Intestate Succession Without a Will Philippines

Introduction to Intestate Succession

Intestate succession occurs when a person dies without leaving a valid will, or when a will is declared void or ineffective. In such cases, the distribution of the decedent's estate is governed by the rules of law rather than the decedent's wishes. This ensures that the property passes to the heirs in a manner prescribed by statute, prioritizing family members and preventing escheat to the state except as a last resort. In the Philippine legal system, intestate succession is designed to reflect societal values of family solidarity, protection of compulsory heirs, and equitable distribution.

The primary objective is to allocate the estate among the surviving relatives based on their degree of relationship to the decedent. This process can be complex, involving concepts like legitime (the portion reserved for compulsory heirs), representation (where descendants inherit in place of a predeceased heir), and concurrence (when multiple classes of heirs inherit together). Disputes often arise over the identification of heirs, the valuation of assets, and the computation of shares, making judicial intervention common.

Legal Framework Governing Intestate Succession

Intestate succession in the Philippines is primarily regulated by the New Civil Code (Republic Act No. 386), specifically Articles 960 to 1014. These provisions outline the order of succession, the classes of heirs, and the rules for distribution. Supplementary laws include the Family Code of the Philippines (Executive Order No. 209), which addresses family relations and legitimacy of children; Republic Act No. 8552 (Domestic Adoption Act) and Republic Act No. 8043 (Inter-Country Adoption Act) for adopted children; and tax laws such as Republic Act No. 10963 (TRAIN Law) and Republic Act No. 11534 (CREATE Act) for estate taxation.

Key principles include:

• Universal Succession: Heirs succeed to the entire juridical personality of the decedent, including rights and obligations.
• Proximity of Relationship: Closer relatives exclude more distant ones.
• Equal Division: Among heirs of the same class, shares are generally equal, subject to adjustments for legitimacy status.
• Reservation of Legitime: Even in intestacy, the concept of legitime applies implicitly through the distribution rules, ensuring compulsory heirs receive their minimum shares.

The Rules of Court (particularly Rule 74 on summary settlement and Rules 83-90 on intestate proceedings) govern the procedural aspects, while the Bureau of Internal Revenue (BIR) oversees estate tax compliance.

Classes of Intestate Heirs

Intestate heirs are divided into compulsory heirs (those entitled to legitime) and voluntary heirs (others who may inherit in the absence of compulsory heirs). However, in pure intestacy, all distribution follows legal rules without distinction. The heirs are classified as follows:

1. Primary Compulsory Heirs:

   • Legitimate children and legitimate descendants.
   • These are the first in line and exclude all others except concurring heirs like the surviving spouse and illegitimate children.

2. Secondary Compulsory Heirs:

   • Legitimate parents and legitimate ascendants (in the absence of children or descendants).
   • Illegitimate children (who concur with legitimate children but receive half shares).

3. Concurring Compulsory Heirs:

   • Surviving spouse.
   • Acknowledged illegitimate children and their descendants.

4. Other Legal Heirs:

   • Illegitimate parents (in the absence of other ascendants or descendants).
   • Collateral relatives (brothers, sisters, nephews, nieces, etc., up to the fifth degree of consanguinity).
   • The State (via escheat proceedings under Article 1011, if no heirs exist).

Special considerations:

• Adopted Children: Under the Domestic Adoption Act, adopted children have the same rights as legitimate children, including full inheritance rights in intestacy.
• Illegitimate Children: Must be acknowledged by the decedent (via birth certificate, public document, or private handwritten instrument) to inherit. They receive half the share of legitimate children.
• Spouse: Must be legally married to the decedent at the time of death. Common-law partners do not qualify as spouses but may claim property under co-ownership rules if applicable.
• Disqualified Heirs: Persons unworthy under Article 1032 (e.g., those convicted of attempting to kill the decedent, or guilty of adultery/concubinage with the spouse) are excluded.

Order of Intestate Succession and Exclusion

The Civil Code establishes a strict order of preference, where certain heirs exclude others:

1. Legitimate Children and Descendants: They inherit the entire estate per capita (equal shares) or per stirpes (by representation if a child predeceases). They exclude parents, ascendants, and collaterals but concur with the surviving spouse and illegitimate children.

2. Legitimate Parents and Ascendants: Inherit if no children or descendants exist. They exclude collaterals but concur with the surviving spouse and illegitimate children.

3. Illegitimate Children and Descendants: Inherit if no legitimate children, parents, or ascendants. They concur with the surviving spouse.

4. Surviving Spouse: Concurs with children or parents; inherits alone if no children, descendants, parents, or ascendants.

5. Illegitimate Parents: Inherit if no children, descendants, legitimate parents, or spouse.

6. Collateral Relatives: Brothers/sisters and their descendants (up to nephews/nieces), then uncles/aunts, cousins, etc., up to the fifth degree. Full-blood collaterals receive double the share of half-blood.

7. The State: If no heirs, the estate escheats to the municipality or city where the decedent last resided, for charitable, educational, or public welfare purposes.

Representation applies only in the descending line (children/descendants) and for brothers/sisters' children, not in the ascending or collateral lines beyond that.

Computation of Shares in Various Scenarios

The distribution varies based on the surviving heirs. Below are common scenarios with illustrative computations (assuming a net estate of PHP 1,000,000 for simplicity):

1. Decedent Leaves Legitimate Children and Surviving Spouse:

   • Children divide the estate equally, but the spouse gets a share equal to one child.
   • Example: 2 legitimate children + spouse = 3 shares. Each gets PHP 333,333.

2. Legitimate Children, Illegitimate Children, and Spouse:

   • Legitimate children get full shares; illegitimate get half; spouse equals one legitimate child.
   • Example: 1 legitimate child, 1 illegitimate child, spouse.
     • Total shares: Legitimate (1) + Illegitimate (0.5) + Spouse (1) = 2.5 shares.
     • Legitimate: PHP 400,000; Illegitimate: PHP 200,000; Spouse: PHP 400,000.

3. No Children, But Parents and Spouse:

   • Parents divide half the estate equally; spouse gets the other half.
   • Example: 2 parents + spouse = Parents: PHP 250,000 each; Spouse: PHP 500,000.

4. No Children or Parents, But Illegitimate Children and Spouse:

   • Illegitimate children divide two-thirds equally; spouse gets one-third.
   • Example: 2 illegitimate children + spouse = Each child: PHP 333,333; Spouse: PHP 333,333.

5. Spouse Alone: Inherits the entire estate.

6. Collaterals:

   • Brothers/sisters divide equally, with full-blood getting double half-blood.
   • Example: 1 full-blood brother, 1 half-blood sister = Brother: PHP 666,667; Sister: PHP 333,333.

Adjustments for advances (collation under Article 1061) require heirs to bring back property received during the decedent's lifetime to the estate for fair division.

Special Rules and Considerations

• Iron Curtain Rule (Article 992): Illegitimate children cannot inherit from legitimate relatives of their parent (and vice versa), preventing mixing of legitimate and illegitimate lines in collaterals.
• Community Property vs. Separate Property: Under the Family Code, the estate includes the decedent's share in conjugal or absolute community property, plus separate properties. The regime (e.g., absolute community post-1988 marriages) affects what enters the estate.
• Debts and Charges: The estate pays debts, taxes, and expenses before distribution (Article 1000).
• Reservation and Reversion: In cases involving subsequent marriages or adoptions, reserva troncal (Article 891) may apply, requiring certain properties to revert to relatives.
• Foreign Elements: For Filipinos abroad, Philippine law governs succession (Article 16, Civil Code). For aliens, their national law applies to testamentary succession, but intestacy follows Philippine rules if the estate is here.
• Preterition and Imperfect Disinheritance: Not directly applicable in pure intestacy, but if a will exists and is annulled, it may revert to intestate rules.
• Adoption and Succession: Adoptees sever ties with biological family for inheritance purposes, inheriting fully from adopters.

Procedure for Settling an Intestate Estate

1. Death Certificate and Inventory: Secure death certificate; heirs prepare an inventory of assets/liabilities.

2. Extrajudicial Settlement (Rule 74): If heirs are of legal age, no debts, and agree, they can execute a notarized deed of extrajudicial settlement, publish it, and file with the Register of Deeds. Bond required if minors involved.

3. Judicial Settlement: If disputes or minors, file a petition for intestate proceedings in the Regional Trial Court. Includes appointment of administrator, inventory approval, payment of claims, and distribution order.

4. Estate Tax Return: File with BIR within one year of death; pay 6% estate tax on net estate exceeding PHP 5 million (as of current rates, subject to deductions).

5. Transfer of Titles: After settlement, transfer real property via deed of partition and annotation.

Delays often occur due to incomplete documents, family disputes, or complex asset valuation. Heirs may seek legal counsel to navigate.

Challenges and Common Issues

• Proof of Heirship: Requires birth certificates, marriage certificates, and affidavits; DNA testing in paternity disputes.
• Hidden Assets or Debts: May lead to collation or creditor claims.
• Multiple Marriages: Complicates spouse and child claims; bigamous marriages void the second spouse's rights.
• Tax Implications: Non-payment leads to penalties; donor's tax on advances.
• Escheat Proceedings: Initiated by the Solicitor General if no claimants.

Conclusion

Intestate succession ensures orderly distribution but underscores the importance of estate planning via wills to avoid disputes and honor personal wishes. While the law protects family interests, it may not align with individual preferences, potentially leading to inequities. Consulting a lawyer for specific cases is advisable, as nuances depend on family structure and assets. This framework balances tradition, equity, and state interests in Philippine society.