16/08/2024
โผ๏ธKNOWLEDGE 101โผ๏ธ
๐กHow to Transfer a Land Title from a Deceased Parent ๐ก
โผ๏ธCertain things you need to take care of legally, especially if there is no will created before the parents passed away.
How do you go about the process?
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๐ด Extrajudicial Settlement of the Estate
In order to have the land title transferred, it needs to be settled first in what is legally called the Extrajudicial Settlement of the Estate. The estate is the property involved. The process involves drafting a contract which clearly indicates how the property will be distributed among the heirs. This process is also known as out of court settlement because as the term suggests, the heirs will no longer have to go to court to distribute the properties which the deceased parent/s left.
Following Rule 74, Section 1 of the Rules of Court, the heirs need to secure and execute a Deed of Extrajudicial Settlement of Estate and Adjudication of Estate with the help of a lawyer. However, all heirs must get into an agreement, including those who are not interested in the property. The deed should specify the following information:
๐ธThe absence of a will
๐ธProof that the deceased parent/s has no debts left
๐ธName and relationship to the deceased; Heirs should be of legal age, otherwise, minors should have a legal representative
๐ธAffidavit of self-adjudication, and deed of extrajudicial settlement of estate and adjudication of the estate (should be signed by all the heirs and afterward notarized before a Notary Public)
๐ธDescription of the property to be divided among the heirs
๐ธBond fixed by the court, should there be personal property involved
After a certain number of weeks, the heirs will have to obtain the certification and publication in the newspaper and have it affirmed and verified by the Bureau of Internal Revenue (BIR). They will release a certificate to the heirs which should be submitted to the Registry of Deeds or Land Registration Authority.
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How to transfer ownership of a property to the heirs
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๐ข 1. Fill out an application for registration from BIR (Form 1904). All heirs (both living and deceased) must have a valid Tax Identification Number (TIN). Some things to remember:
๐นThe name of the deceased parent/s should be written on the taxpayerโs name field
๐นThe address of the deceased should indicate the same address as what is on the death certificate
๐นFill out the foreign address field if the deceased died abroad and has no official residence in the Philippines
๐นInclude a photocopy of the Certified True Copy of the death certificate on the form
๐ข 2. Make sure all mandatory documents are complete as this will be submitted to the BIR:
๐ธPhotocopy of the death certificate (bring the original copy too for verification)
๐ธProof of payment (official receipt or deposit slip and duly validated return)
๐ธTIN of Estate
๐ธAffidavit of Self Adjudication
๐ธSworn declaration of all properties of the estate
๐ธDeed of Extrajudicial Settlement of the Estate (if the estate has been extrajudicially settled)
๐ธCourt Order (if the estate has been settled judicially)
๐ข 3. Accomplish an estate tax return form from BIR (Form 1801). Ask assistance from the Officer of the Day at the BIR, because they are also the one who will compute the taxes based on the documents submitted.
๐ข 4. Pay the estate tax to the BIR before the notarized deed can be registered. It is important to settle the file transfer immediately so that the estate tax will not get accumulated. You can pay through the following:
๐ธRevenue Collection Officer;
๐ธAuthorized agent bank (AAB) by the BIR;
๐ธDuly authorized Treasurer of the city/municipality in the Revenue District Office where the residence of the deceased at the time of death is located;
๐ธIf the person outside of the country and cannot be represented locally, you can settle through an AAB under RDO No. 39 South Quezon City
๐ข 5. Submit all the required documents, as well as the proof of payment to the BIRโs Revenue District Office (RDO). A claim stub with a reference number will be given if all requirements have been submitted. As soon as the processing is done, a Certificate Authorizing Registration (CAR) will be released. For all one-time transactions, the CAR will be released within 5 business days from the date of receipt of tax returns with complete required documents.
๐ข 6. As soon as you have the CAR, you may now proceed with the transfer of registration of the land title. According to the Land Registration Authority (LRA), one must bring the following documents which are required for registration of an inherited property:
๐ธDeed of Sale (if the property has been sold to a third party)
๐ธDeed of Extrajudicial Settlement of Estate
๐ธOwnerโs Duplicate Copy of Title
๐ธBIR CAR/tax clearance certificate
๐ธTax Declaration (Certified Copy)
๐ธRealty Tax Clearance
๐ธTransfer Tax Receipt/Clearance
๐ธAffidavit of Publication of Settlement
Here are a few more things worth nothing:
๐นIf one of the heirs is deceased and had children, they have the right to inherit the property.
๐นShould one of the heirs do not cooperate, inform the court. Call the attention of those who do not cooperate and allow the court to decide on how the property will be distributed or disposed of, according to the law.
๐นIf the estate tax remains to be unpaid in 10 years, there is a service charge of 25% of the tax amount, plus an additional 20% interest every year. If you donโt pay it immediately, the total charges and interest will accumulate until such time that the amount becomes more than the current market value of the property.
Hopefully, this guide will help you lift some of the weight from grieving the death of a parent and help you keep their memory alive for many years to come.
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Source: cebusurveying
