Estate Settlement FAQ (if a loved one passes away).\n\n## What do we do to settle an estate?\n\nThe compulsory heirs have two options: First, extrajudicial settlement (with certain conditions); Second, judicial settlement.\n\n- When a person passes away, his or her properties are inherited by compulsory heirs (i.e. the children and surviving spouse). If there is a will, each compulsory heir is entitled to a mandatory minimum inheritance called a legitime.\n\n## Does that mean an estate can be settled without going to court?\n\nYes. But, extrajudicial settlement is only available if: a.) there is no will; b.) the deceased left no debts c.) all the compulsory heirs are willing to sign the extra judicial settlement (EJS).\n\n## What if we (compulsory heirs) are not on good terms; or, if we do not meet the conditions for EJS?\n\nIt’s always best to settle out of court but there is a process for the settlement to be done in Court.\n\n## If the settlement of estate is done in court, who will take care of the properties and pay for the recurring expenses (i.e. association dues, real estate tax)?\n\nThe court-appointed administrator of the estate.\n\n## Who will the court appoint?\n\nAny compulsory heir may ask the court to be appointed as administrator of the estate while the case is pending. Choosing who to appoint is subject to the discretion of the court, however, for some instances, the Rules provide a preference on who shall be appointed (i.e. the closest relative/s). The administrator will need to take an oath and post a bond with the court.\n\n## What if we suddenly find a will?\n\nThe law requires that every will be subject to a proceeding called ‘Probate’. This is done in court. The court will determine the due execution and authenticity of the will.\n\n## Is the process or probate long?\n\nIf there is no contentious issue, the process can take 1-2 years (still, sometimes longer).\n\n## How much are estate taxes?\n\nFor updated rates, you can refer to the BIR’s official documentation: estate tax information \n \n\n## When can properties be transferred to the heirs?\n\nIf you present an EJS and a Certificate Authorizing Registration (CAR) to the Register of Deeds (RD), he will issue a new title in the name of the heirs.\n\nIf you are settling the estate in court, presenting a Final Order of Distribution as well as a CAR is sufficient for the RD to transfer the title.","Publish":true,"FrontPage":true,"Breadcrumb":true,"TagString":"estate settlement","_id":"339520429618102868","Slug":"estate-settlement-guide"},{"Content":"Preparing a Last Will and Testament can be intimidating. Many people don’t think about writing a Last Will and Testament until it is urgently needed.","Slug":"how-to-prepare-a-last-will-and-testament","Title":"How to prepare a Last Will and Testament","Markdown":"Preparing a Last Will and Testament can be intimidating. Many people don’t think about writing a Last Will and Testament until it is urgently needed. It’s not uncommon to be in some sort of ‘panic mode’ and filled with anxiety as movies and media make wills seem complicated and easily questioned or opposed in courts. \n\n\nIn the Philippines, there is a simple way to put together a will, albeit with an antiquated name: Holographic Will. The Philippines ‘New’ Civil Code was made effective way back in 1950. So, some terms can sound confusing, odd or simply out of touch. Article 810 of the Civil Code governs so-called Holographic Wills. If a will is entirely written, dated, and signed by the testator it is a valid will. We must stress that “written” for purposes of holographic wills means hand-written. \n\n\nThus, the simplest way to write a will is to take a blank sheet of paper and write it out by hand, old-school. The requirements are so simple: write it out, make sure it’s dated and sign it. \n\n\n#### What should be stated in the will?\nThe will should clearly state who your properties are being bequeathed to. The kind and character of the property should be clear as well, whether it is personal property or real property. Real property should be described by the Title number and technical description. \n\n\nThere are also a lot of rules governing compulsory heirs (who cannot be fully disinherited) and prohibited bequests. It is also highly recommended that you name an “executor” of you will in the will itself as well as at least one substitute or alternative. \n\n\nYou may also include in your will your desires on how you want your remains to be taken care of. \nIt is also a must that you consult with a lawyer by at least showing the Last Will and Testament to a licensed Philippines attorney who can confirm that your will contains all the necessary information to be implemented.\n\n#### Is a Holographic Will the only option? \nIf a Holographic Will is not for you, you may opt for a more complicated will, called a Notarial Will. As the name implies, this will must be acknowledged before a Notary. A Notarial Will can be printed out but it has many requirements, such as: The page numbers must be indicated in LETTERS, you must have at least three witnesses who will: a) sign all the pages of the will, the signature page (as witnesses) in the presence of each other and of the testator; and b) sign the attestation clause in the presence of the notary public, all the witnesses and the testator. c) The will must be signed by the testator in the presence of the witnesses. \n\n\n\nIt is easy to miss out on requirements so we do not recommend writing a notarial will without consulting an attorney. For instance, if the testator is blind, the will must be read out aloud twice – first in the presence of the witnesses and again by the notary public himself. \n\n\nApart from the requirements with regard to form, you would also need an attorney to make sure that the bequests are allowed by law. \n\nAll in all, making a will is not quite as daunting as it seems. However, it is one of those things that still require the assistance of an attorney. \n\n\n#### What if I never get around to making a will? What happens to the properties?\n\n\nYour compulsory heirs are entitled to inherit your properties by law. In general, compulsory heirs are your spouse and children, and they exclude all other relatives. If there are no children, the parents and siblings can inherit. If there are no relatives at all, the State can inherit the properties. \n\nIn short, your heirs will not be deprived of an inheritance if you forget to prepare a will.