Philippine succession law, primarily governed by the Civil Code of the Philippines (Republic Act No. 386), determines how a deceased person's property passes to heirs. Succession can be testate (with a valid will) or intestate (without a will or when the will does not fully dispose of the estate). The surviving spouse and legitimate children are compulsory heirs entitled to a reserved portion called the legitime, which the testator cannot freely deprive them of except through valid disinheritance for specific causes.

This article comprehensively examines the inheritance shares of a surviving spouse and two (legitimate) children, covering intestate and testate scenarios, legitimes, net estate computation, property regimes, and related rules. It applies to non-Muslim Filipinos; Muslim Filipinos follow the Code of Muslim Personal Laws (Presidential Decree No. 1083) for succession matters.

Intestate Succession: Shares When There Is No Will

In intestate succession, the law distributes the entire net estate according to statutory rules of preference and concurrence. When the deceased leaves a surviving spouse and legitimate children or descendants, Article 996 of the Civil Code provides: "If a widow or widower and legitimate children or descendants are left, the surviving spouse has in the succession the same share as that of each of the children."

For a surviving spouse and exactly two legitimate children, the net estate divides into three equal parts:

Surviving spouse: 1/3
Each legitimate child: 1/3

This equal-sharing rule treats the spouse as receiving the same portion as each child. The rule applies by statutory construction even in variations (e.g., one child), but here with two children, the three-way division is straightforward. All shares are from the net hereditary estate after deducting debts, taxes, funeral expenses, and other charges.

This distribution respects and exceeds the legitimes (discussed below), as the free portion distributes proportionally among the heirs.

Testamentary Succession and Legitimes

A valid will allows the testator to dispose of property, but compulsory heirs retain their legitimes—the portion the law reserves and protects from arbitrary deprivation (Article 886).

Legitime of legitimate children (Article 888): Legitimate children and descendants collectively receive one-half (1/2) of the net hereditary estate, divided equally. With two legitimate children, each child's legitime is one-fourth (1/4) of the net estate.

Legitime of the surviving spouse: When the deceased leaves legitimate children or descendants, the surviving spouse receives a legitime equal to the share of one legitimate child (for two or more children). Thus, the spouse's legitime is also one-fourth (1/4) of the net estate. (Special rules adjust slightly for one child under Article 892, entitling the spouse to 1/4 in that case.)

Total legitime reserved: 1/2 (for the two children) + 1/4 (for the spouse) = three-fourths (3/4) of the net estate.

Free portion: The remaining one-fourth (1/4) is the disposable or free portion. The testator may bequeath or devise this to anyone, including the spouse, children, other relatives, friends, or institutions. The testator may also use it to increase the shares of the compulsory heirs beyond their legitimes.

Examples of distribution in testate succession (assuming net estate of P1,200,000 for illustration):

Legitimes only (if the will disposes the free portion to a third party):
Each child: P300,000 (1/4)
Spouse: P300,000 (1/4)
Third party: P300,000 (1/4)
Free portion given to one child:
Child 1: P300,000 (legitime) + P300,000 (free) = P600,000
Child 2: P300,000 (legitime)
Spouse: P300,000 (legitime)
Free portion divided among the heirs: The testator can direct proportional or specific shares, but legitimes remain the minimum guaranteed.

If the will impairs legitimes (e.g., gives a child less than 1/4), the affected heir may demand completion or reduction of inofficious dispositions (Articles 906-911).

Computation of the Net Hereditary Estate

The shares apply to the net hereditary estate, computed as follows:

Determine the gross estate (all property owned by the deceased at death, including real, personal, tangible, and intangible assets, plus certain donations subject to collation).
Deduct charges against the estate: funeral expenses, last illness expenses, debts, taxes, and other obligations (Articles 1040 et seq.).
Account for the surviving spouse's share in the conjugal or community property (not part of the estate).
Collate (add back for computation purposes) certain inter vivos donations to compulsory heirs to ensure legitimes are satisfied from the total.

Only the deceased's share in conjugal or common property, plus separate property, forms the estate. Advances or donations to heirs during lifetime may require collation to equalize shares.

Property Relations Between Spouses and Impact on Inheritance

Philippine family law recognizes different property regimes, which significantly affect the estate:

Absolute Community of Property (ACP) (default under the Family Code unless otherwise agreed): All property acquired during marriage is community property. Upon death, the community dissolves; the surviving spouse retains one-half, and the deceased's one-half forms part of the estate.
Conjugal Partnership of Gains (CPG) (common in pre-Family Code marriages or by agreement): Fruits and income during marriage are conjugal. The surviving spouse retains one-half of the conjugal property; the deceased's one-half goes to the estate.
Complete Separation of Property: Each spouse's property remains separate; only the deceased's assets form the estate.

The surviving spouse does not inherit their own share in the community or conjugal property—it is theirs by right of ownership, not succession. This distinction is crucial in estate settlement to avoid double-counting.

Special Considerations and Variations

Illegitimate children: If one or both "children" are illegitimate (including those born out of wedlock but acknowledged or recognized), rules change. Illegitimate children receive legitime equal to one-half that of a legitimate child (Article 895). In intestacy with a surviving spouse and illegitimate children only, the spouse receives one-half, and illegitimate children share the other half equally (Article 999). Mixed legitimate and illegitimate children require careful allocation: legitimate children receive twice the share of illegitimate ones in many contexts, with the spouse sharing equally with legitimate children.

Adopted children: Treated as legitimate children with full rights.

Legal separation: The innocent spouse retains inheritance rights. The guilty spouse in a legal separation may be disqualified from inheriting from the innocent spouse (Family Code provisions).

Disinheritance: The testator may disinherit a compulsory heir only for specific causes enumerated in Articles 919-921 (e.g., attempt on the testator's life, unfounded accusations, refusal to support). Disinheritance must be expressly stated in the will with the cause.

Representation: If one child predeceases the parent, their own legitimate descendants may represent them and inherit their share (per stirpes).

Muslim Filipinos: Succession follows Islamic law principles under PD 1083, which differ significantly (e.g., fixed Quranic shares for spouse and children).

Other compulsory heirs: If no legitimate descendants, legitimate parents or ascendants may concur or take priority in certain cases.

Incapacity and unworthiness: Heirs may be disqualified for reasons like being convicted of certain crimes against the deceased (Article 1027 et seq.).

Practical Aspects of Estate Settlement

Heirs typically settle the estate through:

Extrajudicial settlement (if no debts and all heirs agree, via a deed published and registered).
Judicial partition (if disputes arise or there are minors/debts).

The surviving spouse and children may agree on partition, but legitimes must be respected. Taxes (estate tax under the TRAIN Law or current rules) must be paid before full distribution.

In all cases, the surviving spouse and two legitimate children enjoy strong legal protection as compulsory heirs. Their shares in intestacy are equal (1/3 each), while in testate succession, they are guaranteed at least their legitimes (1/4 each for the children and spouse), with the testator controlling only the free 1/4 portion.

This framework balances testamentary freedom with family protection, reflecting the Civil Code's emphasis on the welfare of the nuclear family. Specific circumstances, such as the presence of other heirs, prior donations, or property regimes, may require professional legal advice for precise application.