LRA provides step-by-step guide on settling an estate

Settling the estate of a loved one can be a daunting process for many Filipino families, especially when navigating legal requirements and tax obligations while coping with loss.

To help the public better understand the process, the Land Registration Authority (LRA) has outlined the key steps in ensuring that a deceased person’s assets are properly transferred to their rightful heirs. The process may differ depending on the presence of a will and the number of heirs involved, but preparing early can prevent costly delays.

Step 1: Inventory the Assets and Liabilities
The first step is to list all assets and outstanding debts. This includes personal assets such as bank accounts, investments, stocks, insurance policies, and past tax returns, as well as real estate such as lands, buildings, and condominium units. Certified true copies of land and condo titles can be secured through the LRA eSerbisyo Portal or at the nearest Registry of Deeds, while building tax declarations can be obtained from the local assessor’s office.

Step 2: Settle Estate Taxes
After completing the inventory, estate taxes must be paid to the Bureau of Internal Revenue (BIR). The BIR will provide an ONETT Computation Sheet indicating the tax due after reviewing the required documents. Taxes are paid at authorized banks using the applicable forms. Once settled, the BIR issues the electronic Certificate Authorizing Registration (eCAR), a key document for transferring ownership.

Under the TRAIN Law, certain deductions such as funeral and medical expenses are no longer allowed, but a standard deduction of %u20B15 million and a family home deduction of up to %u20B110 million are permitted.

Step 3: Choose the Settlement Process

• Judicial Settlement — Conducted in court, particularly when a will is involved or disputes need resolution.

• Extrajudicial Settlement — Available if there is no will and all heirs agree, making it faster and more cost-efficient. It requires a notarized Deed of Extrajudicial Settlement, newspaper publication, payment of estate taxes, and title transfer.

• Self-Adjudication — For cases where there is only one heir with no other claims, requiring only an affidavit, publication, and tax payment before registration.

The LRA emphasizes that knowing the right process and securing the correct documents early can make a challenging period easier for families.

For more information, the public can visit the LRA’s official Facebook page at facebook.com/lraphilippines.official.