Introduction

When a property owner dies, the real property tax (RPT)—commonly called amilyar—does not pause. It continues to accrue every year (and sometimes by quarter), regardless of whether the title has been transferred to the heirs. Because estate settlement in the Philippines can take months or years, families often discover large arrears, penalties, and even the risk of levy and auction if they ignore RPT while waiting to complete settlement.

This article explains who must pay, when, and how responsibilities are allocated during estate settlement—whether judicial or extrajudicial—under Philippine practice.

Note: This is general legal information for the Philippine setting, not legal advice. Facts (LGU ordinances, property classification, family agreements, court orders) can materially change outcomes.

1) What Real Property Tax Is—and Why Death Doesn’t Stop It

A. Nature of RPT

RPT is a local tax imposed by cities/municipalities/provinces on land, buildings, and other improvements. It is not the same as estate tax. Even if you have fully paid estate tax (BIR), you still need to pay RPT (LGU).

B. RPT “sticks” to the property

In practice, RPT is treated as a burden on the property itself:

The LGU’s claim is effectively secured by the property.
Delinquency can lead to penalties, levy, and public auction.
Transfer of title does not erase unpaid RPT; arrears remain collectible.

C. RPT accrues even if:

The title is still in the deceased owner’s name
The heirs are still negotiating
The estate is in court
The property is vacant or not earning income

2) Who Is Responsible to Pay RPT During Estate Settlement?

There are two ways to understand “responsibility”:

Who is legally/administratively expected to pay from the estate? (estate administration perspective)
Who will practically be pursued/affected if RPT is unpaid? (LGU collection perspective)

A. The Estate (as a pool of property) is primarily chargeable

During settlement, the property belongs to the estate, and obligations chargeable to the estate should be paid using estate funds (e.g., rental income, cash, sale proceeds of estate property—subject to rules). This is most clearly true in judicial settlement where there is an appointed executor/administrator.

B. Executor/Administrator (judicial settlement)

If there is an executor (with a will) or administrator (intestate), that person is generally tasked to:

Preserve estate property
Manage income/expenses
Pay taxes and charges necessary to prevent loss (including RPT)

If the estate has funds, the executor/administrator should pay RPT as an expense of administration to prevent delinquency and auction.

C. Heirs (especially in extrajudicial settlement or informal possession)

In real life, many estates are settled extrajudicially (no court-appointed administrator). In that situation:

Any heir in possession (living on the property, leasing it out, collecting income, exercising control) is typically expected by the family to pay RPT—at least initially—to protect the property.
LGUs usually accept payment from any person; the treasurer does not need to determine “the true debtor” before accepting payment.

Even if the estate is not yet partitioned, heirs often pay:

Pro rata (each heir contributes according to share), or
By the possessor (the one using/earning from the property pays), with later reimbursement/adjustment during partition.

D. Co-ownership after death (before partition)

Before the estate is partitioned, heirs generally hold property in a form of co-ownership. As co-owners:

They share benefits and burdens.
Necessary expenses (including taxes to prevent loss) are typically treated as chargeable to the co-ownership.
A co-owner who pays necessary expenses may usually seek reimbursement/contribution from the others, proportionate to their shares, subject to proof and fairness.

3) Key Principle: The LGU Will Collect Against the Property, Not Your Family Agreement

Your family may agree that “Heir A will pay,” but:

The LGU’s concern is whether the tax is paid on time.
If unpaid, remedies attach to the property (lien/levy/auction).
The family’s internal allocation is enforced among yourselves, not against the LGU.

So the safest mindset is:

Pay first to protect the property, then
Settle reimbursement during partition (or through written accounting)

4) Differences in Responsibility: Judicial vs. Extrajudicial Settlement

A. Judicial settlement (with executor/administrator)

Best practice: RPT should be paid by the executor/administrator using estate funds, recorded in the estate accounting, and treated as an administration expense.

Common practical issues:

Administrator delays payment due to lack of liquid funds
Property earns no income
Heirs refuse to advance funds

Workable solution: An heir may advance RPT and later claim reimbursement from the estate, subject to court approval/allowance and proper receipts.

B. Extrajudicial settlement (no court proceeding)

There is no administrator automatically empowered to manage estate funds. So families typically choose one of these:

All heirs contribute based on shares
Possessor pays (the one occupying/earning), with later set-off
Designated payor in a written agreement (e.g., “Heir B will pay RPT and will be reimbursed from sale proceeds”)

To reduce conflict, include an RPT clause in your extrajudicial settlement document (see sample clause below).

5) Timing: When Should Heirs Pay?

A. Pay immediately if any of these apply

Delinquency already exists
The LGU is issuing demand/notice
You plan to sell/transfer soon (buyers will require tax clearance)
You are processing estate settlement and need documents

B. Don’t wait for title transfer

Waiting for transfer is one of the most expensive mistakes. Penalties can accumulate, and you may later be forced to pay a lump sum to secure tax clearance.

C. If you cannot pay everything

Pay at least:

The most recent year/quarters to stop further accumulation (if allowed), or
As much as possible to reduce penalties, and
Ask the local treasurer about available payment arrangements under local practice (varies by LGU).

6) Penalties and Enforcement if RPT Is Not Paid

While details can vary by ordinance and circumstances, the common framework includes:

A. Interest/penalties on delinquency

Delinquent RPT typically incurs:

Interest/penalty computed monthly
A statutory cap on the total interest component (commonly expressed as a maximum number of months)

B. Administrative remedies against the property

If delinquency persists, the LGU may proceed with:

Distraint of personal property (less common for simple estate situations)
Levy on the real property
Advertisement and sale at public auction
Redemption period after sale (time-limited)

C. Practical consequences even before auction

You may be unable to get a tax clearance
You may be unable to update the tax declaration smoothly
Banks/buyers will walk away due to arrears

7) Estate Settlement Milestones Where RPT Commonly Becomes an Issue

A. Updating the tax declaration (TD)

Even before title transfer, some LGUs allow updating the TD to reflect:

“Estate of [Name of Deceased]”
Or the names of heirs (depending on documents presented)

But many LGUs will require:

Proof of death
Proof of heirship/settlement document
Payment of arrears before processing

B. Extrajudicial settlement and partition

When executing an extrajudicial settlement, it is wise to:

Confirm current RPT status (arrears, penalties)
Decide who pays prior to signing
Provide that the paying heir is reimbursed or credited in partition

C. Sale of inherited property

Buyers almost always require:

Updated RPT payments
Tax clearance
Updated TD and property records

If you plan to sell, RPT delinquency becomes a direct “closing blocker.”

8) Common Scenarios and Who Typically Pays (With Fair Allocation Ideas)

Scenario 1: One heir is living in the house rent-free

Practical approach: Occupying heir pays RPT during occupancy (like a carrying cost), unless family agrees otherwise. Fairness angle: Others may argue “you get exclusive use; you shoulder carrying costs.”

Scenario 2: One heir leases the property and collects rent

Practical approach: Collecting heir pays RPT from rental income, then accounts to co-heirs. Best practice: Keep a ledger and issue monthly/quarterly accounting.

Scenario 3: Property is vacant and no one benefits

Practical approach: All heirs contribute pro rata based on shares. Fallback: If one heir advances, document it for reimbursement.

Scenario 4: Estate has cash assets

Judicial settlement: Administrator pays from estate funds. Extrajudicial: Heirs may agree to use cash first to pay RPT before distributing.

Scenario 5: Some heirs refuse to pay

Risk: Everyone’s inheritance is endangered by levy/auction. Practical solution: Paying heirs advance to protect the property, then:

Deduct from the refusing heir’s share upon partition, or
Claim reimbursement/contribution, potentially through legal action if necessary.

9) Proof, Documentation, and Reimbursement: How to Protect the Paying Heir

If you pay RPT while others do not, protect yourself:

Keep original official receipts (and request ORs in a consistent name, if possible)
Keep a payment summary (year/quarter, amount, TD number, property details)
Notify co-heirs in writing (even a simple message/email with breakdown)
Include a reimbursement/credit clause in settlement/partition documents
If judicial: submit receipts to the administrator/court for allowance

Without proof, reimbursement becomes a fight.

10) How This Interacts With Other Estate Obligations (Estate Tax vs. RPT)

A. Estate tax (BIR) vs RPT (LGU)

Estate tax is a national tax on the transfer of the estate.
RPT is a continuing local tax on property ownership/possession.

Paying estate tax does not automatically clear RPT arrears, and paying RPT does not settle estate tax liability.

B. Transfers often require both streams to be addressed

In many transactions and transfers, you will need:

BIR documents for estate settlement/transfer; and
LGU tax clearance / updated RPT status for local property records

11) Practical Step-by-Step Guide for Heirs

Step 1: Identify property details

Title number (if titled)
Tax Declaration number (TD)
Location, classification (residential/agricultural/commercial)
Which LGU has jurisdiction

Step 2: Check delinquency and request an assessment

Go to the local treasurer’s office and request:

Outstanding RPT by year/quarter
Interest/penalties computation
Any special assessments (if applicable)

Step 3: Decide who pays and document it

Even a simple written agreement helps:

“Heir X will pay RPT for 2026–2027; amounts will be reimbursed/credited at partition.”

Step 4: Pay and secure receipts + clearance

Keep ORs
Request tax clearance if you’ll be processing documents

Step 5: Reflect payments in the partition

When executing partition/extrajudicial settlement:

Either reimburse the paying heir in cash, or
Deduct the paid amounts from the paying heir’s obligation / add as credit

12) Sample Clause for Extrajudicial Settlement (RPT Handling)

You can adapt language like this (have counsel tailor it to your facts):

Real Property Taxes and Charges. The parties acknowledge that real property taxes, special assessments, penalties, and related charges on the estate properties continue to accrue. The parties agree that [Name of Paying Heir/s] shall pay the real property taxes and necessary charges on the property/ies described herein beginning [date], and all such payments supported by official receipts shall be treated as necessary expenses chargeable to the estate/co-ownership. The amount so advanced shall be reimbursed by the estate prior to distribution or shall be credited to the share of the paying heir/s in the partition/distribution, proportionate to the respective hereditary shares, unless otherwise agreed in writing.

13) Frequently Asked Questions

Q1: Can the LGU refuse payment because the taxpayer is deceased?

Generally, no—LGUs typically accept payment from anyone to settle the tax on the property. What matters is that the correct property account/TD is credited.

Q2: Is it “illegal” for an heir to pay before settlement?

No. Paying RPT is a protective act to prevent delinquency and loss of the property. The dispute is not about whether you can pay, but how reimbursement is handled among heirs.

Q3: Are heirs personally liable beyond what they inherit?

As a general estate principle, heirs are not supposed to be made to pay estate obligations beyond the value of what they receive, but the property itself can be encumbered and subjected to collection remedies. Practically, heirs may advance funds to protect the asset, then adjust internally.

Q4: What if we discover decades of unpaid RPT?

You will usually need:

A full assessment and computation from the treasurer
A plan to pay (often lump sum)
Consider negotiating/documenting internal sharing Be cautious: long delinquency increases the risk that enforcement steps have already begun.

Q5: Who pays if the property is later adjudicated to only one heir?

If one heir ultimately receives the property, that heir commonly bears the burden economically, but reimbursement depends on:

Family agreements
Whether other heirs benefited earlier
Accounting during partition

14) Best Practices to Avoid Family Conflict and Financial Loss

Pay RPT early (especially current periods) to stop penalty growth
Use a shared spreadsheet/ledger for transparency
Put the arrangement in writing (even a basic agreement)
Treat RPT as a “carrying cost” of preserving the inheritance
Secure tax clearance early if you anticipate selling or transferring soon

Quick Checklist for Heirs

Obtain TD number and property details
Request delinquency assessment from LGU treasurer
Decide payer(s) and reimbursement method
Pay and keep official receipts
Record payments in settlement/partition accounting
Secure tax clearance when needed

If you tell me your situation (judicial vs extrajudicial, who occupies the property, whether there’s rental income, and whether there are arrears), I can draft (1) a tailored RPT-sharing agreement clause, and (2) an allocation table you can attach to your settlement document.