Proper Order of Documents in an Extra‑Judicial Settlement of Estate
(Philippine legal practice, 2025 update)
1. Legal Foundations & When EJS Is Allowed
| Authority | Key Points |
|---|---|
| Art. 960–1081, Civil Code | Governs succession, rights of heirs. |
| Rule 74, Rules of Court | Permits extrajudicial settlement if (a) the decedent left no will, no outstanding debts, and (b) all heirs are of age or minors are duly represented. |
| BIR Revenue Regulations 12‑2018 & 17‑2023 (Estate‑Tax Rules) | Prescribe the estate‑tax return (BIR Form 1801), deadlines, penalties, and issuance of the Certificate Authorizing Registration (CAR). |
| Land Registration Act & Local Government Code | Cover transfer of real property titles and real‑property tax (RPT) clearances. |
| Special Rules (e.g., Affidavit of Self‑Adjudication for a sole heir, guardianship rules for minors, RA 11213 Estate‑Tax Amnesty until June 14 2025) | Provide alternatives or tax relief. |
Tip: The moment an heir signs the EJS, they become personally liable to unpaid creditors who surface within 2 years from registration (Rule 74, Sec. 4).
2. Master Checklist & Proper Sequence of Documents
Death Certificate
- PSA‑certified; triggers the estate‑tax clock (one year for filing).
Heirs’ Proof of Relationship
- Birth & marriage certificates, adoption decrees, legitimation papers if needed.
TIN of the Estate
- Secure a separate Taxpayer Identification Number in any BIR RDO; required before the estate‑tax return can be filed.
Certified True Copies of Assets
- Real property – Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT), latest tax declarations, condominium CCTs.
- Personal property – Bank statements, share certificates, vehicle OR/CR, insurance policies.
Drafting the Deed
- (a) Deed of Extra‑Judicial Settlement of Estate (EJS) or
- (b) Affidavit of Self‑Adjudication (sole heir)
Requirements inside the deed: full inventory, manner of partition, waiver/quitclaim clauses, bond undertaking (if personal property), and notarization.
Notarization & Surety Bond (if personal property)
- Executed before a Philippine notary; attach heirs’ competent IDs.
- If personalty is involved, post a bond equal to its value unless all heirs waive (Rule 74, §1).
Publication
- Publish the notarized EJS once a week for 3 consecutive weeks in a newspaper of general circulation in the province where the decedent last resided or where major real property is located.
- Keep the Publisher’s Affidavit & newspaper clippings.
Estate‑Tax Return (BIR Form 1801) & Payment
- File within one (1) year from death (extendable for meritorious cause).
- Attach: EJS deed, death certificate, asset list with zonal/fair‑market values, CPA‑certified Statement of Assets & Liabilities (if > ₱5 M), and proof of publication.
- Pay estate tax or apply Estate‑Tax Amnesty (RA 11213) if still eligible.
Certificate Authorizing Registration (CAR)
- Issued per property by the BIR after full payment.
- Also obtain Tax Clearance Certificate for estate‑tax purposes.
Local Transfer Taxes
- Pay Transfer Tax (0.5–0.75 % of FMV) at the provincial/city treasurer within 60 days from deed execution.
- Obtain RPT (Real‑Property‑Tax) clearance.
Registry of Deeds / LTO / Corporate Secretary Filing
- Real property: Present EJS, CAR, RPT clearance, transfer‑tax receipt, owner’s TCT, IDs. Registry cancels old title & issues new ones in heirs’ names.
- Vehicles: Submit notarized deed + CAR to LTO for change of ownership.
- Shares: Record transfer in the corporate stock & transfer book; some companies require SEC clearance or board approval.
New Tax Declarations
- File with the City/Municipal Assessor for every new TCT/CCT.
Secondary Registrations & Clearances
- BIR Final Tax Clearance (if heirs will later sell property).
- Barangay & DSWD Clearances (if minor/disabled heirs require guardianship).
3. Variations in Practice
| Scenario | Extra Steps |
|---|---|
| Simultaneous sale to a third party | Prepare a Deed of EJS with Absolute Sale; pay estate tax and capital‑gains/creditable withholding taxes together; CAR is issued in buyer’s favor. |
| Foreign assets or non‑resident decedent | May require ancillary administration abroad; Philippine EJS covers Philippine‑situs assets only. |
| Pending debts | Judicial settlement is mandatory unless heirs assume debts and creditors consent in writing. |
| Minor heirs | Secure Letters of Guardianship from the RTC or include DSWD‑approved Special Power of Attorney by natural parent‑guardian. |
| Disputed heirship | Mediation or RTC probate should precede any EJS; filing a fraudulent EJS may void the title. |
4. Common Pitfalls & How to Avoid Them
- Late filing of Form 1801 → 25 % surcharge + 12 % interest + compromise penalties.
- Using zonal values that changed mid‑process → always attach a Sworn Declaration of FMV as at date of death.
- Skipping publication because “all heirs agree” → title transfer will still be refused by Registry of Deeds.
- Not posting the surety bond for personalty → creditors can annul the settlement.
- CAR name mismatches → ensure spelling, marital status, and TINs are identical across deed, IDs, and BIR docs.
5. After‑Settlement Obligations
- File an Informative Return (BIR Form 1954) if estate keeps earning income (e.g., rentals) while under settlement.
- Consolidate heir records – Update BIR registration to move assets from TIN of Estate to heirs’ individual TINs.
- Keep originals – Maintain notarized deed, CARs, and new titles perpetually; they are required in any future conveyance.
- Watch the 2‑year creditor window – Set aside contingency funds or insure against claims.
6. Sample Timeline (Simple Estate with One Property)
| Day | Action |
|---|---|
| 0 | Secure death certificate; open estate TIN. |
| 10 | Gather titles, tax declarations, heirs’ IDs. |
| 20 | Draft & notarize EJS; post bond if needed. |
| 25–45 | Publish in newspaper (3 weeks). |
| 46 | Compile publication proof; file BIR Form 1801; pay estate tax. |
| 70 | Receive CAR; pay local transfer tax. |
| 75 | Register deed + CAR with Registry of Deeds. |
| 90 | Claim new TCT/CCT; update tax declarations. |
Total elapsed time: ≈ 3 months (add 2–4 weeks more if availing Estate‑Tax Amnesty).
Key Takeaways
- Follow the exact order—death certificate ➜ deed ➜ publication ➜ estate tax ➜ CAR ➜ local taxes ➜ registration—to avoid repeat trips to the BIR and Registry.
- Even a flawless deed is useless without publication and CAR.
- An Estate‑Tax Amnesty application is filed after the deed is notarized but before CAR issuance.
- Always verify local documentary‑stamp‑tax (DST) rates; some LGUs offer online assessment portals as of 2025.
Pro‑tip for practitioners: Bring both originals and two photocopy sets of every document when visiting government offices—the most frequent cause of delay is incomplete copies.
With these documents prepared in the proper sequence and with careful attention to deadlines, heirs can complete an extra‑judicial settlement efficiently while remaining fully compliant with Philippine law.