Legal Guardianship Requirements for Claiming Death Benefits on Behalf of a Minor in the Philippines (Comprehensive Guide for 2025 and beyond)
Executive Summary
When a parent or legal provider passes away, Philippine law treats the deceased’s minor children (< 18 years old) as primary beneficiaries of most public-sector, employer and private death-benefit programs. Because minors lack legal capacity to administer property, a guardian—often the surviving parent—is required to receive and manage the money. This article pulls together all key statutes, rules, agency circulars and jurisprudence that determine when a guardianship is needed, how to obtain it, and how different benefit-granting institutions (SSS, GSIS, Pag-IBIG, ECC, private insurers, banks, etc.) apply the rules.
Scope note. This guide covers national laws (Civil Code, Family Code, Insurance Code, special social-security statutes), Supreme Court rules (A.M. No. 03-02-05-SC, Rule 96), select Shari’ah provisions, and agency-level regulations updated to July 7 2025. It is not legal advice; consult counsel or the Public Attorney’s Office for case-specific strategy.
1 | Foundational Legal Framework
| Instrument | Key Provisions for Minors & Guardians | Practical Effect |
|---|---|---|
| Family Code of the Philippines (E.O. 209, 1987) | Art. 225–228 – parents are natural guardians of unemancipated children; either parent may administer child’s property worth ≤ ₱50,000 without court approval. | Surviving parent can directly collect modest benefits below threshold. |
| Civil Code (1949) | Art. 320 ff. – court may appoint a guardian of the property (or of the person and property) when both parents are dead, absent or unfit. | Compulsory for sizeable death benefits where no natural guardian exists. |
| Rule 96, Rules of Court and Rule on Guardianship of Minors (A.M. No. 03-02-05-SC, 2003) | Venue, verified petition requirements, bond, letters of guardianship, annual accounts. | Standard procedure for all guardianship petitions in Regional Trial Courts (Family Courts). |
| Insurance Code (P.D. 612 as amended by R.A. 10607) | Sec. 182–183 – insurer must pay a minor’s benefits to the duly appointed guardian, or deposit with the Insurance Commission if guardian is lacking. | Private insurers require court order unless benefits ≤ ₱100k and insurer opts for trust deposit. |
| Muslim Personal Laws (P.D. 1083) | Arts. 161–170 – “wali” (guardian) rules; Shari’ah Circuit Courts have concurrent jurisdiction where spouses were muslims. | Applies in BARMM and Muslim communities; still recognized by national agencies. |
2 | Why Guardianship Is Required
- Legal incapacity – Art. 1327 Civil Code: minors cannot give valid consent in contracts or execute receipts.
- Fiduciary safeguard – Guardianship bond and court supervision protect the estate until the child turns 18 (or 21 for pre-1987 emancipations).
- Agency-specific mandates – Statutes governing SSS, GSIS, Pag-IBIG and ECC expressly direct payment to “the minor or his duly appointed guardian.” Agencies risk audit disallowance if they waive the requirement improperly.
3 | Agency-Specific Guardianship Rules (2025 updates)
3.1 Social Security System – R.A. 11199 (Social Security Act of 2018)
| Benefit | Default Payee | Guardianship Exemptions |
|---|---|---|
| Monthly death pension & 13th-month pension | Surviving spouse in trust for minor children | SSS Circular 2024-012: if total accrued value per child ≤ ₱250,000, SSS may accept a “Representative Payee Undertaking” plus a notarized Affidavit of Guardianship in lieu of court order. |
| Lump-sum death benefit (if < 36 monthly contributions) | Same | Same threshold; above ₱250k requires letters of guardianship. |
| Funeral Benefit | Whoever paid expenses | No guardianship issue. |
Note: If surviving spouse is also deceased or adjudged unfit, SSS requires RTC-issued letters of guardianship (Special Proceedings).
3.2 Government Service Insurance System – R.A. 8291 (GSIS Act of 1997)
| Benefit | Guardianship Requirement | Exception/Shortcut |
|---|---|---|
| Survivorship pension & cash dividend | Court-appointed guardian, unless surviving parent receives the pension as trustee-in-fact (GSIS Resolution 2019-054). | If total monthly pension share per minor ≤ ₱5,000, GSIS accepts Affidavit of Care and Custody + barangay certification. |
| Life insurance proceeds (compulsory or optional) | Always require guardianship order ≥ ₱100k. | For ≤ ₱100k: “UNDERTAKING OF SINGLE TRANSACTION GUARDIAN.” |
| ECC pension (if service-related death) | Mirrors GSIS rule | — |
3.3 Pag-IBIG Fund – P.D. 1752, R.A. 9679
Pag-IBIG Death Claim Form (HDMF MPVDLF-2023) demands either:
- Parent’s affidavit (if claimant is surviving parent and total benefit ≤ ₱100k); or
- Letters of guardianship (if no parent or amount > ₱100k).
3.4 Employees’ Compensation Commission (ECC)
ECC Board Resolution 22-07-34 aligns with SSS/GSIS: payment to parent-guardian, but requires court appointment if:
- Both parents are dead/unfit; or
- Benefit exceeds ₱200k for a single release.
3.5 Private Life & Group Insurance
Under Sec. 182 Insurance Code, insurers must:
- Pay to guardian with court authority; or
- Deposit the sum with the Insurance Commission to hold in trust until guardian is appointed or minor reaches majority.
Some insurers include a facility-of-payment clause permitting release up to ₱50,000 to a relative who defrayed funeral costs, but this does not cover the balance due to the minor; guardianship is still triggered for the remainder.
3.6 Bank Deposits, UITFs & Mutual Funds
BSP Manual of Regulations for Banks (MORB), Sec. X416.6, states that withdrawals from a minor’s account created by survivorship claim require the signature of the legal guardian or trustee reflected in bank records. Trust departments typically insist on court-appointed guardians once assets exceed ₱100k.
4 | Thresholds & “Shortcut” Mechanisms
| Institution | Threshold (2025) | Alternative Documentation | Caveat |
|---|---|---|---|
| SSS | ₱250,000 per minor | Representative Payee Undertaking + Affidavit of Guardianship | Disallowed if parent is absent/unfit |
| GSIS | ₱100,000 (insurance); ₱5,000/month pension | Undertaking of Single Transaction Guardian; Affidavit of Care & Custody | One-time only; subsequent releases require court order |
| Pag-IBIG | ₱100,000 | Parent’s affidavit | Fund may still require bond |
| ECC | ₱200,000 | Authority of Payee (Board Res. 22-07-34) | Applies only to periodic pension, not lump sum |
| Banks/Trusts | ₱100,000 (industry practice) | ITF (“in trust for”) account with parent’s waiver | Bank may freeze account if disputes arise |
5 | Guardianship Petition: Step-by-Step
Determine venue – Family Court of the province/city where the minor resides or where the property is (Rule 1 § 3, Guardianship Rule).
Draft verified petition containing:
- Facts of minority, relationship, death of parent, nature & estimated value of benefits.
- Qualifications of proposed guardian (Art. 320 Civil Code hierarchy).
Attach exhibits: death certificate, minor’s birth certificate, benefit claim form, consent of child (if ≥ 14 and ≤ 18), affidavits of relatives.
Post bond – amount set by court (often 10-20 % of estate value).
Court hearing & issuance of Letters of Guardianship – enables release of benefits.
Inventory & annual account – guardian files within 3 months and every 12 months thereafter (Rule 96 § 7).
Court approval for expenditures or investments – guardian must seek leave to spend > ₱50,000 or to sell property.
Termination – on child’s 18th birthday or earlier emancipation; final accounting and discharge of bond.
Expedited remedies. A Special Administrator (Rule 73 § 1) or provisional guardian (Rule 97 § 2) may be appointed ex parte if delay endangers the minor’s sustenance.
6 | Agency-Specific Filing Checklists
| SSS | GSIS | Pag-IBIG | Private Insurer |
|---|---|---|---|
| ✔ Claim Form DDR-1 | ✔ Forms GSIS-SP-102, 103 | ✔ Death Claim Form | ✔ Claimant’s Statement |
| ✔ Death Cert. PSA/LCRO | ✔ Member Data Record | ✔ Proof of membership | ✔ Policy contract |
| ✔ Birth Cert. of Minor | ✔ Birth/Marriage Cert. | ✔ Parent affidavit or guardianship order | ✔ Guardianship order or IC deposit receipt |
| ✔ Guardianship order or Rep. Payee Undertaking | ✔ Letters of Guardianship if req’d | — | — |
7 | Special Regimes
- Shari’ah – Where Muslim Code applies, file in Shari’ah Circuit Court; recognition by SSS/GSIS is facilitated by OCA Circular 154-2021.
- Indigenous Cultural Communities – R.A. 8371 (IPRA) allows customary law guardians confirmed by NCIP; agencies generally still request an RTC confirmation order for monetary claims.
8 | Tax & Reporting Considerations
- Estate Tax – Death benefits from SSS, GSIS, ECC and life insurance with irrevocable beneficiary designations are exempt (NIRC § 87 & § 62, as amended).
- Income Tax – Survivorship pensions are excluded from gross income (NIRC § 32[B][6][a]).
- Guardian’s annual account must disclose interest earned; court may direct investment in government securities under Art. 225 Family Code.
9 | Practical Tips & Pitfalls
Secure multiple original PSA certificates early; each agency keeps a set.
Name the minor correctly—initial mis-spellings delay release.
Bond reductions can be requested once funds are invested in guaranteed instruments.
Avoid commingling guardian’s personal funds with the ward’s—grounds for removal (see Re: Spouses Basbas, A.C. 10833, March 16 2021).
Keep receipts—Family Courts increasingly require scanned uploads via JOP (Judiciary Online Payment) portal for expense approvals.
Watch prescription periods:
- SSS death claim: 4 years from date of death (R.A. 11199 § 29).
- GSIS: 4 years (Sec. 54 R.A. 8291).
- Insurance: 10 years under Civil Code Art. 1144.
10 | Conclusion
Guardianship is more than a paperwork hurdle; it is the legal mechanism that safeguards a minor child’s financial security after the loss of a breadwinner. While Philippine agencies now allow limited “shortcut” affidavits for small sums, court-appointed guardianship remains mandatory for sizeable benefits or whenever the surviving parent is absent, incapacitated or in conflict of interest.
By understanding the intersecting statutes, agency circulars and procedural rules summarized above—and by preparing complete, authenticated documents—claimants can avoid costly delays and ensure that death benefits reach the minor beneficiary promptly and are managed prudently until adulthood.
Prepared July 7 2025, Manila.