EJS Process

7/17/2019 EJS Process

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LEPITEN & BOJOS LAW OFFICEPartners: Atty. Magdalena M. R. Lepiten and Atty. Anna Fionah L. Bojos21 F Don Pedro Rodriguez St., Capitol Site, Cebu City, PhilippinesTel/Fax. No. 2548005 Email: [email protected],[email protected]: www.lepitenbojos.com

June 28 , 2013

Mrs.XXXCebu City

RE: PROPOSAL FOR LAWYER RETAINER CONTRACT

Dear Mrs. XXX ,

Our Law Office is willing to render legal services in your behalf for the following purpose/legal problem:

TO FACILITATE AND PROCESS THE EXTRA-JUDICIAL SETTLEMENT OF THE ESTATE OF MR. XXX

I. Services entailed:

A. Phase 1 Payment of the Estate Tax

Preparation and Notarization of Extra-judicial Settlement of EstateIdentification of properties involvedSecuring various documents such as tax declarations, tax clearances and othersrequired for payment of Estate TaxPreparation and notarization of Special Power of AttorneysPreparation and Filing of the Estate Tax Return with the Bureau of Internal RevenuePayment of the Estate TaxFollow up and processing with the BIR

Expected Output: Certificate Authorizing Registration by the Bureau of InternalRevenue

Note: This document is required by the Register of Deeds and the City/MunicipalAssessors to transfer the name of the title or tax declaration as well as to close and withdraw the funds in the bank account owned by the late Mr. XXX

Time frame: One month to two months from submission of complete documents to BIRand payment of the Estate Tax

B. Phase 2 Transfer of Title/Tax Declarations in the name of Mrs. XXX andHeirs of Mr. XXX.

Publication of the Notice of Extra-judicial settlement in a newspaper for 3 consecutive weeksSubmission of Extra-Judicial Settlement and BIR CAR to the Register of Deeds andother required documentsPayment of transfer/registration feesAfter new titles are secured, submission of the same documents to the city/municipal assessor for the issuance of new tax declarationsPayment of taxes (real property taxes if any) and feesFollow up and processing with Register of Deeds and assessor


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Expected output Title and Tax Declarations in the name of Mrs. XXX and Heirs of Mr. XXX.

Time frame: Two to three months from submission of the complete documents to the Register of Deeds and payment of fees.

C. Phase 3 Closing of the Metrobank Account

Surety bond in favor of the Bank effective for two (2) years to cover the amountto be withdrawnSubmission of the Extra-Judicial Settlement of the Estate and the BIR CAR as well as other supporting documents

Output: Closing of the account and withdrawal of the moneyTime frame: One month from submission of complete requirements to the bank

II. Attorneys Fees

For the above services, our law office will charge the following fees:

Phase 1 P30,000.00 and upPhase 2 20,000.00 and up Phase 3 10,000.00 and up Total P80,000.00

(The attorneys fees depend on the number of properties, if there is a foreign element; i.e. heirs are foreigners or residing abroad, the complexity and other factors.)

III. Operational Cost

It is understood that the client shall bear the cost of payment all estate taxes, real property taxes and fees as well as other expenses to implement the settl

ement such as publication fees, photocopying, securing certified true copies andothers.

The undersigned will provide estimates for Estate Tax Due as well as other taxes and fees once there is a retainership agreement as computing for estate tax due will require an evaluation of the tax declarations of properties belonging tothe estate as well as other documents like hospital bills and funeral expenses which can be deducted in order to determine the estate tax due.

It is the practice of the Law Office to require at least P10,000.00 Trust Fundfrom which the Law Office will charge for the operational expenses. The Law Office will provide an accounting for this Trust Fund. In the event that additional funds are needed, the Law Office will notify the client.

IV. Initial Payment

Upon signing of this retainership contract, the client is expected to pay the following:

Phase 1 P50,000.00Trust Fund 10,000.00_______________________________________Total 60,000.00


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Conformity Required

After affixing your signature above your name, this letter proposal will serveas a retainer contract between parties.

Yours truly,

Atty. Anna Fionah L. Bojos

Conforme:

Mrs. XXX

ExtraJudicial Settlement of Heirs

View previous topic View next topic Go down Message [Page 1 of 1]1 ExtraJudicial Settlement of Heirs on Thu Mar 14, 2013 9:48 pmjoanneabarquez

Arresto MenorPosts: 1Join date: 14/03/2013I would like to ask for an advice regarding our problem on the Heirs included inthe ExtraJudicial. There are two Heirs out of Six Heirs, who don't want to signthe ExtraJudicial, considering that it stated the proper equal share, they inherited. Their reasons is they want to process on their own. How could it be whenwe have to execute only one ExtraJudicial for the whole heirs so we can pay forour estate tax. Please advise

View user profile2 Re: ExtraJudicial Settlement of Heirs on Fri Mar 15, 2013 12:44 amLadie

Prision MayorPosts: 160Join date: 19/10/2010For Joanneabarquez:

Try to use judicial settlement of the estate Rule 74 of the New Rules of Court.In this case, I think, repeat I think, palagay ko, ung 4 heirs can petition thecourt to partition the estate if the 2 don't want to settle the partition by extra-judicial settlement without the intervention of the court. Of course, you wil

l be spending some litigation expenses. I don't know if the 4 can go ahead and make the extra-judicial settlement with provisions of the rights of those who have not participated in the settlement have 2 years to petition the court for their claim.

I am not a lawyer, but just an ordinary person and this is only a sort of comment/opinion...View user profile3 Re: ExtraJudicial Settlement of Heirs on Fri Mar 15, 2013 1:20 amperlz


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Arresto MenorPosts: 6Join date: 13/03/2013I have the same question. What to do when one of the heirs (out of 6) doesn't want to sign the equal-share extra judicial partition? He's based abroad and he wants full accounting of the proceeds from the common properties for the last 10-15 years. My questions are:

-- Considering that he's the only one with complaints, should he be the one to file a case for judicial partition? Because he's based abroad, what happens whenthe court asks for his personal appearance and he's not able to come at the specified time? Will this result to possible dismissal of the case?

-- Can the 5 of us collectively file for judicial partition instead-- para mas madali?

-- Ang judicial partition ba ay always considered fair and (by known records/experience) followed unquestionably by everyone concerned? What is usually the court's basis for partition?

Thanks in advance for any advice/comments given.

View user profile

4 Re: ExtraJudicial Settlement of Heirs on Sun Jul 21, 2013 10:46 amdetters3

Arresto MenorPosts: 1Join date: 21/07/2013My question is somewhat similar to their question. The widow and 4 children can't come up with a settlement. Is it possible or is there such a "default" for this that the the land will not be divided and the title will bear the names of thewidow and her 4 children? Thanks in advance.View user profile5 Re: ExtraJudicial Settlement of Heirs on Wed Jul 24, 2013 4:22 pmhustisya

Arresto MayorPosts: 98Join date: 03/05/2013They cannot also process the transfer with their own. Since the whole property is under the name of the decedent and your one of the heirs, your signature is also needed by them to proceed with the transfer transactions. Like what Joanne said, you may apply the judicial settlement of the estate Rule 74 of the New Rulesof Court but you will be spending some litigation expenses, which is more hassle.View user profile

Extrajudicial Settlement of Estate in the PhilippinesSettlement of an estate need not undergo judicial proceedings all the time. Rule74, Section 1 of the Rules of Court allows the extrajudicial settlement of esta


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te by agreement among the heirs. Said Rule states:Sec. 1. Extrajudicial settlement by agreement between heirs. If the decedent left no will and no debts and the heirs are all of age, or the minors are represented by their judicial or legal representatives duly authorized for the purpose, the parties may, without securing letters of administration, divide the estate among themselves as they see fit by means of a public instrument filed in the office of the register of deeds, and should they disagree, they may do so in an ordinary action of partition. If there is only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed in the office of the registerof deeds. The parties to an extrajudicial settlement, whether by public instrument or by stipulation in a pending action for partition, or the sole heir who adjudicates the entire estate to himself by means of an affidavit shall file, simultaneously with and as a condition precedent to the filing of the public instrument, or stipulation in the action for partition, or of the affidavit in the office of the register of deeds, a bond with the said register of deeds, in an amount equivalent to the value of the personal property involved as certified to under oath by the parties concerned and conditioned upon the payment of any just claim that may be filed under Section 4 of this rule. It shall be presumed that thedecedent left no debts if no creditor files a petition for letters of administration within two (2) years after the death of the decedent.The fact of the extrajudicial settlement or administration shall be published ina newspaper of general circulation in the manner provided in the next succeeding section; but no extrajudicial settlement shall be binding upon any person whohas not participated therein or had no notice thereof.

However, extrajudicial settlement of estate cannot be resorted to every time. There are conditions which must be satisfied such as:1. The decedent left no will2. The decedent has no debts or his debts have been fully paid.3. The heirs are all of legal age or the minors are duly represented by their judicial or legal representatives.4. A public instrument is duly executed by the heirs and filed with the Registerof Deeds.Extrajudicial settlement of estate is often recommended to expedite the transferof properties of the decedent to his heirs. This is in view of the fact that judicial settlement of estate takes years before the case is concluded. Furthermore, this is more adversarial and is resorted to when the heirs disagree on the properties to be partitioned and the corresponding shares of the respective heirs.

An extrajudicial settlement of estate is done by executing an Extrajudicial Settlement Among Heirs. This is a legal document specifying:1. Compliance with the legal conditions for an extrajudicial settlement2. Description of the properties to be extrajudicially settled (title number, value, location, lot size, technical description, etc.)3. Nature of the property (if conjugal property)4. Name of the heirs5. How the properties shall be divided amongst the heirs.6. Posting of a bond if there is personal property involved.7. Undertaking that the Deed will be published in a newspaper of general circulation once a week for 3 consecutive weeks.It must be noted that the Deed of Extrajudicial Settlement must be published ina newspaper of general circulation once a week for 3 consecutive weeks. Kindly c

onsult with the Register of Deeds where the property is located for the listingof these newspapers.Before filing the Deed of Extrajudicial Settlement with the Register of Deeds where the land is located, it is necessary that the estate taxes be paid first. Under Philippine laws, estate tax is defined as a tax on the right of the deceasedperson to transmit his estate to his lawful heirs and beneficiaries at the timeof death and on certain transfers, which are made by law as equivalent to testamentary disposition. According to the Bureau of Internal Revenue, estate tax isnot a tax on property but rather imposed on the privilege of transmitting property upon the death of the owner.


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It bears great emphasis that the Estate Tax Return must be filed within six (6)months from the decedents death. The deadline may be extended by the Commissionerof the BIR, in meritorious cases, not exceeding thirty (30) days. It must be noted that the estate itself is assigned its own Tax Identification Number (TIN).The Estate Tax Return is filed with Revenue District Office (RDO) having jurisdiction over the place of residence of the decedent at the time of his death. If the decedent has no legal residence in the Philippines, then the return can be filed with:1. The Office of the Revenue District Officer, Revenue District Office No. 39, South Quezon City; or2. The Philippine Embassy or Consulate in the country where decedent is residingat the time of his death.Furthermore, the estate tax shall be paid at the time the return is filed. However, upon request and if the Commissioner of the BIR finds that payment on the due date of the Estate Tax or of any part thereof would impose undue hardship uponthe estate or any of the heirs, he may extend the time for payment of such taxor any part thereof not to exceed five (5) years, in case the estate is settledthrough the courts or two (2) years in case the estate is settled extra-judicially. If an extension is granted, the BIR Commissioner may require a bond in suchamount, not exceeding double the amount of tax, as it deems necessary.The estate tax is based on the value of the net estate as follows:1. If not over P200,000, it is exempt2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P200,000

3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of theexcess over P500,0004. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% ofthe excess over P2,000,0005. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% ofthe excess over P5,000,0006. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,000,000The basis shall be the net estate. That means that there are allowable deductions on the estate. These deductions include funeral expenses, share of the surviving spouse, medical expenses incurred by the decedent within 1 year prior to hisdeath, family home deduction of not more than P1,000,000.00, standard deductionof P1,000,000.00, among others. It is best to consult with an accountant on this

matter to determine the accurate estate tax.For extrajudicial settlement of estate, the following documents must be submitted with the BIR:1. Notice of Death2. Certified true copy of the Death Certificate3. Deed of Extra-Judicial Settlement of the Estate4. Certified true copy of the land titles involved5. Certified true copy of the latest Tax Declaration of real properties at the time of death6. Photo copy of Certificate of Registration of vehicles and other proofs showing their correct value7. Photo copy of certificate of stocks8. Proof of valuation of shares of stocks at the time of death

a. For listed stocks newspaper clippings or certification from the Stock Exchangeb. For unlisted stocks latest audited Financial Statement of issuing corporationwith computation of book value per share9. Proof of valuation of other types of personal property10. CPA Statement on the itemized assets of the decedent, itemized deductions from gross estate and the amount due if the gross value of the estate exceeds twomillion pesos11. Certification of Barangay Captain for claimed Family HomeOther documents may also be requested by the BIR.


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After the estate taxes have been paid, the heirs may proceed to the Register ofDeeds where the land is situated. If the Register of Deeds would allow it, the filing with the BIR and Register of Deeds may be simultaneous. The proof of payment of the estate tax, Affidavit of Publication of the Deed, the Deed of Extrajudicial Settlement of Estate are the basic requirements to be submitted to the Register of Deeds. When all pertinent documents are submitted, the Register of Deeds will correspondingly issue the Transfer of Certificates of Title to the properheirs.On a final note, it must be borne in mind that the extrajudicial settlement canbe nullified if it was done in fraud of creditors or other rightful heirs. Furthermore, this can open the erring heirs to criminal liabilities.If you need any help in extrajudicial settlement of estate in the Philippines, call any of our lawyers at (632) 4016392 or (632) 4706126 or e-mail us at info @ndvlaw.com.Nicolas & De Vega Law Offices is a full-service law firm located at the 16th Flr. Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, Pasig City, Metro Manila, Philippines.

EJS Process

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