Why Compulsory Heirs Choose RCBC for Wealth Management

Compulsory heirs play a key role in preserving their family’s legacy. With RCBC as your wealth management partner, not only does that legacy carry on—it grows.

Key Takeaways

• Compulsory heirs are family members who must legally receive a part of the estate, whether there’s a will or not.

• Inheritance is not just about getting money—it’s about growing and managing it to keep your family’s legacy alive.

• RCBC offers personalized wealth management services that help compulsory heirs protect their assets, plan for the future, and navigate the responsibilities of inherited wealth with confidence.

When someone passes away, certain people are always entitled to inherit. In Philippine law, these individuals are known as compulsory heirs—family members who cannot be excluded from receiving a portion of the deceased’s estate, regardless of whether a will exists.

While inheritance is often thought of as the final chapter in a person’s financial journey, it is a new beginning for the next generation. How that wealth is protected, transferred, and grown will define the future of that family’s legacy.

Let us define who compulsory heirs are under Philippine law, their legal rights, and why wealth management matters for those entrusted with valuable assets.

Who Are Compulsory Heirs Under Philippine Law?

Under Philippine law, the meaning of compulsory heirs is those family members whom the decedent (the person who died) cannot legally deprive of their legitimate portion, or legitime, of the estate.

Here’s how shares are divided under common scenarios (assuming a total estate value of P1,000,000 for clarity):

1. Only Legitimate Children (No Spouse)

• With a will: legitimate children must receive one-half of the estate, divided among them. The remaining half is the free portion, which is distributed by will.

• Without a will: legitimate children inherit the entire estate, split equally.

In this scenario, the legitimate children must receive half (P500,000), divided equally among them. The remaining half (P500,000) is the free portion, which is to be distributed according to the will. However, without a will, the legitimate children will inherit the entire estate (P1,000,000) in equal shares.

2. One Legitimate Child and One Illegitimate Child

• With a will: the legitimate child gets ½ of the estate; the illegitimate child gets ¼; the remaining ¼ is the free portion.

• Without a will: the legitimate child receives 2/3, and the illegitimate child receives 1/3.

With a will, the legitimate child receives P500,000, the illegitimate child P250,000, and P250,000 is the free portion. Without a will, the legitimate child inherits P666,667, and the illegitimate child P333,333.

3. One Legitimate Child and Multiple Illegitimate Children

• With a will: the legitimate child gets ½ of the estate; the illegitimate children share the other ½, including the amount coming from the free portion, which amounts to ½ of the legitimate child’s share. 

• Without a will: the legitimate child receives ½, and illegitimate children share ½ of the estate, including the amount coming from the free portion.

There will be no free portion in the case of multiple illegitimate children, whether there’s a will or not. For example, the legitimate child receives P500,000, while the two illegitimate children will each get P250,000. If there are 3 Illegitimate children, they'll each receive P166,666, and so on. Under the law, the legitimate child’s share would be protected, and the illegitimate children’s portion would be taken from what remains. 

4. Multiple Legitimate Children and One Illegitimate Child

• With a will: legitimate children split ½; the illegitimate child gets half of one legitimate child’s share; the leftover is a free portion.

• Without a will: legitimate children receive 2/3 (when normalized) and illegitimate child gets 1/3 (proportionally).

In this scenario, two legitimate children split P500,000 (P250,000 each), and the illegitimate child gets half of one child’s share (P125,000); the rest of the portion is free. But without a will, the legitimate children inherit P666,667 combined, while the illegitimate child receives P333,333.

5. Surviving Spouse and One Legitimate Child

• With a will: legitimate child receives ½; spouse receives ¼; the remaining ¼ is the free portion.

• Without a will: the spouse receives ½ and the child gets ½ of the estate.

With a will, the legitimate child inherits P500,000, the spouse P250,000, and P250,000 remains a free portion. Without a will, both the spouse and child receive P500,000 each.

Note: These are simplified examples to give you a better understanding of the Philippine succession law. Family dynamics can vary, especially in blended families, multiple-marriage households, or those with other dependents. It is always best to consult a legal expert for accurate estate planning.

Legal Rights of Compulsory Heirs

Compulsory heirs enjoy legally inalienable protections:

• They cannot be fully disinherited, except under very specific, legally allowed grounds.

• They have the right to demand their legitime even if a will attempts to override it.

• They can challenge unfair allocations or attempt partition if proper distribution is not done.

• They have the option of renouncing or repudiating an inheritance, particularly if liabilities burden the estate.

These legal rights safeguard heirs from being deprived by last-minute wills or unfair drafts.

Why Wealth Management is Essential to Protecting Family Legacy

Inheritance is a blessing, but it also comes with the responsibilities of managing wealth, a challenge many heirs face. Whether it’s property, investments, or a share in the family business, how you manage what’s passed on to you can determine whether that legacy grows or fades over time.

Here’s why professional wealth management is crucial when navigating your inheritance:

1. Secures You and Your Family’s Future

Inheritance is often the first significant transfer of wealth from one generation to the next. Without trust and estate services, it can trigger conflicts, legal complications, or tax burdens. A wealth management plan offers assurance that your wealth is protected.

2. Protects Your Assets From Depreciation

A wealth advisor can help protect the estate’s worth through portfolio diversification, tax planning, and structured investments. This ensures that your assets continue to grow, not depreciate.

3. Prepares Your Heirs to Handle Their Inheritance

It can be challenging to manage a big inheritance; now imagine when it’s your children’s turn. A professional wealth strategy helps prepare your future heirs emotionally and financially by providing a clear structure for decision-making, asset management, and long-term growth.

4. Aligns Your Legacy With Their Future

Your wealth reflects your values and is the result of your hard work. Wealth management ensures your legacy lives on while ensuring that your heirs feel fulfilled in their personal ambitions. Inheritance becomes a powerful tool that shapes not just your life, but theirs.

5. Instills Financial Discipline Across Generations

Wealth management helps build a sustainable, long-term strategy that balances immediate needs (such as home upgrades) with future goals (like retirement or your children’s education). It teaches responsible stewardship and accountability.

Why Choose RCBC for Wealth Management Solutions

At RCBC, we recognize the vital role that compulsory heirs play in preserving a family’s legacy. We help ensure that a lifetime of hard work is passed on.

Here’s how we support families through thoughtful wealth management:

• Holistic Wealth Legacy. We take care of all your financial needs in one plan, helping you build and protect your wealth for the long term.

• Client-centered Solutions. We create personalized strategies based on your unique goals and priorities, putting you first in every decision.

• Preferential Perks and Privileges. Enjoy exclusive rewards and benefits tailored to your lifestyle and preferences.

As an award-winning bank, you can trust us to guide you every step of the way. We are a two-time winner of the “Best for Success Planning in the Philippines” award at the Euromoney Private Banking Awards in 2024 and 2025. We were also recognized as “Best for Next-Gen/Millennials in the Philippines” by Asiamoney Private Banking Awards in 2023.

These industry recognitions affirm our expertise and commitment to excellence in guiding the next generation forward.

Empower the Next Generation With RCBC

Under Philippine law, compulsory heirs are protected from being deprived of their inheritance. Safeguarding and growing that inheritance is the next crucial step.

With wealth management services from RCBC, you can protect and grow your assets, plan your succession smoothly, and ensure your family's legacy continues across generations.

FAQs About Compulsory Heirs

1. Can illegitimate children be compulsory heirs?

Yes, illegitimate children are considered compulsory heirs. They are entitled to a portion of the estate called the legitime. However, their share is typically equal to half the share of a legitimate child.

2. Do compulsory heirs still inherit even if there is a will?

Yes. The legitime of compulsory heirs cannot be taken away even if a will exists.

3. What happens if there are both legitimate and illegitimate children?

In such cases, each illegitimate child is entitled to a share equal to half that of one legitimate child. The exact division may vary depending on the number of heirs and whether a surviving spouse is present.