Inheriting Wealth in the PH: Why You Need RCBC for Wealth Management

Inheritance involves many legal terms and processes, so it’s not as simple as just receiving wealth. But with the right partner in wealth management, navigating these complexities becomes much easier. 

RCBC offers guidance, financial expertise, and legacy planning tailored to your unique circumstances—so you can focus not just on what you’ve received, but what you’ll do with it.

How Inheritance Works

Inheritance is the transfer of assets, property, or wealth from a deceased person to their legal heirs. In the Philippines, inheritance may include real estate, savings, investments, personal belongings, and business interests.

While inheritance is often viewed as a financial blessing, it also comes with significant legal and tax responsibilities. Some may not understand their rights as heirs, while others might find it challenging to handle paperwork.

Inheritance also brings up different emotions. It’s normal to feel sadness, loss, or even confusion during this time. But facing these emotions with a positive mindset and clear knowledge can help turn inheritance into an opportunity for healing and growth. 

After all, the true meaning of inheritance lies not in the actual value of wealth but in honoring your loved one’s legacy.

Inheritance Law in the Philippines

The Civil Code of the Philippines governs the laws of inheritance. Assets can be inherited either with or without a will. Here’s how:

• Testate Succession happens when the deceased leaves a valid will. Regardless of the presence of a will, the law ensures that compulsory heirs receive a fixed portion of the estate, known as the legitime. Any will or document cannot reduce this share unless under rare, legal grounds.

• Intestate Succession applies when there is no will. In this case, the estate is automatically divided among the compulsory heirs based on their legal share.

Heirs must understand their legal entitlement so they can take the next steps in inheriting wealth.

A Step-by-Step Guide to Navigating Inheritance

Here's a clear, step-by-step guide to help you navigate the legal and financial aspects of managing your new inheritance.

1. Secure All Legal Documents

The first step in settling an inheritance is organizing all the necessary legal documents. This includes the death certificate of the deceased, the last will and testament (if any), and documents that prove ownership of assets such as property titles, vehicle registrations, or bank statements. Heirs will also need birth certificates, marriage contracts, and valid IDs to prove their legal relationship to the deceased.

If a will exists, it must go through probate court, where its validity will be confirmed. Intestate succession laws will apply if there is no will.

2. File and Settle the Estate Tax

Estate tax is a tax on the right to transfer a deceased person’s property to their heirs. In the Philippines, the tax rate is 6% of the estate’s net value. This means the total value of all assets minus debts, funeral costs, and allowed deductions. The estate tax must be filed and paid within one year after the owner’s death. 

Heirs also need to get a Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR) to legally transfer property ownership.

3. Settle Debts and Obligations of the Deceased

Before dividing an estate, the deceased’s outstanding obligations must be resolved, including personal loans, credit card debt, taxes, and any contractual liabilities. While heirs are not personally liable for these debts, the estate is. These liabilities must be deducted from the total estate value before any inheritance money or assets can be distributed.

4. Transfer Ownership of Assets

Once estate taxes and debts are cleared, the legal transfer of ownership can start. This process is not automatic. 

Heirs must process the transfer of real estate titles through the Registry of Deeds, update bank accounts or investments, and reassign other assets like vehicles or business shares. Legal documents, such as an Extra-Judicial Settlement of Estate (for estates without a will and with no disputes among heirs) or a Deed of Partition (to divide specific properties), may be required.

Expert guidance from a legal or wealth management professional can be highly beneficial during this step.

5. Consider Setting Up a Trust

A trust is a legal arrangement that allows a third party (trustee) to hold and manage assets on behalf of beneficiaries. For heirs or families with substantial estates, setting up a trust provides structure, control, and long-term security. 

It’s especially helpful when the beneficiaries are minors, financially inexperienced, or part of a blended family. A trust ensures that the inheritance is managed according to the benefactor’s wishes.

Trusts also protect inherited assets from potential misuse or early liquidation. Working with a wealth manager like RCBC makes it easier to structure and administer trusts with legal clarity and strategic foresight.

The Value of Wealth Management in Handling Inheritance

Inheriting wealth is a life-changing turning point, and a wealth management expert like RCBC helps heirs navigate this critical time confidently. Here’s how we can assist you:

• Asset Management and Financial Planning. We help you protect and grow your inherited property, business, or investments with customized plans for you.

• Trusts and Legacy Solutions. We build trusts and manage portfolios to keep your wealth safe, especially when planning for future generations.

• Education and Next-Gen Readiness. We help heirs think beyond their inheritance and become responsible stewards of their family’s legacy.

Secure Your Inheritance and Your Future With RCBC

Inheriting wealth in the Philippines comes with legal, financial, and emotional complexities. RCBC wealth management helps heirs turn these challenges into opportunities through expert guidance. 

We are proud to be a two-time winner of “Best for Succession Planning in the Philippines” at the Euromoney Private Banking Awards in 2024 and 2025. We also received the “Best for Next-Gen/Millennials in the Philippines” award from Asiamoney Private Banking in 2023. These awards show our commitment to supporting families in preserving and expanding their wealth across generations.

Choose RCBC to secure your family’s future! Contact us today.