When a family member dies, his property, rights and obligations to the extent of the value of the inheritance, are transferred immediately to his heirs by law, or through his will. While settlement of estate can be done through judicial means, the law also provides that settlement of estate can be concluded in an extrajudicial manner.
According toSection 1 of Rule 74 of the Rules of Court, if the decedent:
- left no will;
- no debts (it shall be presumed that the decedent left no debts if no creditor files a petition for letters of administration within 2 years after the death of the decedent) and
- the heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose,
The parties may opt to divide the estate of the decedent among themselves through an extrajudicial settlement. It is an agreement contained in a public instrument, and filed in the office of the Register of Deeds. If they disagree, they may divide the estate in an ordinary action through court.
The fact of the extrajudicial settlement shall be published in a newspaper of general circulation in the manner provided in the next succeeding section; but no extrajudicial settlement shall be binding upon any person who has not participated therein or had no notice.
Repudiation/Waiver of Share in the Estate
If an heir does not want any share of the estate, he may waive his rights to it by repudiation. The effect is that his share will accrue to his/her co-heirs or to the chosen heir.
How is this done? The repudiation or waiver of shares, as mentioned above, must be incorporated in a public instrument. More often than not, this shall be stated in the Deed of Extrajudicial Settlement of Estate with Waiver of Rights, which shall then include therein a section on waiver of rights clearly defining the following: a) who is waiving and, b) to whom the apportioned estate will be given to.
Where to File?
If the decedent is an inhabitant of the Philippines at the time of his death, whether a citizen or an alien, his estate settled, the filing shall be done before the BIR Revenue District where he resided at the time of his death.
On the other hand, if he is a resident of a foreign country, the filing shall be done before the Revenue District Office 39 (RDO 39).
Thus, to put it simply, the extrajudicial settlement shall be filed in the proper Register of Deeds located in the appropriate location as discussed previously. Note, however, that if the estate includes personal property, a bond must also be posted together with the extrajudicial settlement at the corresponding Register of Deeds.
Need further information and assistance regarding the application for extrajudicial settlement of estate with waiver? Talk to our team atFILEDOCSPHILto know more about the requirements and process. Call us today at(+632) 8478 5826or send an email toinfo@filedocsphil.comfor more information.