In the Philippines, property inheritance is primarily governed by the Civil Code (R.A. 386), which outlines the rules on who may inherit estates, the order of succession, and the means of distribution among the heirs. In cases where there are no heirs, the law also provides for the eventual disposition of the estates. Now, here’s a property inheritance-related inquiry raised by one of our avid readers.
Dear Atty. Duran-Schulze,
My friend passed away recently and left behind a house and some savings. She was never married and didn’t have any children. Her parents and only sibling (also childless) passed away years ago. She didn’t leave any will, and as far as I know, she had no other living relatives. Now, I am wondering who inherits her property now. Will the government take it?
I’d really appreciate your legal guidance.
Concerned Friend
Dear Concerned Friend,
Thank you for your inquiry. I appreciate your concern about your late friend’s estate. Now, here’s what Philippine law says about property inheritance or succession:
Dying Without Heirs: What the Civil Code Says About Heirless Estates in the Philippines
As defined in Article 774 of the Civil Code, succession is “a mode of acquisition by virtue of which the property, rights, and obligations to the extent of the value of the inheritance of a person are transmitted through his death to another or others either by his will or operation of law.”
Succession may be testamentary, legal (intestate), or mixed. Testamentary succession arises from a will executed according to legal formalities, while mixed succession occurs when it is effected partly by will and partly by operation of law (Articles 779-780).
Testamentary Succession
In testamentary succession, the testator expresses his wishes regarding the distribution of his estate through a will, which must then comply with the formal and substantial requirements set out in Articles 804 to 819 of the Civil Code. However, such freedom of disposition is not absolute, as it is still subject to the mandatory rights of compulsory heirs.
Under Article 886, the law reserves a portion of the estate known as the legitime for compulsory heirs, which include legitimate children and descendants, legitimate parents and ascendants, the surviving spouse, acknowledged natural children, natural children by legal fiction, and other illegitimate children. Compulsory heirs can only be excluded through valid disinheritance as specified in the Civil Code.
The heirs, therefore, are primarily determined by the terms of the will, provided these terms comply with the legal limits imposed by the law. In the absence of compulsory heirs, the testator enjoys complete freedom to dispose of all or part of the estate in favor of any person legally capable of succeeding, in accordance with Article 842 of the Civil Code.
Intestate Succession
Under Article 960, intestate succession (also known as legal succession) occurs in specific circumstances, such as when no valid will exists, when the instituted heir is incapable of inheriting, or when a portion of the estate has been left undisposed of.
In this succession, the law itself determines who the heirs are, the extent of their respective shares, and the rules for distributing the deceased’s estate, following a specific order of succession.
Under Articles 978-1013, the order of intestate succession begins with legitimate children and descendants, followed by legitimate parents and ascendants, then illegitimate children, the surviving spouse, and collateral relatives, which may include siblings, nephews, nieces, and other kin within the degree prescribed by law. If no heirs exist in these categories, the estate escheats to the State (Article 1011).
So, if there are no heirs (both compulsory and collateral) and no wills, like what you have detailed out, the state or government succeeds by law. Under Article 1013, after debts are paid, the personal property of your late friend will go to the municipality or city where she last resided, and real property to the municipality or city where it is located. Accordingly, the estate will be used for the benefit of public schools, charities, and similar institutions.
But what if somebody files a claim soon after? If someone legally entitled to the estate files a claim within five years from the date the property was transferred to the government, he may still recover it. If the property has been sold, the government must return any remaining proceeds not lawfully spent.
I hope this answers your question. For any further clarification or assistance on property inheritance in the Philippines, feel free to contact our team at Duran & Duran-Schulze Law. We are located just in Bonifacio Global City (BGC), Taguig, Metro Manila. You may call us at (+632) 8478 5826 or +63 917 194 0482 or email info@duranschulze.com.
Yours truly,
