This article is for general information only and does not constitute legal or tax advice. For specific cases, always consult a Philippine lawyer or tax professional.

I. What Is an Extrajudicial Settlement of Estate?

When a person dies in the Philippines, their properties (the estate) must be transferred to their heirs or beneficiaries. One common way to do this—if certain conditions are met—is through an Extrajudicial Settlement of Estate (EJS).

Instead of filing a court case (judicial settlement), the heirs execute a public instrument (usually titled “Extrajudicial Settlement of Estate,” “Deed of Extrajudicial Settlement,” or “Extrajudicial Settlement with Waiver of Rights”) before a notary public, then comply with publication, tax, and registration requirements.

In practice, people choose EJS because:

It is much faster than court proceedings.
It is less expensive overall than a full-blown judicial settlement.
It allows heirs to divide or sell the property relatively quickly once requirements are complied with.

However, it still involves significant costs and requires careful compliance with law and tax rules.

II. Legal Basis and Basic Requirements

The main legal foundations for EJS include:

Rule 74 of the Rules of Court – Governs summary settlement of estates, including extrajudicial settlement.
Relevant provisions of the Civil Code and National Internal Revenue Code (Tax Code).

Basic requirements (simplified):

No will, or if there is a will, it has not been or cannot be probated (or EJS is used only for properties not covered by a probated will).
No outstanding debts of the decedent, or all debts have been paid, or provision is made for their payment.
All heirs are of legal age, or minors are duly represented by their legal guardians.
The EJS is in a public instrument, notarized.
The EJS is published in a newspaper of general circulation once a week for three (3) consecutive weeks.
The EJS and tax documents are filed with the BIR (for estate tax) and registered with the Register of Deeds (for real properties).

Each step has its own cost implications, which we’ll break down next.

III. Main Categories of Costs in an EJS

You can think of EJS expenses in these buckets:

Lawyer’s professional fees
Notarial fees
Documentary and administrative expenses
Publication costs
Taxes and government charges
- Estate tax (BIR)
- Local transfer tax
- Registration fees at the Register of Deeds
- Other BIR and local processing fees
Asset-specific transfer costs
- LTO (vehicles)
- Banks (deposits)
- Corporations (shares of stock)
Indirect or “hidden” costs
- Back real property taxes
- Homeowners’ association or condo dues
- Survey or technical descriptions
- Extra notarizations, affidavits, etc.

Let’s go through these one by one.

IV. Lawyer’s Professional Fees

1. How lawyers typically charge

In an EJS, Philippine lawyers usually charge in one of these ways:

Lump-sum fee for the entire EJS work (drafting the deed, coordinating publication, assisting with BIR and Registry of Deeds, etc.)
Per-document fee (EJS deed, waiver deed, special powers of attorney, affidavits, etc.)
Hourly rate, plus reimbursements for actual expenses
Percentage of estate value in some arrangements (more common in complex or large estates, but must still be reasonable and ethical)

2. Typical ranges (very rough, for orientation only)

Actual figures vary widely depending on:

Location (Metro Manila vs. provincial cities vs. rural areas)
Size and complexity of the estate
Number of properties and heirs
Whether there are disputes or special issues (illegitimate children, second families, foreign heirs, missing titles, etc.)
Reputation and seniority of the lawyer or law firm

In practice, for relatively simple estates (e.g., 1–2 real properties, no serious disputes), professional fees might range anywhere from:

Low tens of thousands of pesos for very straightforward, smaller matters handled by solo practitioners or small firms; to
Six figures (hundreds of thousands of pesos) for large or complex estates, especially in urban centers and if the lawyer is handling everything end-to-end (including negotiations among heirs, tax planning, and multiple assets).

Lawyers may also:

Offer “package” fees for EJS + estate tax processing + title transfer.
Require down payments/retainers, with the balance due upon completion of key milestones (e.g., after BIR estate tax clearance, after transfer of titles).

3. Things affecting the fee

Factors that commonly increase legal fees:

Multiple properties (house and lot + several lots + condo + agricultural land, etc.)
Out-of-date records (tax declarations, titles in the name of grandparents, missing documents)
Disagreements among heirs, even if they don’t escalate to court
Rushed or urgent timelines (e.g., to avail of an amnesty or beat a tax deadline)
Heirs living abroad, requiring notarization or consularization overseas and coordination of documents

V. Notarial Fees

In EJS, notarization is not optional—the deed must be a public instrument.

1. Legal framework

Notarial practice is regulated by the Rules on Notarial Practice.
Local IBP chapters sometimes issue suggested minimum notarial fees.
Notaries must charge reasonable fees, and they are expected to consider factors such as complexity, responsibility assumed, and value of the transaction.

2. Typical notarial charges

For a document like an EJS, the notarial fee is usually:

Higher than for ordinary affidavits or contracts.
Sometimes folded into the lawyer’s professional fee if your lawyer is also the notary.

Roughly, notarial fees for an EJS can range from:

A few thousand pesos for small, local practice setups; to
Much higher amounts where the notary assumes significant responsibility for large-value transactions or where the EJS is bundled with multiple attached documents.

Some notaries charge a flat fee per document, while others consider:

Number of pages
Number of signatories
Value of the properties involved

VI. Documentary and Administrative Expenses

Even before taxes and publication, EJS requires paperwork, such as:

Certified True Copies (CTCs) of:
- Death certificate
- Marriage certificate(s)
- Birth certificates of heirs
- Titles (TCTs/CCTs) and tax declarations
Barangay clearances, ** tax clearances**, real property tax receipts
ID photocopies, special powers of attorney (when heirs are abroad or unavailable)
Authentication or apostille (for documents from abroad)

Each document has its own fee (often modest individually, but significant in total), including:

Fees at PSA, City Hall, barangay, and other government offices
Photocopying, printing, courier or shipping costs if heirs are in different locations

VII. Publication Costs

Rule 74 requires that the extrajudicial settlement be published in a newspaper of general circulation once a week for three (3) consecutive weeks.

1. How publication works

The heirs (or their lawyer) contact one or more newspapers of general circulation.
The EJS or a notice of extrajudicial settlement is formatted according to the newspaper’s legal notices section.
The notice appears once each week for 3 weeks.
The newspaper issues affidavits of publication and full-page clippings, which become required attachments for BIR and Registry of Deeds.

2. Cost drivers

The cost of publication depends on:

Newspaper – national broadsheets are generally more expensive than local or regional papers.
Length of the notice – more properties and more detailed descriptions mean more lines or column inches.
Location and circulation – some local papers may charge less but may be more difficult to schedule or coordinate with.

Total publication cost for a complete EJS notice can range from modest to quite significant, especially if using nationally circulated newspapers. Some lawyers or firms have partner newspapers and may handle the arrangement for you (at cost, plus a service fee).

VIII. Taxes and Government Charges

This is usually the largest component of the total cost, especially for estates with valuable real properties.

A. Estate Tax (BIR)

1. Basic concept

The estate tax is a tax on the right of the decedent to transmit property at death. The estate must file an estate tax return and pay the tax before titles can be transferred.

After tax reforms (e.g., TRAIN law), the estate tax system was simplified to:

A flat rate of 6% on the net estate (gross estate minus allowed deductions), subject to change by future laws.

2. Gross estate

The gross estate typically includes:

Real properties (land, house and lot, condos) in the Philippines.
Personal properties, such as:
- Bank deposits
- Vehicles
- Shares of stock
- Certain receivables or business interests
Other properties or rights the decedent owned at the time of death.

Valuation is usually based on:

Whichever is higher among:
- Zonal value (BIR)
- Fair market value per local assessor (for real property)
- Actual cash value, book value, or market value for personalty, depending on type.

3. Deductions and exemptions (illustrative)

Common allowable deductions can include:

Standard deduction (a fixed amount allowed by law)
Family home up to a certain cap
Certain claims against the estate (valid debts)
Unpaid mortgages on estate properties (subject to rules)
Funeral expenses, up to a limit
In some cases, medical expenses incurred before death (depending on the law in effect at the time of death)

These rules can change over time, so you must check the law and BIR regulations applicable as of date of death.

4. Deadlines, surcharges, and interest

Estate tax is generally due within one (1) year from death, unless the BIR grants an extension.
Late filing/payment can trigger:
- Surcharge (commonly 25% of basic tax in many cases)
- Interest (per annum rate set by law and regulations)
- Possible compromise penalties.

For old estates that remained unsettled for many years, penalties can be very substantial, and this often shocks families who assumed EJS would be “cheap.”

5. Amnesty laws and special programs

In recent years, Congress has passed estate tax amnesty laws for specific periods, allowing late payments with reduced or waived penalties and interest. These programs:

Apply only during their specified coverage period.
Require compliance with particular conditions and deadlines.

Always check whether any current amnesty or special program is in effect, as this can dramatically change the total tax and penalty burden.

B. Local Transfer Tax (LGU)

Once the BIR issues the Electronic Certificate Authorizing Registration (eCAR) or equivalent clearance, you usually pay the local transfer tax at the city or municipal treasury.

The rate is typically a small percentage of the value of the property, commonly up to:
- Around 0.5% in provinces, and
- Up to about 0.75% in cities and municipalities within Metro Manila and some highly urbanized cities.

Exact rates are set by local ordinances, so they vary by locality.

Local treasurers may also require:

Real property tax clearances (no unpaid RPT).
Payment of interest and penalties if there are delinquent RPTs.

C. Register of Deeds: Registration Fees

To complete the transfer of real property, the heirs or their representative present:

eCAR
EJS
Titles, tax clearances, IDs, etc.

The Register of Deeds charges:

Registration fees based on a schedule tied to the value of the property.
Fees for:
- Issuance of new Transfer Certificates of Title (TCTs) or Condominium Certificates of Title (CCTs)
- Annotations, cancellations of encumbrances, etc.

These fees are less than estate tax but still meaningful—especially for high-value properties or multiple parcels.

D. Other Government Fees

Other potential charges include:

BIR documentary fees (e.g., certification fees, documentary stamp taxes on certain assets like shares).
Real property tax arrears and penalties.
Barangay or homeowners’ association clearances.
ID cards and document authentication fees.

IX. Asset-Specific Transfer Costs

Apart from land and buildings, many estates include other assets that have their own transfer procedures and costs.

1. Vehicles (LTO)

For vehicles, the heirs must transfer ownership at the Land Transportation Office (LTO). Requirements usually include:

EJS or Affidavit of Self-Adjudication
eCAR (if applicable)
OR/CR of the vehicle
Valid IDs of the heirs

Costs:

LTO transfer fees
Possible emission testing, clearances, and processing fees
If there is a registered chattel mortgage, costs for cancellation

2. Bank Deposits

Banks typically require:

Certified copies of death certificate
EJS or other settlement documents
BIR tax clearance or eCAR (depending on amount and type of account)
Bank-specific forms

Banks may charge:

Processing fees for release of deposits or transfer to heirs
Certification or documentary fees
Sometimes require the heirs to open accounts in that bank

3. Shares of Stock / Corporate Interests

For shares in Philippine corporations:

The corporation’s stock and transfer book must reflect the transfer.
Requirements can involve:
- EJS
- BIR clearance
- Board resolutions
- Indorsement of stock certificates

Costs may include:

Documentary Stamp Tax (DST) on transfers of shares (at rates set in the Tax Code)
Corporate or transfer agent processing fees
Legal fees if the corporation also hires counsel

X. Hidden or Often Overlooked Costs

These can derail “cheap EJS” assumptions:

Back real property taxes
- Unpaid RPT must usually be settled—with penalties and interest—before transfer.
Homeowners’ association / condo dues
- Some associations refuse to issue clearances without full payment of arrears.
Title problems
- Lost titles (requiring re-issuance through administrative or judicial processes)
- Typographical errors in names, boundaries, or technical descriptions
- Old titles still in the name of grandparents or earlier ancestors
Disputes among heirs
- Negotiation costs, additional lawyer time
- Possible court cases (partition, annulment of documents, etc.), which are far more expensive than EJS.

XI. Sample Cost Breakdown (Illustrative Only)

To visualize, consider a very simplified, hypothetical example. Assume:

One house and lot in a provincial city
No major disputes
Real property tax is updated
No bank deposits or vehicles involved

Possible expense categories:

Lawyer’s fees – Professional fee for EJS drafting, BIR guidance, and title transfer assistance.
Notarial fee – For the EJS and related documents.
Publication fee – For 3-week newspaper notice.
Documentary expenses – PSA certificates, CTCs, photocopies, IDs, etc.
BIR estate tax – Based on net estate, after deductions.
Local transfer tax – Paid at the city or municipal treasurer.
Registry of Deeds fees – Registration and issuance of new title.

Even in a “simple” case, the largest portions usually end up being:

Estate tax, and
Lawyer’s fees, depending on the value of the property and arrangement with counsel.

XII. Cost-Saving Tips (Without Cutting Legal Corners)

Organize documents early. Keep titles, tax declarations, tax receipts, and personal documents (birth, marriage, death certificates) in order. Missing or incomplete documents are a major cost and time driver.
Clarify the list of heirs. Identify all compulsory heirs (spouse, legitimate and illegitimate children, in some cases parents), and make sure everyone is properly represented. Hidden heirs appearing later can invalidate arrangements or require costly corrections.
Consult a lawyer early. Even a short paid consultation can help you:
- Avoid unnecessary penalties
- Understand whether EJS is even legally proper in your case
- Plan the sequence of steps efficiently
Don’t skip publication or taxes to “save money.”
- Failure to publish or pay estate tax can lead to:
  - Difficulty selling or mortgaging the property later
  - Nullity or vulnerability of the EJS
  - Exposure to claims by omitted heirs or creditors
- Future buyers often insist on clean titles and clear tax records. Cutting corners usually costs more later.
Negotiate fee arrangements transparently.
- Ask for a written engagement agreement or at least a clear breakdown of:
  - Lawyer’s professional fees
  - Reimbursable expenses (taxes, publication, government fees)
- Clarify who will handle which tasks (heirs vs. lawyer’s staff).
Coordinate among heirs. If the heirs are united and cooperative:
- Legal work is simpler and cheaper.
- There’s less risk of future challenges.

XIII. When EJS Might Not Be Appropriate

In some situations, you cannot or should not use EJS, no matter how cost-effective it seems:

There are serious disputes among heirs that cannot be resolved amicably.
There are substantial, unresolved debts of the decedent and creditors are likely to object.
There is a will that must be probated.
Some heirs refuse to sign or are missing and cannot be located.
The only way to clarify rights is through court proceedings (e.g., questions of legitimacy, validity of marriages, validity of prior transfers).

Trying to force an EJS under these conditions can lead to void documents, criminal or civil liability, and wasted money.

In such cases, a lawyer may recommend judicial settlement, partition, or other court actions—more expensive upfront but legally safer.

XIV. Final Thoughts

An Extrajudicial Settlement of Estate (EJS) in the Philippines is often the fastest and least expensive way to settle an estate—but it is far from free:

You must budget not only for lawyer’s and notarial fees, but also for:
- Publication
- Estate tax
- Local transfer tax
- Registry of Deeds fees
- Various document and administrative costs.
Penalties and interest for late estate tax filing or old unpaid real property taxes can dwarf all other fees combined.
Cutting corners (no publication, no tax payment, fabricated valuations) exposes the heirs to serious legal and financial risk.

The safest and ultimately most cost-effective approach is to:

Confirm that EJS is legally appropriate in your situation.
Consult a competent Philippine lawyer and, if needed, a tax professional.
Plan the process and budget realistically, with a clear understanding of all the cost components discussed above.