Dear Attorney,

I hope this letter finds you well. I am reaching out on behalf of my family regarding a legal matter concerning the estate of our late mother, who passed away in May 2023. We are looking to transfer the title of her property located in Guadalupe, Makati, which she bequeathed to us in her last will and testament. As her heirs, my siblings and I are interested in understanding the legal process and requirements for this transfer, particularly as we are currently residing in California, United States.

Could you kindly advise whether this is a matter you can assist us with? Additionally, I would appreciate it if you could provide an overview of your fee schedule or retainer for such services. Please let us know what documents or additional information will be required to proceed.

Thank you in advance for your guidance and assistance.

Sincerely,
A Concerned Heir

Legal Overview: Transferring Title of Inherited Property in the Philippines

The process of transferring the title of inherited property in the Philippines involves several legal steps, documentation, and tax compliance. Below is an in-depth discussion of the legal framework and procedures involved:

I. Legal Basis for Transfer of Title

Civil Code of the Philippines: The transfer of property through inheritance is governed by the provisions of the Civil Code, specifically Book III, which covers succession laws.
Land Registration Act and Property Registration Decree: These laws provide guidance on the proper registration of property titles.
Tax Code of the Philippines (National Internal Revenue Code): This governs the payment of estate taxes, a crucial requirement for title transfer.

II. General Steps in the Title Transfer Process

Preparation of Documents
- Certified True Copy of the Title: Obtain from the Registry of Deeds where the property is registered.
- Tax Declaration and Real Property Tax Clearance: Secured from the local assessor’s office and the treasurer’s office.
- Death Certificate: Must be authenticated by the Philippine Statistics Authority (PSA).
- Last Will and Testament: If a will was executed, ensure it has undergone probate proceedings in court.
- Affidavit of Self-Adjudication or Extra-Judicial Settlement: If there is no will, the heirs must execute this document, which should be published in a newspaper of general circulation.
Payment of Estate Taxes
The estate tax must be paid to the Bureau of Internal Revenue (BIR) within one year from the decedent's death. Under RA 11213 (Tax Amnesty Act), penalties for late estate tax payments may be waived if availed within the amnesty period.

Required documents for estate tax filing include:
- Estate Tax Return (BIR Form 1801)
- Certified copy of the title
- TIN of the deceased and heirs
- Notarized Extra-Judicial Settlement or Court Order from probate proceedings
- Death Certificate
Issuance of a Certificate Authorizing Registration (CAR)
The BIR will issue this certificate upon payment of estate taxes, which is necessary to process the title transfer.
Filing with the Registry of Deeds
The CAR, together with other required documents, is submitted to the Registry of Deeds to facilitate the issuance of a new title in the names of the heirs.
Update Tax Declaration with the Local Assessor’s Office
Once the new title is issued, the heirs must update the tax declaration under their names.

III. Special Considerations for Overseas Heirs

Execution of Special Power of Attorney (SPA)
As you and your siblings are abroad, you may execute an SPA authorizing a representative in the Philippines to handle the title transfer on your behalf. The SPA must be notarized and authenticated by the Philippine Embassy or Consulate.
Tax Identification Number (TIN)
Non-resident heirs must secure a TIN as part of the tax compliance requirements.

IV. Costs and Fees

Estate Tax: Varies based on the net estate value, with rates ranging from 6% under the TRAIN Law.
Documentary Stamp Tax and Transfer Tax: Imposed at the rates of 1.5% and 0.5%-0.75%, respectively, of the property’s fair market value or zonal value, whichever is higher.
Registration Fee: Based on the property’s valuation per the schedule of fees set by the Registry of Deeds.
Professional Fees: Includes attorney’s fees, which may range from a fixed retainer fee to a percentage of the estate’s value, depending on the complexity of the case.

V. Potential Challenges and Resolutions

Unsettled Property Disputes: If other claimants or creditors are involved, these must be resolved through legal proceedings.
Absence of Estate Tax Payment: Heirs may face difficulties in title transfer if taxes remain unpaid. Availing of tax amnesty or installment plans can mitigate this.
Compliance with Philippine Embassy Procedures: Heirs abroad must ensure proper authentication of documents.

VI. Retaining Legal Counsel

Given the complexity of the process, retaining legal counsel ensures the smooth execution of probate, tax compliance, and title registration. Attorneys can:

Prepare and file required documents
Represent the heirs in court, if necessary
Liaise with government offices

Your attorney will also guide you in navigating Philippine property law, ensuring compliance and efficiency in the transfer process.

For further assistance, I recommend scheduling a consultation with an attorney specializing in estate law to discuss specific details, provide a fee structure, and outline the next steps.