Part 2- Extra Judicial Settlement of Estate

- April 17, 2021

Continuation...please check my previous blog for the Part 1.

Greetings!

Hi again to everyone! Hope everybody are in the best of health and happy, despite the issues brought about by the pandemic. My wishes and prayers of good health to all of you, wherever you are in the world🙏.

Certificate of Publication

Supposedly, the publication of the Extra Judicial Settlement of Estate should have been finished by this time, since the ad will run once a week for three consecutive weeks only. However, I called the Manila Bulletin office a while ago and they advised that the certificate won't be available until next week.

Anyway, I have still lot of things to do... getting the requirements for the filing of the estate tax with the BUREAU OF INTERNAL REVENUE (BIR) which is my next step after I will get the certificate of publication.

Working on BIR requirements

My location is part of the NCRplus bubble, which is under Modified Enhanced Community Quarantine, so it is hard for me to go around government offices to collect these requirements. As a solution, I do my inquiry by phone first, going there in person, when it is the only way possible.

For a better understanding, we will go into the details of each of the mandatory BIR requirements for estate tax return, how and where are we going to get them:

1. Certified true copy of the death certificate

I requested PSA copy of this from an SM branch near me, Bills Payment Section, for a fee of less than P200, timeline is one week.

2. TIN of decedent and heirs

I will get these TIN NOS. on the day when I will submit the Extra Judicial Settlement of Estate to the BIR. That will be once I will be able to complete all the BIR requirements. This is to minimize going out for safety reasons, doing things simultaneously.

3. The Extra Judicial Settlement of Estate document

This has been ready and notarized.

I have already attached the template I used, for anyone's reference.

4. Certification of the barangay captain for the claimed family home

For this, I was given an endorsement letter by the homeowner's association that I would present to the barangay captain. This way, they could give me a certification that the decedent, the ancestor who passed away, was living in the address stated as his home at the time of his death.

5. Certified true copy of title of the properties involved

In this case, the property is in the province, but I was advised that I could request a certified true copy of title at any Register of Deeds office near me, for ease and convience. From my experience, it would take one week for the Register of Deeds to provide the certified true copy of title, that is from the time you pay and request it.

6. Certified true copy of tax declaration at the time of death

This will be requested from the assessor's office where the property is located. It's important to advise the assessor to give a tax declaration of the property, which is, as of the date when the owner/decedent died. Any estate tax assessment will be based on the property valuation as of the time of his death. This estate tax is not a tax on the property, but a tax on the privilege to pass on the property to the lawful heirs and beneficiaries after the death of the owner (per BIR instruction).

7. Certificate of no improvement

Again, this is to be requested from the assessor's office where the property is located. This certifies that there is no structure, or building on the said property. As a requirement, the assessor will let you sign a sworn declaration of no improvement, duly notarized. A very minimal fee of less than P200 will be charged for the certificate of no improvement and notarization of the sworn declaration of no improvement.

8. Special Power of Attorney

Since I am doing this for a family member and I am not the heir, I need to submit a Special Power of Attorney to the BIR. This will give me the right to transact with BIR in behalf of the heirs. I will attach the template I used for the Special Power of Attorney for everyone's reference.

Link to SPA template

Once I will be able to gather the requirements above stated, plus the certificate of publication, I would be ready to submit them to the Bureau of Internal Revenue for evaluation and processing of the estate tax return.

For your ready reference, here is the link to the Estate Tax - Bureau of Internal Revenue website:

https://www.bir.gov.ph/index.php/tax-information/estate-tax.html#et5

I will be up to here at this time. Promise to get back to you once I will be able to get all the requirements needed by BUREAU OF INTERNAL REVENUE. Hopefully, by then, I would be able to move forward to the next step, the BIR SUBMISSION of documents.

Good luck and God bless to all of you! 😀

P.S.

email at anchiebalita@gmail.com or comment below for any suggestions.

Please follow! 💗

Thank you very much to all of you!

DISCLAIMER:
All information stated on the Site is based on the actual experiences and researches of the author at the time of posting. This is not intended as a substitute for professional advise. Information has been verified correct to the best of her knowledge, however, she cannot guarantee that there are no mistakes or errors. Rules and policies of government agencies mentioned on the blog may change without further notice.
The content and images posted on the Site is the intellectual property of the author. You may not reuse, republish or reprint content and images without her written consent.