Philippines (PH)
The Philippines is a Southeast Asian archipelago of 7,641 islands, the third-largest English-speaking country in the world, and one of the most welcoming destinations for expats.
Estate & Inheritance in Philippines
Wills, intestacy, inheritance tax, and cross-border estate planning for expats.
The Philippines imposes a flat 6% Estate Tax on the net estate of the deceased (Republic Act 10963 — TRAIN Law, effective 2018). This replaced the graduated schedule (5%–20%) and simplified estate settlement significantly. Intestate succession follows the Civil Code — forced heirs (compulsory heirs) include legitimate and illegitimate children, surviving spouse, and ascendants. There is no separate inheritance tax on beneficiaries — estate tax is levied on the estate before distribution. The estate tax amnesty (RA 11213, extended through 2025) allowed settlement of pre-2018 estates at 6% without penalties.
Intestacy — What Happens Without a Will
Under the Philippine Civil Code, intestate succession divides the estate among compulsory heirs in legally fixed shares. Legitimate children and their descendants inherit first. The surviving spouse receives a share equal to that of a legitimate child. In the absence of legitimate children, illegitimate children share with the surviving spouse. If no spouse or children, parents and ascendants inherit. Foreigners who own Philippine-situs assets (condo units, bank accounts, investments) are subject to Philippine succession law for those assets, regardless of nationality. Foreigners cannot inherit Philippine land — the same constitutional prohibition on foreign land ownership applies to inheritance.
Types of Valid Will
Notarial Will
Testamento NotarialMust be in writing, in a language known to the testator. Each page must be signed on the left margin by the testator and witnessed by at least 3 credible witnesses who also sign on each page. The last page must bear the attestation clause and the notarisation. Safest form for Philippine probate.
Valid if executed in compliance with Civil Code requirements. Must be probated at RTC (Regional Trial Court) before assets can be distributed.
Highly recommended for any foreigner with significant Philippine assets. Clearly designating beneficiaries avoids costly intestate proceedings.
Holographic Will
Testamento OlógrafoEntirely written, dated, and signed by the testator in their own handwriting — no witnesses, no notarisation required. Very simple to create but disputed more frequently in probate. The entire document must be in the testator's handwriting — no typewritten portions.
Valid under Civil Code Art. 810 if entirely in the testator's handwriting, dated, and signed. Must still go through probate.
Simpler to create but easier to challenge in court. Use a notarial will for clarity and security.
Foreign Will (Probated Abroad)
Testamento ExtranjeroA will executed abroad may be admitted to probate in Philippine courts if valid under the laws of the country where it was executed. However, Philippine mandatory succession rules (legitimes for compulsory heirs) still apply to Philippine-situs assets.
Valid if compliant with the law of the country of execution. Philippine courts conduct ancillary administration proceedings for Philippine assets.
Recommended: prepare a separate Philippine will specifically covering Philippine assets to avoid ancillary administration complexity.
Forced Heirship
Philippine law recognises forced heirship (legitime) — compulsory heirs cannot be deprived of their legally mandated share except for lawful causes of disinheritance. Legitimate children receive half of the estate as legitime; the other half is the "free portion" the testator may dispose of freely. The surviving spouse receives the same share as one legitimate child. Illegitimate children receive half the share of a legitimate child. These rules apply to Philippine-situs assets of any decedent, regardless of nationality. Foreigners cannot circumvent Philippine forced heirship rules for their Philippine property.
EU Succession Regulation (Brussels IV)
The EU Succession Regulation (EU No. 650/2012) does not apply in the Philippines — the Philippines is not an EU member state. There is no equivalent ASEAN or Philippine-bilateral instrument governing cross-border succession. Foreign estate plans for Philippine assets must comply with Philippine law (Civil Code and TRAIN Law). Consultation with a Philippine lawyer experienced in international succession is essential for any expat with assets in multiple countries.
Inheritance Tax
Flat 6% estate tax on the net estate (gross estate minus allowable deductions) under TRAIN Law (RA 10963). No progressive rates. The standard deduction of ₱5,000,000 plus the family home deduction (up to ₱10,000,000) significantly reduce the taxable base for most estates. The estate tax return (BIR Form 1801) must be filed and paid within 1 year from the date of death (extendable up to 5 years by court order for judicial proceedings).
| Relationship | Tax-Free Allowance | Tax Rate (above allowance) |
|---|---|---|
| All heirs and beneficiaries (no distinction by relationship) | ₱5,000,000 standard deduction + up to ₱10,000,000 family home deduction + funeral expenses up to ₱200,000 + judicial expenses + claims against estate + unpaid mortgages | 6% flat on net taxable estate |
| SSS/GSIS death benefits (any beneficiary) | Fully exempt from gross estate | 0% |
| Life insurance with irrevocable beneficiary designation | Proceeds excluded from gross estate if beneficiary is irrevocably designated | 0% |
| RA 4917 retirement benefits | Fully exempt from gross estate | 0% |
The estate tax amnesty (RA 11213, extended through RA 11569 up to June 14, 2025) allowed settlement of estates of persons who died on or before December 31, 2017 at 6% of net undeclared estate without penalties or interest. Estates not settled under amnesty face full interest and penalties. Filing deadline: within 1 year from date of death (BIR Form 1801). Late payment surcharge: 25% of tax due + 12% per annum interest.
Cross-Border & Multi-Country Estates
When a foreigner with Philippine assets dies abroad, Philippine-situs assets (condo units, bank accounts, investments) require ancillary administration proceedings at a Philippine Regional Trial Court (RTC) before those assets can be distributed. The Philippine estate tax applies to all Philippine-situs assets of non-resident aliens. Foreign heirs should appoint a Philippine resident administrator or attorney-in-fact to manage the Philippine probate process. Processing time: 1–5 years. Consider placing Philippine condo units in a trust or corporate structure to streamline succession planning.
Certificate of Inheritance
The Philippines does not issue a single formal inheritance certificate. After successful probate, the RTC issues an Order of Distribution directing the Register of Deeds to transfer title to heirs. For extrajudicial settlement (applicable when all heirs are of legal age and there are no debts): the heirs execute a notarised Deed of Extrajudicial Settlement of Estate, publish it in a newspaper of general circulation for 3 consecutive weeks, and then present it to the BIR (for CAR issuance) and Register of Deeds for title transfer. Processing: 3–6 months.
Will Registration
The Philippines does not have a centralised national will registry equivalent to some European systems. Wills are kept by the notary public who notarised them (for notarial wills) or by the testator (for holographic wills). The Integrated Bar of the Philippines (IBP) and some RTC branches maintain informal records. Best practice: file a copy of your will with the Office of the Clerk of Court of your regional RTC, and inform at least one trusted person of its location. Store the original in a secure location (bank safe deposit box or with your Philippine lawyer).
Living Will & Healthcare Power of Attorney
The Philippines does not have specific living will legislation equivalent to advance healthcare directives in the US or UK. However, a general power of attorney (SPA — Special Power of Attorney) authorising healthcare decisions for incapacity is recognised. Advance medical directives are increasingly accepted by major private hospitals (St. Luke's, Makati Medical Center) though not legally codified. The Philippine Medical Association has guidelines on end-of-life care but no formal living will registry exists.
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