The legal framework
For marriages celebrated from 3 August 1988, the default regime is absolute community of property: nearly everything owned before and acquired during the marriage forms a single community. Earlier marriages default to conjugal partnership of gains. On death, the Civil Code reserves the legitime for compulsory heirs — children, the surviving spouse, and in some cases parents.
Key points
| Default regime | Absolute community of property for marriages from 1988 |
|---|---|
| Prenuptial agreement | Must be executed before the ceremony; it cannot be changed afterwards without court approval |
| Legitime | Reserved portion for compulsory heirs; a will can only dispose of the free portion |
| Illegitimate children | Entitled to a share, historically half that of legitimate children |
| Estate tax | Six per cent of the net estate, with a standard deduction and family home deduction |
| Extrajudicial settlement | Available where there is no will and heirs agree, published in a newspaper |
| Foreigners | Cannot own land; succession to Philippine land raises specific issues |
| Absolute community | The default for marriages since 1988 unless a prenuptial agreement says otherwise |
In practice
- Execute any prenuptial agreement before the wedding — afterwards is too late.
- File the estate tax return within the statutory deadline to avoid penalties.
- Use extrajudicial settlement where possible; it is far faster than judicial settlement.
- Have the family home documented — the deduction is significant.
- Settle the estate within the tax deadline: penalties and interest accumulate quickly.
- Use extrajudicial settlement where possible; court proceedings take years.
Cost and coverage
Estate tax at six per cent, plus publication and notarial costs for settlement.
Recent changes
Estate tax amnesty programmes have been extended several times to allow families to regularise long-unsettled estates, a widespread problem.
Where to go
- Bureau of Internal Revenue for estate tax.
- Registry of Deeds for property transfers.
- Public Attorney's Office for eligible litigants.
Worth knowing
Unsettled estates are the single biggest property problem in the Philippines: land held in a grandparent's name cannot be sold or mortgaged until the estate is settled and the tax paid. Foreigners cannot own land, which complicates estates in mixed marriages. The surviving foreign spouse can inherit by succession but not purchase.
Official sources and links
- gov.ph — official government portal