What are the steps to inherit in the Philippines?

Here are the usual steps to inherit in the Philippines, from the time of death up to the transfer of titles and assets.

1. Immediately After Death

1. Secure the death certificate Get PSA-certified copies of the death certificate; they will be required by the BIR, banks, the court, and the Registry of Deeds.

2. Identify the heirs and list all assets and debts

   • Determine who the legal heirs are (spouse, children—legitimate and illegitimate—parents, etc.).

   • Prepare an inventory of all properties: land, houses, condos, vehicles, bank accounts, investments, businesses, insurance proceeds, and outstanding loans or obligations.

2. Decide: Extrajudicial or Judicial Settlement

1. Check if extrajudicial settlement is allowedYou can usually use extrajudicial settlement if all of the following are true:

   • There is no will (or the heirs agree to treat the estate as intestate for settlement).

   • There are no outstanding debts, or all debts have been fully settled.

   • All heirs are of legal age (or properly represented) and there is no dispute about the shares or division.

   If so, the heirs can sign a notarized Deed of Extrajudicial Settlement of Estate, or an Affidavit of Self-Adjudication if there is only one heir.

2. If extrajudicial settlement is not possibleYou will need a judicial settlement in court if:

   • There is a will that must be probated.

   • The heirs do not agree on the division or on who the heirs are.

   • The estate has substantial debts that require court-supervised administration.

   In a judicial settlement, the court appoints an executor or administrator, supervises the inventory and payment of debts, and approves a project of partition before the estate is finally divided.

3. Prepare the Settlement Documents

1. Gather supporting documentsTypically needed are:

   • Death certificate

   • Valid IDs and TINs of all heirs

   • Land titles and tax declarations

   • Bank certifications and account details

   • Stock certificates and business documents

   • Vehicle OR/CR

   • Any existing will or prior contracts (e.g., deeds of sale, mortgages)

2. Draft and sign the settlement

   • For extrajudicial settlement:

     • Prepare a Deed of Extrajudicial Settlement (or Self-Adjudication) describing the heirs, the properties, and how these will be divided.

     • Have the deed signed by all heirs and notarized.

   • For judicial settlement:

     • The equivalent “settlement” comes in the form of the court’s orders and approved project of partition later in the case.

3. Publish the extrajudicial settlementFor extrajudicial settlement, the law requires publication of the settlement or a notice of it in a newspaper of general circulation once a week for three consecutive weeks.

4. Estate Tax: Compute, File, and Pay

1. Compute estate tax (6% under current TRAIN rules)

   • Determine the gross estate (total value of all assets).

   • Deduct allowable items (standard deduction, claims against the estate, certain expenses) to arrive at the net estate.

   • The estate tax is 6% of the net estate for deaths covered by the TRAIN Law.

2. File the Estate Tax Return

   • Get a TIN for the estate (separate from the heirs’ TINs).

   • File the estate tax return with the BIR office that has jurisdiction over the decedent’s last residence, within the prescribed deadline (commonly 6 months from death, subject to possible extension in meritorious cases).

3. Pay estate tax and secure BIR clearance

   • Pay the computed estate tax and any associated penalties or interest.

   • Once paid, the BIR issues the necessary eCAR/CAR (Electronic Certificate Authorizing Registration) and tax clearances, which are needed to transfer titles and certain assets.

5. Transfer Titles and Change Ownership

1. Transfer of real propertiesFor land, houses, and condos:

   • Pay local transfer taxes and secure real property tax clearances from the LGU.

   • Present to the Register of Deeds:

     • eCAR/CAR

     • Extrajudicial settlement or court order

     • Proof of publication (for extrajudicial)

     • Tax clearances and other required documents

   • The Register of Deeds cancels the old title and issues new titles in the names of the heirs or in accordance with the settlement.

2. Transfer of personal propertiesFor bank accounts, stocks, vehicles, and other movable assets:

   • Submit the death certificate, settlement document, BIR clearances, and IDs of heirs to the bank, broker, corporation, or LTO.

   • The institution will then either:

     • Open new accounts or issue certificates in the names of the heirs, or

     • Release funds or shares according to the settlement.

6. Implementing the Division and Practical Tips

1. Implement how the estate is divided

   • Heirs may divide assets in kind, assigning specific properties to particular heirs.

   • Alternatively, they may agree to sell certain properties and divide the proceeds.

   • If they choose co-ownership (e.g., siblings co-owning a property), it’s wise to agree on written rules for use, expenses, and eventual sale.

2. Coordinate as a family and seek professional help

   • Designate a family representative or administrator (formal or informal) to handle documents and follow up with offices.

   • Because deadlines, tax rules, and legal technicalities can be complex, consult a lawyer and, for larger estates, a tax adviser or estate planner.

     
     

To inherit in the Philippines, you identify the heirs and assets, choose between extrajudicial or judicial settlement, execute and (if required) publish the settlement, pay the 6% estate tax, then use BIR clearances and settlement documents to transfer titles and assets into the heirs’ names.

Source: Ziggurat Real Estate