Welcome, mortal.
You’ve entered the realm of the legally undead, where ghosts forget to notarize their wills, skeletons line up at the Bureau of Internal Revenue (BIR), and sari-sari stores echo with the cries of unpaid estate taxes.
In this haunted guide, we’ll help you avoid the most terrifying fate of all: leaving your family with a cursed pile of paperwork. From last wills to death certificates, from ghost-proofing your business to surviving the wrath of the Estate Tax deadline, we’ve summoned every legal ritual you need to die prepared.
Because in the Philippines, even the dearly departed must comply.
So light your candle, grab your checklist, and prepare to face the final boss: bureaucracy from beyond the grave.
1. Estate Tax & Penalties — The Collector in the Dark
When you die, the BIR becomes your first ghost visitor.
The Bureau of Internal Revenue (BIR) immediately has a claim on your estate. Before heirs can inherit, taxes must be settled—making the BIR the “first visitor” in the afterlife of your assets.
Estate tax = 6% of the net estate
The estate tax is a flat 6% applied to the value of everything you leave behind, minus allowable deductions (like debts, funeral expenses, and standard exemptions).
If your heirs delay filing (within 1 year of death), penalties and interest rise like zombies from the ground.
Your heirs must file and pay estate tax within one year from the date of death. If they miss the deadline, surcharges, interest, and penalties start piling up—making the bill grow scarier over time.
Untitled properties? They’re like haunted houses—harder to transfer, scarier to settle.
Properties without proper titles or updated documents are difficult to transfer to heirs. They often require extra paperwork, court proceedings, or settlement of disputes, delaying the process and adding stress.
2. Inheritance & Compulsory Heirs — The Chosen Ones
The Civil Code summons a strict order of heirs:
Legitimate children & descendants (always first in line)
They are the primary heirs. Legitimate children (and their own children, if they’ve passed) automatically inherit and cannot be excluded.
Surviving spouse (cannot be disinherited except in rare cases)
The husband or wife left behind always has a guaranteed share. Only very limited legal grounds allow disinheritance.
Parents & ascendants (if no children)
If the deceased leaves no children, the parents or grandparents step in as compulsory heirs, ensuring the family line above is protected.
Illegitimate children (share but at a reduced portion)
They also inherit, but their share is legally smaller compared to legitimate children. Still, the law recognizes their right to a portion.
The “legitime” is untouchable.
Even if a will tries to cut them out, the law claws back their rightful share. This reserved portion—the legitime—cannot be taken away.
3. Passing of Debts — Chains That Bind Beyond the Grave
Debts don’t die with you. They cling to your estate like cursed shackles.
When a person passes away, their debts remain attached to the estate. Creditors must be paid before heirs can enjoy what’s left, making debts the first chains to be broken.
Heirs are not personally liable beyond what they inherit, but the estate must pay debts first before distribution.
Heirs don’t use their own money to settle the deceased’s obligations. However, the estate itself must cover all valid debts and expenses before any inheritance is divided among them.
4. EJS, Self-Adjudication & Deed of Partition — The Rituals of Division
Extrajudicial Settlement (EJS): Family séance with a notary
If the deceased left no will and no debts, the heirs can agree among themselves—signing a notarized settlement instead of going to court. It’s a faster, simpler way to “summon” their inheritance.
Self-Adjudication: The lone heir speaks
When there’s only one heir, they can claim the entire estate. But the law requires them to publish a notice in a newspaper—like announcing to the world that the rightful heir has spoken.
Deed of Partition: The spell against future hauntings
When multiple heirs divide properties, they must formalize it in a Deed of Partition. This document ensures each share is clear, preventing future disputes from rising like restless spirits.
5. Business Succession — The Phantom CEO
Succession planning is key.
A business doesn’t automatically pass smoothly to heirs. Planning ahead ensures continuity, stability, and protection of both employees and assets.
Without it, the enterprise may collapse like an abandoned mansion.
If no plan exists, disputes among heirs, lack of leadership, or sudden liquidation can cause the business to wither and die—just like a once-grand house left to ruin.
Tools: wills, buy-sell agreements, or corporate succession plans.
Wills: Direct who inherits ownership shares.
Buy-sell agreements: Allow co-owners or partners to buy out the deceased’s share, preventing outsiders from disrupting operations.
Corporate succession plans: Identify and prepare future leaders to keep the business alive and thriving.
6. Bereavement Leave — The Living’s Legal Candle
Bereavement Leave & company policies
Bereavement leave is not mandated by the Labor Code or any other law—it is a discretionary benefit granted by employers through company policy. Some organizations may offer up to 3 days of bereavement leave, but entitlements vary. Always refer to your Collective Bargaining Agreement (CBA) or company handbook for specific provisions.
The law’s way of letting the living mourn without losing wages.
While not legally required, bereavement leave allows employees to mourn and manage family affairs without the added stress of lost income. It’s a compassionate workplace practice that honors the grieving process while maintaining job protection.
Final Words from Beyond
So, remember, mortal: death may be inevitable, but disorganization is optional. The law does not rest, even in the grave, it will claw, creep, and collect until every paper is signed, every tax is paid, and every heir is named.
Fail to prepare, and your legacy may wander like a restless spirit, trapped in endless disputes and cursed paperwork.
Prepare your documents now… or risk leaving your family to battle the true horror: bureaucracy that never dies.