General information based on Philippine law and common practice. Not legal advice.

1) Key Concepts at a Glance

Intestate succession happens when a person (decedent) dies without a valid will (or the will does not dispose of all property). The Civil Code prescribes who inherits and how much.
Extrajudicial settlement (EJS) is a non-court method for heirs to settle and transfer estate assets when there is no will, no outstanding debts, and all heirs are of legal age (or duly represented).
If the estate has debts, disputes, missing/unknown heirs, or minors without representation, settlement should proceed by judicial intestate proceedings in court.

2) Who Inherits in Intestacy (Order of Heirs & Shares)

A) Order of intestate heirs (Civil Code, Arts. 978–1014, 960–977)

Legitimate children and their descendants (per stirpes).
Legitimate parents and other ascendants (if no descendants).
Illegitimate children (and their descendants), observing statutory rules on their shares.
Surviving spouse (concurs with the above in various ways).
Collateral relatives up to the 5th degree (siblings, nephews/nieces by representation, then more remote collaterals).
The State (escheat) if absolutely no heirs.

B) Core sharing rules (selected practical scenarios)

With legitimate children/descendants:
- They inherit in equal parts.
- The surviving spouse takes a share equal to one legitimate child.
- Illegitimate children (if concurring with legitimate children) generally take one-half of a legitimate child’s share.
No descendants; surviving spouse + legitimate parents/ascendants:
- Spouse and legitimate ascendants share the estate—commonly 1/2 to spouse, 1/2 to ascendants (distributed by line).
Only surviving spouse (no descendants, no ascendants, no collaterals):
- Spouse inherits the entire estate.
Siblings and their children (nephews/nieces):
- Representation is allowed in the collateral line for children of brothers/sisters (nieces/nephews take their deceased parent’s share).
Adopted child: Treated as a legitimate child of the adopter under special laws on adoption.
Representation: Allowed downward (descendants) and for children of siblings; not generally upward (ascendants).

Practical note: Disqualifications (“unworthiness”) and predecease affect actual takers. Always map who is alive, degrees of relationship, and who represents whom.

3) Estate Composition & Co-ownership Before Partition

At death, all hereditary property (real and personal, rights and obligations transmissible by death) forms the estate. Until partition, heirs are co-owners in ideal/undivided shares, each responsible for estate obligations up to what he/she receives.

4) Can You Use Extrajudicial Settlement? (Checklist)

EJS is available if ALL the following are true:

No will (or will not being probated / not applicable).
No outstanding debts of the decedent at the time of settlement (or creditors are fully paid or expressly adjudicated/assumed and they consent).
All heirs are of legal age; any minor or incapacitated heir is represented by a judicially appointed guardian or authorized representative.
Heirs agree on the division (no dispute).
Tax requirements can be met (estate tax, documentary taxes, transfer taxes).

If any box is unchecked, proceed with judicial intestate proceedings (special proceedings in the proper RTC).

5) Forms of Extrajudicial Settlement

Affidavit of Self-Adjudication (ASA) – if there is only one heir.
Deed of Extrajudicial Settlement of Estate (DEJS/DOES) – if there are two or more heirs; may be combined with Deed of Partition (to allocate specific properties) or with Sale (EJS and immediate conveyance to a buyer).

Publication requirement: The ASA or DEJS must be published in a newspaper of general circulation once a week for three (3) consecutive weeks. Filing/Registration: For real property, file the notarized instrument with the Register of Deeds (RD) where the property is located. For personal property with registries (e.g., vehicles), register with the proper office (e.g., LTO).

Two-year lien / remedies: Persons unduly deprived (omitted heir, creditor) may question the EJS within two (2) years from the date of publication. Afterward, they may still sue the heirs (not innocent purchasers) for their proper share/value.

Bond (practice point): Where personal property is included, practitioners commonly post a bond equal to the value of personalty to answer for potential claims arising within the 2-year period.

6) The Tax Layer (Before Transfers)

Estate Tax: 6% flat rate on the net estate. The estate tax return is generally due within one (1) year from death (extensions/instalments may be available for meritorious cases).
Common deductions (subject to rules & documentation):
- Standard deduction (fixed amount)
- Family home deduction (up to a statutory cap)
- Claims against the estate (valid debts, mortgages)
- Losses and other allowable items under current regulations
TIN of the Estate: Secure an Estate TIN and file the Estate Tax Return.
Electronic Certificate Authorizing Registration (eCAR/CAR): Issued by BIR per property (or per asset class) after tax clearance—required by the RD/LTO/stock transfer agents to effect transfer.
Local transfer taxes and fees: DST, transfer tax (LGU), registration fees, and real property tax arrears (if any) must be settled.

Practice Tip: Do not register or convey real/personal property before obtaining the CAR/eCAR; registries typically will not effect transfer without it.

7) Step-By-Step: Extrajudicial Settlement Workflow

Heir-mapping & asset inventory
- Identify all heirs (including non-marital children and adopted children) and all assets & liabilities (real, personal, bank/securities, business interests).
- Confirm no outstanding debts (or settle/secure creditor consent).
Tax groundwork
- Obtain death certificate, TCT/Tax decs, certs of deposit/investments, vehicle CR/OR, shares ledgers, etc.
- Apply for Estate TIN; prepare estate tax return with supporting schedules and deduction proofs.
Draft the instrument
- ASA (single heir) or DEJS with Partition (multiple heirs).
- Clearly state heirs, legal basis, complete list of properties, proportionate shares, assumption of obligations, and warranties.
- If selling property as part of settlement, use EJS with Sale and compute taxes accordingly.
Notarization
- All executing heirs (and guardians/attorneys-in-fact, if any) personally appear before a Notary Public with valid IDs and authorities (SPA/guardian orders).
Publication
- Publish the notarized ASA/DEJS in a newspaper of general circulation once weekly for 3 consecutive weeks; keep the affidavits of publication.
BIR processing
- File the Estate Tax Return and pay assessed taxes/penalties (if any).
- Obtain the CAR/eCAR.
Registry transfers
- For real property: present CAR/eCAR, tax clearances, transfer tax receipts, and original owner’s duplicate title to the Register of Deeds; new TCT/CTC will issue in heirs’ names (or buyer’s, if sold).
- For vehicles: process at LTO with CAR and EJS.
- For bank accounts/securities: present CAR and EJS to release funds/transfer shares.
- Update Tax Declarations with the assessor and pay transfer tax at the treasurer’s office.
Post-transfer housekeeping
- Annotate titles (some RDs annotate the Rule on two-year lien).
- Update RPT and homeowners’ records; notify tenants or lessees if any.

8) When You Must Go to Court Instead

There are unpaid or contested debts/claims.
Heirs cannot agree on the partition or validity of filiation.
A will exists (must go through probate).
There are unknown/missing heirs or minors without proper guardianship.
Property/rights are disputed or title is defective.
You need appointment of an administrator, allowances, accountings, sales of estate property, or settlement of claims—all handled via special proceedings.

Courts may allow summary settlement of small estates under streamlined procedures, but it remains a judicial path.

9) Creditors, Omitted Heirs, and the Two-Year Window

Publication gives notice to the world; nevertheless, creditors and omitted heirs may challenge the EJS within two (2) years from the last publication date.
Even after two years, persons prejudiced may recover from the heirs, up to the value received (but good-faith buyers for value are generally protected).
Best practice: Pay or secure known creditors before distribution; reserve for contingent claims.

10) Common Drafting & Compliance Pitfalls

Proceeding with EJS despite outstanding debts.
Leaving out an heir (e.g., non-marital child) or failing to establish filiation.
Skipping publication or using a non-qualifying newspaper.
Not obtaining CAR/eCAR before attempting title/ownership transfers.
Ambiguous partition clauses that later trigger disputes.
Guardianship lapses when minors are involved.
Tax under-documentation (unsupported deductions; missing asset proofs).

11) Sample Structure: Deed of Extrajudicial Settlement with Partition

Title & Parties (heirs, ages/status, addresses; guardians/attorneys-in-fact as needed).
Recitals:
- Death details; no will to the best of knowledge.
- Heirship facts (relationship/filiation); statement that there are no debts (or that creditors have been fully satisfied/assumed).
- Full inventory of assets (real, personal, bank/securities, receivables), with descriptions and assessed/fair values.
Partition:
- Per-heir allotments of specific properties or cash equivalents; rules on owership shares if property remains co-owned.
- Owelty (equalization payments) if needed.
Warranties & Undertakings:
- To defend title; to indemnify for undisclosed claims; to publish; to process taxes/CAR; to execute further acts.
Debt/Claim Clause:
- Statement on known liabilities and how settled; reserve for contingent claims if any.
Signatures & Acknowledgment
- Notarial acknowledgment with complete notary details; attach IDs, SPA/guardianship orders, marriage/birth certificates.

Pair with a separate Deed of Absolute Sale (if selling) or integrate a “with Sale” section when allowed by the registry after taxes are computed.

12) Special Topics & Nuances

Conjugal/Absolute Community property: Determine the property regime of the decedent’s marriage. The survivor’s share (e.g., 1/2 conjugal) must be segregated first; only the decedent’s net share enters the estate.
Illegitimate children and filiation: Documentary proof (acknowledgment/PSA records) is crucial; otherwise, court action may be needed to establish filiation.
Foreign assets/foreign heirs: Apply lex rei sitae for real property abroad; recognize possible conflict-of-laws issues; may need apostille/consularization of documents.
Estate with ongoing business: Consider estate administration to lawfully continue operations, settle taxes/payroll, and avoid personal liability.
Waiver/renunciation: Heirs may waive inheritance (pure/conditional; onerous/gratuitous). A waiver in favor of co-heir may trigger donor’s tax; structure carefully.
Colación/collation: Lifetime donations to compulsory heirs may be brought to collation to equalize shares upon partition.
Survivorship clauses / Pay-on-Death accounts: Check the bank’s terms and statutory rules; such designations do not defeat legitimes or mandatory intestate rules if they effectively transfer inheritance outside succession.

13) Practical Timelines & Sequencing

Weeks 1–4: Heir/asset mapping; gather certificates & titles; open estate TIN.
Weeks 4–8: Draft ASA/DEJS; compute estate tax; assemble deduction proofs.
Weeks 8–12: Notarize; publish 3 consecutive weeks; file estate tax; secure CAR/eCAR.
Weeks 12+: Registry transfers (RD/LTO/banks); update tax declarations; issue receipts among heirs; archive.

(Timelines vary with asset complexity, bank requirements, and BIR/registry processing.)

14) Heirs’ Liability & Post-Distribution Exposure

Heirs are not personally liable beyond what they receive from the estate. If an unknown creditor surfaces within the two-year period, heirs may need to return value or pay proportionally. Keep records of receipts, valuations, and pay-outs.

15) Quick Checklists

A) Eligibility for EJS

No will / no probate needed
No debts, or all settled/assumed with creditor consent
All heirs of legal age or duly represented
Full agreement on partition

B) Core Documents

Death Certificate (PSA)
Heirship proofs (PSA birth/marriage; adoption/court papers)
Titles/Tax Declarations; bank/securities certificates; vehicle papers
Draft ASA/DEJS (+ Partition / with Sale)
Valid IDs; SPA/guardianship orders where applicable
Newspaper publication proofs (3 weeks)
Estate Tax Return, CAR/eCAR; DST/transfer tax receipts

16) Frequently Asked Questions

Q: We discovered a credit card debt after executing the EJS. What now? A: Settle proportionately from heirs’ shares or rescind/modify the EJS; creditors can go after the estate assets and heirs up to value received. Prompt settlement minimizes exposure.

Q: A child born out of wedlock surfaced. Do we restart? A: If filiation is duly proven, update the heir map and re-partition (or proceed to court if disputed). Omission can invalidate the EJS as to that heir and expose others to claims.

Q: Can we EJS if a minor is an heir? A: Yes if the minor is represented by a court-appointed guardian (or an authorized legal representative with proper court authority). Without this, proceed judicially.

Q: Do we always need publication? A: Yes—for ASA and DEJS alike. It protects third parties and triggers the two-year period for challenges.

Q: Can we sell estate property immediately? A: Typically after EJS and tax clearance (CAR). If selling as part of settlement, prepare an EJS with Sale, pay applicable taxes, then register.

Bottom Line

If there’s no will, no debts, and the heirs agree, an extrajudicial settlement is the fastest, most cost-efficient path. Get the heir map and asset list right, respect statutory shares, publish properly, and clear taxes before transfers. When any prerequisite fails—go to court and protect everyone’s rights.

If you want, share your family tree, asset list, and any liabilities (even tentative). A clean, ready-to-file DEJS with Partition and a BIR document checklist can be drafted to fit your exact scenario.