of Court)	Court supervision protects minors, settles claims, may appoint administrator. Costly and longer.

5.3. Partition of Land

Physical partition (adjudication in metes and bounds) preferred when feasible and conforms with minimum lot sizes (e.g., 100 sqm urban residential).
Co-ownership (pro-indiviso shares) arises when land is indivisible or heirs agree to keep it together (Civil Code art. 1078). Any co-owner may demand partition any time unless barred by agreement (max 10 years renewable).
Sale to third party & division of proceeds if physical partition impairs utility or violates zoning/agrarian limits.
Right of redemption: If heredero sells his undivided interest to a stranger, co-heirs may redeem within 1 month (art. 1088).

6. Special Situations Involving Land

Foreign Heirs – may inherit but cannot hold title beyond reasonable divestment period; usual practice: title placed in estate’s name then sold, proceeds remitted.
Land with Tenant-Farmers – Succession does not terminate leasehold; heirs step in as lessors/landlords. Ejectment only on statutory grounds.
Agrarian Reform Beneficiary (ARB) Heirship – When transferor is ARB, only heirs who till the land may inherit; others compensated.
Urban Condominium Land – If foreign heir inherits >40 % aggregate foreign interest, corporation must domicile or land interest must be reduced.
Timberland / Mineral Land – Not disposable; heirs only succeed to possessory/licence rights, not ownership.
Unregistered Land under Act 496 – Succession vests ownership by operation of law; heirs may apply for original registration (Land Registration Act), but acquisitive prescription continues to run.

7. Collation & Reduction (Protection of Legitimes)

Collation (arts. 1061-1077): Lifetime donations of land to compulsory heirs are brought into the hotch-pot and imputed to their inherited share at value upon donation.
Reduction: If net free portion is overshot, advanced donee must either:
1. Return excess part of the same land in kind, or
2. Pay cash equivalent.

Agricultural land under CARP – reduction operates only in value; re-conveyance cannot defeat agrarian-reform title already vested in farmers.

8. Liabilities Attached to Land Shares

Liability	How Satisfied
Estate Taxes	Pro-rata or by agreement among heirs; land may be subdivided “in kind” with some lots used for dacion en pago to BIR (allowed since TRAIN).
Unpaid Real-Property Tax	Runs with the land; purchaser/heir takes subject to tax liens (LGC 1991).
Mortgage / Annotation	Heirs inherit land subject to encumbrances; mortgagee’s rights unaffected.
Occupant / Squatter claims	Heirs may eject but must follow UDHA eviction procedures.

9. Prescription & Quieting of Title

Adverse possession against heirs begins only when co-ownership is clearly repudiated (public, exclusive, notorious), else silent possession of one co-heir is presumed in representation of others.
30-year extraordinary acquisitive prescription still applies to unregistered land.

10. Practical Compliance Checklist (Land-Focused)

Gather titles, tax declarations, zoning certificates.
Identify property regime & separate exclusive from conjugal/community land.
Draft inventory and tentative allocation vs legitimes.
Secure BIR Certificate of Estate Tax Clearance.
Publish Extrajudicial Settlement (if chosen) once a week for 3 consecutive weeks in a newspaper of general circulation.
DAR clearance for rural land >5 ha or CARP-covered.
Submit documents to Registry of Deeds → new TCT/TCTs issued.
Update assessor, HOA, LGU records; pay transfer taxes.
If foreign heir exists, arrange sale/assignment within reasonable time.
Keep records for 10 years in case of creditor or co-heir challenges.

11. Common Pitfalls & How to Avoid Them

Overlooking spouse’s conjugal/community share → results in double taxation and invalid partition.
Delaying estate-tax filing → surcharge (25 %-50 %) + interest (12 % p.a.).
Assuming minors can sign EJS via mother alone → must be through guardian ad litem and court approval.
Ignoring CARP retention limits → DAR can void partition or require redistribution.
Selling undivided shares without notifying co-heirs → sale rescissible via redemption.
Failure to collate lifetime land donations → collaterally void; aggrieved heirs may sue for reconveyance.
Letting possession lie with one heir for decades without written acknowledgment → risk of prescription.

12. Quick Reference: Statutory Percentages

Scenario	Legitimate Child Share	Surviving Spouse Share	Illegitimate Child Share	Legit. Parents Share
Spouse + 3 Legitimate Children	1/4 each (total 3/4)	1/4	—	—
Spouse + 2 Illegitimate Children (no legit. kids)	—	1/3	1/3 each (total 2/3)	—
Spouse + Legitimate Parents (no kids)	—	1/4	—	1/2 (equally)
Only Illegitimate Children	—	—	Whole estate divided equally	—

(Land is included at fair-market value in the gross estate.)

13. Emerging Trends (2023-2025 Snapshot)

Estate-Tax Amnesty Extension (RA 11956) until June 14 2025: Heirs may settle unpaid estate taxes at 6 % with no penalties—land titles cannot be transferred without this.
Electronic Letters of Administration pilot courts streamline probate filings.
Blockchain initiatives (LRA “Project LADS”) promise tamper-evident digital titles; expect tighter verification on succession transfers.
Climate-Related Zoning: coastal land heirs must now secure DENR-ECC for partitions in “no-build zones.”

Final Word

Philippine succession law strives to balance testamentary freedom with family solidarity through compulsory legitimes, while land-law overlays—constitutional patrimony, agrarian reform, and registration—add layers that practitioners must navigate. A successful distribution hinges on early tax planning, strict observance of legitimes, and meticulous compliance with agrarian and registration formalities. When in doubt, combine doctrinal knowledge with due-diligence on each parcel’s unique regulatory history before drawing up that deed of partition.