The Special Resident Retiree’s Visa (SRRV), administered by the Philippine Retirement Authority (PRA), is one of the most popular residency options for foreign nationals. A central requirement of this visa is the "qualifying deposit," held in an escrow account in a PRA-accredited bank.
Upon the death of the principal retiree, this deposit becomes part of their estate. Navigating the legalities of reclaiming these funds involves a crossroads of Philippine immigration law, banking regulations, and successional statutes.
1. The Legal Nature of the SRRV Deposit
The SRRV deposit is a restricted fund. While it remains the property of the retiree, it is pledged to the PRA to ensure the retiree’s subsistence and compliance with visa rules. Upon death, the "restriction" remains until the PRA authorizes the bank to release the funds to the legal heirs.
2. Modes of Settling the Estate
In the Philippines, there are two primary ways to settle the estate of a deceased foreigner regarding their local assets:
- Extrajudicial Settlement of Estate: This is the most common and efficient route if the retiree died without a will (intestate) and has no outstanding debts. All heirs must agree on the distribution and execute a notarized "Deed of Extrajudicial Settlement."
- Judicial Settlement: If there is a dispute among heirs or a complex Last Will and Testament, the estate must go through the Philippine court system (Probate), which is a significantly longer process.
3. Required Documentation
To initiate the refund, the heirs or the designated executor must submit a comprehensive dossier to the PRA. Documents issued abroad must be Apostilled (or authenticated by the Philippine Embassy/Consulate) to be legally recognized in the Philippines.
Core Documents:
- Letter of Intent: A formal request for the cancellation of the SRRV and the release of the deposit due to the death of the member.
- Original Passport and SRRV ID Card: Of the deceased retiree.
- Certified True Copy of the Death Certificate: If the death occurred outside the Philippines, it must be Apostilled.
- Proof of Relationship: Birth certificates, marriage contracts, or other legal documents proving the claimants are the rightful heirs.
- Affidavit of Publication: Proof that the notice of the estate settlement was published in a newspaper of general circulation for three consecutive weeks (required for Extrajudicial Settlements).
4. The Step-by-Step Process
Step I: Notification and Cancellation
The PRA must be formally notified of the retiree's death. The PRA will then process the down-grading or cancellation of the SRRV. This stops the accrual of annual administrative fees.
Step II: Tax Compliance (eCAR)
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, banks may allow the withdrawal of funds from a deceased person’s account subject to a 6% estate tax.
- The heirs must coordinate with the Bureau of Internal Revenue (BIR) to pay the applicable estate taxes.
- The BIR will issue an Electronic Certificate Authorizing Registration (eCAR), which is mandatory for the bank to release the funds.
Step III: PRA Board Approval
Once the documentation is verified, the PRA will issue a Board Resolution or an official Letter of Authority addressed to the depository bank. This document officially "lifts" the hold on the deposit.
Step IV: Bank Release
The heirs present the PRA authorization, the BIR eCAR, and their identification to the accredited bank. The bank then converts the funds (if necessary) and releases them to the heirs.
5. Key Legal Considerations
- National Law of the Deceased: Under Article 16 of the Civil Code of the Philippines, the order of succession and the amount of successional rights are regulated by the national law of the deceased. However, Philippine procedural law governs the process of claiming the asset.
- Dormancy: If the deposit is left untouched for 10 years without communication from heirs, it may be subject to the Unclaimed Balances Law, where the funds could be escheated to the Philippine Treasury.
- Outstanding Obligations: Any unpaid PRA annual fees or medical bills incurred in the Philippines may be deducted from the deposit before the final release.
6. Summary Table of Requirements
| Category | Requirement |
|---|---|
| Identity | Original Passport & SRRV Card of deceased |
| Legal | Deed of Extrajudicial Settlement (Apostilled if foreign) |
| Tax | BIR eCAR (Proof of 6% Estate Tax payment) |
| Notice | Newspaper Publication of Estate Settlement |
| Authority | PRA Letter of Authorization to the Bank |
Conclusion
Claiming an SRRV deposit is not an instantaneous process. It requires a synergy between the Philippine Retirement Authority, the Bureau of Internal Revenue, and the depository bank. While the 6% estate tax is a standard requirement, the primary hurdle for foreign heirs is often the proper authentication (Apostille) of foreign documents and ensuring compliance with Philippine publication laws. Professional legal assistance is often recommended to bridge the gap between foreign probate and Philippine administrative requirements.