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
1/3 1/2
(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 alone All
Remainder is free portion (Art. 901,
NCC)

1/2; remaining half is free portion

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

Illegitimate parents alone 1/2 All

Surviving spouse alone 1/2, 1/3, 1/2 (Art. 900, NCC) All

1/2 (divided by the number of

Legitimate children (or children)
All
their descendants) alone Remaining half is free portion (Art.
888, NCC)

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

1/2 (divided by the number of

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

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

1/2 (remaining half is free portion; 1/2

Surviving spouse
Brothers and sisters
(nephews and nieces, in
case of deceased siblings)
Art. 900, NCC)
Not entitled to anything since they
are not compulsory heirs; testator
may choose to give them something
out of the free portion
1/2 (divided by the number of brothers and
sisters; nephews and nieces of deceased
siblings divide among themselves the share
that should have to their parents)
Art. 1001, NCC
Heirs and inheritance (Part 1): If your spouse dies without a last
will, who will inherit?
Definition of terms:

The New Civil Code of

the Philippines (NCC), not
the Family Code, governs
the issues on inheritance.

“Testate or testamentary
succession” refers to
situations where the
person dies leaving a last
will; the share in the
inheritance is called
“legitime.”

“Legal or intestate
succession” refers to
situations where the
person died without a last
will; the share in the
inheritance is called
“intestate share.”

The person who dies and

whose property is to be
divided is called the
“decedent.”

Related posts:

 Disinheriting your
spouse
 Disinheriting
children and
descendants,
legitimate as well
as illegitimate
 Article 176 of the
Family Code:
computing the
legitimes of
legitimate and
illegitimate
children; an
illegitimate child
gets one-half
 Can nephews and
nieces inherit
 from their Situation A: You and your deceased spouse have children.
grandparents,
unmarried aunts [1] Only you and your children are entitled to inherit
or uncles?
 When a man is under Article 996 of the New Civil Code of the Philippines. Your
married to or deceased spouse’s siblings, parents, or grandparents are
living in with excluded.
several women
Art. 996. If a widow or widower and legitimate children or
successively or
simultaneously, descendants are left, the surviving spouse has in the
who has the right succession the same share as that of each of the children.
to inherit from If any or some of your children died before your spouse, their
him?
 Right of legitimate children will be entitled to inherit by right of
representation representation.
 Iron barrier
between the
(Read below the steps in computing the inheritance.)
legitimate and
illegitimate sides
of the family [2] If your deceased spouse has illegitimate children, they are
entitled to inherit under Article 176 of the Family Code. Please
read my post on “how to compute the share of an illegitimate
child.”

Situation B: You and your deceased spouse have no children.

[1] If your deceased spouse’s parents (either father or mother, or both) are still alive,
then you and the parents will inherit under Article 997 of the New Civil Code of the
Philippines.
Art. 997. When the widow or widower survives with legitimate parents or ascendants,
the surviving spouse shall be entitled to one-half of the estate, and the legitimate
parents or ascendants to the other half.
If your spouse’s parents are already dead but other “ascendants” (like grandparents or
great-grandparents) are still alive, Article 997 will also apply. Your spouse’s siblings, if
any, are not entitled to inherit.

[2] If your deceased spouse has illegitimate children, then you and the illegitimate
children will inherit under Article 998 of the New Civil Code of the Philippines.
Art. 998. If a widow or widower survives with illegitimate children, such widow or
widower shall be entitled to one-half of the inheritance, and the illegitimate children or
their descendants, whether legitimate or illegitimate, to the other half.
In simpler terms, you will get 50% of the inheritance while the illegitimate children will
divide among themselves the other 50%.

Article 998 applies even if your deceased spouse, at the time of death, had parents or
siblings. Only you and the illegitimate children are entitled to inherit. If the illegitimate
children died before your spouse, then you and the illegitimate children’s descendants
(by right of representation) will inherit.

[3] If your deceased spouse has illegitimate children and “ascendants” (parents,
grandparents, or great-grandparents), then you, the illegitimate children, and the
ascendants will inherit under Article 1000 of the New Civil Code of the Philippines.
Art. 1000. If legitimate ascendants, the surviving spouse, and illegitimate children are
left, the ascendants shall be entitled to one-half of the inheritance, and the other half
shall be divided between the surviving spouse and the illegitimate children so that such
widow or widower shall have one-fourth of the estate, and the illegitimate children the
other fourth.
In simpler terms, you will get 25% of the inheritance; your spouse’s illegitimate children
will also get 25%; and the ascendants will get 50%.

Your spouse’s siblings, if any, are not entitled to inherit.

[4] If your deceased spouse has no ascendants (parents, grandparents, or great-

grandparents) or illegitimate children, but has siblings, then you and the siblings will
inherit under Article 1001 of the New Civil Code of the Philippines.
Art. 1001. Should brothers and sisters or their children survive with the widow or
widower, the latter shall be entitled to one-half of the inheritance and the brothers and
sisters or their children to the other half.
In simpler terms, you will get 50% of the inheritance while the brothers and sisters will
divide among themselves the other 50%.

The law does not distinguish between siblings of the full or half blood. If your deceased
spouse’s father or mother had illegitimate children, these children cannot inherit from
your spouse because of the “iron barrier” between the legitimate and illegitimate sides
of the family.

If any of the siblings died before your spouse, then that sibling's legitimate children
(meaning, your spouse’s nephews or nieces) will inherit by right of representation.
These children will divide among themselves the share that should have gone to their
parent (the deceased sibling).

[5] If your deceased spouse has no illegitimate children, siblings, or ascendants

(parents, grandparents, or great-grandparents), then you inherit everything.

Notes:
[1] These articles do not apply if your marriage has been declared void, or you are the
offending spouse in case of legal separation.

[2] Steps in computing the inheritance:

 You must liquidate the community property (Articles 102 to 104 of the Family
Code) or the conjugal partnership (Articles 129 to 33 of the Family Code).
 The remaining portion will then be divided among the heirs.

Liquidating the Liquidating the

community property conjugal partnership
property

Art. 103. Upon the Art. 130. Upon the

termination of the termination of the
marriage by death, the marriage by death, the
community property conjugal partnership
shall be liquidated in the property shall be
same proceeding for the liquidated in the same
settlement of the estate proceeding for the
of the deceased. settlement of the estate
of the deceased.
If no judicial settlement
proceeding is instituted, If no judicial settlement
the surviving spouse proceeding is instituted,
shall liquidate the the surviving spouse
community property shall liquidate the
either judicially or conjugal partnership
extra-judicially within property either judicially
six months from the or extra-judicially
death of the deceased within six months from
spouse. If upon the lapse the death of the
of the six months deceased spouse. If
period, no liquidation is upon the lapse of the
made, any disposition or six-month period no
encumbrance involving liquidation is made, any
the community property disposition or
of the terminated encumbrance involving
marriage shall be void. the conjugal partnership
property of the
Should the surviving terminated marriage
spouse contract a shall be void.
subsequent marriage
without compliance with Should the surviving
the foregoing spouse contract a
requirements, a subsequent marriage
mandatory regime of without compliance with
complete separation of the foregoing
property shall govern requirements, a
the property relations of mandatory regime of
the subsequent complete separation of
marriage. property shall govern
the property relations of
the subsequent
marriage.
For example, you and your spouse have four children, and your spouse died
leaving one million pesos in property.

1. Your share in the community property or conjugal partnership property is 50% or

five hundred thousand pesos.
2. The remaining five hundred thousand pesos will be divided among the children,
with you counted as one child.
3. Five hundred thousand pesos divided by five: you and the children will receive
one hundred thousand pesos each as inheritance.

Summing up your share (1) in the inheritance and (2) in the community property or
conjugal partnership property, you as the surviving spouse will get six hundred
thousand pesos.

Art. 103. Upon the Art. 130. Upon the

termination of the termination of the
marriage by death, the marriage by death, the
community property conjugal partnership
shall be liquidated in the property shall be
same proceeding for the liquidated in the same
settlement of the estate proceeding for the
of the deceased. settlement of the estate
of the deceased.
If no judicial settlement
proceeding is instituted, If no judicial settlement
the surviving spouse proceeding is instituted,
shall liquidate the the surviving spouse
community property shall liquidate the
either judicially or conjugal partnership
extra-judicially within property either judicially
six months from the or extra-judicially
death of the deceased within six months from
spouse. If upon the lapse the death of the
of the six months deceased spouse. If
period, no liquidation is upon the lapse of the
made, any disposition or six-month period no
encumbrance involving liquidation is made, any
the community property disposition or
of the terminated encumbrance involving
marriage shall be void. the conjugal partnership
property of the
Should the surviving terminated marriage
spouse contract a shall be void.
subsequent marriage
without compliance with Should the surviving
the foregoing spouse contract a
requirements, a subsequent marriage
mandatory regime of without compliance with
complete separation of the foregoing
property shall govern requirements, a
the property relations of mandatory regime of
the subsequent complete separation of
marriage. property shall govern
the property relations of
the subsequent
marriage.
For example, you and your spouse have four children, and your spouse died
leaving one million pesos in property.

1. Your share in the community property or conjugal partnership property is 50% or

five hundred thousand pesos.
2. The remaining five hundred thousand pesos will be divided among the children,
with you counted as one child.
3. Five hundred thousand pesos divided by five: you and the children will receive
one hundred thousand pesos each as inheritance.

Summing up your share (1) in the inheritance and (2) in the community property or
conjugal partnership property, you as the surviving spouse will get six hundred
thousand pesos.