In addition to the emotional toll, there are practical matters that need to be addressed, such as settling the decedent's estate. Grieving while dealing with legal matters can be overwhelming. However, understanding the steps and requirements can help ease this burden.

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Extrajudicial Settlement of Estate can be done by the heirs of the decedent to settle and divide the properties left by the latter out of court. This is only possible when:

• The decedent must die without leaving a will;

• The estate must have no outstanding debts or all debts must be settled; and

• All heirs must be of legal age or represented by a legal guardian if minors.

If all of the conditions are present, the heirs may now proceed with the following steps:

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STEP 1: Preparatory Steps

Prior to the execution of the Deed, the following details/documentary requirements must be prepared in advance:

• Determine the heirs of the decedent. You may consult a lawyer to determine the correct heirs who shall execute the Deed. 

• Identify the properties that are part of the decedent’s estate. The certificates of title or tax declaration over the parcel of lands and/or improvements such as houses and buildings owned by the decedent must be compiled. Personal property such as stock certificates should also be included. To this end, the heirs must go to the Assessor’s Office of the municipal halls and city halls where the property or properties are located (e.g., Mandaue City, Lapu-Lapu City, Cebu City, Danao City, Talisay City, Carcar City) to obtain a list of the properties in that locality by requesting for a Certificate of Landholdings.

• Secure a certified true copy of the death certificate from the Local Civil Registry.

• If the heir is not in Cebu or are not readily available, secure a special power of attorney in favor of one of the heirs or of an authorized representative to sign the Deed on the heir’s behalf. If the heir lives abroad, an acknowledgment before the Embassy/Consulate or apostille may be required. 

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STEP 2: Preparation, Notarization, and Publication of the Deed

• Draft a Deed of Extrajudicial Settlement of Estate with the assistance of a lawyer.

• Have the deed notarized by a public notary. Note that notarization can only be done by a commissioned notary public. To ensure a smooth transaction, we also offer comprehensive notarization services alongside our assistance in the determination of heirs, drafting of the necessary deeds and documents and other concerns about the decedent’s estate.

• Publish the deed in a newspaper of general circulation once a week for three consecutive weeks. This serves as public notice to any potential claimants.

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STEP 3: Payment of Taxes

• File the estate tax return and pay the estate tax.some text
  • Submit the notarized Deed and other required documents to the Bureau of Internal Revenue (BIR) with jurisdiction over the last residence of the decedent for estate tax assessment. RDO 80 (Mandaue City) for Northern Cebu, RDO 81 for North Cebu City, RDO 82 for South Cebu City, and RDO 83 for Southern Cebu.
  • Pay any assessed estate taxes within one (1) year from the date of death.

• Obtain an electronic Certificate Authorizing Registration (eCAR).

• Register with Registry of Deeds by presenting the eCAR and O.R. for local transfer tax paid along with other required documents to the Registry of Deeds to transfer property titles into the names of the heirs.

Disclaimer: This article is for informational purposes only and should not be considered legal advice. For specific guidance on estate settlement in the Philippines, consult with a legal professional or business advisor.

Padin & Partners Law Offices is a full-service law firm that specializes in the extrajudicial settlement of estates in Cebu, Philippines. For consultations: book an appointment or reach us at  +63 (32) 316-1540 or +63 917 188 0361.