Why choose us?
As an Extrajudicial Settlement of Estate Law Firm, we can quickly assess the situation so that you can understand if you are eligible for Extrajudicial Settlement.
We’ll explain the potential taxes of waivers or possible other settlements of the estate in an easy-to-understand manner so that you can be aware of the tax implications.
We’ll always price fairly given the correct volume of work and in consideration of the scope required. We have the same fact-based pricing for everyone.
We’ll always work on the case with diligence regardless of whether or not you check because we want the case to succeed.
Why do you need an Extrajudicial Settlement?
An Extrajudicial Settlement is the fastest, cheapest way to transfer an estate to heirs in the Philippines and should be done as soon as possible to avoid late fees. Without settling the estate, you will not be able to transfer to the heirs.
Transfer to the Heirs
You can only transfer an estate to the names of the heirs if you settle an estate and pay the BIR estate taxes and other transfer taxes. Without this, you will not be able to title the property in the heirs’ names.
Avoid late fees
You should settle an estate as soon as possible because every year of delay increases the late fees that are charged to settle an estate. It may sometimes become too expensive to settle.
Protect an inheritance
Settling an estate transfers the property to new heirs and so avoids other people claiming or otherwise contesting the rights of the true heirs of the property. It should be done as soon as possible.
Sell or Profit from the Property
Serious buyers need proof an estate is settled before they buy a property, as they can only transfer to their names afterward. Mortgages and other ways to maximize the property also require Estate Settlement.
Atty Britanico
Extrajudicial Settlement of Estate Law Firm
What are the requirements for an Extrajudicial Settlement?
An Extrajudicial Settlement requires agreement between the heirs and complete and accurate documentation of the ownership of the properties and the family relationships.
Agreement between heirs
Property Docs
Family Docs
6% BIR estate & transfer taxes
What is the Extrajudicial Settlement Process?
Email Us and detail the situation including what property and family documents you have as well as the relationship between the heirs and whether or not they are in agreement.
Assessment As an Extrajudicial Settlement of Estate Law Firm, we can correctly determine the right way to move forward to settle the estate as well as file other cases needed, depending on the situation.
Document Gathering FCB Law Office will determine the documents that are needed and explain the best way to gather them. These are likely to be PSA and property documents at the RD.
Extrajudicial Settlement We’ll draft the Extrajudicial Settlement with the documents gathered and provide instructions on how to notarize and authenticate it if the heirs are abroad.
File at the BIR If the documents are complete and show no inaccuracy, FCB Law Office will file the Extrajudicial Settlement at the BIR and wait for the Estate Tax calculation.
Pay Estate Taxes The BIR will release an Estate Tax calculation which is about 6% of the value of the estate and should be paid immediately to avoid late charges.
File at the Registry of Deeds FCB Law Office will register the Extrajudicial Settlement at the Registry of Deeds after the estate taxes are paid so that new titles are given and the tax declarations are transferred.
Further Reading
Guide to Child Support in Philippine Law
To File a case for Child Support in the Philippines you will need to prepare documents that prove the child’s paternity, show the Spouse’s financial capacity and itemize the child’s expenditures. Read more…...
Child Custody and Child Travel To and From the Philippines
Child custody issues are often intertwined with concerns about the child’s travel into and out of the Philippines. This discusses the interplay between the two...
Frequently Asked Questions
What is an extrajudicial settlement?
An extrajudicial settlement is a method of distributing the estate of a deceased person without going through the court process of probate or intestate proceedings. In the Philippines, this process allows the heirs to agree on the division of the estate among themselves, in accordance with the law, and execute a document called the Extrajudicial Settlement of Estate (ESE).
Can a foreigner inherit land through an Extrajudicial Settlement?
Yes, actually an Extrajudicial Settlement is the only way that land can be transferred to a foreigner. However, he will inherit along with the other compulsory heirs in the proportions stated in Philippine Intestate Law.
When is an extrajudicial settlement applicable?
An extrajudicial settlement can be used when the deceased left no will and all the heirs agree on the division of the estate and are willing to sign documents to that effect.
What are the requirements for an extrajudicial settlement?
To execute an extrajudicial settlement, the following requirements must be met:
- All heirs must be in agreement on the division of the estate and must sign the EJS.
- The EJS must be in writing and notarized.
- The EJS must be published once a week for three consecutive weeks in a newspaper of general circulation in the province where the deceased person resided or where the property is located.
- The EJS must be registered with the Register of Deeds where the property is located.
- The estate tax must be paid to the Bureau of Internal Revenue (BIR) and a Certificate
- Authorizing Registration (CAR) must be obtained.
What is a bond requirement in an extrajudicial settlement?
In an extrajudicial settlement, the heirs are required to post a bond equivalent to the value of the personal property involved, as determined by the parties or appraisers. This bond serves as a guarantee to protect the interests of any unknown heirs, creditors, or other interested parties who may come forward within two years after the settlement.
Can an extrajudicial settlement be contested?
Yes, an extrajudicial settlement can be contested. If there are parties who believe they have a
rightful claim to the estate or that the EJS is not in accordance with the law, they may file a petition in court within two years from the date of the last publication of the ESE.
rightful claim to the estate or that the EJS is not in accordance with the law, they may file a petition in court within two years from the date of the last publication of the ESE.
What if there are minors or incapacitated heirs?
If there are minor or incapacitated heirs, an extrajudicial settlement may still be executed. However, a legal guardian must be appointed to represent the interests of the minor or incapacitated heir during the settlement process.
What are the Estate Taxes for an Extrajudicial Settlement?
The Estate Taxes are 6% of the net value of the estate but Donor’s tax may also be added depending on the situation.
What are the other Transfer Taxes for an Extrajudicial Settlement?
Aside from Estate Taxes, there are other transfer taxes at the Registry of Deeds and City Hall prior to the release of the Title and the new Tax Declaration.