Question 1

What happens if someone dies without a will in the Philippines?

Accepted Answer

If a person dies without a valid will (intestate), their estate is distributed according to the rules of intestate succession under the Civil Code. The surviving spouse, legitimate children, illegitimate children, and other relatives inherit in a specific order and proportion defined by law. Compulsory heirs—the surviving spouse, legitimate children, and legitimate parents—are entitled to their legitime, which is the portion of the estate reserved for them by law. The estate must still go through settlement proceedings, either extrajudicially (if all heirs agree) or judicially.

Question 2

What is an extrajudicial settlement of estate?

Accepted Answer

An extrajudicial settlement is a process that allows heirs to divide and distribute the estate of a deceased person without going to court, provided certain conditions are met: (1) the decedent left no will, or the will has already been probated; (2) all heirs are of legal age or represented by guardians; (3) there are no debts of the estate, or all debts have been paid; and (4) all heirs agree to the partition. The settlement must be executed in a public instrument, published once a week for three consecutive weeks in a newspaper of general circulation, and filed with the Registry of Deeds for real property transfers.

Question 3

How much is the estate tax in the Philippines?

Accepted Answer

Under the TRAIN Law (RA 10963), the estate tax in the Philippines is a flat rate of 6% based on the net estate. The net estate is computed by deducting allowable deductions from the gross estate, including a standard deduction of P5 million, family home deduction of up to P10 million, claims against the estate, unpaid mortgages, and the share of the surviving spouse in the conjugal or community property. The estate tax return must be filed within one year from the date of death, though extensions may be granted by the BIR.

Question 4

What is the difference between a notarial will and a holographic will?

Accepted Answer

A notarial will is prepared by or under the direction of the testator, signed by the testator and at least three credible witnesses, and acknowledged before a notary public. A holographic will is entirely written, dated, and signed by the testator in their own handwriting, requiring no witnesses or notarial acknowledgment. While a holographic will is simpler to prepare, it is more vulnerable to challenges regarding authenticity during probate. Both types must comply with the formalities prescribed by the Civil Code to be considered valid.

Question 5

Can estate settlement be done without going to court?

Accepted Answer

Yes, through an extrajudicial settlement, heirs can settle the estate without court proceedings as long as all heirs are of legal age (or represented by guardians), there is no dispute among them, and all estate obligations have been addressed. If there is a valid will that has not been contested, the heirs may also enter into an extrajudicial settlement after probate. However, if any heir disagrees, if minors are involved without proper representation, or if there are contested claims, a judicial settlement before the Regional Trial Court becomes necessary.

Estate Planning & Succession

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Last Will and Testament Preparation

Extrajudicial Settlement of Estates

Probate Court Proceedings

Estate Tax Planning and Compliance

Intestate Succession Guidance

Partition of Estate Properties

Transfer of Real Property Titles

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