Dividing the Property of Someone Who Died, Without Going to Court

When You Can Settle Without Court

Rule 74, Section 1 of the Rules of Court lets heirs divide the property left behind (the estate) among themselves without a court case when:

• the person who died left no will;
• they left no debts, or the debts have been paid; and
• the heirs are all adults, or any minor heirs are represented by a guardian (their judicial or legal representatives); and
• all the heirs agree on how to divide the property.

If there is a will, it must go through probate (the court case that approves a will); a will cannot pass property until a court allows it. If the heirs cannot agree, the way forward is a court case to divide the property (an action for partition). Both need a lawyer. The Public Attorney's Office (PAO) helps people who qualify.

The Steps

1. List the heirs and the property. Gather PSA Birth and Marriage Certificates to show each heir's relationship, the Death Certificate, and documents for every property (titles, Tax Declarations, bank certificates, vehicle Certificates of Registration or CRs).
2. Draft and sign the Deed of Extrajudicial Settlement. All heirs sign in front of a notary. Heirs who cannot attend can sign through a Special Power of Attorney (a written authority for someone to sign for them). Start with the Extrajudicial Settlement template.
3. Publish it. Have the deed (or a notice of it) published once a week for three weeks in a row in a newspaper of general circulation (widely read) in the province. Keep the newspaper's Affidavit of Publication and the clippings.
4. Post a bond (a money guarantee) if there is personal property. Rule 74 needs a bond equal to the value of the personal property (such as cash, vehicles or shares), filed with the Registry of Deeds.
5. Pay the estate tax and get the eCAR. File the estate tax return (BIR Form 1801) and pay. The BIR then issues an eCAR (electronic Certificate Authorizing Registration, the BIR's go-signal to transfer the property) for each property to be transferred.
6. Pay the local transfer tax at the treasurer's office where each property is. The Local Government Code gives 60 days from death for this.
7. Register at the Registry of Deeds and then update the Tax Declaration at the assessor's office.

Estate Tax

Under the Tax Code as amended by Republic Act No. 10963 (TRAIN), for deaths from 1 January 2018:

• The rate is 6% of the net estate (the value left after deductions).
• A standard deduction of ₱5,000,000 applies. The family home is also deductible up to ₱10,000,000 of its value, if it qualifies.
• The return is due within one year from death.
• If the estate does not have enough cash, the BIR can allow payment in installments within two years from the deadline without penalty or interest.
• A bank that knows a depositor has died may allow withdrawals after taking out a 6% final withholding tax.

Estimate it with the estate tax calculator.

Estate tax amnesty. Republic Act No. 11956 extended the estate tax amnesty (a chance to pay without penalties) to 14 June 2025, for estates of people who died on or before 31 May 2022. That window has closed. Bills to reopen the amnesty were filed in Congress in 2025 and 2026. Check with the BIR whether a new amnesty law has taken effect before you rely on one.

Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.

The Two-Year Rule

Under Rule 74, Section 4, for two years after an Extrajudicial Settlement, an heir who was left out or a creditor who was not paid can still go after the property and the bond. The Registry of Deeds writes a note about this on the new title (an annotation).

So if you are buying land that came from an Extrajudicial Settlement less than two years ago, read the annotation and check that all the heirs signed.

A settlement is also not binding on heirs who did not take part in it or had no notice of it. Leaving out an heir, even by mistake, can undo the whole settlement.

If You Are the Only Heir

A sole heir signs an Affidavit of Self-Adjudication instead of a Deed of Settlement. The same rules apply: no will, no debts, publication for three weeks, a bond for personal property, estate tax, and the two-year claim period.

Be sure you really are the only heir. A surviving spouse, children (including children born outside marriage) and, if there are no children, parents can all be heirs.