Estate Settlement FAQ (if a loved one passes away).
The compulsory heirs have two options: First, extrajudicial settlement (with certain conditions); Second, judicial settlement.
Yes. 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).
It’s always best to settle out of court but there is a process for the settlement to be done in Court.
The court-appointed administrator of the estate.
Any 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.
The 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.
If there is no contentious issue, the process can take 1-2 years (still, sometimes longer).
For updated rates, you can refer to the BIR’s official documentation: [estate tax information](https://www.bir.gov.ph/index.php/tax-information/estate-tax.html#et4](https://www.bir.gov.ph/index.php/tax-information/estate-tax.html#et4)
If 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.
If 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.