Transfer of Conjugal Property After a Spouse Dies (Philippine Context)

This guide walks through what happens to conjugal/community property when a spouse dies in the Philippines—how to compute who owns what, how to pay taxes, and how to transfer titles. It synthesizes long-standing rules in the Civil Code, Family Code, Rules of Court, and TRAIN law. It’s legal information, not advice.

1) Start with the property regime

The rules you apply at death depend on the couple’s property regime:

Absolute Community of Property (ACP) – the default for marriages on/after 3 Aug 1988 (Family Code) unless there’s a valid prenup. Most assets acquired before and during the marriage (with specific exclusions) belong to the community.
Conjugal Partnership of Gains (CPG) – often the default for marriages before 3 Aug 1988 (Civil Code), and for couples who validly opted for it post-1988. Each spouse keeps exclusives; the conjugal partnership owns the net gains acquired during the marriage.
Complete Separation of Property – if validly agreed in a prenup or decreed by court. No “conjugal” mass to liquidate; each estate stands alone.

Why it matters: On death, you liquidate the property relations first (identify exclusive vs community/conjugal, settle charges), then only the decedent’s share becomes part of the estate for inheritance and taxes.

2) Liquidation sequence on death (ACP/CPG)

Think of it as “settle the marriage, then settle the estate.”

Inventory & classification
- List all assets and liabilities.
- Tag exclusive assets of each spouse vs community/conjugal assets.
- In CPG, compute net gains and reimbursements between exclusive and conjugal funds.
Pay charges and reimbursements
- Community/conjugal assets answer for community debts (family expenses, debts incurred for the partnership, etc.).
- Reimburse exclusive funds improperly used, and vice-versa.
Split the residue
- The net remainder of the community/conjugal mass is split, ½ to the surviving spouse, ½ to the deceased spouse.
Determine the estate
- Only the decedent’s ½ (plus any exclusive property of the decedent) forms the gross estate to be transmitted to heirs.

Shortcut people often miss: The surviving spouse’s ½ of the community is not inheritance—it is not part of the taxable estate. It is the spouse’s own property.

3) Who inherits the decedent’s half? (basic intestacy map)

If there’s no will (or if a will fails), intestate shares apply. High-level guide:

With legitimate child/children: Surviving spouse shares as a child (i.e., one share equal to that of each legitimate child) in the decedent’s estate.
No descendants, but with legitimate parents/ascendants: Surviving spouse gets ½; ascendants share the other ½.
No descendants/ascendants, but with illegitimate child/children: Surviving spouse gets ½; illegitimate children share ½.
If none of the above exist: Surviving spouse can take the whole estate, subject to rights of collateral relatives under the Code.

If there is a will, remember legitimes of compulsory heirs (legitimate/illegitimate children, ascendants in default of descendants, and the surviving spouse) must be reserved. Donations inter vivos and testamentary dispositions are reduced if they impair legitimes.

4) The family home and rights of the survivors

The family home forms part of the estate but carries protections: the surviving spouse and minor/unmarried children have a right of residence; partition or forced sale is generally deferred by law/policy interests favoring the family home (subject to limited exceptions and debts specifically chargeable by law).
In valuation for estate tax, the family home deduction (see §6) may apply up to the statutory cap.

5) Practical title outcomes

Real property titled to “Spouses A and B” (or both names): After liquidation, the surviving spouse retains his/her ½, while the other ½ (the decedent’s share) goes to the heirs (including the surviving spouse again as heir to a portion of that half).
Vehicles/condo/stocks: Same concept—identify the conjugal/community share, then transfer only the decedent’s portion to heirs.
Complete separation regime: Transfer only what the decedent individually owned.

6) Estate tax 101 (TRAIN law essentials)

Estate tax rate: 6% on the net estate of the decedent.
Gross estate includes: the decedent’s ½ of community/conjugal property plus all exclusives of the decedent (real/personal, wherever situated if citizen/resident; special rules apply to nonresident aliens).
Automatically excluded: the surviving spouse’s ½ of the community/conjugal property.
Deductions (high-level):
- Standard deduction: ₱5,000,000.
- Family home deduction: up to ₱10,000,000 (subject to rules; must be the decedent’s family home).
- Claims against the estate, transfers for public use, certain losses, and other allowable deductions under current BIR rules.
Filing: Estate Tax Return (BIR Form 1801) generally within 1 year from death (extensions may be requested for meritorious reasons).
Before any transfer: Secure an Estate TIN, file the return, pay the estate tax (or get an extension/installment approval), then obtain the BIR eCAR/CAR (Electronic/Clearance Authorizing Registration).

Banks & registries won’t let you move assets (withdraw/retitle) without a BIR CAR/eCAR covering the asset.

7) Two main settlement routes

A) Extrajudicial Settlement (EJS) – quick if the estate is simple

Use this only if:

The decedent left no will (or will is not being probated),
There are no unpaid debts or all creditors are paid/waived,
All heirs are of legal age (minors must be represented) and agree.

What to do:

Execute a Notarized Deed of Extrajudicial Settlement (or Affidavit of Self-Adjudication if there is only one heir).
Publish the EJS in a newspaper of general circulation once a week for 3 consecutive weeks (Rule 74).
File estate taxes and secure BIR CAR/eCAR.
Pay local transfer tax and registration fees.
Register with the Register of Deeds (for land/condo) to cancel the old title and issue new TCT/CCTs to the heirs (or to the surviving spouse plus heirs, per your partition).
Expect the two-year lien in favor of creditors/omitted heirs under Rule 74 to be annotated on the new titles.

A bond may be required in certain EJS configurations (especially when personal properties are involved), conditioned to answer for claims under Rule 74.

B) Judicial Settlement/Probate – when you must go to court

There is a will (probate is mandatory before distribution),
There are debts, disputes, minors with conflicts, or unclear heirship,
You need court authority to sell estate assets, or to resolve complex liquidation issues.

Flow: Appointment of executor/administrator, inventory, liquidation of property relations, payment of claims, project of partition, then decree of distribution. After taxes and the court decree, proceed to retitling at the Registry and other agencies.

8) How to retitle real property (step-by-step)

Gather documents: Death certificate, marriage certificate, titles/tax decs, tax clearances, IDs, map/sketch if needed.
Liquidate the property relations (ACP/CPG) on paper within your settlement deed or court pleadings.
Pay estate taxes and obtain BIR CAR/eCAR specifying each real property and the transferees.
City/Municipal Assessor/Treasurer: Update tax records; pay transfer tax and RPT arrears if any.
Register of Deeds:
- Present the EJS/Decree, CAR/eCAR, original title, tax clearances, and transfer tax receipt.
- The RD cancels the old title and issues new titles: typically one undivided share to the surviving spouse (his/her ½) plus the heirs’ shares over the decedent’s ½ per your partition.
- Annotate Rule 74 notice (if EJS) and any liens/encumbrances.

9) Vehicles, shares, deposits, and other movables

Vehicles: Submit the CAR/eCAR, EJS/Decree, OR/CR, and LTO forms to transfer ownership.
Shares/securities: Work with the corporate secretary/transfer agent; submit CAR/eCAR, EJS/Decree, stock certificates, and SEC forms to cancel/reissue shares.
Bank deposits: Banks typically freeze accounts upon notice of death; withdrawals/transfers require CAR/eCAR, estate TIN, EJS/Decree, and bank forms.
Business interests/permits: Amend DTI/SEC papers and BIR registration to reflect the new owners.

10) Common edge cases & tips

Mortgage/loans: Pay or assume per agreement; creditors can claim before partition. If selling estate property to pay taxes/debts, secure proper authority (heirs by EJS, or court if judicial).
Donation issues: Property earlier donated between spouses/partners may be void (except moderate gifts) and could revert before liquidation—check history.
Contributions vs title names: Title under one spouse’s name does not by itself decide ownership in ACP/CPG; classification still follows the regime and source of funds.
Renunciation by an heir:
- A pure and simple repudiation (no one named beneficiary) isn’t a donation.
- A renunciation “in favor of” specific co-heirs can be treated as a donation subject to donor’s tax—plan carefully.
OFW/foreign assets: Report worldwide assets (if decedent was a PH citizen/resident). Foreign realty is not registrable here but still tax-reportable; claim foreign tax credits where allowed.
Minors or special heirs: Use guardianship/assistance; partition may set usufruct or trust-like arrangements to protect minors’ shares.
Family home occupancy: Even after partition, respect the statutory right of abode of the surviving spouse/minor children as recognized in jurisprudence and the Family Code.

11) Quick checklists

Documents to prepare early

□ Death certificate (PSA)
□ Marriage certificate (PSA)
□ Birth certificates of children (PSA)
□ Titles/OR-CRs/stock certs/bank certifications
□ Latest real property tax (RPT) receipts & tax decs
□ Any prenup or regime-changing court orders
□ Loan/mortgage statements (if any)

Taxes & filings

□ Get Estate TIN
□ File BIR Form 1801 within 1 year (seek extension if needed)
□ Compute estate tax at 6% of net estate (apply ₱5M standard and up to ₱10M family home deductions where eligible)
□ Secure CAR/eCAR for each registrable asset

Transfers

□ EJS (with 3-week publication) or court Decree
□ Pay transfer tax (LGU)
□ Register of Deeds for land/condo; LTO for vehicles; transfer agent for shares; banks for deposits

12) Worked example (ACP; simple estate)

House & lot titled to Spouses X and Y, FMV ₱12M; bank account ₱2M. No debts. Two legitimate children. X dies.

Liquidate ACP: Community mass ₱14M → pay none (no debts) → split 50/50 → Surviving spouse Y = ₱7M (own property); Decedent X’s estate = ₱7M.
Heirs: Y (as heir) + 2 children share X’s ₱7M equally (intestate with legit children) → each gets ₱2.333M from X’s half.
Estate tax: Start with ₱7M, apply deductions (e.g., standard ₱5M, family home portion up to ₱10M if applicable), compute 6% on net, pay, get eCAR.
Transfer: New title shows Y – ½ (own) plus undivided hereditary share over X’s ½ with the two children; or you may partition into specific lots/condo shares if feasible.

13) Key takeaways

Liquidation first, inheritance second. Identify and split the community/conjugal mass before computing the estate.
The surviving spouse’s ½ is not inherited and not taxable as estate property.
Heirship then applies to the decedent’s ½ (plus decedent’s exclusives), either by will (respect legitimes) or by intestacy.
No transfer without estate tax compliance and BIR CAR/eCAR—registries and banks will require it.
Use EJS for simple, debt-free estates; go judicial if there’s a will, debts, minors/conflicts, or complex liquidation issues.
Mind the family home protections and the two-year Rule 74 lien after EJS.
Plan renunciations and partitions with both civil and tax effects in mind.

When real money or real property is involved (especially mixed ACP/CPG assets, loans, or minors), getting counsel to draft a liquidation-plus-settlement that the BIR and registries will clear on the first pass saves months of rework.