My grandmother died 21 years ago. The heirs have agreed that one of my grandmother’s properties will be given to my mother. How can my mother transfer the property under her name? How much does she need to pay as inheritance tax?
It is essential for the heirs of your grandmother to undergo settlement of estate in order for your mother to have the title of the property transferred under her name.
Considering that, based on the facts that you have shared with us, the heirs are in agreement that a particular property will be given in favor of your mother, they may proceed with the extrajudicial settlement of the estate of your grandmother. However, it is necessary for them to establish that your grandmother left no will and no debts, and that all her heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose (Section 1, Rule 74, Rules of Court).
Accordingly, the heirs of your grandmother must execute a public instrument containing their agreement as to the distribution of the properties of your grandmother as well as the waiver of rights of the other heirs in favor of your mother involving the property to be transferred in her favor. Such instrument must be filed in the office of the Register of Deeds of the place where the property is situated. The fact of the extrajudicial settlement must also be published in a newspaper of general circulation once a week for three consecutive weeks (Section 1, Rule 74, Rules of Court).
Should the Register of Deeds find everything in order, he or she shall direct that the title of the property be transferred under your mother’s name. Nevertheless, a two-year lien shall be annotated at the back of the said title. Such lien is for the protection of creditors, if any, and heirs who may have been denied of their inheritance.
Insofar as the estate tax is concerned, your mother is required to settle the same before the Revenue District Office which has jurisdiction over the place or province where the property involved is situated. If the value of the property does not exceed two hundred thousand pesos (P200,000.00), it shall be exempt from taxes. If the value of the property exceeds two hundred thousand pesos (P200,000.00), the rates shall be based on the table as provided for under Section 84 of the National Internal Revenue Code (NIRC) of 1997. It will be more prudent for your mother to visit the Revenue District Office concerned and request for the specific computation of the tax liabilities of your mother so that she may be given an accurate tax assessment. There may be other fees, penalties or surcharges to which your property may be subjected.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to email@example.com