1.

Compliance with the legal conditions for an extrajudicial settlement

2. Description of the properties to be extrajudicially settled (title number, value,
location, lot size, technical description, etc.)
3. Nature of the property (if conjugal property)
4. Name of the heirs
5. How the properties shall be divided amongst the heirs.
6. Posting of a bond if there is personal property involved.
7. Undertaking that the Deed will be published in a newspaper of general circulation once
a week for 3 consecutive weeks.
It must be noted that the Deed of Extrajudicial Settlement must be published in a
newspaper of general circulation once a week for 3 consecutive weeks.
Before filing the Deed of Extrajudicial Settlement with the Register of Deeds where the
land is located, it is necessary that the estate taxes be paid first. It bears great emphasis
that the Estate Tax Return must be filed within six (6) months from the decedent’s death.
It must be noted that the estate itself is assigned its own Tax Identification Number
(TIN). The Estate Tax Return is filed with Revenue District Office (RDO) having
jurisdiction over the place of residence of the decedent at the time of his death.
Furthermore, the estate tax shall be paid at the time the return is filed.

The estate tax is based on the value of the net estate as follows:
1. If not over P200,000, it is exempt
2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P200,000
3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of the excess
over P500,000
4. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% of the
excess over P2,000,000
5. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% of the
excess over P5,000,000
6. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,000,000
The basis shall be the net estate. That means that there are allowable deductions on the
estate. These deductions include funeral expenses, share of the surviving spouse, medical
expenses incurred by the decedent within 1 year prior to his death, family home
deduction of not more than P1,000,000.00, standard deduction of P1,000,000.00, among
others. It is best to consult with an accountant on this matter to determine the accurate
estate tax.
For extrajudicial settlement of estate, the following documents must be submitted with
the BIR:
1. Notice of Death
2. Certified true copy of the Death Certificate
3. Deed of Extra-Judicial Settlement of the Estate
4. Certified true copy of the land titles involved
5. Certified true copy of the latest Tax Declaration of real properties at the time of death
6. Photo copy of Certificate of Registration of vehicles and other proofs showing their
correct value
7. Photo copy of certificate of stocks
8. Proof of valuation of shares of stocks at the time of death
a. For listed stocks – newspaper clippings or certification from the Stock Exchange
b. For unlisted stocks – latest audited Financial Statement of issuing corporation with
computation of book value per share
9. Proof of valuation of other types of personal property
10. CPA Statement on the itemized assets of the decedent, itemized deductions from
gross estate and the amount due if the gross value of the estate exceeds two million pesos
11. Certification of Barangay Captain for claimed Family Home
Other documents may also be requested by the BIR.
After the estate taxes have been paid, the heirs may proceed to the Register of Deeds
where the land is situated. If the Register of Deeds would allow it, the filing with the BIR
and Register of Deeds may be simultaneous. The proof of payment of the estate tax,
Affidavit of Publication of the Deed, the Deed of Extrajudicial Settlement of Estate are
the basic requirements to be submitted to the Register of Deeds. When all pertinent
documents are submitted, the Register of Deeds will correspondingly issue the Transfer
of Certificates of Title to the proper heirs.