Pointers in the Settlement of Estate

Batas PINOY Global  

By: ATTY. ROGELIO N. WONG 

“Laws relating to family rights and duties,or to  

the status, condition and legal capacity of  

persons are binding upon Filipino citizens, even  

though living abroad.” (Article 15 Civil Code of the Philippines)

Q. Dear Atty Wong, I to solicit your thoughts in how to settle and partition the estate of  our deceased parents. All of us siblings are in agreement that partition of the estate be  based on equal sharing bases . I hope you’ll find time answering this request. Thank you    

very much. Ms. SU. 

ANS: As all the surviving heirs are in agreement to settle the estate of your  deceased parents out of court , then you may ask your lawyer to prepare the  Extrajudicial Settlement of Estate with Partition, assuming that all of the  requisites below are present:  

a.Deceased left no Will 

b.Deceased left no Debt 

c.Surviving children are of legal age 

– Secure the necessary documents: Authenticated copy of the Death certificate  from the Civil Registrar and/or the PSA; Certified true copies of the Tax  Declaration Certificates of the properties and land/condo titles owned by the  decedent; including an inventory of personal property, cash, jewelry, stocks,  investments, etc., if any; 

-Where the heirs agree to divided and physically partition the estate, engage the  professional services of the Geodetic Engineer conduct the survey and to come  out with Subdivision and Lot plan for each lot assigned to the heir with approved  technical description from the Land Management Bureau(LMB-DENR). 

-Publication of the Notice on the Settlement of estate of the deceased for 3  consecutive weeks in the newspaper of general circulation. 

– Be handy and/or secure the Taxpayer Identification Number(TIN)- This is  required for all person, (citizens/foreigners) that transact business with the  government particularly the BIR. 

2 

–Payment of TAXES:  

-Payment of appropriate taxes with the BIR for the issuance of certificate  authorizing registration(car) by the BIR: 

 a. Estate Tax= 6% of the fair market value, zonal value whichever is higher When to pay: Within one(1) year from the date of death of the deceased  b. Documentary Stamp Tax(DST)=1.5% of the fair market value, zonal value  whichever is higher. DST when and Where to File and Pay: 

When filed: The return shall be filed within five (5) days after the close of the  month when the taxable document was made, signed, issued, accepted or  transferred or upon remittance by revenue collection agents of collection from the  sale of loose documentary stamps. 

The return shall be filed with the Authorized Agent Bank (AAB) within the  territorial jurisdiction of the Revenue District Office where the residence or place  of business of the taxpayer is located or where the collection agent is assigned.  In places where there are no AABs, the return shall be filed directly with the  Revenue Collection Officer (RCO) within the Revenue District Office which has  jurisdiction over the residence or place of business of the taxpayer or where the  collection agent is assigned. 

When and Where to Pay: Upon filing of this return, the total amount payable  shall be paid to the AAB where the return is filed within five (5) days after the  close of the month when the taxable document was made. In places where there  are no AABs, the tax shall be paid with the Revenue Collection Officer who shall  issue an Electronic Revenue Official Receipt (eROR) therefor. 

WAIVER of Rights in the Settlement of Estate: Payable only, in cases where an  heirs waives or denounce his/her right in favor of other person. Donor’s tax= 6% of fair market value, zonal value whichever is higher. -When to pay : Donors are required to file a return and pay the full tax due within  30 days from the date the gift is made. For several gifts made in one calendar  year, the donor is required to make a consolidated return within the same period  after the date of each gift for the proper and complete computation of donor’s  tax. 

-Documentary Stamp tax =1.5% of the fair market value, zonal value whichever  is higher. 

–Assessor’s office , Secure certified true copy of the Tax Declaration  Certificate(TDC) before proceeding to the BIR District office. For the payment of  Transfer Tax ranging from – 0.5% to 0.75% of the Selling price, fair market value or  zonal value whichever is higher. 

Register of Deeds(RD) – Registration of the Extrajudicial Settlement of Estate  with the Register of Deeds(RD) and the payment of Registration fee and for the  cancellation of the old titles and the issuance of new titles in the name of the 

3 

heirs or transferee . The registration fee is based on the graduated table of fees based on  the Assessed Value of the Current year( See: LRA Circular 11-2002-(A1 0). 

Xxxx xxx 

Learning is empowerment. For more information follow the Batas Pinoy Global in  the YouTube.com Batas Pinoy Channel. kindly click the subscribed, share,  like buttons and tap the notification bell, for future video updates. 

Disclaimer: Batas Pinoy Global Community(BPGC). Not Legal opinion: 

Material placed on this corner is for the purpose of providing information only. Any communication from this  corner does not create lawyer-client relationship of whatever nature and for whatever purpose. It is not  intended as practice of law or legal services. Although the writer believes this information to be accurate at  the time it is first provided or as relayed by the person asking or soliciting the information from the writer. 

Such circumstances or understanding of the facts as conveyed to the writer by the sender may not actually reflect the ultimate facts or circumstances earlier represented and as understood by the writer. 

 This writer makes no representation, express or implied, as to the accuracy, completeness or timeliness of  the information provided in this writing. The contents provided by Batas Pinoy Global Community(BPGC) are not meant as substitute for legal opinion. Always consult your lawyer or other legal professionals for legal advice as regards the emailed or forwarded queries and the corresponding information furnished or as  viewed by BPGC.  

Readers who may have legal concerns affecting their persons, property, rights, title and related interest  concerning Philippine laws and jurisdiction, are welcome to e-mail their query either in English or Pilipino  in plain, concise and orderly presentation of facts, (as no follow-up or clarification of queries will be  entertained to give way to others in the queue ) in order to avoid vagueness and mis-appreciation of the  facts of your stories. For appropriate information write to: attyrw@gmail.com .  

WARNING: This communication is intended for use by the individual(s) to whom it is specifically  addressed and should not be read by, or delivered to, any other person. Such communication may contain  privileged or confidential information. If you have received this communication in error, please notify the  sender and delete this e-mail message immediately. Thank you for your cooperation.  * * *