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RETAINER CONTRACT
Expected output
irs of Mr. XXX.
He
Time frame: Two to three months from submission of the complete documents to t
he 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 amount
to be withdrawn
Submission of the Extra-Judicial Settlement of the Estate and the BIR CAR as wel
l as other supporting documents
Output: Closing of the account and withdrawal of the money
Time frame: One month from submission of complete requirements to the bank
P30,000.00 and up
20,000.00 and up
10,000.00 and up
Total
P80,000.00
(The attorney s fees depend on the number of properties, if there is a foreign ele
ment; i.e. heirs are foreigners or residing abroad, the complexity and other fac
tors.)
III. Operational Cost
It is understood that the client shall bear the cost of payment all estate taxe
s, real property taxes and fees as well as other expenses to implement the settl
ement such as publication fees, photocopying, securing certified true copies and
others.
The undersigned will provide estimates for Estate Tax Due as well as other taxe
s and fees once there is a retainership agreement as computing for estate tax du
e will require an evaluation of the tax declarations of properties belonging to
the estate as well as other documents like hospital bills and funeral expenses w
hich 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 Fund
from which the Law Office will charge for the operational expenses. The Law Off
ice will provide an accounting for this Trust Fund. In the event that additiona
l 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 f
ollowing:
Phase 1
P50,000.00
Trust Fund
10,000.00
_______________________________________
Total
60,000.00
Conformity Required
After affixing your signature above your name, this letter proposal will serve
as a retainer contract between parties.
Yours truly,
Atty. Anna Fionah L. Bojos
Conforme:
Mrs. XXX
Arresto Menor
Posts: 6
Join date: 13/03/2013
I have the same question. What to do when one of the heirs (out of 6) doesn't wa
nt to sign the equal-share extra judicial partition? He's based abroad and he wa
nts full accounting of the proceeds from the common properties for the last 10-1
5 years. My questions are:
-- Considering that he's the only one with complaints, should he be the one to f
ile a case for judicial partition? Because he's based abroad, what happens when
the court asks for his personal appearance and he's not able to come at the spec
ified time? Will this result to possible dismissal of the case?
-- Can the 5 of us collectively file for judicial partition instead-- para mas m
adali?
-- Ang judicial partition ba ay always considered fair and (by known records/exp
erience) followed unquestionably by everyone concerned? What is usually the cour
t's basis for partition?
Thanks in advance for any advice/comments given.
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4 Re: ExtraJudicial Settlement of Heirs on Sun Jul 21, 2013 10:46 am
detters3
Arresto Menor
Posts: 1
Join date: 21/07/2013
My 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 thi
s that the the land will not be divided and the title will bear the names of the
widow and her 4 children? Thanks in advance.
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5 Re: ExtraJudicial Settlement of Heirs on Wed Jul 24, 2013 4:22 pm
hustisya
Arresto Mayor
Posts: 98
Join date: 03/05/2013
They cannot also process the transfer with their own. Since the whole property i
s under the name of the decedent and your one of the heirs, your signature is al
so needed by them to proceed with the transfer transactions. Like what Joanne sa
id, you may apply the judicial settlement of the estate Rule 74 of the New Rules
of Court but you will be spending some litigation expenses, which is more hassl
e.
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It bears great emphasis that the Estate Tax Return must be filed within six (6)
months from the decedent s death. The deadline may be extended by the Commissioner
of the BIR, in meritorious cases, not exceeding thirty (30) days. It must be no
ted that the estate itself is assigned its own Tax Identification Number (TIN).
The Estate Tax Return is filed with Revenue District Office (RDO) having jurisdi
ction over the place of residence of the decedent at the time of his death. If t
he decedent has no legal residence in the Philippines, then the return can be fi
led with:
1. The Office of the Revenue District Officer, Revenue District Office No. 39, S
outh Quezon City; or
2. The Philippine Embassy or Consulate in the country where decedent is residing
at the time of his death.
Furthermore, the estate tax shall be paid at the time the return is filed. Howev
er, upon request and if the Commissioner of the BIR finds that payment on the du
e date of the Estate Tax or of any part thereof would impose undue hardship upon
the estate or any of the heirs, he may extend the time for payment of such tax
or any part thereof not to exceed five (5) years, in case the estate is settled
through the courts or two (2) years in case the estate is settled extra-judicial
ly. If an extension is granted, the BIR Commissioner may require a bond in such
amount, 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 exempt
2. If over P200,000 but not over P500,000, then tax is 5% of the excess over P20
0,000
3. If over P500,000 but not over P2,000,000, then tax is P15,000 PLUS 8% of the
excess over P500,000
4. If over P2,000,000 but not over P5,000,000, then tax is P135,000 PLUS 11% of
the excess over P2,000,000
5. If over P5,000,000 but not over P10,000,000, then tax is P465,000 PLUS 15% of
the excess over P5,000,000
6. If over P10,000,000, then tax is P1,215,000 PLUS 20% of the excess over P10,0
00,000
The basis shall be the net estate. That means that there are allowable deduction
s on the estate. These deductions include funeral expenses, share of the survivi
ng spouse, medical expenses incurred by the decedent within 1 year prior to his
death, family home deduction of not more than P1,000,000.00, standard deduction
of 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 submitte
d with the BIR:
1. Notice of Death
2. Certified true copy of the Death Certificate
3. Deed of Extra-Judicial Settlement of the Estate
4. Certified true copy of the land titles involved
5. Certified true copy of the latest Tax Declaration of real properties at the t
ime of death
6. Photo copy of Certificate of Registration of vehicles and other proofs showin
g their correct value
7. Photo copy of certificate of stocks
8. Proof of valuation of shares of stocks at the time of death
a. For listed stocks newspaper clippings or certification from the Stock Exchang
e
b. For unlisted stocks latest audited Financial Statement of issuing corporation
with computation of book value per share
9. Proof of valuation of other types of personal property
10. CPA Statement on the itemized assets of the decedent, itemized deductions fr
om gross estate and the amount due if the gross value of the estate exceeds two
million pesos
11. Certification of Barangay Captain for claimed Family Home
Other documents may also be requested by the BIR.
After the estate taxes have been paid, the heirs may proceed to the Register of
Deeds where the land is situated. If the Register of Deeds would allow it, the f
iling with the BIR and Register of Deeds may be simultaneous. The proof of payme
nt of the estate tax, Affidavit of Publication of the Deed, the Deed of Extrajud
icial Settlement of Estate are the basic requirements to be submitted to the Reg
ister of Deeds. When all pertinent documents are submitted, the Register of Deed
s will correspondingly issue the Transfer of Certificates of Title to the proper
heirs.
On a final note, it must be borne in mind that the extrajudicial settlement can
be nullified if it was done in fraud of creditors or other rightful heirs. Furth
ermore, this can open the erring heirs to criminal liabilities.
If you need any help in extrajudicial settlement of estate in the Philippines, c
all any of our lawyers at (632) 4016392 or (632) 4706126 or e-mail us at info @n
dvlaw.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, Me
tro Manila, Philippines.