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    Order of Succession Dividing Estate Amongst Heirs

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    Gem R
    Under Philippine law: - Only compulsory heirs like a surviving spouse and children, whether legitimate or illegitimate, are entitled to inherit from an estate when someone dies without a will (intestate succession). - The estate can be divided via an extrajudicial settlement agreed to by heirs, or through a judicial settlement if heirs cannot agree or there are creditors. - In this case, the estranged wife would inherit as the legal spouse, while the adopted son could inherit if the adoption was legalized, but the common law wife and live-in partner would not be entitled to inherit.

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    Order of Succession Dividing Estate Amongst Heirs

    Uploaded by

    Gem R
    172 views4 pages
    Under Philippine law: - Only compulsory heirs like a surviving spouse and children, whether legitimate or illegitimate, are entitled to inherit from an estate when someone dies without a will (intestate succession). - The estate can be divided via an extrajudicial settlement agreed to by heirs, or through a judicial settlement if heirs cannot agree or there are creditors. - In this case, the estranged wife would inherit as the legal spouse, while the adopted son could inherit if the adoption was legalized, but the common law wife and live-in partner would not be entitled to inherit.

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    Estate

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    Under Philippine law: - Only compulsory heirs like a surviving spouse and children, whether legitimate or illegitimate, are entitled to inherit from an estate when someone dies without a will (intestate succession). - The estate can be divided via an extrajudicial settlement agreed to by heirs, or through a judicial settlement if heirs cannot agree or there are creditors. - In this case, the estranged wife would inherit as the legal spouse, while the adopted son could inherit if the adoption was legalized, but the common law wife and live-in partner would not be entitled to inherit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    172 views4 pages

    Order of Succession Dividing Estate Amongst Heirs

    Uploaded by

    Gem R
    Under Philippine law: - Only compulsory heirs like a surviving spouse and children, whether legitimate or illegitimate, are entitled to inherit from an estate when someone dies without a will (intestate succession). - The estate can be divided via an extrajudicial settlement agreed to by heirs, or through a judicial settlement if heirs cannot agree or there are creditors. - In this case, the estranged wife would inherit as the legal spouse, while the adopted son could inherit if the adoption was legalized, but the common law wife and live-in partner would not be entitled to inherit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Under the Philippine law on Intestate succession, only compulsory heirs of the deceased

    are entitled to inherit from his or her estate. ... Under the Civil Code of thePhilippines,
    compulsory heirs include the surviving spouse and the children whether legitimate or
    illegitimate.Sep 30, 2015

    Order of Succession: Dividing the Estate


    among Heirs
    by Atty. Joseph Plazo | Sep 30, 2015 | Civil Law | 0 comments

    The law that governs the issues on inheritance is the New Civil Code of the Philippines (NCC),
    not the Family Code..
    “Testate or testamentary succession” refers to situations where the person dies leaving a last
    will. The person who executes a last will is called the “testator.”
    The share in the inheritance is called “legitime.” The NCC provides for compulsory heirs” or
    certain people to whom the testator is obligated to give their legitimes.
    In computing the legitimes, the remaining portion of the estate is called the “free” portion. The
    testator can give this portion to anyone.
    “Legal or intestate succession” refers to situations where the person died without a last will; the
    share in the inheritance is called “intestate share.”
    “Extrajudicial settlement of estate” is a voluntary agreement among the heirs partitioning the
    estate (free of debts), executed before a notary public, and published once a week for three
    weeks in a newspaper of general circulation.
    A sole heir claiming the whole estate can file an“Affidavit of adjudication by sole heir” with the
    Register of Deeds (if real property is involved) or with the BIR.
    Sample Succession Issue:
    Q: Father died intestate, how are we to divide the assets with our mother and four
    brothers?
    A deeper concern is that my brother has been estranged from his legal wife for 30 years. He has
    a common-law wife and an dopted a son 2 decades ago.
    The brother died recently. Is his estranged wife entitled to his properties left behind, how about
    the common-law-wife and the adopted son? There have been no adoption papers for his son.
    Ans: Under the Philippine law on Intestate succession, only compulsory heirs of the
    deceased are entitled to inherit from his or her estate. Other relatives may inherit only
    upon default or absence of the compulsory heirs.
    Under the Civil Code of the Philippines, compulsory heirs include the surviving spouse and the
    children whether legitimate or illegitimate. When we speak of intestate succession, it is
    understood that the deceased or decedent left no will upon his/her death.
    In intestate succession, the estate of the deceased may be partitioned or subdivided either by:
    1) Extrajudicial Settlement of Estate- Under this scheme the decedent do not have unpaid
    creditors and minor children and that all the heirs are in harmony as to the manner in which the
    property is to be subdivided or partitioned. And without going to the court, the heirs agreed
    amongst them to adjudicate the estate by means of instruments known “Extrajudicial Settlement
    of Estate” duly signed and notarized and have it published in the newspaper of general
    circulation for at least three (3) consecutive weeks. And of course to pay the required estate tax
    and compliance of procedure and administrative matters with the concerned government
    agencies.
    2) Judicial Settlement of Estate- If the deceased left no will but there are creditors or claimants or
    an heir is minor or suffering from incapacity to act and/or the heirs cannot agree amongst
    themselves in the manner or partition or distribution of the estate, the settlement of estate shall
    be by means of Judicial Settlement. This means that the heirs or creditor(s) concerned have to
    file a petition in the Court of Law for the settlement of estate.
    Unless there is a third party claimant, this scheme should be avoided as much as possible. Aside
    from being adversarial, this is also costly as parties will have to engage the services of lawyers.
    The process could take years to be resolved. The sharing of the heirs is the same as what is
    mentioned above, less the provisions for the payments of creditors, if any.
    As to the common law wife of the deceased brother , for as long as they are legally married and
    that marriage was not annulled , she is still considered as compulsory heirs of the deceased and
    as such entitled to inherit from her husband .
    As to the adopted son, if the adoption is legal in the sense that the adoption was authorized by
    the court, then the adopted son is considered as a compulsory heir. However, if the birth
    certificate of the “adopted son” would show that the father is your deceased brother, and during
    the lifetime of your deceased brother, the status of this “adopted son” was never questioned him
    or any third party, and then he could be considered as a compulsory heir.
    As to the live-in partner of the deceased, she is not entitled to inherit from the estate as she is not
    considered as a spouse under the law.
    Source of this case
    What about Estate Taxes?
    Nonresident foreigners pay estate tax only on property located in the Philippines. The taxable
    inheritance is arrived at after deducting all expenses, losses, debts, and taxes related to the
    property (all proportionate to the ratio of the Philippine gross estate to his total estate) as well as
    the surviving spouse’s net share. Estate tax is levied at progressive rates.

    ESTATE TAX

    TAX BASE, PHP (US$) TAX RATE

    Up to 200,000 (US$4,348) 0%

    200,000 – 500,000 (US$10,870) 5% on band over US$4,348

    500,000 – 2 million (US$43,478) 8% on band over US$10,870

    2 million – 5 million (US$108,696) 11% on band over US$43,478

    5 million – 10 million (US$217,391) 15% on band over US$108,696

    Over 10 million (US$217,391) 20% on band over US$217,391

    Source: Global Property Guide

    Citizens and Resident Foreigners


    Citizens and resident foreigners are allowed the following deductions, aside from the expenses
    and taxes related to the property as well as the surviving spouse’s share, before arriving at the
    taxable estate:
     PHP1 million (US$21,739) standard deduction,
     PHP1 million (US$21,739) for the family home,
     PHP200,000 (US$4,348) for funeral expenses, and
     PHP500,000 (US$10,870) for medical expenses during one whole year before the testator’s
    death.

    Confused as to who gets what? Peruse the comparative table of legitimes and intestate
    shares.

    Surviving heir Legitime Intestate share

    1/3
    Illegitimate children 1/2
    1/3
    (Remaining 1/3 is free portion; Art. 1/2
    Surviving spouse
    894, NCC)

    1/4
    1/8
    Illegitimate children 1/4
    1/2
    Surviving spouse 1/4
    (Art. 899, NCC; testator may freely
    Legitimate parents 1/2
    dispose of the remaining 1/8 of the
    estate.)

    Illegitimate children 1/4 1/2


    Legitimate parents 1/2 1/2

    1/2
    Legitimate parents 1/2
    1/4 (taken from the free portion)
    Surviving spouse 1/2
    (Art. 893, NCC)

    Illegitimate parents 1/4 1/2


    Surviving spouse 1/4 1/2

    1/2 (divided by number of


    Illegitimate children illegitimate children) All
    alone Remainder is free portion (Art.
    901, NCC)

    1/2; remaining half is free


    Legitimate parents
    portion (Arts. 889 and 890, All
    alone
    NCC)

    Illegitimate parents
    1/2 All
    alone

    Surviving spouse
    1/2, 1/3, 1/2 (Art. 900, NCC) All
    alone
    Legitimate children 1/2 (divided by the number of
    (or their descendants) children) All
    Remaining half is free portion (Art.
    alone 888, NCC)

    One legitimate child 1/2


    1/4 1/2
    (or descendant) Remaining 1/4 is free portion (Art. 1/2
    Surviving spouse 892, NCC)

    Two or more 1/2 (divided by the number of


    children) Consider spouse as 1 legitimate
    legitimate children (or
    Equal to the share of one child child and divide estate by total
    their descendants) Remainder is free portion (Art. number
    Surviving spouse 892, NCC)

    1/2 Please readArticle 176 of the Family


    1/2 of each legitimate child (Art.
    Legitimate child Code: computing the legitimes of
    176, Family Code) legitimate and illegitimate children; an
    Illegitimate child
    Remainder is free portion (Art.
    illegitimate child gets one-half)
    892, NCC)

    1/2 (remaining half is free 1/2


    Surviving spouse 1/2 (divided by the number of brothers
    Brothers and sisters
    portion; Art. 900, NCC) and sisters; nephews and nieces of
    (nephews and nieces, in Not entitled to anything since they deceased siblings divide among
    case of deceased are not compulsory heirs; testator themselves the share that should have to
    may choose to give them
    siblings) their parents)
    something out of the free portion Art. 1001, NCC

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