Dear Attorney,

My father recently passed away, leaving behind a piece of land that once belonged to my grandfather. There is no will. How will the land be divided among the heirs? Can you clarify how the inheritance process works under Philippine law when no will is present?

Concerned Heir

Insights

Intestate Succession in the Philippines: Legal Guide

When a person dies without a will, the distribution of their estate is governed by the rules of intestate succession under the Civil Code of the Philippines. In cases where a person leaves behind property, such as land, and does not explicitly state how it should be divided, the law dictates how the estate will be distributed among the legal heirs. This guide provides an in-depth explanation of how property is divided in cases of intestacy, including the legal concepts of inheritance, compulsory heirs, and the process of partitioning real estate.

1. Who are the Heirs in Intestate Succession?

Under Philippine law, the following individuals are considered compulsory heirs and are entitled to a portion of the deceased's estate when no will exists:

Legitimate children and descendants: These include direct descendants (e.g., sons and daughters) of the deceased. If any of these descendants predecease the decedent, their legitimate descendants will inherit by representation.
Illegitimate children: Although they do not inherit the same share as legitimate children, illegitimate children are entitled to half the share of a legitimate child.
Surviving spouse: The spouse of the decedent is also considered a compulsory heir and is entitled to a portion of the estate.
Parents or ascendants: If the deceased left no children, the parents or direct ascendants (e.g., grandparents) would inherit the estate.
Collateral relatives: In the absence of descendants and ascendants, collateral relatives such as brothers and sisters may inherit.

2. Order of Succession

The order in which the heirs inherit is vital. The Civil Code dictates the priority of heirs in intestate succession. Generally, the estate is divided in the following order:

If the decedent has legitimate children: They inherit the estate in equal parts. The surviving spouse also shares in the inheritance, receiving the same share as one legitimate child.
If there are illegitimate children: They inherit half the portion of legitimate children.
If there are no children or descendants: The surviving spouse inherits the entire estate. However, if there are ascendants (parents or grandparents), the estate is shared between the surviving spouse and the ascendants.
If there are no descendants or ascendants: The surviving spouse inherits the entire estate. If no spouse exists, collateral relatives (e.g., siblings) may inherit.

3. Surviving Spouse’s Share in Intestate Succession

The surviving spouse’s share varies depending on the presence of other heirs:

If the decedent left legitimate children, the spouse inherits an equal share as each child.
If there are no children but ascendants, the spouse receives half of the estate, with the other half going to the ascendants.
If there are no children or ascendants, the spouse receives the entire estate.

4. The Legal Share of Illegitimate Children

Illegitimate children inherit half of what legitimate children inherit. For instance, if the decedent leaves behind two legitimate children and one illegitimate child, the estate would be divided as follows:

The two legitimate children each receive one part.
The illegitimate child receives half of one part (i.e., half of what a legitimate child would receive).

This division applies unless the decedent had left a will stating otherwise. However, even in such cases, an illegitimate child cannot be entirely disinherited.

5. Representation in Intestate Succession

When a legitimate child or heir dies before the decedent, the concept of representation comes into play. The deceased heir’s descendants (i.e., grandchildren) step into the shoes of the deceased heir and inherit their share by representation. This ensures that the line of succession remains intact even when some direct heirs predecease the decedent.

6. Partition and Distribution of Estate

After identifying the heirs, the next step is the partition and distribution of the estate. Estate partition is the process of dividing the decedent’s property among the legal heirs. Here are some key points about this process:

Extrajudicial settlement: If the heirs are in agreement, they may opt for an extrajudicial settlement of the estate. This is a less costly and time-consuming method compared to court proceedings. It requires that all heirs are of legal age and are in full agreement regarding the division of the estate.
Judicial partition: If there are disagreements among the heirs or if one or more heirs refuse to cooperate, the matter may be resolved through a judicial partition. The court will determine how the property should be divided based on the legal shares of the heirs.

7. Estate Tax Considerations

Before the estate can be distributed, the estate tax must be paid. Under current Philippine law, estates valued above P5 million are subject to estate tax at a rate of 6% on the amount exceeding this threshold. It is important to note that the estate cannot be divided or distributed until this tax is settled. The heirs must file an estate tax return and pay any dues within one year from the decedent’s death to avoid penalties and interest.

8. Usufruct and the Surviving Spouse’s Rights

In some cases, the surviving spouse may be granted a usufruct over certain properties of the estate. A usufruct is a legal right allowing the spouse to enjoy and use the property during their lifetime, although they do not own it outright. This provision ensures that the surviving spouse is provided for, even when there are multiple heirs to the estate.

9. Co-Ownership among Heirs

After the decedent’s death and until the estate is partitioned, the property remains under co-ownership. All heirs are considered co-owners of the property, meaning they each have an undivided interest in the estate. This state of co-ownership persists until the estate is formally divided among the heirs through a settlement or partition.

10. Disqualification and Exclusion from Inheritance

Under certain circumstances, a person may be disqualified from inheriting. For example, an heir who is convicted of committing an act of fraud or coercion against the decedent may be excluded from the inheritance. Additionally, if an heir has intentionally caused the death of the decedent, they may be legally barred from inheriting any portion of the estate.

Conclusion

The laws governing intestate succession in the Philippines are designed to ensure that a decedent's property is fairly distributed among their legal heirs in the absence of a will. Understanding the hierarchy of heirs and their respective shares is essential for navigating this process smoothly. Whether through extrajudicial settlement or judicial partition, it is crucial to comply with the legal requirements to avoid disputes and ensure a just distribution of the estate.