Transferring the land title and settling

  Transferring the land title and settling

1. Gather Required Documents:

      Death Certificate (multiple copies)

      Estate Tax Identification Number (TIN)

      Certificates of Title for all properties

      Tax declarations and improvements from the city assessor

      Tax clearance

2. Complete BIR Form 1904:

      Download the form from the BIR website.

      Input necessary details, including taxpayer type, classification, and estate information.

3. Submit Documents at BIR:

      Present all collected documents along with Form 1904 at the relevant BIR Regional District Office (RDO).

      Pay any applicable estate taxes based on the valuation of the property.

4. Obtain Certificate Authorizing Registration (CAR):

After settling the estate taxes, request your CAR from the BIR, which is essential for moving forward with the transfer.

5. Visit Registry of Deeds:

Present your CAR alongside other required documents to finalize the title transfer at your local Registry of Deeds.

Since the BIR process is generally the most involved, I’ll go through a few specific BIR Requirements below, such as some of the forms, fees and common mistakes.

It’s crucial to fulfill these requirements to facilitate a seamless transfer process

Forms Needed:

      BIR Form 1904 for estate tax filing.

      BIR Form 1801 for estate tax payment.

Fees:

      Estate tax is generally 6% of the property value exceeding Php 5 million.

      Additional local filing fees may be applicable.

Common Mistakes to Avoid:

      Incomplete Documentation: Verify that all documents are complete and accurate prior to submission.

      Missing Deadlines: Stay informed about filing deadlines for estate taxes to prevent penalties.

· Lack of Agreement Among Heirs: Ensure consensus among all heirs regarding the distribution before initiating an extrajudicial settlement.