*Updated April 2026 · Based on TRAIN Law (RA 10963), Civil Code, Rule 74 of the Rules of Court, and current BIR requirements*
When a family member passes away and leaves property behind, the surviving heirs must go through a legal process to transfer the property into their names. In the Philippines, the most common and fastest way to do this is through an Extrajudicial Settlement of Estate (EJS).
An EJS allows heirs to divide and transfer the deceased's property without going to court — saving months (or years) of litigation, attorney's fees, and emotional stress. But it only works if specific conditions are met.
This guide explains the requirements, step-by-step process, costs, estate tax computation under the TRAIN Law, and what happens when things go wrong.
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An Extrajudicial Settlement (EJS) is a private agreement among all the heirs of a deceased person to divide the estate among themselves, without court intervention.
It is governed by Rule 74, Section 1 of the Rules of Court, which states that when the decedent left no will and no debts, or obligations have been paid, the heirs may divide the estate among themselves by executing a public instrument (notarized document) filed with the Register of Deeds.
All three conditions must be met:
1. No will — the deceased did not leave a last will and testament 2. All heirs agree — every single legal heir consents to the partition 3. No outstanding debts — the estate has no unpaid obligations (or debts have been settled)
If any of these conditions is not met — for example, one heir refuses to sign, or there is a valid will — you must go through judicial settlement in probate court.
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Before starting the EJS process, gather the following documents:
1. Death Certificate of the deceased (PSA-authenticated) 2. Valid IDs of all heirs (government-issued) 3. Original Owner's Duplicate of the Title (TCT or CCT) 4. Certified True Copy of the Title from the Registry of Deeds 5. Latest Tax Declaration of the property (from Assessor's Office) 6. Tax Clearance from the Treasurer's Office (proof that RPT/amilyar is current) 7. Proof of relationship to the deceased (birth certificates, marriage certificate) 8. Marriage Certificate of the deceased (if married, to establish conjugal property) 9. TIN of the estate (apply at BIR using Form 1904) 10. Special Power of Attorney (if any heir cannot be personally present) 11. Barangay Certification (certifying the address of the deceased or property) 12. Affidavit of Self-Adjudication (if there is only one heir) or Deed of Extrajudicial Settlement (if multiple heirs)
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Engage a lawyer or notary public to draft the Deed of Extrajudicial Settlement. The document must include:
All heirs must sign the document. Prepare at least 8 copies.
The Deed of Extrajudicial Settlement must be notarized by a licensed notary public. All signing heirs must appear personally before the notary with their valid IDs.
If an heir cannot be present, they must execute a Special Power of Attorney (SPA) authorizing a representative to sign on their behalf. The SPA must also be notarized — and if the heir is abroad, it must be authenticated at the nearest Philippine Embassy or Consulate.
The notarized EJS must be published in a newspaper of general circulation in the province or city where the property is located. It must be published once a week for three consecutive weeks.
This is a mandatory legal requirement under Rule 74. It serves as public notice so that any person who has a claim against the estate can come forward.
Cost: PHP 15,000 – PHP 25,000 depending on the newspaper and location.
After the last newspaper publication, wait 30 days before proceeding to BIR. This waiting period allows creditors or other claimants to file objections.
File BIR Form 1801 (Estate Tax Return) at the Revenue District Office (RDO) where the deceased was registered or where the property is located.
Submit:
The estate tax rate under the TRAIN Law is a flat 6% of the net taxable estate. However, generous deductions often result in zero tax due. See the computation section below.
After paying estate tax (or filing a zero-tax return), BIR issues the Electronic Certificate Authorizing Registration (eCAR). Processing time: 5 – 15 working days.
The eCAR is the single most critical document — without it, the Registry of Deeds will not transfer the title.
Bring the eCAR and all documents to the Registry of Deeds to cancel the old title and issue a new one under the heirs' names. Then update the Tax Declaration at the Assessor's Office.
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Here is a typical cost breakdown for extrajudicial settlement:
| Cost Item | Estimated Amount | |---|---| | Notarial fee (drafting + notarization) | ₱2,000 – ₱5,000 | | Newspaper publication (3 weeks) | ₱15,000 – ₱25,000 | | BIR estate tax filing fee | ₱500 – ₱1,000 | | Estate tax (6% of net taxable estate) | Varies (often ₱0) | | DST on EJS (1.5% if applicable) | Varies | | Transfer tax (0.5% – 0.75%) | Varies | | Registration fee (LRA) | ₱5,000 – ₱30,000 | | Miscellaneous (certified copies, loose DST) | ₱2,000 – ₱5,000 | | Total (excluding estate tax) | ₱25,000 – ₱70,000 |
If you hire a lawyer to handle the entire process, expect to pay an additional PHP 20,000 – PHP 80,000 in legal fees.
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The TRAIN Law (RA 10963), effective January 1, 2018, simplified estate tax to a single flat rate:
Estate Tax = 6% of Net Taxable Estate
The following deductions are subtracted from the gross estate before computing the tax:
| Deduction | Amount | |---|---| | Standard Deduction | ₱5,000,000 | | Family Home Deduction | Up to ₱10,000,000 | | Conjugal Share (if married) | 50% of conjugal/community properties | | Claims against the estate | Actual amount | | Unpaid mortgages | Actual amount | | Transfer for public use | Actual amount |
Scenario: Juan passes away. He owned a residential property worth PHP 3,000,000. He was married. One property only, which is the family home.
| Step | Computation | Amount | |---|---|---| | Gross Estate | Property value | ₱3,000,000 | | Less: Conjugal Share (50%) | ₱3,000,000 × 50% | (₱1,500,000) | | Gross Taxable Estate | | ₱1,500,000 | | Less: Standard Deduction | | (₱5,000,000) | | Net Taxable Estate | | ₱0 (cannot be negative) | | Estate Tax (6%) | ₱0 × 6% | ₱0 |
Result: Zero estate tax due. The PHP 5,000,000 standard deduction alone exceeds the taxable estate.
Even without the conjugal share, a single person with a PHP 3,000,000 estate would owe zero tax: PHP 3,000,000 – PHP 5,000,000 = negative, so tax is PHP 0.
In practice, most Filipino families with a single property worth less than PHP 15,000,000 owe zero estate tax under the TRAIN Law.
Compute your exact estate tax. Our calculator shows whether you owe anything and gives you the filing checklist. Estate Tax Calculator →
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The estate tax return must be filed within 1 year from the date of death.
These penalties can be substantial. If the estate tax due is PHP 100,000 and you file 2 years late:
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Under RA 11213 (Tax Amnesty Act) as extended by RA 11569, the government offered an estate tax amnesty for deaths that occurred on or before June 14, 2022. The amnesty rate was a flat 6% with a minimum tax of PHP 5,000, with all penalties, surcharges, and interest waived.
The amnesty deadline was June 14, 2025, and it has now expired. Estates that missed the amnesty window must file regular estate tax returns with applicable penalties for late filing.
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If even one legal heir refuses to sign the EJS, the extrajudicial settlement cannot proceed. In that case, the options are:
1. Judicial Settlement — File a petition for settlement of estate in the Regional Trial Court (probate court). This is costly and can take 1 – 5 years. 2. Mediation — Try to resolve the dispute through a barangay mediation (lupong tagapamayapa) or private mediation before resorting to court. 3. Partition Action — If the dispute is only about how to divide the property, any heir can file an action for judicial partition.
Judicial settlement requires a lawyer and court fees. Budget PHP 50,000 – PHP 200,000+ in legal costs.
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No. An heir who cannot appear personally can execute a Special Power of Attorney (SPA) authorizing another person to sign on their behalf. If the heir is abroad, the SPA must be authenticated at the Philippine Embassy or Consulate.
Yes, as long as all heirs have executed SPAs. One heir or a representative can handle the BIR filing, Registry of Deeds, and Assessor's Office on behalf of everyone.
If the property is untitled (covered only by a tax declaration), you can still execute an EJS. However, the process of obtaining a title (through judicial or administrative confirmation of imperfect title) is a separate proceeding that may need to be done before or after the EJS.
All properties must be included in a single Deed of Extrajudicial Settlement. The estate tax return covers the entire estate. However, you may need to register the EJS at each Registry of Deeds where property is located.
From drafting the EJS to getting the new title: typically 3 to 8 months, assuming all heirs cooperate, documents are complete, and BIR processes the eCAR promptly.
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*This article is for general information only. Estate settlement involves legal, tax, and procedural complexities that vary by situation. For estates involving multiple properties, foreign heirs, disputed claims, or properties without titles, consult a licensed attorney.*
*Last updated: April 2026 · LandValuePH.com*