Land titles are one good investment. Oftentimes, our parents most likely secured too few pieces of land for us. Moreover, it’s one good way of ensuring investments before. But what if an accident came up and your parents weren’t able to fully authorize or validate the transfer of land to your name? What if they do not have enough writing on who-gets-what between you and your siblings? Is transferring land title name to yourself an option?
To start off, yes, you can definitely transfer the name in the land title from your deceased parents. Whether or not your parents were able to secure definite writing on the distribution of assets to you and your siblings, you definitely can transfer it. Although of course, you and your siblings need to discuss on how the distribution will be.
What is the process of transferring land title from your deceased parents to you/your siblings name/s?
First and foremost, the children or child of the deceased owner needs to secure and execute a Deed of Extrajudicial Settlement of the Estate from a lawyer. This is where the need to talk about how the distribution of assets between children comes in. All children should enter an agreement on how to dispose or distribute properties and assets left off. Even if a child is in no interest, they should get into an agreement; the deed of extrajudicial settlement would not be processed.
This deed of extrajudicial settlement needs to be published in a newspaper of general circulation in the province and city.
The publication should appear once a week for three consecutive weeks.
After the number of weeks required, descendants need to get the certification and publication in the newspaper for them to be able to bring it to the Bureau of Internal Revenue (BIR) for affirmation and verification.
The BIR will then release a certificate that descendants should bring to the Land Registration Authority or in the Registry of Deeds to start the process of filing the transfer. Moreover, descendants should pay the estate tax of the land which is why as soon as the Deed of Extrajudicial Settlement gets released, descendants should immediately settle the file transfer so that the estate tax won’t get accumulated.
What are the fees involved in the transferring of land title from deceased parents?
Technically speaking, the biggest cost would be the Estate Tax. However if paid late, there would be an additional 25% on tax amount if paid later than the due date; and another 20% interest per year. The Documentary stamp tax (1.5% of the zonal or market value whichever is higher). Lastly, the Transfer tax/fees (ranges from 0.5% to 1% of the consideration/zonal or market value whichever is higher).
Are there penalties if this matter is forgotten or disregarded?
Certainly, yes. As said above, if the estate tax is paid later than the due date, there would already be a 25% penalty PLUS 20% yearly. This is why the children or descendants should action the transfer right away.
What if some of the siblings aren’t part of the will or the written document? Would they still be able to get a share of the asset?
All children should sign the agreement. Even if they’re not interested because the deed of extrajudicial settlement would not start process without the completion of signatures from siblings/descendants. If one of the siblings is not interested in taking part of the agreement, you should go to court to call the attention of the people involved.
But what if siblings are deceased?
If siblings are gone and they have children, their children has all the right to be part of the transferring of land title.
Now that you know how to transfer land title from deceased parents to your name, it would now be easier for you. Even if there’s no official signatory reminder, once proven that you are a legitimate child of the deceased, you will still be able to transfer land title privilege to your name.
Know someone who might benefit from this? Or are you part of the population who has dilemmas with transferring land title names to yourself? Share this post to your friends because who knows? A simple share might be the answer to their problems.