Do the children have the rights to transfer the land title in their names if their parents were already dead? Yes, for the initial knowledge just pay the estate tax at the BIR and they will issue the document or a certificate for transfer of title at the Land Registration Authority (LRA) or in the Registry of Deeds.
In the Philippines, the children can transfer the land title or any property in their names from the deceases parents.
In case that there’s no existing “Will”, the children of the deceased parents should do the following:
- The child or the children must seek help from a lawyer to secure a Deed of Extrajudicial Settlement of the Estate. But, all the children must agree about the proper distribution of the properties.
- The Deed of Extrajudicial Settlement of Estate should be published in a newspaper circulating in the province or city at least once a week within three consecutive weeks.
- They should submit to the Bureau of Internal Revenue an Affidavit and Certificate of Publication.
- Pay the Estate Tax to the BIR for the issuance of certificate for filing transfer of title at the Registry of Deeds or Land Registration Authority.
The family members or the children of the deceased parents should transfer the land title the soonest possible time to avoid paying huge penalties for the estate fees and due to late filing.
The cost or expenses of transferring the land title from the deceased parents to the children include the following:
- Estate tax plus 25% interest on the total tax amount (for late payment) and 20% annual interest
- Documentary stamp tax which is 1.5% of the market value
- Transfer fees/tax that ranges from .5% to 1% of the market value
The children should ask for professional guidance from a certified tax practitioner in the Philippines. Failure to transfer the land title many years after the d***h of the parents would mean accumulating huge amount that adds up from the estate tax, interests, and penalties.
In case that the children were not able to pay the estate tax, the government has the right to auction the property so that they can obtain cash as payment for the penalties and interest owed.
The Extrajudicial Settlement of Estate won’t be processed if one of the siblings does not sign the agreement or had signed a waiver.