Extrajudicial Settlement of Estate — Will (Philippines)
DEED OF EXTRAJUDICIAL SETTLEMENT OF ESTATE
Section 1, Rule 74, Rules of Court of the Philippines
KNOW ALL MEN BY THESE PRESENTS:
This Deed of Extrajudicial Settlement of Estate is executed on [Settlement Date] by the heirs of [Decedent Name], who died on [Date of Death] at [Place of Death], civil status at death: [Civil Status at Death].
I. THE HEIRS
The following are the known surviving heirs of the deceased: [Heirs List]
II. DECLARATIONS
A. No Will: [No Will Declaration]
B. Debts: [No Debt Declaration]
C. The heirs are all of legal age and capable of managing their affairs, or are represented by their duly authorized guardians.
III. ESTATE PROPERTIES
Real Properties:
[Real Properties]
Personal Properties:
[Personal Properties]
IV. DISTRIBUTION OF ESTATE
[Distribution]
V. UNDERTAKINGS
The heirs undertake to: (1) pay all estate taxes due to the Bureau of Internal Revenue (BIR) under the TRAIN Law (RA 10963) and obtain the BIR Electronic Certificate Authorizing Registration (eCAR); (2) publish this Deed in a newspaper of general circulation once a week for 3 consecutive weeks per Section 1, Rule 74; and (3) file this Deed with the Registry of Deeds.
IN WITNESS WHEREOF, the heirs have signed this Deed of Extrajudicial Settlement on [Settlement Date].
Heirs: [Heirs List]
ACKNOWLEDGMENT
BEFORE ME, a Notary Public, personally appeared all the above heirs, known to me and identified by their government-issued IDs, who acknowledged this Deed as their free and voluntary act on [Settlement Date].
Notary Public
Doc. No.: _____; Page No.: _____; Book No.: _____; Series of 20____.
Heir 1
________________
Signature
Heir 2
________________
Signature
Heir 3
________________
Signature
What Is a Extrajudicial Settlement of Estate — Will (Philippines)?
An Extrajudicial Settlement of Estate — Will in the Philippines directs how the testator's estate is to be distributed after death and appoints the executors who will administer it.
783-795. It directs the distribution of the testator's estate to named beneficiaries upon death.
Extrajudicial settlement requires: (1) the decedent left no will (died intestate); (2) the decedent left no outstanding debts — or if there are debts, the heirs assume responsibility for them under Section 1, Rule 74; and (3) all the heirs are of legal age (18 or older under RA 6809) and capable of managing their affairs, or their duly authorized guardians represent the minor or incapacitated heirs. If these conditions are not met — particularly if there is a will, or there are debts that the heirs cannot personally assume — judicial settlement before the RTC is required under Rules 73-90 of the Rules of Court.
The extrajudicial settlement deed must be published in a newspaper of general circulation in the province once a week for 3 consecutive weeks under Section 1, Rule 74, and filed with the Register of Deeds within 2 years from the decedent's death. The publication requirement protects the rights of creditors who may have claims against the estate. An heir who was excluded from the extrajudicial settlement may file an action within 2 years from the date of registration of the deed to recover their share.
Before the extrajudicial settlement can be used to transfer title to real property, the estate tax must be paid to the Bureau of Internal Revenue (BIR) under the TRAIN Law (RA 10963) — 6% of the net estate — and a BIR Electronic Certificate Authorizing Registration (eCAR) obtained. The eCAR is presented to the Registry of Deeds to annotate or transfer the title to the heirs.
The legal framework governing the Extrajudicial Settlement of Estate (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 Extrajudicial Settlement of Estate (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), Art. 783-795 sets the foundational requirements.
When Do You Need a Extrajudicial Settlement of Estate — Will (Philippines)?
An Extrajudicial Settlement of Estate in the Philippines is needed when heirs want to divide a decedent's estate efficiently without the time and expense of court proceedings.
An Extrajudicial Settlement is needed when a Filipino dies intestate (without a will) and their surviving heirs — spouse, children, or parents — want to divide the estate including real property, bank accounts, and personal property among themselves. Without the settlement deed, property cannot be transferred to the heirs' names at the Registry of Deeds.
An Extrajudicial Settlement is needed to transfer title to real property (land, condominium units) from the deceased owner to the heirs — the BIR eCAR and the registered extrajudicial settlement deed are the documentary requirements for the Registry of Deeds to issue new Transfer Certificates of Title (TCTs) or Condominium Certificates of Title (CCTs) in the heirs' names.
An Extrajudicial Settlement is needed to access and close the decedent's bank accounts. Philippine banks — BPI, BDO, Metrobank, UnionBank, Landbank, DBP — require a BIR eCAR and a notarized extrajudicial settlement or affidavit of self-adjudication before releasing balances to the heirs of a deceased depositor.
An Extrajudicial Settlement is needed to transfer shares of stock held by the decedent in Philippine corporations — the Corporate Secretary of the Philippine corporation transfers shares on the books upon presentation of the extrajudicial settlement and BIR eCAR under Section 97 of the NIRC.
An Extrajudicial Settlement is needed when siblings want to sell inherited real property to a third party — the property must first be transferred to the heirs' names through the extrajudicial settlement process before it can be listed for sale and a Deed of Absolute Sale executed.
Parties in Philippines should prepare a Extrajudicial Settlement of Estate (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.
What to Include in Your Extrajudicial Settlement of Estate — Will (Philippines)
A valid Extrajudicial Settlement of Estate for the Philippines under Section 1, Rule 74 of the Rules of Court must contain the following elements.
Decedent's Information: Full legal name of the deceased, date and place of death (with Death Certificate issued by the Local Civil Registry and authenticated by the Philippine Statistics Authority (PSA)), and civil status at death. The Death Certificate is the primary documentary requirement for all estate transactions.
Heirs' Information: Full legal names, addresses, and relationship to the decedent of all heirs — legitimate children (including adopted children), illegitimate children acknowledged by the decedent, surviving spouse, and parents (if no descendants). All heirs must be parties to the instrument or represented by a duly authorized attorney-in-fact under a Special Power of Attorney (SPA) notarized under the 2004 Rules on Notarial Practice.
Declaration That No Will Exists: An express statement by all heirs that the decedent died without a last will and testament and that no will has been filed before any court. If a will exists, Rule 74 extrajudicial settlement cannot be used — probate is mandatory under Article 838 of the Civil Code.
Declaration That No Debts Exist (or Assumption of Debts): An express statement that the decedent left no outstanding debts — or, if debts exist, a statement that the heirs jointly and severally assume all obligations of the decedent. Creditors may challenge the settlement within 2 years under Section 4, Rule 74.
Inventory and Description of Estate: A complete description of all properties being distributed: for real property — TCT/OCT number, lot number, area, location, assessed value from the Tax Declaration, and the Registry of Deeds where registered; for personal property — bank account details, vehicle OR/CR numbers, shares of stock with company name and number of shares; for other assets — life insurance proceeds, SSS/GSIS death benefits.
Distribution of Estate: The specific allocation of each property to each heir, consistent with the rules of intestate succession under Articles 960-1014 of the Civil Code — legitimate children share equally in the legitimate portion; surviving spouse receives an equal share to the children; illegitimate children receive ½ of the share of each legitimate child.
Publication Requirement Compliance: A statement that the extrajudicial settlement will be published in a newspaper of general circulation once a week for 3 consecutive weeks as required by Section 1, Rule 74, and will be filed with the appropriate Registry of Deeds.
Notarization: The extrajudicial settlement must be acknowledged before a notary public under Article 1358 of the Civil Code and the 2004 Rules on Notarial Practice to constitute a public instrument required for registration with the Registry of Deeds.
Additional compliance elements for a Extrajudicial Settlement of Estate (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.
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Forms Legal. (2026). Extrajudicial Settlement of Estate — Will (Philippines) (Philippines) [Legal document template]. Forms Legal. https://forms-legal.com/philippines/estate-planning/estate/extrajudicial-settlement-will-philippines
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}Frequently Asked Questions
Extrajudicial settlement and judicial settlement are two different methods for distributing a decedent's estate in the Philippines with substantially different costs, timeframes, and requirements. Extrajudicial settlement under Section 1, Rule 74 of the Rules of Court is a private transaction between the heirs — executed by notarized deed, published in a newspaper for 3 consecutive weeks, and filed with the Registry of Deeds — with no court involvement. Extrajudicial settlement is only available when the decedent died intestate (no will), left no outstanding debts (or heirs assume all debts), and all heirs are of legal age and in agreement. The typical timeline is 2-6 months for BIR processing, publication, and Registry of Deeds registration. Judicial settlement is a Special Proceeding before the Regional Trial Court (RTC) under Rules 73-90 of the Rules of Court, required when: there is a will (probate proceedings); heirs cannot agree on distribution; minor heirs require court approval under Article 225 of the Family Code; or there are outstanding debts to be adjudicated. Judicial settlement typically takes 1-3 years or longer depending on court congestion, the complexity of the estate, and whether heirs contest the proceedings. The BIR estate tax — 6% of net estate under TRAIN Law (RA 10963) — must be paid in both cases before titles can be transferred.
Before completing an extrajudicial settlement of estate in the Philippines, the estate must pay estate tax to the Bureau of Internal Revenue (BIR) under the TRAIN Law (Republic Act No. 10963). The estate tax rate is 6% of the net estate — computed as the gross estate minus allowable deductions under Sections 85-90 of the National Internal Revenue Code (NIRC). The gross estate includes all real and personal property in the Philippines owned by the decedent at the time of death. Allowable deductions include: Standard Deduction of PHP 5,000,000; Family Home deduction up to PHP 10,000,000 (for the decedent's actual family home); claims against the estate (legitimate debts with documentation); unpaid mortgages; medical expenses within 1 year of death (max PHP 500,000); and the surviving spouse's share of conjugal or absolute community property. The estate tax return (BIR Form 1801) must be filed and the tax paid within 1 year from the decedent's death (extendable for meritorious reasons) at any Authorized Agent Bank (AAB) or through the BIR Electronic Filing and Payment System (eFPS). After payment, the BIR issues an Electronic Certificate Authorizing Registration (eCAR), which is required by the Registry of Deeds before transferring title. Local taxes — transfer taxes at the city/municipality — and registration fees at the Registry of Deeds are also payable.
Yes, an extrajudicial settlement of estate in the Philippines may be challenged under specific circumstances. Under Section 4, Rule 74 of the Rules of Court, any heir who was left out of the extrajudicial settlement, any creditor of the estate who was not paid, or any interested person claiming a right to the estate may file a claim against the distributed estate within 2 years from the date of registration of the extrajudicial settlement deed with the Registry of Deeds. If the excluded heir or creditor's claim is proven, the court may order the heirs who received the estate to return the proportionate share or pay the creditor's claim. Beyond the 2-year period under Rule 74, an heir may still file a civil action for annulment of the extrajudicial settlement on grounds of fraud, misrepresentation, or vitiated consent — typically within 4 years from discovery of the fraud under Article 1391 of the Civil Code. A creditor whose claim is not barred by prescription may also pursue a separate collection action against the heirs who assumed the decedent's debts under Section 1, Rule 74. An extrajudicial settlement that violates the legitime of compulsory heirs (legitimate children, surviving spouse) is subject to reduction action under Articles 906-908 of the Civil Code. To minimize these risks, all known heirs must be identified and included, and a thorough search for claims against the estate should be conducted before signing.
Yes, publication is mandatory for an extrajudicial settlement of estate in the Philippines when the estate includes real property or personal property worth PHP 10,000 or more. Section 1, Rule 74 of the Rules of Court requires that the fact of the extrajudicial settlement be published in a newspaper of general circulation in the province or city where the settlement is made, once a week for 3 consecutive weeks, before the estate may be distributed. The newspaper must be one that is regularly published, widely distributed in the province, and approved by the court or by general practice as a newspaper of general circulation. The publication requirement protects creditors and other claimants who may be unaware of the decedent's death and the distribution of the estate — the published notice gives them the opportunity to file claims within the 2-year period under Section 4, Rule 74. Failure to publish does not make the extrajudicial settlement void between the heirs, but it may affect the settlement's enforceability against third parties and may expose the heirs to personal liability to creditors who were not notified. After publication, the newspaper publisher issues a Publisher's Affidavit (Affidavit of Publication) certifying the dates and facts of publication — this affidavit is submitted to the Registry of Deeds along with the extrajudicial settlement deed for registration.
If one or more heirs refuse to sign the extrajudicial settlement in the Philippines, the remaining heirs cannot proceed with the extrajudicial settlement — it requires the participation and signature of all legal heirs under Section 1, Rule 74 of the Rules of Court. When an heir refuses to cooperate, the options are: (1) Special Proceeding for Judicial Settlement before the Regional Trial Court (RTC) under Rules 73-90 of the Rules of Court — the court appoints an administrator, the estate is inventoried and appraised, debts are paid, and the court approves the distribution; (2) Action for Partition under Rule 69 of the Rules of Court, which allows a co-owner to compel the physical division or sale of commonly owned property; or (3) mediation through the Philippine Mediation Center under the Alternative Dispute Resolution Act (RA 9285) to resolve the inheritance dispute before resorting to litigation. If the refusing heir is a minor, their parent or court-appointed guardian must represent them — minors cannot personally refuse unless through their legal guardian. If the refusing heir claims to be an unknown heir or their identity is disputed, the other heirs may file a Petition for Letters of Administration before the RTC to have the estate judicially settled with all interested parties given notice and an opportunity to appear.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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