A Step-by-Step Guide in Extra Judicial Settlement from the experience of a Young Lawyer

What is an “Extra Judicial Settlement”?

An Extrajudicial Settlement of Estate is a legal process involving surviving heirs of a deceased person to distribute the deceased person’s property. The surviving heirs of the deceased will sign a document called “Deed of Extrajudicial Settlement of Estate”

What is the requirement for an “Extra Judicial Settlement”?

The deceased left no will and no debts. All the legal heirs must be of legal age (or the minors have legal representatives) and must be in agreement with the division of the assets.

Why do I need to settle the estate?

Settling the estate is important because it allows the transfer of the titles to the new heirs or owners. Without settling an estate, a land title cannot be transferred to the heirs. Without settling an estate, a land title cannot be transferred to the buyer. If the title is not in your name, you cannot reap the full rewards of being an owner.

What are the steps in doing an “Extra Judicial Settlement”?

1st Determine all properties that should be included in the settlement.

2nd Identify all party heirs that would need to be represented/sign the “Deed of Extrajudicial Settlement of Estate”.

3rd Once the property and party has been identified, agree on how the property will be settled among the heirs whether there are portions that should be awarded solely to one heir etc.

4th Identify how the cost of the “Deed of Extrajudicial Settlement of Estate” be distributed among the party.

5th Prepare all title of property and their description and check if real property tax is updated. (Check this with the City Assessors Office)

6th Prepare all Identification Documents of the party signatory.

7th Have the “Deed of Extrajudicial Settlement of Estate” prepared by a competent Counsel.

8th Have the “Deed of Extrajudicial Settlement of Estate” signed by all identified parties and have their ID’s attached and indicated in the Notarial Page of the “Deed of Extrajudicial Settlement of Estate”.

9th Have the “Deed of Extrajudicial Settlement of Estate” Notarized by a Notary Public.

10th Bring the Notarized “Deed of Extrajudicial Settlement of Estate” to a News Paper Publisher for publication in a newspaper of general circulation for 3 consecutive weeks.

11th Bring a copy of the Notarized “Deed of Extrajudicial Settlement of Estate” to the Revenue Office of the BIR with jurisdiction on the location of the real property.

12th Pay if there are Estate Tax.

13th Bring the Notarized “Deed of Extrajudicial Settlement of Estate” along with BIR Certification to the Register of Deeds in the City/Municipality where property is located to process the transfer of title if warranted.