Q. Hello Good Day. My name is Zenki from Manila. While doing some research about land titles, property and estate taxes on the net, I luckily encountered your column. I didn’t hesitate to write you as I have some questions that I hope you can help me with.
My grandfather (mother’s father) died 1985 and my grandma (mom’s mother) died 1999. Since I was born 1981 until today, together with our mother, I and my siblings live in the ancestral home of our grandparents.
The house itself was nakatayo sa isang malaking lote na me dalawang bahay na nakatayo isa yung ancestral house at isa sa bahay ng tita ko, which is the eldest daughter of my grandparents na kapatid ng mother ko.
Ang problema ko po ay bilang luma na yung ancestral home at madami na din problema (visible termites, umuugang flooring – kahoy na sahig, pagbaha sa loob ng bahay ) ay nais po namin ipagawa sana yung house. Kaso ayaw naman po namin na gumastos kung wala naman kami malinis na titulo.
These are my questions:
1. The land title is still under my grandparents’ names. Nag usap na po ang mga kapatid ng aking ina na silang dalawa (my mother and her eldest sister) ang maaaring manirahan sa lupa ng aking grandparents. Its verbal agreement between the siblings, but do we still need their consent about this if ever we transfer the title from their parents’ name to their siblings (my mother & my aunt)? Such written document waiving their rights and giving their permission with their signatures.
2. I heard that we also need to pay the estate tax since property belongs my deceased grandparents. Na sa pagkakaalam ko po ay hindi naman ata na declare na patay na sila. If ever wala naman po kami na copies ng funeral expenses nila. So lalabas ho nito ata is we will pay for the penalties incurred per year. At ano ho yung tax computation, depende ho ba ito sa value ng property nung time na namatay ang aking grandparents?
kung naguguluhan po kayo Atty sa letter ko, can you give me your advice or procedures about this transfer of titles and taxes that will fall under this?
Ang gusto lang ng mother ko is maayos yung bahay, delikado na po kasi lalo na noong dumating ang bagyong Glenda sa Manila bumagsak po yung alulod sa lakas ng hangin at natatakot po kami na pag lumindol sigurado matatamaan ang bahay dahil di po concrete yung foundation as it was built in the 60s. Kahoy pa ang pundasyon. Thank you Atty Wong. Pasensya na po sa abala. Sincerely yours,
Zenki of Manila.
ANS. Under the law, your mother and her siblings are considered as co-owners of the property-estate left by their deceased parents.
As co-owners, each of the surviving siblings have equal rights, interest and title of over the subject property, such as the right to use and live in the ancestral house. So there is no need for your mother to secure a written permission from other co-owners to enjoy and live in the ancestral home . This right is also true with respect to other sibling(s) co-owners .
In the same token all heirs (siblings) are duty bound to contribute to the preservation, maintenance and repairs of the estate as co-owners, including expenses pertaining to real taxes and such other expenses which would redound to the benefit of the property co-owned by them.
However, as the subject property/estate has not been settled and partitioned to each co-owner, there is a problem in this kind of co-ownership situation, as all co-owners are considered to have common undivided interest over the property.
So the remedy here is for all the siblings to sit down and agree amongst themselves which part of the land belongs to whom. For this purpose, you need to engage the services of a licensed surveyor to have the land subdivided into several lots for each sibling.
This could mean the old and dilapidated ancestral may be demolished or be awarded or partitioned to other sibling.
After the siblings have agreed which of the subdivided lots belongs to whom, then they have to execute the so called Extrajudicial Settlement of Estate with Deed of Partition. In this document the subdivided lots will be named and titled to each and in the name of the individual owners.
Further to the above, please bear in mind that it is the right of every co-owner to demand the physical partition of the property co-owned by the co-owners. If the co-owners cannot agree on the manner and extent of the partition, the court may be asked to intervene in the process.
In the process of the Extrajudicial Settlement of the estate appropriate estate tax and other taxes or fees have to be paid to the BIR including the penalty charges and interest for the late payment of the taxes.
The fact of the date of death of the deceased cannot be hidden or keep under the rug even the fact of death is not yet reported to the taxing authority.
You see, the fact of death cannot be hidden to the BIR as a certified true copy of the death certificate of the deceased will be required in the processing and computation of the corresponding estate taxes due including the penalty and interest charges thereto.
As the settlement of estate is a complicated process for a layman, it is strongly suggested that you confer with your lawyer in your community to provide you with the appropriate professional assistance in the preparation of the required documents leading to issuance of new titles to each individual owners-siblings over the subdivided property.
Thus, with the land being individually titled, each of the sibling is free to do what he or she wants over the subject property.
Looking forward you’ll find the above in order. Thank you for writing and for being a part of the “Batas Pinoy Global Community.”
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