Estate Inventory (Philippines)

An Estate Inventory in the Philippines records a person's final instructions for their property, gifts and the executors who will give effect to them after death.

Rule 83 of the Rules of Court requires that the inventory include all real and personal property of the decedent, as well as all encumbrances thereon. The inventory must be verified — sworn to under oath by the executor or administrator before a notary public. The probate court reviews the inventory and may require the executor or administrator to add omitted properties or remove properties that do not belong to the estate.

For extrajudicial estate settlement under Section 1, Rule 74 of the Rules of Court, while a formal court-supervised inventory is not required, the extrajudicial settlement deed must contain a description of all estate properties being distributed. An accurate inventory confirms all properties are accounted for in the settlement and prevents disputes among heirs about omitted assets.

The BIR's estate tax computation requires an inventory of the gross estate in the estate tax return (BIR Form 1801) — valuing real property at the higher of the BIR zonal value under Revenue Regulations No. 6-2013 and the city/municipal assessor's assessed value as shown in the Tax Declaration, and valuing personal property at fair market value as of the date of death.

The legal framework governing the Estate Inventory (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Estate Inventory (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Civil Code of the Philippines (RA 386), Book III sets the foundational requirements.

An Estate Inventory in the Philippines is needed at the start of every estate settlement process, whether judicial or extrajudicial.

An Estate Inventory is required when filing BIR Form 1801 (Estate Tax Return) to report the gross estate to the Bureau of Internal Revenue — the inventory identifies every taxable asset so the BIR can verify the gross estate value, apply deductions, and compute the 6% estate tax under TRAIN Law (RA 10963).

An Estate Inventory is required by the RTC probate court under Rule 83 of the Rules of Court when the executor or administrator is appointed — the court-supervised inventory must be submitted within 3 months from appointment and serves as the baseline document for estate administration, creditor claims, and distribution.

An Estate Inventory is needed in extrajudicial settlement proceedings under Rule 74 — even without court supervision, the heirs must identify all estate properties in the settlement deed to validly divide and distribute the estate without omitting assets that could later lead to heir disputes or claims by excluded parties.

An Estate Inventory is needed to identify all real property requiring separate BIR eCARs — the BIR issues one eCAR per property, and the inventory confirms no title remains untransferred after estate tax payment.

An Estate Inventory is needed for claims processing — the executor or administrator uses the inventory to match estate assets against creditor claims, confirming debts are paid before distribution to heirs in the order mandated by Rule 88 of the Rules of Court.

Parties in Philippines should prepare a Estate Inventory (Philippines) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A complete Estate Inventory for the Philippines must document all assets and liabilities of the decedent with sufficient detail for BIR and court purposes.

Real Property: For each parcel of land, building, condominium unit, or other real property — the property name/description, Transfer Certificate of Title (TCT) or Original Certificate of Title (OCT) number, lot number, block number, survey number, area (in square meters), location (barangay, municipality/city, province), assessed value from the Tax Declaration, BIR zonal value per Revenue Regulations No. 6-2013, and current market value. Note any mortgage or encumbrance annotated on the title.

Personal Property: For each item of personal property — bank accounts (bank name, branch, account number, account type, balance as of date of death per bank certificate), motor vehicles (brand, model, year, plate number, OR/CR number, LTO-published fair market value), shares of stock (company name, number of shares, par value, book value per latest financial statements), jewelry (description, estimated value), and other valuables.

Business Interests: For sole proprietorships (DTI-registered business), partnerships, and corporations — the business name, nature of business, DTI/SEC registration number, percentage ownership, and book value of the interest as reflected in the latest financial statements or capital account.

Receivables and Intangible Assets: Money receivable by the estate from debtors (with documentation), life insurance proceeds includible in the gross estate under Section 85(E) of the NIRC (where the estate is the beneficiary or the proceeds are revocable), retirement benefits, and other intangible assets.

Liabilities and Deductions: All outstanding debts of the decedent at the time of death — mortgage balances (with mortgage statements), personal loans (with promissory notes or loan statements), unpaid taxes, and other certified claims against the estate. These are the deductible claims against the estate under Section 86(A)(1) of the NIRC.

Valuation: Each asset must be valued as of the date of death — the BIR uses the higher of fair market value, assessed value, or BIR zonal value for real property. The executor or administrator should attach supporting valuation documents: bank certificates of balance, assessor's tax declarations, BIR zonal value printouts, and appraisal reports for unusual assets.

Additional compliance elements for a Estate Inventory (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.