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This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

AT A GLANCE:

Under Article 961 of the Civil Code of the Philippines, in default of testamentary heirs, the law vests the inheritance, in accordance with the rules hereinafter set forth, in the legitimate and illegitimate relatives of the deceased, in the surviving spouse, and in the State.

Making a will allows a person to plan carefully how their property will be distributed after their death. But what happens if a person dies without a will and without any compulsory heirs? 

Who inherits their property?

Under Article 961 of the Civil Code of the Philippines, in default of testamentary heirs, the law vests the inheritance, in accordance with the rules hereinafter set forth, in the legitimate and illegitimate relatives of the deceased, in the surviving spouse, and in the State. 

When will the State inherit?

In default of persons entitled to succeed in accordance with the provisions of the preceding Sections, the State shall inherit the whole estate. (Article 1011, Civil Code)

How will the State inherit?

In order that the State may take possession of the property mentioned in the preceding article, the pertinent provisions of the Rules of Court must be observed. (Article 1012, Civil Code of the Philippines)

Under the Rule on Escheats, when a person dies intestate, seized of real property in the Philippines, leaving no heir or person by law entitled to the same, the Solicitor General or his representative in behalf of the Republic of the Philippines, may file a petition in the Court of First Instance of the province where the deceased last resided or in which he had estate, if he resided out of the Philippines, setting forth the facts, and praying that the estate of the deceased be declared escheated. (Section 1, Rule 91, Rules of Court)

Assignment of Property

1.) Decedent resided in the Philippines.

After the payment of debts and charges, the personal property shall be assigned to the municipality or city where the deceased last resided in the Philippines, and the real estate to the municipalities or cities, respectively, in which the same is situated. (Article 1013, Civil Code)

2.) Decedent never resided in the Philippines.

If the deceased never resided in the Philippines, the whole estate shall be assigned to the respective municipalities or cities where the same is located. (Article 1013, Civil Code)

How should the State use the inherited estate?

Such estate shall be for the benefit of public schools, and public charitable institutions and centers, in such municipalities or cities. The court shall distribute the estate as the respective needs of each beneficiary may warrant. (Article 1013, Civil Code )

Establishment of a Permanent Trust

The court, at the instance of an interested party, or on its own motion, may order the establishment of a permanent trust, so that only the income from the property shall be used. (Article 1013, Civil Code)

Reappearance of an Heir

In Article 1014 of the Civil Code, if a person legally entitled to the estate of the deceased appears and files a claim thereto with the court within five years from the date the property was delivered to the State, such person shall be entitled to the possession of the same, or if sold, the municipality or city shall be accountable to him for such part of the proceeds as may not have been lawfully spent.

This is also provided under Section 4, Rule 91 of the Rules of Court, it states that if a devisee, legatee, heir, widow, widower, or other person entitled to such estate appears and files a claim thereto with the court within five (5) years from the date of such judgment, such person shall have possession of and title to the same, or if sold, the municipality or city shall be accountable to him for the proceeds after deducting reasonable charges for the care of the estate; but a claim not made within the said time shall be forever barred.

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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

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