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Category: Wills

  • Complete Guide to the Process of Extrajudicial Settlement of Estate in the Philippines

    Complete Guide to the Process of Extrajudicial Settlement of Estate in the Philippines

    PHILIPPINE SERVICES

    Complete Guide to Extrajudicial Settlement of Estate in the Philippines

    Understanding how to transfer and distribute inherited properties without going to court.

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    Disclaimer: This article is not intended to provide any legal advice. If you need legal advice, consult with a legal professional such as a lawyer licensed to practice in your jurisdiction.

    THE SITUATION

    Did a Deceased Relative Leave You Assets in the Philippines?

    For Filipinos who have assets and properties in the Philippines, understanding the process of transferring and distributing these assets after a loved one’s passing is crucial. One of the most common methods for handling the inheritance of properties in the Philippines is through a Deed of Extrajudicial Settlement of Estate.

    BACKGROUND

    What is a Will and Why is it Important?

    A will is a legal document that controls how your property will be distributed after your death. It also names an executor (also called an administrator or trustee), who will be in charge of carrying out the instructions in the will.

    A will can help you avoid costly and time-consuming court battles by specifying who gets what, as well as how to distribute your assets or other valuable items.

    Important: If you die without a will, your assets will be governed by the law of intestate succession. This means the assets will be transferred according to applicable law at the time of your death, which may not be in line with your wishes.

    DEFINITION

    What is an Extrajudicial Settlement of Estate?

    An Extrajudicial Settlement of Estate is a legal process involving surviving heirs of a deceased person to distribute the deceased person’s property. The surviving heirs of the deceased will sign a document called “Deed of Extrajudicial Settlement of Estate”.

    Executing one’s last will is not a common practice in the Philippines. Most people die without a will. An Extrajudicial Settlement of Estate is the legal process available for the heirs and beneficiaries to manage and distribute the properties left behind by the deceased.

    Key Benefit: This process does not involve the court (extrajudicial means “out-of-court”). It is essential that all heirs agree on the distribution of assets and sign the deed in front of a notary public.

    CHECKLIST

    Requirements for Extrajudicial Settlement

    1. The deceased left no will and no debts.

    2. All legal heirs must be of legal age (or minors have legal representatives).

    3. All heirs must agree on the division of assets.

    4. Settlement made in a public instrument (notarized).

    5. Fact of settlement published in a newspaper of general circulation.

    6. A bond is filed with the Register of Deeds.

    FOR OVERSEAS FILIPINOS

    What If You Live Abroad?

    If you do not intend to travel and personally process the distribution or transfer of assets in the Philippines, consider executing a “Special Power of Attorney” (SPA). An SPA is a legal document that authorizes someone to act on your behalf, usually required when dealing with government offices.

    Important: Have your SPA authenticated (also called “consularized” or “red ribbon”) if you live outside the Philippines. This ensures your document executed abroad is valid for use in the Philippines.

    Learn About Special Power of Attorney →

    Related Guide: SPA for Estate Settlement: Extrajudicial Settlement from Canada — Detailed guide on using a Special Power of Attorney specifically for EJS proceedings when you cannot travel to the Philippines.

    PROCESS

    Steps in the Extrajudicial Settlement Process

    1Prepare the Necessary Documents

    • Certified true copy of the deceased’s death certificate
    • Notarized Deed of Extrajudicial Settlement of Estate, signed by all legal heirs
    • Proof of publication of the notice
    • Tax Identification Numbers (TIN) of the deceased and the heirs
    • Other relevant documents (land titles, tax declarations)

    2File with the Bureau of Internal Revenue (BIR)

    File the Deed and other required documents with the BIR in the Philippines.

    3Pay the Estate Tax

    The BIR will assess the estate tax, which heirs need to pay within six months from the date of death. Penalties and interest may apply for late payment.

    4Secure Certificate Authorizing Registration (CAR)

    Obtain the CAR from the BIR after paying the estate tax.

    5Register the Properties

    Register with the appropriate government agency (e.g., Register of Deeds for land titles) and have property titles transferred to the heirs’ names.

    6Pay Transfer Taxes

    Pay the corresponding transfer taxes and documentary stamp taxes to the local government and the BIR.

    EXPERT GUIDANCE

    Why Obtain Legal Counsel?

    The Philippines has a rich and diverse legal system influenced by the old Spanish Civil Code and the United States Code. The Philippine legal system is complex.

    Obtaining legal counsel is recommended and can be especially important if you are living abroad or if your country has different laws than where you currently live. Seek out services of a professional that specializes in law so they can offer you their opinion and help you make informed decisions.

    Conclusion: Proper Estate Planning Enables Successful Property Succession

    Understanding the Deed of Extrajudicial Settlement of Estate in the Philippines is essential for Filipinos with assets and properties back home. This process allows for a more straightforward, efficient, and cost-effective method of transferring and distributing a deceased person’s estate among their legal heirs.

    Since an Extrajudicial Settlement of Estate is a legally binding document that needs to be signed before a notary public, it is best to have one prepared by a competent legal professional such as our lawyers here at JCA Law Office.

    GET STARTED

    Have Questions About EJS?

    Don’t hesitate to reach out. Our team can help you navigate the process.

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  • Wills And Powers of Attorney Promo

    Wills And Powers of Attorney Promo

    Estate Planning

    Wills & Powers of Attorney Promo

    Our package includes a free consultation with our lawyer and the full preparation of your Will, Power of Attorney for Property, and Power of Attorney for Personal Care with Health Directive.

    Promo Packages

    Save when you bundle. Each package includes a free consultation.

    Individual

    $449 +HST

    Regular: $599.00 +HST

    • Last Will and Testament
    • Power of Attorney for Property
    • Power of Attorney for Personal Care
    • Health Directive
    • Free consultation with lawyer
    Book Individual Package

    Couple — Best Value

    $749 +HST

    Regular: $999.00 +HST

    • Both spouses each receive:
    • Last Will and Testament
    • Power of Attorney for Property
    • Power of Attorney for Personal Care
    • Health Directive
    • Free consultation with lawyer
    Book Couple Package

    Individual Services

    Regular rates apply if availed individually, scheduled on regular days by appointment.

    Simple Will Only

    $399 +HST

    Regular: $499.00 +HST

    Power of Attorney Only

    $249 +HST

    Regular: $299.00 +HST

    Health Directive Only

    $99 +HST

    Promo Mechanics

    1. Wills Day is every 2nd Friday of the month.
    2. A client may cancel seven (7) days prior to Wills Day without a cancellation fee.
    3. Booking fee of $50.00 (tax inclusive) for each appointment slot. Couples booking one slot pay only $50.00.
    4. Booking fee of $50.00 will be forfeited for cancellations made three (3) days or less prior to Wills Day.
    5. Credit card details are required for appointment booking.

    Required Basic Information

    • Name of executor(s) — maximum of three (3)
    • Name of beneficiaries

    Required Documents

    • Client Form
    • Two valid IDs

    When is the best time to make a last will?

    There is no “right time” to create a last will. But not having one is worse — the people you care about most will face more difficulties if that happens.

    Book an Appointment
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    Visit our office at 204-2323 Yonge St, Toronto, ON M4P 2C9

    Call us at 1-855-522-5290 or send us a message.

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  • Why last will, power of attorney for property & personal care and health care directive (living will) matters?

    Why last will, power of attorney for property & personal care and health care directive (living will) matters?

    Why last will, power of attorney for property & personal care and health care directive (living will) matters?

    By Gin Aguilar

    It can be the untimely death of someone famous that triggered it. Or, perhaps a feeling of heartburn in the middle of the night, mistaking it for signs of a heart attack. Or simply feeling emotional after bidding goodbye to your child this morning, watching him walk with his friends on the way to school. Whatever the reason may be, at the back of your mind, you are thinking of the possible things that might happen in case you unexpectedly get into an accident, or suddenly get a virus that will make you gravely ill, and face an untimely death.

    Make a WILL

    The Importance Of Last Will, Power Of Attorney For Property, Power Of Attorney For Personal Care & Health Care Directive (Living Will)

    Having a heart-to-heart talk about your wishes with loved ones in case of untimely sickness or death is truly important. Yet we rarely discuss them – it’s the elephant in the room. So how do we prepare for crisis and unfortunate life events?

    You may start by getting more familiar with the following important legal documents that you may need in order to be prepared for any critical situations in life:

    (1) Last Will & Testament

    This is a legal document that states how your assets will be distributed after your death. As defined by the Ontario Ministry of the Attorney General, “(a) person’s will is a written document that sets out the person’s wishes about how his or her estate should be taken care of and distributed after death. It takes effect when the person dies.” A recent survey on Wills released in the media suggests that majority (< 55%) of Canadian adults do not have signed & legal Wills. Based on the survey, the reason why Canadians do not have one is because: (1) they do not know how to get started, (2) they believe they are too young to have one and (3) they think they do not have enough properties or finances to distribute anyway.

    What will happen if you die and you do not have a will?

    Death may happen when you least expect it. It’s a sad reality that we need to keep in mind. When you die without a will, you are said to die “intestate”. This basically means that the Succession Law Reform Act sets out how the estate is distributed, which unfortunately may cause more problems, delays and additional unnecessary costs.

    (2) Power of Attorney (POA)

    A Power of Attorney is a legal document that appoints a specific person you trust (also known as your “attorney”, not necessarily your lawyer) to act and make decisions on your behalf if you are unable to look after matters on your own. It is in effect while you are still alive, unlike a will, which only takes effect upon your death.

    Types of Power of Attorney:

    1. Power of Attorney for Property – as defined by the Ministry of Attorney General in Ontario, an attorney for property is the person you name who can make decisions about your financial affairs (including paying your bills, collecting money owed to you, maintaining or selling your house, or managing your investments).**
    2. Power of Attorney for Personal Care – the person you name as attorney for personal care will have the legal authority to make decisions about your personal care, including medical and health care, nutrition (meals), shelter (housing), clothing, hygiene, and safety, should you become mentally incapable of making these decisions.

    (3) Health Care Directive

    A health care directive is a document that provides your direction and wishes with regard to specific issues concerning your personal care, including medical issues, such as taking pain medication when needed, and whether or not you would want to get some medical treatment involving “heroic” measures to artificially prolong your life (or more known as “life support”).

    Sometimes, people refer to this as the “living will”. Please take note though that Ontario law in Canada does not use the term “living will”. A will is a document about the distribution of your estate or properties after death, thus, if it is “living” then a power of attorney should suffice.

    WHEN is THE RIGHT TIME TO MAKE A LAST WILL?

    The truth of the matter is, there is no right time to create all these will and legal documents. Thinking about your future death or illness and making all these legal documents is no fun. But not having one is worse. The people you care the most will have to face more difficulties and challenges in the future if that happens. Dying without a will may cost your family thousands of dollars in legal bills and might end up in bitter family disputes due to legal battles between your children and/or siblings. All of this would be avoided with the drafting of a proper will and creation of these legal documents.

    Let JCA LAW OFFICE assist you in finding solutions to all those dreaded “what if’s”. We have dedicated lawyers who will help you in preparing all these legal documents.

    You may also send us an email at info@filipinolawyer.ca.

    REFERENCES:

    ** (1) Ministry of the Attorney General https://www.attorneygeneral.jus.gov.on.ca/english/family/pgt/incapacity/poa.php

    https://www.ctvnews.ca/lifestyle/majority-of-canadians-don-t-have-a-will-poll-1.3772853