Need a Professional Real Estate Service Provider to process your Estate Tax Settlement anywhere in Cebu? Worry no more! MC dela Fuente Realty will do it for you the right way.
Estate Tax in the Philippines is a tax on the right of the deceased person to transmit the estate to the lawful heirs, legitimate and illegitimate children, and a legal spouse at the time of death. It is not a property tax but a tax imposed on the privilege of transferring the deceased’s estate to their heirs, which includes real estate properties, personal jewelry, and stocks.
Real Estate Properties left behind by a deceased person can pass on to or sold by an heir when the decedent’s estate is settled in either Self Adjudication, Judicial, or Extrajudicial Settlement.
Here are the three (3) most common ways the lawful heirs can settle the Estate Tax:
1. Extrajudicial Settlement
This is an out-of-court settlement procedure for dividing the Decedent’s Estate among their heirs. And this settlement is usually used among Filipino families.
2. Judicial Settlement
Through court settlement which generally happens when the decedent left a last will and testament or whenever there is a dispute among the heirs on who and how the estate will be divided.
3. Affidavit of Self Adjudication
A sworn statement by a sole heir declaring that he or she is the only heir of the deceased and adjudicates the entire inheritance to himself.
How much is the Estate Tax Rate?
Under the TRAIN Law, the Estate Tax Rate in the Philippines is six percent (6% )based on the deceased’s Net Estate. In 2017 and years before, the estate tax rates ranged from five percent (5%) to twenty percent (20%). However, suppose the estate administrator, lawful heirs, or beneficiaries failed to process the decedent’s estate; in that case, the heirs can avail of the Estate Tax Amnesty program of the Philippine Government at a 6% tax rate, penalties waived, only until June 14, 2023.
How to Compute the Net Estate?
The total properties of the deceased, whether real or personal, tangible or intangible, less allowable deductions depending on the law applicable at the time of death.
Anybody holding a land title under a deceased grandparent, father or mother, spouse, or sibling will be required to settle the estate tax before they can sell any of the real estate properties under the deceased name.
In property sales, buyers are reluctant to buy properties with estate tax issues not to inherit the concern among the compulsory heirs and if there is an illegitimate child or disagreements with other siblings.
Add value to your inherited property by paying the estate tax now. The tax you will pay is a small amount compared to the value of the property you own. Avoid the penalties and interest for late payment.
Talk to us now, and we will help you secure all the required mandatory documents to process your Estate Tax settlement.
MC Dela Fuente Realty has been in the real estate business since 1997 and offers other real estate-related services.
Other Real Estate Services we offer in Cebu
- Land Title Transfer
- Estate Tax: Extrajudicial Settlement among Heirs
- Real Estate Property Appraisal
- Yearly Real Property Tax Payment
- Reissuance of Lost Owner’s Duplicate Copy of the Title
- Registration and Cancellation of Mortgage Annotation
- Land Title Due Diligence (Verification of Title, Tracing back of Ownership; Technical Description of the Title)
- Property Land Survey
- Project Selling (House & Lot, Vacant Land, Condominiums, Townhouses, and Memorial Lots)
Ma. Corazon A. dela Fuente
Licensed Real Estate Broker in Cebu, Philippines since 1997
REB License #: 0006953
PTR #: 3595138
DHSUD #: CVRFO-B-12/18-0673
Real Estate Agent vs Broker vs Realtor: An Overview In the Philippines, we often think Real Estate agents,…
The Land Title Transfer in Real Estate Transactions means when property buyers and sellers transfer ownership of land,…