Here's a simple and basic steps in transferring a land title from a deceased parent to his/her children.
2.) Publish the Deed of Extra-judicial Settlement of Estate in a newspaper of general circulation in the City and Province once a week for three consecutive weeks.All the children should enter in an agreement on how to distribute or dispose the properties (e.g. land).
The BIR will issue a certificate that you should bring to the Land Registration Authority or in the Registry of Deeds in order to file a transfer of title.
When should the Family Members transfer the Title?
The family members should transfer it as soon as possible after the execution of the Deed of Extrajudicial Settlement of the Estate. You need to pay Estate Tax.
And if you're late in paying this tax, you will be charged 25% on the tax amount and another charge of 20% interest per year.
What to pay in transferring a land title from a Deceased Parents?
Documentary stamp tax (1.5% of the zonal or market value whichever is higher).
Transfer tax/fees (ranges from 0.5% to 1% of the consideration/zonal or market value whichever is higher).
What if you didn't pay the Estate Tax in 10 years? Are there penalties?Yes. You're going to pay a service charge of 25% of the tax amount plus 20% interest per year. You should pay it as soon as possible or as early as possible. If you ignore it for many years, the total charges plus interest will add up until the amount becomes greater than the current market value of the property.
Frequently Asked Questions:
- What if there are some siblings or children of the deceased parent who are not included in signatory agreement? All the children (you, your brothers and sisters) should sign the agreement. Even if some children are not interested to inherit the properties of the parent, they are obliged to make and sign a waiver. If they don't make a waiver, the extra-judicial settlement of estate will not be processed.
- What if your brother or sister is already been dead and had a children? Do they have the right to inherit the property? Yes.
- What if your brother or sister doesn't cooperate with you in signing the agreement? You should go to the court and let the court call the attention of those who doesn't cooperate with you and let the court decide on how to distribute or dispose the properties according to the law.