Shares, computations, and how heirs contest lifetime transfers and “missing” estate property

1) What “intestate succession” is (and why shares can still be litigated)

Intestate succession is the distribution of a decedent’s estate when there is no valid will, or when a will does not dispose of all property (partial intestacy). The law steps in and assigns who inherits, in what order, and in what proportions.

Even when the rules look “automatic,” disputes are common because heirs may contest:

Who qualifies as an heir (legitimate vs illegitimate status; filiation; marriage validity),
What belongs to the estate (property titled to others; allegedly sold/donated during lifetime),
Whether transfers were meant to defeat heirs (simulated sales, undervalued transfers, forged deeds),
How to compute shares (especially when legitimate and illegitimate children and a surviving spouse concur),
Whether gifts must be brought back to the estate for equalization (collation / reduction).

2) The legal framework you must keep straight

Philippine intestacy is mainly governed by:

Civil Code provisions on succession (intestate order, representation, shares, collation, reduction), and
Family Code rules that affect succession (marriage regime, legitimacy/illegitimacy, filiation, and the “iron curtain” rule).

You cannot compute inheritance correctly unless you also understand:

Property relations of spouses (ACP/CPG liquidation),
Legitime concepts (because lifetime donations may be reduced if they impair compulsory heirs),
Filiation evidence and timing (who is recognized as a child legally).

3) Step zero in every estate: determine the “net hereditary estate”

Before dividing anything, settle what the estate actually is.

3.1 Liquidate the property regime first (ACP/CPG)

If the decedent was married under:

Absolute Community of Property (ACP) (default for marriages after Aug. 3, 1988, absent a valid pre-nup), or
Conjugal Partnership of Gains (CPG) (common for marriages before that date, absent contrary proof),

then the estate is not automatically “everything titled in the decedent’s name.” The correct sequence is:

Identify community/conjugal property vs exclusive property.
Pay community/conjugal obligations.
Separate the surviving spouse’s one-half share in the community/conjugal net assets.
Only the decedent’s share (plus exclusive properties) becomes part of the hereditary estate for inheritance division.

This step alone often changes the arithmetic dramatically.

3.2 Deduct debts, expenses, and charges

From the hereditary mass, deduct:

Funeral expenses (within reason),
Estate obligations and enforceable debts,
Administration expenses, taxes, and settlement costs (as applicable).

3.3 Identify property that never becomes part of the estate

Certain benefits pass by their own terms (subject to special rules):

Some life insurance proceeds with irrevocable beneficiaries may pass outside the estate (but can still be challenged in exceptional cases, e.g., fraud or bad faith beneficiary designation issues).
Certain retirement or statutory benefits may have their own succession rules.

Disputes often involve whether an asset is truly “outside” the estate or improperly labeled that way.

4) Who inherits in intestacy: the hierarchy (big picture)

The Civil Code follows a priority structure, simplified as:

Legitimate children and descendants (highest priority)
Legitimate parents and ascendants (if no legitimate descendants)
Illegitimate children (recognized as compulsory heirs, and they concur in specific ways)
Surviving spouse (also a compulsory heir and often concurring)
Collateral relatives (siblings, nephews/nieces, etc., if no descendants/ascendants/children)
The State (escheat, if no heirs)

In practice, the “center of gravity” cases are:

Children (legitimate and/or illegitimate) + surviving spouse, and
No children, but spouse + parents/ascendants, and
Illegitimate-only family situations, where the “iron curtain” becomes decisive.

5) Legitimacy, illegitimacy, and why status drives everything

5.1 Legitimate children (general)

A child is legitimate if conceived or born within a valid marriage, subject to the rules on legitimacy and impugning legitimacy.

Legitimate children inherit:

As primary intestate heirs,
With strong rights of representation in the legitimate line.

5.2 Illegitimate children (general)

An illegitimate child is one conceived and born outside a valid marriage (with some special categories such as children of void marriages, depending on circumstances).

Illegitimate children:

Are compulsory heirs, and
In intestacy, generally inherit one-half of the share of a legitimate child when they concur with legitimate children.

5.3 The “iron curtain” rule (critical)

The “iron curtain” principle is that illegitimate children cannot inherit ab intestato from the legitimate relatives of their father or mother, and the legitimate relatives likewise cannot inherit ab intestato from the illegitimate child.

Practical consequences:

An illegitimate child can inherit from the parent (father/mother) if filiation is established.
But the illegitimate child is generally cut off from intestate succession involving the parent’s legitimate family line (e.g., legitimate siblings of the parent, legitimate grandparents in certain configurations), and vice versa.

This rule frequently determines whether the fight is even about shares—or about standing to inherit at all.

6) Proving filiation: the gatekeeper issue

Many inheritance disputes are really filiation cases in disguise.

6.1 How filiation is established (common routes)

Typically, filiation may be established by:

Record of birth (birth certificate) and/or recognition,
Admission of filiation (in public documents or private writings),
Open and continuous possession of the status of a child, and other admissible evidence.

Where recognition is absent or contested, heirs often file actions to establish (or dispute) filiation because intestate rights depend on it.

6.2 Timing matters

Family law sets specific rules on when actions to claim or impugn status may be brought and by whom. In estate litigation, this intersects with settlement proceedings because the court may need to determine heirship before distribution.

7) The core share rules in intestacy (Philippine computations)

Below are the standard intestate share rules most relevant to legitimate/illegitimate concurrence.

7.1 If there are legitimate children (no illegitimate children mentioned)

Legitimate children only:

They inherit everything, in equal shares.

Legitimate children + surviving spouse:

The spouse inherits a share equal to one legitimate child.
The children divide the remainder equally.

Quick formula: If there are n legitimate children and a spouse:

Total “child shares” = n + 1 (spouse counts as one child share)
Each share = Estate ÷ (n + 1)

7.2 If there are illegitimate children and legitimate children together

Legitimate children + illegitimate children (no spouse):

Each illegitimate child gets ½ of a legitimate child’s share.

Workable unit method:

Assign each legitimate child = 2 units
Each illegitimate child = 1 unit
Total units = (2 × #legit) + (1 × #illegit)
Estate per unit = Estate ÷ total units
Each legit child = 2 units; each illegit child = 1 unit

7.3 The most litigated mix: legitimate + illegitimate + surviving spouse

When legitimate children concur with a surviving spouse, the spouse takes a share equal to one legitimate child. When illegitimate children concur with legitimate children, each illegitimate child takes ½ of a legitimate child.

A consistent computation approach in the mixed set is:

Unit method (most practical):

Legitimate child = 2 units
Surviving spouse (concurring with legitimate children) = 2 units
Illegitimate child = 1 unit
Total units = 2L + 2S + 1I, where S is 1 spouse → Total units = (2 × #legit) + 2 + (#illegit)
Divide estate by total units; distribute accordingly.

Example: Estate = 12,000,000 Heirs: spouse + 2 legitimate children + 2 illegitimate children

Units = (2×2) + 2 + 2 = 8 units
Unit value = 12,000,000 ÷ 8 = 1,500,000
Spouse = 2 units = 3,000,000
Each legit child = 2 units = 3,000,000
Each illegit child = 1 unit = 1,500,000

7.4 If there are only illegitimate children (no legitimate children)

Illegitimate children only:

They inherit everything, in equal shares.

7.5 Illegitimate children + surviving spouse (no legitimate children)

As a commonly applied intestate rule set:

The surviving spouse and illegitimate children share the estate, with the spouse receiving a fixed statutory portion and the illegitimate children receiving the remainder, divided equally among themselves.

(Where this becomes contentious is not the concept but the inputs: whether there truly are no legitimate descendants; whether the spouse’s marriage is valid; whether the claimant is legally recognized as an illegitimate child; whether property regime liquidation has been done.)

7.6 Parents/ascendants cases (when there are no descendants)

If the decedent left no children, shares often involve:

Legitimate parents/ascendants and a surviving spouse concurring under statutory ratios, or
The surviving spouse alone, or
Collateral relatives.

These disputes are frequently about whether a “child” exists at all (including an illegitimate child whose filiation is only later established).

8) Representation, per stirpes distribution, and where illegitimacy changes the tree

8.1 Representation (why grandchildren can inherit)

Representation allows descendants to step into the place of a predeceased heir (e.g., grandchildren representing their deceased parent).

In intestacy, representation is important in:

The direct descending line (grandchildren replacing children),
Certain collateral scenarios (e.g., nephews/nieces replacing siblings), depending on the case.

8.2 Illegitimacy and representation

Representation rights and family links can be sharply limited by the iron curtain: illegitimate family links do not create intestate inheritance links with the legitimate family of the parent in the prohibited directions. This can prevent would-be representatives from inheriting through relationships that are legally blocked.

9) Why “legitime” still matters in intestacy (because of lifetime transfers)

Even if there is no will, compulsory heirs (legitimate children/descendants, illegitimate children, surviving spouse, and in some cases legitimate parents/ascendants) are protected by legitime rules. Those rules become decisive when someone claims:

“The decedent gave everything away during lifetime, so there’s nothing left to inherit.”

That is exactly when heirs invoke:

Collation (bringing certain lifetime gifts into the accounting),
Reduction of inofficious donations (clawing back gifts that impair legitimes),
Nullity/simulation/fraud remedies (if the “transfer” was not real).

10) Contesting lifetime transfers: the main legal theories heirs use

Heirs typically challenge transfers made by the decedent before death under several overlapping theories. The right theory depends on facts.

10.1 Collation (hotchpot): equalizing advancements to heirs

Collation is the process of attributing certain lifetime donations/advancements to heirs back into the estate accounting so that heirs are treated equitably.

Key points:

Collation is usually relevant when the recipient is also an heir.
It is primarily an accounting mechanism: it may not always require physical return of the property if value can be imputed, but it can affect final shares.
Collation disputes revolve around:
- Was the transfer a donation or a sale?
- Was it an advancement of inheritance?
- Was it expressly exempted from collation (where the law allows)?

10.2 Reduction of inofficious donations: protecting legitimes

If donations (even valid ones) impair the legitime of compulsory heirs, heirs can seek reduction so that compulsory shares are satisfied.

Typical pattern:

The decedent donates prime real property to one child (or to a stranger) shortly before death.
The “remaining” estate is insufficient to satisfy compulsory heirs.
Heirs sue to reduce the donation to the extent needed to complete legitimes.

This is often paired with collation but is conceptually different: reduction focuses on legitime impairment, not merely equalization.

10.3 Simulation / disguised donations (sale that’s not really a sale)

A common estate-planning abuse allegation is:

A “Deed of Absolute Sale” to an heir or third party,
For a suspiciously low price,
With no real payment,
While the decedent continues to possess and control the property.

Heirs attack these as:

Absolutely simulated (no intent to be bound) → void, or
Relatively simulated (sale disguising a donation) → recharacterize and then apply donation rules (form requirements, collation, reduction, etc.).

10.4 Forgery, lack of consent, incapacity, undue influence

Heirs may allege:

Signature forgery,
Decedent was mentally incapacitated,
Fraud, intimidation, or undue influence.

These are direct attacks on validity and can void the transfer, returning the property to the estate.

10.5 Transfers to defeat creditors vs transfers to defeat heirs

Some remedies (like rescissory actions) are classically creditor-focused, but heirs sometimes frame themselves as prejudiced parties where facts support fraud-based annulment or reconveyance. The cleanest route is usually to anchor claims on:

Void/voidable contract principles, or
Donation/legitime impairment, or
Trust and reconveyance (property held in trust for the estate).

11) Contesting “extrajudicial settlements,” waivers, and partitions used to sideline heirs

A frequent scenario:

Some family members execute an Extrajudicial Settlement of Estate (EJS) claiming they are the only heirs,
Transfer titles to themselves,
Exclude an illegitimate child or a spouse.

11.1 Vulnerabilities of an extrajudicial settlement

An EJS is allowed only when statutory conditions exist (notably, typically: no will; decedent left no debts; heirs are all of age or properly represented). If an heir was excluded or misrepresented, the settlement can be attacked.

Common claims:

Nullity for fraud/misrepresentation of heirship,
Annulment of partition,
Reconveyance of transferred property,
Inclusion of omitted heir and re-partition.

11.2 The omitted heir problem

An omitted compulsory heir (often an illegitimate child later proven, or a spouse whose marriage is later upheld) may seek:

Recognition as heir,
Nullification or reformation of the settlement/partition,
Issuance of proper shares and title corrections.

12) Estate settlement procedure: where these fights happen

12.1 Judicial settlement

In court-supervised settlement, the court can:

Determine heirs,
Marshal estate assets,
Resolve title disputes incidentally when necessary to settle the estate,
Approve partition and distribution.

This forum is often chosen where:

Heirship is contested,
Transfers are suspected,
Creditors exist,
There are minors or absent heirs.

12.2 Extrajudicial settlement

Used when the estate is “simple” on paper—but often becomes complex when:

A hidden/contested heir appears,
There are unpaid obligations,
The asset list is incomplete,
Titles are transferred quickly.

13) High-frequency dispute patterns (Philippine setting)

13.1 “Second family” disputes

Common configuration:

Surviving spouse + legitimate children of the marriage,
Illegitimate children from an outside relationship,
Alleged lifetime transfers favoring one side.

Core issues:

Validity of marriage (spouse status),
Proof of illegitimate filiation,
Share computations and clawback of transfers.

13.2 “Everything was sold before death”

Heirs respond by:

Demanding proof of payment,
Proving continued possession by decedent,
Attacking the deed as simulated/forged,
Alternatively treating it as a donation subject to reduction/collation.

13.3 “Property is in the name of a child/relative”

Heirs may claim:

The titleholder is a trustee,
The registration does not reflect true ownership,
The asset belongs to the estate (resulting trust / implied trust theories), depending on proof.

14) Practical computation guide: a disciplined way to avoid mistakes

When legitimate + illegitimate heirs are involved, errors usually come from skipping steps.

Step A — Identify heirs and their legal status

Are the children legitimate or illegitimate (or disputed)?
Is the spouse a valid spouse?
Are there legitimate descendants that exclude ascendants/collaterals?

Step B — Build the estate base correctly

Liquidate ACP/CPG.
Deduct debts/charges.
Identify properties to be included/excluded.

Step C — Identify “questioned transfers”

Classify each as:

True sale,
Donation,
Simulated sale (absolute/relative),
Void/voidable transfer (capacity/consent issues),
Trust situation (title held for another).

Step D — Apply intestacy shares (unit method)

Use units to handle mixed heirs cleanly:

Legit child = 2
Illegit child = 1
Spouse (with legitimate children) = 2 Then compute per unit.

Step E — If transfers impair compulsory shares

Collate (if appropriate),
Reduce inofficious donations (to complete legitimes),
Seek reconveyance/nullity if the transfer is invalid.

15) Limits and special notes you should remember

Illegitimate status is not “optional.” Courts will not award illegitimate-child shares without legally sufficient proof of filiation.
The spouse’s inheritance share is separate from the spouse’s property-regime share. Many confuse these and double-count or undercount.
Titling is not everything. A property titled to someone else can still be estate property if ownership is proven otherwise—but that requires evidence, not suspicion.
Multiple remedies can overlap, but the best cases plead them in the alternative: “If it was a sale, it was void because X; if it was not a sale, it was a donation subject to Y.”

16) A compact reference of common heir combinations (conceptual)

Legitimate children only → equal shares.
Legitimate children + spouse → spouse = one legitimate child share.
Legitimate + illegitimate children → illegitimate = ½ legitimate (unit method).
Legitimate + illegitimate + spouse → spouse treated as one legitimate child; illegitimate still ½ legitimate (unit method).
No descendants → look to legitimate parents/ascendants and/or spouse, then collaterals, then State; illegitimate-child claims can radically change this because a recognized child (even illegitimate) often displaces ascendants/collaterals in priority.

17) What usually decides the case

In Philippine intestacy fights involving legitimate and illegitimate heirs, outcomes are typically determined less by “math” and more by:

Proof of filiation,
Validity of the marriage (spouse standing),
Correct liquidation of ACP/CPG,
Credibility of alleged lifetime transfers (sale vs donation vs simulation/forgery), and
Whether compulsory shares were impaired (collation/reduction triggers).