What is an Extra Judicial Settlement?
In dividing the estate of the decedent between the heirs, an Extra Judicial Settlement (EJS) can be made without the need to go to the court. Section 1, Rule 74 of the Rules of Court provides that an extrajudicial settlement may be validly executed as long as all the four conditions are present:
- If the decedent left no will;
- If the decedent left no debts;
- If the heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose; and
- The estate is divided by means of a notarized public instrument filed in the office of the Register of Deeds.
What are the necessary steps I should keep in mind in an EJS?
In executing an EJS, the consent of all the heirs are needed. You must also notarize the EJS document. After the EJS notarization, it is necessary to process the Certificate Authorizing Registration (CAR) with the BIR and to pay the transfer taxes before proceeding to the Registry of Deeds to have the current title transferred under the name of the heirs.
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