When a person passes away without leaving a valid last will and testament, or if the will is voided or fails to dispose of all properties, the legal process of Intestate Succession takes over. In the Philippines, this is governed primarily by the Civil Code, which establishes a default hierarchy of heirs based on the presumed affection of the deceased.
1. When Does Intestacy Occur?
Under Philippine law, intestacy is triggered in several scenarios:
- Total Intestacy: The deceased left no will at all.
- Partial Intestacy: A will exists but only disposes of a portion of the estate.
- Void Wills: The will fails to comply with formal requirements (e.g., lack of witnesses or Notarial acknowledgement).
- Preterition: The omission of a compulsory heir in the direct line, which may annul the institution of heirs.
- Incapacity: The heir instituted in the will dies before the testator, repudiates the inheritance, or is incapacitated to succeed.
2. The Order of Intestate Succession
The law follows a strict "Order of Preference." Generally, the presence of heirs in a higher category excludes those in lower categories (except for the surviving spouse, who concurs with most).
| Hierarchy | Heirs Included |
|---|---|
| 1st | Legitimate children and their descendants |
| 2nd | Legitimate parents and ascendants (only if 1st tier is absent) |
| 3rd | Illegitimate children and their descendants |
| 4th | Surviving Spouse |
| 5th | Brothers, sisters, nephews, and nieces |
| 6th | Other collateral relatives within the 5th degree |
| 7th | The State |
3. Key Principles of Intestacy
The Rule of Proximity
The relative nearest in degree excludes the more distant ones. For example, a child (1st degree) excludes a grandchild (2nd degree), unless the Right of Representation applies.
The Right of Representation
This is a right by which the representative is raised to the place and degree of the person represented. It occurs in cases of pre-decease, incapacity, or disinheritance.
- In the direct descending line: Representation is always permitted (e.g., a grandchild representing a deceased parent).
- In the ascending line: Representation never takes place.
- In the collateral line: It only takes place in favor of children of brothers or sisters (nephews and nieces).
The Iron Curtain Rule (Article 992)
A crucial and often debated provision in Philippine law is the "barrier" between the legitimate and illegitimate families. An illegitimate child has no right to inherit ab intestato (by intestacy) from the legitimate children and relatives of their father or mother; nor shall such legitimate relatives inherit from the illegitimate child.
4. Distribution of Shares (Common Scenarios)
The division of the estate depends on the combination of survivors. Below are the standard distributions:
- Legitimate Children only: The estate is divided equally among them.
- Legitimate Children + Surviving Spouse: The spouse gets a share equal to that of one legitimate child.
- Legitimate Children + Illegitimate Children: Each illegitimate child gets 1/2 of the share of one legitimate child.
- Surviving Spouse + Illegitimate Children: The spouse gets 1/2 of the estate; the illegitimate children divide the remaining 1/2.
- Legitimate Parents + Surviving Spouse: The parents get 1/2; the spouse gets 1/2.
- Surviving Spouse alone: The spouse inherits the entire estate (provided there are no descendants, ascendants, or illegitimate children).
5. The Process of Settlement
To transfer the titles of the properties to the heirs, the estate must be settled:
- Extrajudicial Settlement: If the heirs are all of age (or represented) and there are no debts, they can settle the estate via a public instrument (deed) filed with the Register of Deeds, provided they publish the notice in a newspaper for three consecutive weeks.
- Judicial Settlement: If the heirs disagree on the partition or there are pending debts, a court proceeding is required. This is often lengthier and more expensive.
6. Taxes and Compliance
Regardless of how the estate is partitioned, the Estate Tax must be addressed. Under the TRAIN Law (Republic Act No. 10963), the estate tax is a flat rate of 6% on the value of the net estate. Heirs must file the estate tax return and pay the corresponding dues before the properties can be legally transferred to their names.