An Overview of the Law on Inheritance in the Philippines
When a person dies, their estate (which is the aggregate of all the money, property, liabilities and claims) will be distributed to their heirs and/or legatees. In the Philippines, inheritance law refers to the rules that govern this transfer of property and liabilities through either a will or by operation of law. In this respect, there are two common types of succession: The former refers to the transfer of property, rights and obligations that takes effect upon the death of the person and is done pursuant to his will. The will (testamentary disposition) is an executory act which leaves no immediate effect until the death of the person. The latter, on the other hand, becomes effective presently upon acceptance by the heir or legatee and does not required prior authority or order from a court. The acceptance, nevertheless, must be under the obligation to pay the debts and settle the claims against the estate. It is important to note that in the Philippines, succession is governed by the Civil Code particularly Articles 774 to 1058. Title II Chapter 1 of the Civil Code states that succession-dispositive provisions have the character of law. They fall within the scope of the sources of Philippine law and are mandatory in character . They must be observed and cannot be held in abeyance by the will of the deceased (In Re: Sps. Limpedan, G.R. No. L-30863, January 31, 1973). What are essentials of a valid will? Article 795 of the Civil Code provides the requirements for the validity of a will: Who are heirs and legatees? In a testate succession, the general rule is that heirs are those who are called to the intestate succession (without testamentary disposition by operation of law) in consideration of their relationship to the deceased. However, strictly speaking, heirs refer to those who inherit in accordance with the provisions of the Civil Code on legal succession while legatees refer to those who inherit in accordance with the provisions of a will. While the definition of both terms seems to suggest that they are clearly distinguishable, the Philippine Supreme Court has held that: Heirs and legatees, as such, are of course, distinguished primarily by the distinction that all the rights of the latter do not arise until the death of the testator; whereas all the rights of the first group vest directly on the death of the ancestor or ancestor by operation of law (Montalbo vs. Hilado, 68 Phil. 148 [1939]).
Testate Succession and Wills
Testate succession refers to the distribution of an estate in accordance with the provisions of a will. It relies on the clear and unambiguous wishes of the deceased as specified in their will. In the Philippines, the formalities required for the creation of a will are outlined in the Civil Code of the Country. Pursuant to Article 795 of the Civil Code, every person of sound mind, not under any legal disqualification, may dispose of his estate by will, executed in the forms prescribed by law. In this connection, the last testament of a deceased person that complies with the requisite formalities is a very pertinent document. The requirement of a valid will under Philippine law is discussed below:
A. Written Document
A will must be in writing. It may be either public or notarial in nature or an olographic (handwritten) one. For a will executed under the notarial form, it must be signed at the end of the testator’s name and such signature must be acknowledged by the executor before a notary public and additional requirements are provided for in the Civil Code.
B. Voluntary Disposition
It is imperative that it is a voluntary act of the testator. It cannot be made in favor of creditors nor against the public policy provisions of the law.
C. Capacity to Dispose
The testator must have the legal capacity to dispose of his property. A general rule that applies in this regard is that a person able to give consent to another can make a will. This ability is presumed unless otherwise provided by law. Thus, an insane person or one who is deaf and cannot read cannot make a will.
D. Free from Undue Influence
A will made under undue influence is considered vitiated and invalid. Generally, private express trusts are disallowed and prohibited by law as it will restrict the rights of the testator in the disposition of his property. Thus, a public instrument made by a notary public may serve as a means of proof of a trust.
A testate succession takes place upon the death of the testator. The testamentary disposition as a juridical act is suited to the requirements of the common good and to the interest of society. However, the reservation of certain properties for the compulsory part of the compulsory heirs under the law will preclude the testamentary disposition of the same.
Intestate Succession and Legal Heirs
If a person dies without a will, or "intestate", the laws of intestate succession in the Philippines apply to determine how the deceased’s properties will be distributed among the heirs. While there are exceptions, the following order of succession is generally observed:
- Legitimate children
- Illegitimate children – these receive half the share of the former
- Father or mother, if the decedent is a single person (Ordinarily, the mother is not allowed to inherit from the estate of her illegitimate child)
- Surviving spouse, if the decedent is a single person, or if the decedent leaves a spouse but no legitimate children
- Brother or sister (esp. if no more distant relatives allow) – the spouse of the brother or sister cannot inherit
- Grandfather or grandmother
- Relatives as far as the fifth degree
For the distribution of properties, the following rules are generally observed:
1. Exclusive jurisdiction over:
a. Properties of the surviving spouse acquired through gratuitous title (e.g. donation or inheritance) during the marriage
b. Inheritance of a child (legitimate or illegitimate)
c. Properties acquired after legal separation or declaration of nullity of marriage
2. Joint jurisdiction over:
a. Properties acquired through purchase or exchange for valuable consideration during the marriage
b. Properties acquired by industry, work, labor or by a trade, business or profession or of whatever nature that the spouses may acquire during marriage
The deceased’s debts must be settled using the properties of the estate before allocating the distribution above.
The list above is not exhaustive. Further, depending on the particular circumstances of the family, there may be multiple combinations of the order of inheritance and means of distribution of properties.
Heirs: Rights and Duties
Under Philippine inheritance law, the surviving spouse has an equal right with the other compulsory heirs on the "legitime" that the deceased may have left.
In general, the "legitime" consists of the right of the compulsory heirs to a portion of the estate left by a decedent.
The following are the compulsory heirs: illegitimate children, descendants, ascendants, surviving spouse, and illegitimate descendants.
Article 886. The heir is obliged to accept the inheritance with its burdens. (n)
The right to inherit also comes with the responsibility to accept the transfer of assets of their loved one under the law. An heir cannot unilaterally refuse his or her right of succession. In a Supreme Court decision, it was stated that "it is well-settled that under the Civil Code of the Philippines, an heir has no power to renounce his succession. Although Article 842 of the same Code permits an heir under circumstances to renounce his succession, it is nevertheless subject to certain conditions and limitations as provided by law."
A distinction must be made between "testamentary" and "intestate" succession. Under testamentary succession, the decedent has disposed of property by a last will and testament. On the other hand, in intestate succession, the decedent has not disposed of property under a will.
Testamentary succession is the disposal of property through a will. It shall take effect after a person’s death and shall confer rights to the property in question only upon the moment of the testator’s death.
Intestate succession is the mode of transmitting the property of a person who dies without a will or without sufficient legal capacity to make a will.
- (1) Legitimate children and descendants of the parents, including those acknowledged by the parents during their lifetime.
- (2) Parents and ascendants.
- (3) The surviving spouse.
- (4) Legitimate brothers and sisters of the full blood.
- (5) Legitimate brothers and sisters of the half-blood.
- (6) Illegitimate children.
- (7) Other collateral relatives of the decedent within the fifth degree.
What is the legal right of the compulsory heirs? Under Philippine inheritance laws, compulsory heirs are entitled to the compulsory portion of the estate. This portion is known as the "legitime".
Article 887. The legitimate children and descendants of the deceased, except the legitimate and illegitimate descendants of the illegitimate children of the decedent, shall be forced to accept the legitime with the burdens attached thereto, so as to transmit it with all its natural accessory and primitive obligations to the other coheirs. (n)
Special Circumstances in the Law on Inheritance
When it comes to inheritance law in the Philippines, there are instances that allow for the exception to the rule. Here are three special circumstances which seeks to add further clarity regarding matters of inheritance.
Adopting an Heir
According to Article 192 of the Family Code of the Philippines (2010), an adopted child is treated the same as a legitimate child in all intents and punishments of the laws of succession or inheritance. Laws regarding guardianship, however, must be looked at separately, alongside parental authority, for which adopted children are subject to the limitations of real parents. When referring to the line of succession and inheritance, an adopted child will receive a share that has been willed to them as part of their inheritance — no less than what would be bestowed upon a natural child — unless deemed otherwise. This is the same if an heir has been disinherited. Adoption, as the law states, should not matter.
Disinheritance
There are some circumstances in which the testator can declare that a child is disinherited. However, there must be an acceptable cause linked as the reasoning for the disinheritance. As outlined in Article 919 of the Civil Code of the Philippines (1950), causes for disinheritance can be found in Articles 754, 755, 756, 759, and 760 of the Family Code of 1987. These states that:
Article 754 – The following are the causes for disinheritance: (1) For unjust vexation; (2) For malicious conduct; (3) For attempting on the life of the other; (4) For unjustifiable refusal to support; (5) For abandoning without provision for support; (6) For employment of any violence, intimidation, or material harm; (7) For misconduct in the family or in public; (8) For malicious harassment; (9) For actions constituting injury to person or property; (10) For causing habitual intoxication; (11) For causing serious abuse; (12) For failure to communicate; (13) For abuse of authority; (14) For having been a constant cause of unhappiness.
Article 755 – The following are the causes for disinheritance: (1) When the heir has attempted against life of the testator; (2) When he has committed an act involving dishonor , ingratitude or disobedience by word, deed or intemperance, against testator during his lifetime; (3) When he has been found guilty of an act implying repudiation of the order established by the Family Code.
Article 756 – Any person of completely demented mind cannot inherit from his own children.
Article 759 – There is some cases where the right of an heir to inherit is barred. This is usually marked as a total exclusion from inheritance based on the renunciation of the heir, which is expressly set forth as an exclusion from charity for a testator.
Article 760 – An heir may also be precluded from sharing in part or all of the inheritance for the following reasons: (1) When a party receives less by legal means; (2) Via exclusion; (3) In the event of a renunciation by the heir.
Joint Ownership of Property
Article 227 of the Family Code of the Philippines (1987) outlines how to proceed in the event of heirs who do not want to partition property. This article states that in such an instance, the heirs will be the owners of the inherited property as a whole, along with the respective rights that they share. As stated in Article 226, they own the property under the condition that they require permission from their peers before being able to make any transactions with the property, as well as being unable to exercise their rights without consent. In doing so, the property can be rented out, used for a business, sold or exchanged, however, the heirs are all required to use said property in joint agreement with one another. Should an heir feel that their friends haven’t made a contribution to the upkeep of said property, then they have the right to sue for reimbursement for all expenses linked to the ownership of the property in question. If partition cannot be mutually agreed upon, the property will be divided — either vertically or horizontally — in order to create separate titles for each heir, or it will be divided either in half or thirds (depending on the number of owners).
Estate Settlement: Procedures and Administration
In the Philippines, settling an estate commences when there is a death of a person. Inheritance disputes in the Philippines must be settled in a Special Proceeding for settlement of an estate also known as the summary settlement of estate. The entire estate whether the decedent died testate (with a will) or intestate (without a will) should be filed with the court where he or she resided at the time of his or her death. The Summary Settlement of Estate Procedure applies to small estates. If the value of the entire estate exceeds P10,000.00 then the proceedings are not summary in nature but regular in the ordinary course of judicial proceedings. If the deceased died testate, the Will should be probated. A Petition for Probate of the Will has to be filed before the appropriate Regional Trial Court. The requirements for the filing of a petition are as follows: Documents which may also be required in the execution of orders and rulings issued in probate proceedings are the following: (i) Affidavit of Publication (ii) Notice of Hearing (iii) Bond (when required) (iv) Final report on the administration of the estate (v) Waiver of claims (if creditor of the estate) (vi) Guardianship Bonds (if guardianship proceedings are pending)
Common Obstacles and How to Address Them
Family disputes are the most common challenge when it comes to inheritance issues in the Philippines. These disputes may arise due to perceived favoritism among heirs, unequal sharing of assets, or resentment over caregiving responsibilities. However, these issues can often be mitigated through open and honest communication, as well as by seeking mediation or arbitration if necessary.
Another common issue is unclear or unsigned wills. Many Filipinos still rely on verbal arrangements or holographic wills that may not be legally recognized. It is crucial for those drafting a will to ensure that it adheres to the requirements under Philippine law, including the signing of the document before two disinterested witnesses with the capability of signing.
In the case of intestacy, where there is no valid will, various problems may arise . Without clear instructions, dividing the estate then becomes complicated, especially if a dependents’ claim is made. When multiple heirs are involved, a process called settlement of estate must be employed to govern the division of properties.
If family dynamics are so strained that even mediation or arbitration is ineffective, litigation may become necessary. This often leads to prolonged legal battles divesting multiple parties of valuable private resources. In such a situation, it may help for concerned parties to stipulate a time when each of them should exchange confidential information about the deceased, as well as where the inventory should be kept. This is crucial in avoiding abuse of pendency, or keeping assets away from other interested parties.