Legal Guardianship Requirements to Claim Death Benefits for Minor Philippines

LEGAL GUARDIANSHIP REQUIREMENTS TO CLAIM DEATH BENEFITS FOR A MINOR (Philippine Law and Practice)


1. Why guardianship matters

A person below eighteen (18) years old lacks legal capacity to administer property or receive money in his or her own name. Whether the benefit comes from the Social Security System (SSS), Government Service Insurance System (GSIS), Employees’ Compensation (ECC), Pag-IBIG, PhilHealth, private life insurance, a bank deposit, an employer plan, or an intestate/­testate estate, pay-out will be released only to:

  1. A “natural” or “legal” guardian recognised by law; or
  2. A judicially-appointed guardian when the circumstances or the amount involved require court supervision.

Failing this, the fund or insurer may refuse the claim, or release only a token amount under its internal “small-value” rules.


2. Sources of Philippine guardianship law

Instrument Salient points
Family Code (EO 209, Title IX, Arts. 209-237) Parents exercise parental authority; surviving parent is the guardian by nature and by right over the person and property of the child.
Civil Code (Arts. 225, 225-225-A, 225-B) Recognises a testamentary guardian named in the last surviving parent’s will.
Rules of Court Rule 93 (Appointment of Guardians); Rule 94 (Bond); Rule 95 (Transactions involving the ward’s property); Rule 97 (Termination).
A.M. No. 03-02-05-SC (Rules on Guardianship of Minors, 2003) Special procedure in Family Courts: verified petition, summary hearing, letters of guardianship, annual account.
Rep. Act 11199 (SSS Act of 2018), RA 8291 (GSIS Act), PD 626 (ECC), PD 1752 & RA 9679 (Pag-IBIG), Insurance Code (PD 612 as amended) Define dependent child/beneficiary and fix documentary requirements.
Bangko Sentral ng Pilipinas (BSP) Circular 857/2014 Allows banks to release deposits up to ₱200,000 to the minor’s natural guardian without a court order.

3. Kinds of guardians relevant to benefit claims

Guardian How created Scope
Natural guardian By law (parents while they live) Person and property, but limited by agency rules on large sums.
Guardian by right Surviving parent automatically (Art. 211, Family Code) Same as natural guardian.
Testamentary guardian Named in parent’s last will (Art. 225, Civil Code) Effective upon probate; court still issues letters but dispenses with petition.
Guardian ad litem Appointed in a specific court case Limited to that litigation; not enough for benefit pay-out.
Court-appointed general guardian Petition under A.M. No. 03-02-05-SC / Rule 93 Full authority over person and property, subject to bond and accounting.

4. When is court appointment mandatory?

Situation Typical agency/industry rule
Both parents deceased, absent, incapacitated, or in parental conflict Always required.
Benefit (lump-sum or accumulated) exceeds agency threshold
– SSS: > ₱50 000 one-time or monthly pension > ₱4 000
– GSIS: > ₱100 000 survivorship proceeds
– Private insurers: amount stated in policy or > ₱500 000 (common practice)
– Bank withdrawal > ₱200 000 or property sale
Court appointment, or creation of a trust account under court approval.
Competing claimants or suspected mismanagement Court appointment at agency’s or relatives’ insistence.
Minor is mentally/physically incapacitated beyond 18 Petition for continued guardianship under Art. 236, Family Code.

Note: Agencies may pay pensions through a “representative payee” scheme without a formal guardianship if the surviving parent signs an SSS Form CLD-1.3A or GSIS DCS-02 undertaking to hold the funds in trust and render annual account.


5. Judicial guardianship procedure (A.M. No. 03-02-05-SC)

  1. Venue – Family Court of the province/city where the minor resides; or where property is situated if the minor resides abroad.

  2. Verified Petition must state:

    • minority; facts showing necessity; relatives’ names; estimate of property/benefit; proposed guardian’s qualifications.
  3. Attachments – PSA-issued birth certificates of minor and deceased, death certificates, marriage certificate, inventory, bond proposal, clearances, valid IDs.

  4. Filing fees & raffling – docket and Sheriff’s fees computed on property value.

  5. Summary hearing – court may waive publication if applicant is a close relative and property is under ₱500 000.

  6. Letters of Guardianship & Bond – bond equal to the personal property and anticipated income (Rule 94).

  7. Inventory within 3 months; annual accounts every 12 months.

  8. Transactions – sale, encumbrance, investment or expenditure require prior court approval (Rule 95).

  9. Termination – when the ward reaches 18, is emancipated, or is adopted; court approves final accounting and releases bond.


6. Claiming death benefits: Agency-specific notes

Agency / Law Key documentary requirements involving guardianship
SSS (RA 11199) – Death Claim Form (DDR-1) • claimant’s & minor’s IDs • PSA certificates • Guardianship proof (any of: birth certificate of claimant-guardian, or letters of guardianship, or CLD-1.3A undertaking) • If split pensions, each minor gets separate “benefit account number” issued in the guardian’s name “in trust for (ITF)”.
GSIS (RA 8291) – Application for Survivorship Benefits • Notarised GSIS Affidavit of Guardianship if natural guardian • Letters of guardianship if court-appointed • Fiduciary deposit in Land Bank or DBP.
ECC (PD 626) Follows SSS/GSIS rules, channelled through those systems.
Pag-IBIG (RA 9679) – Provident Claims Form • Affidavit of surviving heirs • Guardianship undertaking or court order.
Private life insurance (Insurance Code §§ 180-187) Insurer pays to guardian of minor beneficiary; may create trust under § 180 if policy so states.
Bank deposits & time deposits BSP Circular 857: release ≤ ₱200 000 to natural guardian upon affidavit; > ₱200 000 needs court order or ITF account plus bond.
Estate settlement Executor/administrator may deliver minor’s legitime only to a duly appointed guardian (Rule 73 §3, Rules of Court).
Military / PVAO Surviving spouse or court-appointed guardian files PVAO Claim Form 4-73 with guardianship proof.

7. Tax and reporting duties

  • Estate Tax – Guardian files BIR Form 1801 for the minor’s share if the gross estate exceeds exemption thresholds (₱5 million estate value triggers CPA-audited return).
  • TIN for Minors – Secure a Taxpayer Identification Number before receiving property (BIR Rev. Regs. 7-2012).
  • Annual Accounting – misappropriation by a guardian constitutes Estafa under Art. 315(1)(b), Revised Penal Code, or violates the Anti-Graft Law if public funds are involved.

8. Case law highlights

Case Principle
Heirs of Spouses Dizon v. Court of Appeals, G.R. 100904 (11 July 2013) Guardian needs prior court approval before selling minor’s property—even if the price seems advantageous.
Bank of the Phil. Islands v. Echanis, G.R. 165617 (25 Jan 2012) Bank may be held liable for allowing withdrawal by an unauthorised relative notwithstanding bank-internal affidavits.
Fortunado v. Court of Appeals, G.R. 109566 (26 Jan 2000) Court may issue letters of guardianship ex parte where delay would prejudice the minor’s interest.
People v. Dado, G.R. 195689 (10 Feb 2016) Misuse of ward’s money by guardian constitutes Estafa.

9. Practical checklist for practitioners

  1. Identify the benefit source and its threshold rules.

  2. Confirm guardian status:

    • Surviving parent? → execute sworn Affidavit of Guardianship + agency form.
    • No qualified parent? → file guardianship petition ASAP.
  3. Gather core documents: PSA birth/death/marriage certificates, IDs, proof of relationship, benefit claim forms, court order (if any).

  4. Open an ITF or “in trust” bank account in the guardian’s name (required by SSS/GSIS for pensions).

  5. Keep receipts and ledgers. Court-appointed guardians must render annual accounts; natural guardians should be ready for audit if questioned.

  6. Spend only for the child’s support, education, health, or property preservation, and obtain court/agency consent for large expenditures or investments.

  7. Terminate guardianship and turn over balance when the child turns 18 or earlier becomes fully capacitated.


10. Common pitfalls & how to avoid them

  • Assuming that being a parent automatically suffices for large sums—verify the agency’s ceiling.
  • Using the proceeds for family needs other than the ward’s own—keep separate books.
  • Failure to render inventories—a ground for removal and even criminal prosecution.
  • Ignoring bond requirements—bond must be posted before letters issue, and increased if new property is discovered.
  • Neglecting tax compliance—BIR may impose surcharges even on minors’ shares.

11. Conclusion

Securing death benefits for a minor in the Philippines is chiefly a matter of establishing the correct guardianship vehicle in light of (1) the fund’s own rules, (2) the amount involved, and (3) the best interest of the child. Parents usually need only execute standard affidavits; where both parents are unavailable or where the fund is substantial, a Family-Court-supervised guardianship—though more onerous—offers greater accountability and protection. Lawyers and HR officers should map the applicable statutory provisions early, organise documentary proofs, and educate family members on their fiduciary duties to ensure that every peso intended for the minor is preserved until he or she is ready to manage it personally.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.