When a sibling passes away leaving behind real property (land, house, or condo), the transition of ownership is governed by the Civil Code of the Philippines and the National Internal Revenue Code (NIRC), as amended by the TRAIN Law. This process can be complex, particularly depending on whether the deceased left a last will and testament or died intestate.

I. Determining the Basis of Succession

The procedure depends primarily on the existence of a will:

Testate Succession: Occurs when the deceased left a valid Last Will and Testament. This document must undergo Probate—a judicial process where the court determines the will's extrinsic validity.
Intestate Succession: Occurs when there is no will. In this case, the law (Civil Code) dictates who the legal heirs are. Under Philippine law, brothers and sisters are "collateral relatives." They only inherit if the deceased has no compulsory heirs (surviving spouse, legitimate/illegitimate children, or parents/ascendants).

II. Modes of Settlement

There are two primary ways to settle the estate:

1. Extrajudicial Settlement of Estate (EJS)

This is the most common and fastest method. It is applicable only if:

The deceased left no will.
The deceased left no debts (or all debts have been paid).
All heirs are of legal age (or represented by judicial guardians).
All heirs agree on the division of the property.

The Process:

The heirs execute a public instrument called an Extrajudicial Settlement of Estate.
If there is only one heir, an Affidavit of Self-Adjudication is executed instead.
The document must be published in a newspaper of general circulation once a week for three consecutive weeks.

2. Judicial Settlement of Estate

This is required if:

There is a contested Will.
The heirs cannot agree on the partition of the property.
There are outstanding debts that the estate must settle.
This involves filing a petition in court, which is often a lengthy and expensive process.

III. Documentary Requirements

To transfer the Title (Transfer Certificate of Title or TCT) from the deceased sibling to the surviving heirs, the following documents are generally required by the Bureau of Internal Revenue (BIR) and the Register of Deeds:

Death Certificate: Certified true copy from the Philippine Statistics Authority (PSA).
Birth Certificates: Of both the deceased and the heirs (to prove the sibling relationship).
Notice of Death: (Required for deaths occurring before the TRAIN Law; for deaths after Jan 1, 2018, this is generally no longer required).
Certified True Copy of the Title(s): Of the property involved.
Tax Declaration: For both land and improvements (Current Year).
Deed of Extrajudicial Settlement or Court Order (if judicial).
Affidavit of Publication: From the newspaper publisher.
Special Power of Attorney (SPA): If an heir is representing another or if a third party is processing the papers.

IV. Tax Obligations: The Estate Tax

Before the property can be transferred, the Estate Tax must be paid to the BIR.

Rate: Under the TRAIN Law (for deaths from Jan 1, 2018, onwards), the estate tax is a flat rate of 6% of the net estate value.
Standard Deduction: A standard deduction of ₱5,000,000 is allowed. If the property is worth less than this amount and there are no other assets, the tax might be zero, but a return must still be filed.
Filing Deadline: The Estate Tax Return must be filed within one (1) year from the date of death.

Upon payment and validation, the BIR will issue a Certificate Authorizing Registration (CAR). This is the "golden ticket" required by the Register of Deeds to issue a new title.

V. Final Steps for Title Transfer

Once the CAR is obtained, the heirs must proceed to:

The Local Treasurer’s Office: Pay the Transfer Tax (usually 0.50% to 0.75% of the property value).
The Register of Deeds: Submit the CAR, Deed of Settlement, Proof of Transfer Tax Payment, and the original Owner’s Duplicate Copy of the Title.
The Assessor's Office: Once the new TCT is issued in the heirs' names, apply for a new Tax Declaration.

Important Considerations

The Rule of Proximity: In intestate succession, siblings are third in the line of priority. If the deceased sibling had children (legitimate or illegitimate) or a surviving spouse, those individuals inherit to the exclusion of brothers and sisters. If there are no children but the parents are still alive, the parents inherit, excluding the siblings. Siblings only inherit if the deceased had no spouse, no descendants, and no ascendants.

Debts and Liabilities: The heirs are only liable for the debts of the deceased up to the value of the inheritance received. Creditors have two years after the settlement to file a claim against the estate.