Withdrawal of a Deceased Relative’s Bank Savings — Requirements & Procedures (Philippines)

This practitioner-style guide covers what families and executors typically need to access or close a deceased person’s bank savings in the Philippines. It consolidates common legal and compliance requirements across banks and agencies. It’s general information—not legal advice.

1) First principles: what changes on death

Estate, not the family, owns the account(s). On death, all property—including bank deposits—forms part of the estate. Banks will freeze the account once notified (or once they learn of the death) until lawful release.
Two tracks run in parallel:
1. Succession/settlement (prove who the heirs are and how assets are to be divided), and
2. Tax clearance (estate tax compliance with the BIR). A bank usually will not release funds without both tracks addressed, unless a narrow interim rule applies (see §7).

2) Settlement track: showing who can receive the money

Your path depends on whether there’s a will, whether there are debts, and whether the heirs agree.

A. There is a will (testate succession)

File for probate in court.
The court appoints an executor (or administrator).
The bank releases/turns over funds to the executor/administrator, following the court’s orders, and subject to BIR clearance (see §3).

B. No will, no debts, heirs are all of age (intestate; uncontested)

Use Extrajudicial Settlement (EJS) under the Rules of Court. Typical ingredients:
- Deed of Extrajudicial Settlement (or Affidavit of Self-Adjudication if there is a single heir), notarized.
- Publication of the EJS in a newspaper of general circulation (once a week for three consecutive weeks).
- Filing of the EJS with the Register of Deeds if there’s real property; for bank deposits, banks still ask for the notarized EJS plus proof of publication.
- If there’s a sole heir’s self-adjudication, be prepared for the traditional bond requirement on personal property where applicable.
The bank pays out per the allocation stated in the EJS, after tax clearance.

C. There are debts, heirs are minors, or heirs disagree

You will generally need a court-supervised settlement.
A special administrator/administrator is appointed; banks follow court orders and tax clearance.
If a child is an heir, a guardian (with court approval to receive funds) is typically required for the child’s share.

D. Joint and “ITF” accounts—special notes

Joint “and/or” accounts. Banks may operationally allow the surviving co-depositor to transact, but legal ownership of the deceased’s share is still part of the estate. If there’s a dispute or adverse claim, expect the bank to require a court order.
“ITF” (In-Trust-For) or convenience accounts. Unless backed by a real trust instrument, banks and courts often treat these as estate assets, not automatic gifts to the named beneficiary. The same settlement and tax rules apply.

3) Tax track: estate tax, BIR clearance, and timelines

Estate tax return (BIR Form 1801) must generally be filed within 1 year from death (extensions may be sought).
TIN of the Estate. Secure a TIN for the Estate (separate from the decedent’s TIN).
Valuation date: The balance(s) are valued as of date of death (banks can certify balances on that date).
Deductions & rate: Current law (post-TRAIN regime) uses a 6% estate tax on the net estate, with standard deductions and allowable itemized deductions (e.g., standard deduction, family home up to a cap, etc.).
eCAR (Electronic Certificate Authorizing Registration). After assessment and payment (or availment of any lawful relief), the BIR issues an eCAR covering the bank deposits (sometimes one eCAR per bank/asset).
Release pre-clearance (interim rule). Philippine law allows limited withdrawals before eCAR under a final withholding mechanism (commonly 6% on the amount withdrawn), within a defined period from death. Banks implement this conservatively and will withhold and remit; many still prefer an eCAR first. Expect variance by bank (see §7).

Bottom line: Banks usually require (i) proof of settlement authority (probate/EJS/court order) and (ii) BIR clearance (eCAR) or use of the withholding-on-withdrawal option if allowed by their policy.

4) Typical bank checklist (expect minor variations by institution)

Identity & death:

Original/PSA Death Certificate of the decedent
Valid IDs of heirs/executor/administrator/authorized representative
Marriage certificate (surviving spouse), birth certificates (children/heirs)

Authority to receive:

Probate documents (Letters Testamentary/Administration; relevant court orders) or
Extrajudicial Settlement documents (EJS deed; proof of publication; if sole heir—self-adjudication + bond where required)
Special Power of Attorney (SPA) if a representative will process/receive on behalf of heirs

Tax compliance:

BIR eCAR (naming the bank deposit/branch) and the Estate TIN
If using the interim rule: bank’s withholding forms/acknowledgments

Account & bank items:

Passbook / certificate of time deposit / ATM card (if available)
Bank certification of balance as of date of death (bank issues after request; sometimes needed for BIR filing)
For time deposits, bank may require instructions on pre-termination vs maturity and who bears penalties.

Special cases:

Guardianship order (if an heir is a minor)
Affidavit of heirship or claimant’s affidavit (bank’s own templates)
Indemnity agreement (some banks require this when releasing without court order or for small balances)

5) Flowchart: choosing the path

Confirm death → gather civil registry documents.
Inventory accounts (bank/branch/account nos./type/balance as of death).
Identify heirs (spouse, legitimate/illegitimate children, parents, collateral relatives per the Civil Code order of intestacy).
Assess debts/minors/disputes.
- Simple, no debts, all adult heirs, all in agreement → EJS.
- Any complication (will, debts, minors, disputes) → probate/administration.
File estate tax (get Estate TIN, request bank date-of-death balance certs, compute, pay/settle).
Obtain eCAR (or coordinate bank for withholding-on-withdrawal if they allow).
Submit to bank → bank closes account and releases to the estate/heirs as the documents state (often by manager’s check).

6) Heir identification & shares (quick primer)

With a will: as probated (subject to legitimes).
Without a will: follows intestate succession (Civil Code):
- Descendants + surviving spouse share per legitime rules;
- If no descendants, ascendants + surviving spouse;
- Then collaterals if no lineal heirs;
- Illegitimate children have rights; shares differ by class;
- Representation/substitution applies in some lines.
Practical note: Banks do not compute shares; they rely on your EJS or court order stating who gets what.

7) Limited withdrawals before estate tax clearance

A statutory rule permits banks to allow withdrawals from the decedent’s deposit(s) within a limited window after death provided the bank withholds a final tax (commonly 6%) on the amount withdrawn and remits it to the BIR.
Caveats:
- Often time-bound (e.g., within a year from death).
- Not all banks permit this in practice, or they may cap the amount, or still require settlement documents to identify the payee.
- This withholding is not the entire estate tax if other assets exist; you’ll still need to file the estate return and secure eCAR for final settlement.

8) Common complications & how to handle them

Bank loans/offset (set-off). If the decedent had liabilities to the same bank, expect set-off against deposits before release.
Adverse claims among heirs. The bank will hold the account pending a court order.
Missing passbook/time deposit certificate. Execute the bank’s lost instrument affidavit and indemnity.
Foreign currency deposits (FCDU). Still part of the estate; documentation is the same.
Non-resident decedents. Philippine-situs assets (including deposits with Philippine banks) can be subject to PH estate tax; banks will still ask for eCAR or apply the withholding route.
Safe deposit boxes. Opening/inventory is typically coordinated with the BIR and sometimes requires bank and BIR presence under internal procedures.

9) Timelines & deliverables

Bank “date-of-death balance” certificate: often 3–10 banking days after request (varies).
Estate tax filing: due within 1 year from death (seek extension if needed).
eCAR issuance: processing time varies widely depending on completeness; plan for weeks to months.
Bank release: once papers are complete, banks typically close the account and issue manager’s checks payable to “Estate of [Decedent]” or to heirs per EJS/court order.

10) Practical checklists

A) For the family / executor

PSA Death Certificate
IDs of heirs; marriage/birth certificates
Inventory of accounts (bank, branch, type, numbers)
Choose EJS vs probate; prepare EJS (with publication) or secure court orders
Apply for Estate TIN; request bank balance certificate as of death
File BIR Form 1801 + pay estate tax / secure eCAR
Submit bank package; receive funds per deed/order

B) For the bank visit

Bring: EJS/probate papers, proof of publication, eCAR (or withholding forms if allowed), passbook/TD certificate, IDs, SPA (if using a representative).

11) Templates (outline you can adapt)

A) Bank request for date-of-death balance (one-page letter)

Header with estate details and account numbers
Request for certification of balances as of [date of death] for estate tax filing
Attached: Death Certificate copy, requester’s ID, authority (heir/executor/SPA)

B) Extrajudicial Settlement (key clauses)

Parties (all heirs identified)
Statement: no will, no debts; all heirs of legal age (or represented)
Complete asset list including bank deposits (bank/branch/account no./type)
Allocation of shares (who gets which account/how much)
Undertaking re: publication and creditors’ claims
Notarization + evidence of publication

12) Frequently asked questions

Q: Can the bank release money to pay for the funeral before taxes and settlement? A: Some banks allow documented funeral/medical reimbursement upon the executor/administrator’s request or via the withholding route; policies vary. Keep receipts and ask the bank what they will accept.

Q: Do we need to include tiny balances? A: Yes—all assets should be listed in the estate inventory. Some banks have “small balance” procedures with indemnity, but BIR still expects them in the return (even if covered by standard deductions).

Q: What if an heir is abroad? A: Use an SPA apostilled (or consularized) authorizing a local representative to sign the EJS and bank forms.

Q: Does joint account survivorship mean the survivor owns everything? A: Not automatically for succession purposes; the deceased’s share still forms part of the estate unless there’s proof of a valid donation or trust. Banks may allow operational access but can hold on adverse claim.

13) Key takeaways

Expect two mandatory pillars: (1) lawful authority to receive (probate/EJS/court order) and (2) BIR clearance (eCAR) or withholding-on-withdrawal if your bank allows.
Start early on estate tax filing; you’ll need date-of-death balance certificates from the bank.
Prepare for variations by bank; bring complete, organized folders to avoid repeat visits.
If minors, debts, or disputes are present, plan for court supervision.

Disclaimer

Statutes, tax rules, and bank policies change. This guide is a comprehensive overview, but specifics depend on facts and the institutions involved. For live matters, consult Philippine counsel or a tax practitioner to confirm current requirements and strategy.