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How Do You Settle The Estate Of A Dead Person

It is a known fact that some properties for sale are still registered in the names of the deceased parent or next of kin. If the property owner passed away, the estate must be settled before the name of the buyer can be transferred. More often than not, this is a complicated process if you do not know the steps. When you settle the estate of a deceased person, it means you should declare the properties of the deceased whether it is real or personal estate. The name of another person cannot be successfully transferred if the estate has not been settled. The rule applies to both testate and intestate.

6 Steps To Settling The Estate Of A Deceased Person

1. Secure and fill out BIR Form 1904. The form is intended for application for registration. It is important to apply for a valid Tax Identification Number (TIN) when you transact with the BIR. The purpose of Form 1904 is to verify the seller's and the buyer's TIN. When it comes to the payment of estate taxes, it is important to secure a separate TIN for the estate of the deceased. 

2. Prepare the mandatory documentary requirements and submit them to the BIR so the estate of a deceased person will be settled.

3. Secure BIR Form 1801. This form refers to the Estate Tax Return Form. Fill out the form with the necessary information such as the name and the TIN of the Estate. The ONETT officer of the Day will help you in filling out the rest of the form based on the computation and review of the documents you have presented. You will need to consult a certified public accountant if the estate of the deceased person is more than P3 million. The accountant will help to determine the taxable estate's initial computation.

4. Pay the estate tax based on the computation. Settle the estate tax with an Authorized Agent Bank (AAB) of the RDO, which has the jurisdiction over the place of residence of the deceased person. You can pay the computed estate tax by cash, manager's or cashier's check. If you are going to settle the estate tax through a Manager's or Cashier's Check, make sure that the following is written as payee:" (Bank, Branch) FAO BUREAU OF INTERNAL REVENUE IFO (Taxpayer's Name) (Tin of Taxpayer)." If you choose to pay the estate tax using a AAB, which is a government financial institution such as Landbank of the Philippines, the payee will be the BUREAU OF INTERNAL REVENUE.

5. The documentary requirements must be submitted including the proof of payment to the RDO, which has the jurisdiction over the decedent's place of residence.

6. Wait for the Certificate Authorizing Registration to be released. Once CAR is released, the property can be sold to a buyer. When paying the capital gains, the CAR along with Affidavit of Self-Adjudication, Extra-judicial Settlement of Estate, Tax Clearance Certificate and other requirements should presented.

Pinoy Attorney

Written by : Pinoy Attorney

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