Introduction to Inheritance and Co-Heirship in Philippine Law

In the Philippines, the legal framework governing inheritance is primarily rooted in the Civil Code of the Philippines (Republic Act No. 386), particularly under Title IV on Succession (Articles 774 to 1105). Inheritance occurs upon the death of a person (the decedent), transmitting rights to property, including land, to their heirs. Heirs may inherit through testate succession (with a valid will) or intestate succession (without a will, following the rules of legal or compulsory heirs).

Co-heirs arise when multiple individuals inherit the same property undivided. This is common in intestate succession where the decedent's estate, including real property like land, is distributed among surviving relatives such as children, spouse, parents, or siblings. Under Article 777 of the Civil Code, the rights to the succession vest immediately upon the decedent's death, making heirs owners from that moment, subject to administration and settlement of the estate.

Inherited land, as real property, is governed by co-ownership principles under Articles 484 to 501 of the Civil Code. Each co-heir owns an ideal or abstract share in the entire property, not a specific physical portion, until partition. This co-ownership is presumed to be equal unless otherwise specified in a will or by law.

Rights of Co-Heirs to Inherited Land

Co-heirs enjoy several fundamental rights over inherited land, balanced by corresponding obligations. These rights stem from the nature of co-ownership and the principles of succession:

Right to Possession and Use: Each co-heir has the right to possess and use the entire property, provided it does not prejudice the rights of others (Article 486, Civil Code). For land, this includes rights to occupy, cultivate, or lease portions, but no co-heir can exclude others without consent or court order. In practice, co-heirs often enter into agreements for usage, such as dividing cultivation areas in agricultural land.
Right to Fruits and Income: Co-heirs are entitled to a proportionate share of the fruits, produce, or income from the land (Article 485). For example, if the land yields crops or rental income, each co-heir receives based on their share (e.g., 1/3 for three equal heirs). Necessary expenses for preservation are deducted first.
Right to Alienation, Mortgage, or Encumbrance: A co-heir may sell, mortgage, or otherwise dispose of their undivided share (Article 493). However, this does not affect the shares of others. The buyer or mortgagee steps into the co-heir's shoes, becoming a co-owner with the remaining heirs. For land titled under the Torrens system (Presidential Decree No. 1529), any transfer requires annotation on the certificate of title.
Right to Redemption: If a co-heir sells their share to a third party, other co-heirs have the right of legal redemption (Article 1620), allowing them to repurchase the share at the same price within 30 days from notice. This protects family ownership of inherited land.
Right to Partition: At any time, a co-heir may demand partition of the land (Article 494), ending co-ownership. Partition can be extrajudicial (by agreement) or judicial (via court action under Rule 69 of the Rules of Court). If the land cannot be physically divided without prejudice (e.g., small parcels), it may be sold, with proceeds divided. Exceptions include agreements not to partition for up to 10 years (Article 494) or when partition would render the property unserviceable.
Right to Improvements and Reimbursement: A co-heir who makes necessary improvements (e.g., irrigation on farmland) is entitled to reimbursement from co-heirs proportionate to their shares (Article 488). Useful improvements require consent, but the improver may retain them until reimbursed. Luxurious improvements are at the improver's expense.
Right to Accounting and Administration: During co-ownership, any co-heir can demand an accounting of income and expenses. If the estate is under administration (e.g., via an executor or administrator appointed under Rule 78-90 of the Rules of Court), the administrator manages the land, but co-heirs retain oversight rights.

These rights are subject to the estate's settlement, including payment of debts, taxes, and legacies. Until settlement, the property remains under administration, and co-heirs' actions may be limited.

Obligations and Liabilities of Co-Heirs

Co-heirs are not without duties. Co-ownership imposes joint responsibilities:

Preservation and Maintenance: Each co-heir must contribute to expenses for preserving the land (Article 488), such as repairs to fences or erosion control. Refusal allows others to advance costs and seek reimbursement.
Majority Rule for Acts of Administration: Acts like leasing the land require majority consent (based on share value, Article 489). Alterations or dispositions need unanimity.
Liability for Losses: Co-heirs share losses proportionately, including from fortuitous events, unless due to one's fault.
Indivisibility in Third-Party Relations: The land is treated as indivisible to third parties, meaning encumbrances or obligations affect the whole until partition.

Payment of Real Property Taxes on Inherited Land

Real property taxes (RPT) in the Philippines are governed by the Local Government Code of 1991 (Republic Act No. 7160), particularly Title II on Real Property Taxation. RPT is an ad valorem tax based on the assessed value of the land, imposed by local government units (LGUs) such as provinces, cities, or municipalities.

Liability for Payment: Upon the decedent's death, the estate becomes liable for RPT accruing thereafter. Co-heirs, as owners, are solidarily liable for the tax (Section 247, Local Government Code), meaning any co-heir can be held responsible for the full amount, though they can seek contribution from others. During estate administration, the administrator or executor pays from estate funds. After settlement, liability shifts to co-heirs based on shares.
Assessment and Declaration: Inherited land must be declared for taxation within 60 days from acquisition (Section 202). If untitled or under the decedent's name, co-heirs should file a tax declaration with the local assessor, listing all co-heirs. Failure leads to penalties. Under the Torrens system, the Register of Deeds annotates the title upon transfer to heirs.
Tax Accrual and Payment Schedule: RPT accrues on January 1 each year (Section 246). Payment is quarterly or annually, with discounts for early payment (up to 20%) and penalties for delinquency (2% monthly interest, up to 36 months, plus 2% monthly penalty thereafter). LGUs may offer amnesty programs.
Exemptions and Relief: Certain inherited lands may qualify for exemptions, such as those used for religious, charitable, or educational purposes (Section 234). Agricultural lands may have lower assessments. Idle lands incur an additional 5% tax (Section 237), but exemptions apply for force majeure or inheritance disputes.
Delinquency and Remedies: Unpaid RPT leads to a lien on the property, superior to other liens except national taxes (Section 257). LGUs can levy and sell the land at auction after notice (Sections 254-260). Co-heirs have a one-year redemption right post-sale (Section 261). If one co-heir pays the full tax to avoid sale, they can recover from others with interest.
Special Considerations in Inheritance: Estate taxes (under the Tax Reform for Acceleration and Inclusion or TRAIN Law, Republic Act No. 10963) must be paid before title transfer, but RPT is separate. BIR clearance is required for title transfer. In disputes, courts may order tax payment from estate funds. For ancestral lands under Indigenous Peoples' Rights Act (Republic Act No. 8371), special rules apply, potentially exempting from RPT if certified as ancestral domain.

Dispute Resolution and Judicial Remedies

Disputes among co-heirs over land rights or tax payments are resolved through:

Partition Actions: Filed in Regional Trial Courts (RTC) with jurisdiction over the property's value.
Settlement of Estate Proceedings: Intestate or testate proceedings in RTC, where taxes are settled.
Ejectment or Recovery Suits: If one co-heir unlawfully occupies or excludes others.
Administrative Remedies: Appeals to local boards of assessment for tax disputes, then Central Board of Assessment Appeals.

The Supreme Court has ruled in cases like Heirs of Teves v. Court of Appeals (G.R. No. 109963, 1999) that co-heirs' rights are protected against unilateral actions, emphasizing partition rights. In tax matters, City of Manila v. Serrano (G.R. No. 142304, 2003) underscores solidary liability but allows reimbursement.

Practical Advice for Co-Heirs

To manage inherited land effectively:

Execute an extrajudicial settlement of estate (with publication if no debts) to formalize shares.
Secure a new tax declaration and transfer title via BIR and Register of Deeds.
Maintain records of payments and agreements to avoid disputes.
Consult a lawyer or notary for agreements on usage, taxes, or partition.

In summary, co-heirs' rights to inherited land ensure equitable ownership and use, while tax obligations promote fiscal responsibility. Proper adherence to these laws prevents conflicts and preserves family assets.