Our estate administration and probate services provide the legal framework and expertise necessary to administer, settle, and distribute a decedent’s estate. Whether involving the probate of a will or the settlement of an intestate estate, we ensure that property transfers are carried out with precision and in full compliance with Philippine tax and civil laws.
What You Should Know About Estate Settlement in the Philippines
In the Philippines, estate settlement is the legal process of settling the liabilities of a deceased person and distributing the remaining estate to the lawful heirs. The mode of settlement depends on the existence of a last will and testament, outstanding obligations, and the agreement of the heirs. Proper settlement is a prerequisite to the issuance of a Certificate Authorizing Registration (CAR) by the Bureau of Internal Revenue (BIR) for the transfer of registrable assets.
Modes of Estate Settlement
The Civil Code (R.A. 386) and the Rules of Court provide distinct pathways for estate distribution:
Probate of Will (Testate Succession). This is a mandatory court process to prove that a last will and testament was executed voluntarily and according to the formalities required by law.
Extrajudicial Settlement. This is the fastest and most cost-effective method used when there is no will, no debts, and all heirs are of legal age and in full agreement.
Judicial Partition. This is a court-supervised process required when heirs cannot agree on how to divide the properties or when the deceased left unpaid obligations.
Affidavit of Self-Adjudication. This simplified process is used when there is only one or sole heir to the entire estate.
General Documentary Requirements
To initiate the settlement and satisfy BIR tax requirements, you must submit the deceased’s PSA death certificate alongside proof of ownership for all assets, such as Transfer Certificates of Title (TCT), tax declarations, and bank records. Additionally, you must provide the PSA birth or marriage certificates of all heirs to establish legal relationship, an official inventory of the estate, and proof of filing the necessary tax notices with the BIR.
Estate Settlement Procedure (Overview)
The process involves identifying all assets and liabilities, filing the appropriate petition or drafting the deed of settlement, and paying the estate taxes. Once taxes are cleared, the Registry of Deeds updates the land titles, and other agencies, e.g., LTO and banks, release or transfer the remaining assets to the heirs.
What Duran & Duran-Schulze Law Does
Duran & Duran-Schulze Law acts as a comprehensive partner for executors, administrators, and heirs. We navigate the bureaucratic hurdles of the BIR, the courts, and various local government offices to ensure that the transition of wealth is seamless and that family conflict is minimized through clear, legally binding agreements.
Our Estate Administration and Probate Services
We provide end-to-end support throughout the estate settlement process:
Case Strategy and Estate Settlement Selection
We analyze the estate’s complexity and the heirs’ relationships to determine whether an Extrajudicial Settlement or a Judicial Partition is the most efficient path. Our team ensures that the chosen strategy minimizes legal friction while maximizing the protection of each heir’s legitime.
Tax Planning and BIR Compliance
We manage the computation and filing of Estate Tax returns, ensuring you avail of all legal deductions and standard exemptions under current tax laws. Our lawyers handle the entire process of securing the Certificate Authorizing Registration (CAR) to allow for the transfer of titles.
Probate and Court Advocacy
For testate cases, we represent the executor in court to prove the authenticity of the will and secure Letters Testamentary. We also handle contested proceedings, protecting the estate from unauthorized claims and ensuring the testator’s wishes are upheld.
Asset Inventory and Title Transfer
Our firm conducts the thorough groundwork of searching for titles, verifying tax declarations, and coordinating with the Registry of Deeds. We ensure that once the settlement is approved, every property is correctly registered under the names of the new owners.
Conflict Mediation and Negotiation
In cases where heirs disagree on the division of properties, we act as mediators to reach a voluntary partition agreement. This proactive approach helps avoid years of litigation often associated with contested judicial settlements.
How to Get Started
For inquiries on requirements, processes, and fees, contact Duran & Duran-Schulze Law at (+632) 8478 5826, (+63) 917 194 0482, or info@duranschulze.com, or simply complete the form on this page. Our office is located at 1210 High Street South Corporate Plaza Tower 2, 26th Street, Bonifacio Global City, Taguig, Metro Manila, Philippines.
Need to Consult a Lawyer?
You can book an online or in-person consultation with Atty. Wendy. Choose a 30-minute or 1-hour session, fill out the form with your information and preferred schedule, pay the fee via PayPal, and meet with the attorney at the scheduled time.
Atty. Mary Wendy A. Duran
Founding Senior Partner [Read Profile]
Family Law, Civil Law, Criminal Law, Special Proceedings, and Property law
Estate Administration and Probate FAQs
For your reference and guidance, here are some frequently asked questions about estate administration and probate in the Philippines:
Yes. If there is no will and all heirs are in agreement, you can sign a Deed of Extrajudicial Settlement. This is much faster than court proceedings but still requires publication in a newspaper of general circulation for a few weeks.
If even one heir disagrees, an extrajudicial settlement is not possible. You must instead file a Judicial Partition in court, where a judge will oversee the inventory and distribution of the estate.
No. Under Philippine law, compulsory heirs—such as legitimate and illegitimate children, spouse, and parents—cannot be completely disinherited without valid legal grounds specified in the Civil Code. There is a portion of the estate, known as “legitime” that the law reserves for these heirs, which the deceased cannot give away in a will.
The Estate Tax is a tax on the right of the deceased to transmit the estate to heirs. Under the TRAIN Law, it is a flat rate of six percent (6%) of the net estate and must be filed within one year from the date of death.
Technically, no. While heirs are co-owners from the moment of death, the title remains in the name of the deceased. Equally important, a buyer cannot register a new title until the estate is settled.
As heirs, you are only liable for the debts of the deceased up to the value of the inheritance you receive. You are not required to use your personal funds to pay off the remaining debts of the estate.
If the deceased left no will, no debts, and had only one surviving heir, that heir can execute an Affidavit of Self-Adjudication. This is a simplified process that skips the complexities of a multi-heir settlement, though it still requires the payment of estate taxes and publication in a newspaper for three consecutive weeks.
