CHAPTER II

ESTATE AND DONORS TAXES1

A. ESTATE TAX
1. Taxpayer and Tax Base
The estate tax is imposed on the transfer of the decedents estate to his lawful
heirs and beneficiaries based on the fair market value of the net estate at
the time of the decedents death. It is not a tax on property. It is a tax
imposed on the privilege of transmitting property upon the death of the
owner. The Estate Tax is based on the laws in force at the time of death
notwithstanding the postponement of the actual possession or enjoyment
of the estate by the beneficiary.
2. Computation of Net Estate
a. Gross estate
The value of the gross estate of the decedent includes the value at the time of
his death of all property, real or personal, tangible or intangible,
wherever situated.2
In the case of a nonresident decedent who at the time of his death was not a
citizen of the Philippines, only that part of the entire gross estate situated
in the Philippines is included in the taxable estate.3
Gross estate4 includes property falling under any of the following categories:

Title III of the National Internal Revenue Code (NIRC) of 1997, as

amended.

Sec. 85, NIRC of 1997.

No estate tax shall be collected in respect of intangible personal property if (a) the decedent at the time
of death was a citizen and resident of a foreign country which did not impose a transfer tax of any
character, in respect of intangible personal property of citizens of the Philippines not residing in that
foreign country; or (b) if the laws of the foreign country of which the decedent was a citizen or
resident allows a similar exemption from transfer or death taxes of every character in respect of
intangible personal property owned by citizens of the Philippines not residing in that foreign country.
(Sec. 104, Ibid)

Sec. 85(a) to (g), supra.

Decedents interest, to the extent of his interest therein at the time of his
death;
Transfers in contemplation of death;
Revocable transfers;
Property passing under general power of appointment;
Proceeds of life insurance;
Prior interests; and
Transfer for insufficient consideration.
The following are excluded from the gross estate:5
GSIS proceeds/ benefits
Accruals from SSS
Proceeds of life insurance where the beneficiary is irrevocably appointed
Proceeds of life insurance under a group insurance taken by employer (not
taken out upon his life)
War damage payments
Transfer by way of bona fide sales
Transfer of property to the National Government or to any of its political
subdivisions
Separate property of the surviving spouse
Merger of usufruct in the owner of the naked title
Properties held in trust by the decedent
Acquisition and/or transfer expressly declared as not taxable
Personal Equity and Retirement Account (PERA) assets of the decedentcontributor.6
b. Net estate7
The net estate is determined by deducting from the value8 of gross estate the
total amount of allowable deductions.
c. Deductions
In the case of citizens or residents of the Philippines9
Expenses, losses, indebtedness, and taxes consisting of;

Source: <http://www.bir.gov.ph/taxinfo/tax_estate.htm> (August 16,

2010).

Section 14, Republic Act No. 9505 or the Personal Equity and
Retirement Account (PERA) Act of 2008.

Sec. 86, supra.

Actual funeral expenses or five percent 5% of the gross estate, whichever

is lower, but not exceeding Two Hundred Thousand Pesos
(P200,000.00);
Judicial expenses of the testamentary or intestate proceedings;
Claims against the estate;
Claims of the deceased against insolvent persons where the value of such
claim is included in the value of the gross estate;
Unpaid mortgages in favor of the estate, under certain conditions. (vi)
Unpaid taxes; and (vii) Casualty losses.
Value of property previously taxed (estate or donors tax), under certain
conditions.
Transfers to or for the use of the Philippine Government or any political
subdivision thereof, exclusively for public purposes.
Current fair market value of the decedents family home. If the said current
fair market value exceeds One Million Pesos (P1,000,000), the excess
shall be subject to estate tax. Also, said family home must have been
the decedents family home as certified by the barangay captain of the
locality.
Standard deduction equivalent
to
One Million
Pesos
(P1,000,000).
Medical expenses not exceeding Five Hundred Thousand Pesos
(P500,000.00), incurred by the decedent within one year prior to his
death, duly substantiated with receipts.
Amount received by heirs under RA 4917 10 (retirement benefits of employees
of private firms) provided such amount is included in the gross estate of
the deceased.
The net share of the surviving spouse in the conjugal partnership property.
In the case of a nonresident not a citizen of the Philippines11
That portion of the funeral expenses, losses and indebtedness, and taxes
which the value of the decedents gross estate situated in the Philippines
bears to his entire gross estate wherever situated;
8

With the adoption of the zonal valuation scheme under PD 1994, the
computation for estate tax purposes of real properties shall be based on
the zonal values at the time of death. Where no zonal values are yet
approved, the computation shall be based on the schedule of fair market
values prepared by the Provincial or City Assessors, or where both
values exist, on whichever is higher. See Sec. 88(b), Ibid.

Sec. 86(A), supra.

10

An Act Providing that Retirement Benefits of Employees of Private

Firms Shall Not Be Subject to Attachment, Levy, Execution, or Any Tax
Whatsoever.

11

Section 86(B), ibid.

Value of
property previously taxed, under certain conditions, if
part of decedents gross estate is situated in the Philippines;
Transfers to or for the use of the Philippine Government or any political
subdivision thereof, exclusively for public purposes; and
The net share of the surviving spouse in the conjugal partnership
property as diminished by the obligations properly chargeable to such
property.
d. Exemptions12
The following shall not be taxed:
The merger of usufruct in the owner of the naked title;
The transmission or delivery of the inheritance or legacy by the fiduciary heir
or legatee to the fideicommissary;
The transmission from the first heir, legatee, or donee in favor of another
beneficiary, in accordance with the desire of the predecessor; and
All bequests, devises, legacies or transfers to social welfare cultural or
charitable institutions, no part of the net income of which inures to the
benefit of any individual, provided that not more than 30% of said
bequests, devises, legacies or transfers shall be used for administration
purposes.
3. Rates of Estate Tax 13
If The Net Estate Is
Over
But Not
Ov
er

20
0,0
00
500,000

20
0,0
00
500,000
12

Section 87, ibid.

13

Section 84, ibid.

The

Plus

Of

T
a
x
S
h
a
l
l
B
e
Exem
p
t
0

2,000,00
0

15,000

Ex
ces
s
Ov
er

5%

8%

20
0,0
00
500,000

2,000,00
0

5,000,00
0

135,00
0

11%

2,000,00
0

5,000,00
0

10,000,0
00

465,00
0

15%

5,000,00
0

10,000,0
00

And

1,215,
0
0
0

20%

10,000,0
00

Ov
er

4. Filing Requirements and Payment of Tax a. Persons required to file notice

of death
A written notice of death to the Commissioner of
Internal Revenue shall be filed by the executor, administrator or any of the
legal heirs, as the case may be, within two (2) months after the
decedents death, or within a like period after qualifying as such executor
or administrator, in all cases of transfers subject to tax, or where, though
exempt from tax, the gross value of the estate exceeds Twenty Thousand
Pesos (P20,000). 14
b. Persons required to file estate tax returns 15
The estate tax return shall be filed by the executor or administrator, or any of
the legal heirs, in cases of transfers subject to estate tax, or where though
exempt from estate tax, the gross value of the estate exceeds Two
Hundred Thousand Pesos (P200,000.00) or regardless of the gross value
of the estate, where the said estate consists of registered or registrable
property such as real property, motor vehicle, shares of stock or other
similar property for which a clearance from the BIR is required as a
condition precedent for the transfer of ownership thereof in the name of
the transferee.
In case the estate tax return shows a gross value exceeding Two Million Pesos
(P2,000,000) it must be supported with a statement certified to by a
Certified Public Accountant.
c. Time of filing 16
The estate tax return shall be filed within six (6) months from the decedents
death. The Commissioner shall have the authority to grant, in

14

Section 89, ibid.

15

Section 90(A), ibid.

16

Section 90(B), ibid.

meritorious cases a reasonable extension not exceeding thirty (30) days

for filing the return.
d. Place of filing 17
The return shall be filed with an authorized agent bank, or Revenue District
Officer, Collection Officer or duly authorized Treasurer of the City or
municipality in which the decedent was domiciled at the time of his
death or if there be no legal residence in the Philippines, with the office
of the Commissioner.
e. Payment of tax 18
The estate tax shall be paid at the time the return is filed by the executor,
administrator or the heirs. The Commissioner may grant extension of
time not exceeding five (5) or two (2) years depending on whether the
estate was settled judicially or extrajudicially.
In case the available cash of the estate is not sufficient to pay its total estate
tax liability, the estate may be allowed to pay the tax by installment and
a clearance shall be released only with respect to the property the
corresponding/computed tax on which has been paid. There shall,
therefore, be as many clearances (Certificate Authorizing Registration)
as there are as many properties released because they have been paid for
by the installment payments of the estate tax. The computation of the
estate tax, however, shall always be on the cumulative amount of the net
taxable estate. Any amount paid after the statutory due date of the tax
shall be imposed the corresponding applicable penalty thereto. However,
if the payment of the tax after the due date is approved by the
Commissioner or his duly authorized representative, the imposable
penalty thereon shall only be the interest.19
f. Penalties
Violations of the estate tax provisions are subject to the applicable common
penalties prescribed under Title X (Statutory Offenses and Penalties) of
the NIRC, as amended.
B. DONORS TAX
1. Taxpayer and Tax Base The donors tax is imposed on the transfer by any
person, resident or nonresident, of property by gift. 20
The taxable base is the fair market value of the total net gifts made by a donor
during the calendar year.
a. Coverage of the Tax
Gifts include real and personal property, whether tangible or intangible,
or mixed wherever situated. In case of a nonresident alien, his real and

17

Section 90(D), ibid.

18

Sec. 91, ibid.

19

Sec. 9 (F), Revenue Regulations No. 2-2003.

personal property so transferred but which are situated outside the

Philippines are not included as part of the gross gift. 21
The following are considered situated in the Philippines and includible as
gifts:
Franchise which must be exercised in the Philippines;
Shares, obligations or bonds issued by any corporation or sociedad anonima
organized or constituted in the Philippines;
Shares, obligations or bonds by any foreign corporation 85% of the
business of which is located in the Philippines;
Shares, obligations, or bonds issued by any foreign corporation if such
shares, obligations, or bonds have acquired a business situs in the
Philippines; and
Shares or rights in any partnership, business or industry established in the
Philippines, which are to be considered as situated in the Philippines.
The following are the requisites of a donation for purposes of the donors tax:
Capacity of the donor;
Donative intent, or an intent of the donor to make a gift;
Delivery, whether actual or constructive, of the subject matter of the gift; and
Acceptance of the gift by the donee.
b. Exemptions The following gifts or donations are exempt from the donors
tax, under certain conditions: 22
In case of gifts made by a resident of the Philippines:
Dowries or gifts made on account of marriage and before its celebration or
within one year thereafter by the parents to each legitimate, recognized,
natural, or adopted children to the extent of the first P10,000.00;
Gifts made to or for the use of the National Government or any entity created
by any of its agencies which is not conducted for profit, or to any of its
political subdivisions; and
Gifts in favor of an educational and/or charitable, religious, cultural or
social welfare corporation, institution, accredited non-government
organization, trust or philanthropic organization or research institution or
organization provided that not more than 30% of said gifts shall be used
by such donee for administrative purposes.
20

Sec. 98, op.cit. The donations subject to donors tax are donations inter
vivos or those made between living persons to take effect during the
lifetime of the donor. Donations mortis causa or those which are to take
effect upon the death of the donor and therefore partake of the nature of
testamentary dispositions are subject to estate tax. [ Articles 728, 729,
and 734, New Civil Code as cited in Hector S. De Leon, et. al., The
National Internal Revenue Code Annotated, Vol. I, 8th Ed., (Manila: Rex
Bookstore, 2003) p.619].

21

Section 104, ibid.

22

Section 101, ibid.

In case of gifts made by a nonresident alien of the Philippines:

Gifts made to or for the use of the National Government or any entity created
by any of its agencies which is not conducted for profit, or to any of its
political subdivisions; and
Gifts in favor of an educational and/or charitable, religious, cultural or
social welfare corporation, institution, foundation, trust or philanthropic
organization or research institution or organization, provided that not
more than 30% of said gifts shall be used by the recipient for
administrative purposes.
3. Donors Tax Rate 23
The tax for each calendar year shall be computed on the basis of the total net
gifts made during the calendar year, in accordance with the following
schedule:
If The Net Gift Is:
Over
But Not
Ov
er

The Tax
Shal
l Be

EXEMPT

Plus

Of
Ex
ces
s
Ov
er

10
0,0
00
P

0
1
0
0,
0
0
0

20
0,0
00

2
0
0,
0
0
0

50
0,0
00

5
0
0,
0

1,0
00,
00
0

2%

10
0,0
00

4%
2,00
0

14,000

23

Section 99(A), NIRC of 1997.

20
0,0
00

6%
50
0,0
00

0
0
44,000
1,
0
0
0,
0
0
0

3,0
00,
00
0

3,
0
0
0,
0
0
0

5,0
00,
00
0

1,0
00,
00
0

204,000

10%
3,0
00,
00
0

404,000
5,
0
0
0,
0
0
0
10,000,
0
0
0

8%

12%

10,
00
0,0
00

5,0
00,
00
0

1,004,000

15%
10,
00
0,0
00

When the donee or beneficiary is a stranger, the tax payable by the donor shall
be 30% of the net gifts.
Any contribution in cash or in kind to any candidate or political party or
coalition of parties for campaign purposes, duly reported to the
Commission, shall not be subject to the payment of donors tax. 24
4. Filing Requirements 24 a. Filing and contents of returns
A return is required in all cases of transfers by gift except those which are
exempt under the NIRC, and shall set forth: each gift made during the
24

Section 3, Commission on Elections (COMELEC) Resolution No. 8944 - Rules and Regulations
Governing Electoral Contributions and Expenditures in Connection With the May 10, 2010 National
and Local Elections (promulgated May 25, 2010). Source:
<http://www.comelec.gov.ph/2010%20National_Local/resolutions/res_8944.html> (August
16, 2010)

24

Section 103, ibid.

calendar year which is to be included in computing net gifts; the

deductions claimed and allowable; any previous net gifts made during
the same calendar year; name of donee; relationship of the donor to the
donee; and such other information as may be required.
b. Time and place of filing and payment
The return shall be filed within thirty (30) days after the date the gift is made
and the tax due thereon shall be paid at the time of filing with an
authorized agent bank, Revenue District Officer, Revenue Collection
Officer or duly authorized Treasurer of the city or municipality where
the donor was domiciled at the time of the transfer or if there is no legal
residence in the Philippines, with the Office of the Commissioner. In
case of gifts made by a non-resident, the return may be filed with the
Philippine embassy or Consulate in the country where the donor is
domiciled at the time of the transfer, or directly with the office of the
Commissioner.
What is Transfer Tax?
A transfer tax is imposed on tax on the sale, donation, barter, or any other
mode of transferring ownership or title of real property at the maximum
rate of 50% of 1% (75% of 1% in the case of cities and municipalities
within Metro Manila) of the total consideration involved in the
acquisition of the property or of the fair market value in case the
monetary consideration involved in the transfer is not substantial,
whichever is higher. This is pursuant to Section 135 of the Local
Government Code of 1991 (LGC).
The charge levied by the government on the sale of shares of stock. A charge i
mposed by thefederal and state governments upon the passing of title to r
eal property or a valuable interest insuch property, or on the transfer of a
decedent's estate by inheritance, devise, or bequest.
The states also impose transfer tax on deeds used to convey real property.
You need to pay the transfer tax because the evidence of its payment is
required by the Register of Deeds of the province concerned before
registering any deed. This is also required by the provincial assessor
before cancelling an old tax declaration and issuing a new one in its
place. Please do not confuse the transfer tax which is paid to the local
government with the transfer taxes due to the BIR (which may either be
donors or estate taxes).
Disclaimer: While great effort has been taken to ensure the accuracy of the
discussion here as of its writing, this is not intended to replace seeking
professional services. Always consult with your tax attorneys and read
up on the relevant laws and regulations also.
Who should pay
The payment of the transfer tax is the responsibility of the seller, donor,
transferor, executor or and administrator.
When to pay
The deadline for payment is sixty (60) days from the date of the execution of
the deed or from the date of the decedents death. Please note too that
notaries public are required to furnish the provincial treasurers with a

10

copy of any deed transferring ownership or title to any real property

within thirty (30) days from the date of notarization.
Surcharges and penalties for late payments (as per section 168 of RA 7160)
Surcharge No more than twenty-five percent (25%) of the amount of taxes,
fees or charges not paid on time
Penalty No more than two percent (2%) per month of the unpaid taxes, fees
or charges including surcharges, until such amount is fully paid, but in
not to exceed thirty-six (36) months or seventy-two percent (72%).
Where to pay
The transfer tax is to be paid at the Treasurers Office of the city or
municipality where the property is located.
Requirements
In general, the requirements for the payment of transfer tax are the following:
Certificate Authorizing Registration from the Bureau of Internal Revenue;
Realty tax clearance from the Treasurers Office; and
Official receipt of the Bureau of Internal Revenue (for documentary stamp
tax).

PURPOSES OF TRANSFER TAX:

In this broader sense, estate tax, gift tax, capital gains tax, sales tax on
goods (not services), and certain use taxes are all transfer taxes because
they involve a tax on the transfer of title.
PURPOSES OF ESTATE TAX:
A tax levied on an heir's inherited portion of an estate if the value of the
estate exceeds an exclusion limit set by law. The estate tax is mostly
imposed on assets left to heirs, but it does not apply to the transfer of
assets to a surviving spouse.
PURPOSE OF DONORS TAX:
Donors Tax is a tax on a donation or gift, and is imposed on the gratuitous
transfer of property between two or more persons who are living at the
time of the transfer. It shall apply whether the transfer is in trust or
otherwise, whether the gift is direct or indirect and whether the property
is real or personal, tangible or intangible.
SUCCESSION:
The action of one party, person or product being replaced by another that has
become obsolete, incapacitated, retired or deceased. Ideally, a successor
will fill the role of its predecessor, being fully compatible with all other
entities in place and perfectly functional without any interruption in
service.
SUCCESSION TAX:

11

Succession tax is the tax upon an interest in real property, whether passing by
will or under the law of descent.
A succession tax is a duty or bonus exacted in certain instances by the state
upon the right and privilege of taking legacies, inheritances, gifts and
successions passing by will, by intestate laws, or by any deed or
instrument, made inter vivos, intended to take effect at or after the death
of the grantor. The burden or the tax is not imposed upon the property
itself, but upon the privilege of acquiring property by inheritance. [In re
ESTATE OF MACKY, 46 Colo. 79, 91-92 (Colo. 1909)].
CHARACTERISTICS OF SUCCESSION:
Mode of acquisition
The property, rights & obligations to the extent of the value of the inheritance
transmitted
The transmission takes place only by virtue of death
The transmission takes place either by will or by operation of law
The transmission to another
REQUISITES FOR TRANSMISSION OF RIGHT TO SUCCESSION (or
more correctly stated, time of vesting of the successional right):
Death of the decedent
Express will of the testator calling succession and/or provision of law
prescribing successors
Rights or properties are transmissible
Transferee is still alive (didnt predecease)
Transferee is capacitated to inherit
Acceptance of the inheritance by the successor
SUCCESSOR:
one that follows; especially : one who succeeds to a throne, title, estate, or
office.
KINDS OF SUCCESSION:
1.

Testamentary succession by will

2.

Intestate succession in default of a will

3.

Mixed

Testamentary Capacity

12

1.

All persons not expressly prohibited by law

2.

18 years old and above

3.

Sound mind

2 Kinds of Wills:
Notarial will Articles 804-806, & 807-808 in special cases
Holographic Articles 804 & 810
Common requirements that apply to the 2 kinds of wills
1. In writing
2. In a language or dialect known to the testator
REQUISITES FOR VALID NOTARIAL WILL:
In writing
Executed in a language or dialect known to the testator
Subscribed by the testator himself or by the testators name written by some
other person in his presence & under his express direction at the end
thereof, at the presence of witnesses
Attested & subscribed by at least 3 credible witnesses in the presence of the
testator and of one another
Each & every page must be signed by the testator or by the person requested
by him to write is name, & by instrumental witnesses in the presence of
each other, on the left margin
Each & every page of the will must be numbered correlatively in letters placed
on the upper part of each page
Must contain an attestation clause, stating the following:
The number of pages of the will
Fact that the testator signed the will & every page in the presence of witnesses,
or caused some other person to write his name under his express
direction
All witnesses signed the will & every page thereof in the presence of the
testator & of one another
Must be acknowledged before a notary public
Additional requisite if deaf or mute:
Must either:
1. Read will personally, if able to do so;

13

2. Otherwise, he shall designate 2 persons to read it & communicate

to him the contents

Additional requisite if blind:

Will shall be read to him twice:
1. Once by one of the subscribing witnesses
2. Once by the notary public before whom it is acknowledged
REQUISITES OF HOLOGRAPHIC WILL:
In writing
Executed in a language or dialect known to the testator
Entirely written, dated & signed by the hand of the testator himself
AMENDING A WILL:
Notarial will can only be amended through a codicil
Holographic will can be amended in 3 ways:
Dispositions may be added below the signature, PROVIDED that said
dispositions are also dated & signed & everything is written by the hand
of the testator himself
Certain dispositions or additional matter may be suppressed or inserted
PROVIDED that sad cancellation is signed by the testator & is written
by the testator himself (no need to be detailed)
Executing a codicil which may either be notarial or holographic
Effect of cancellation, addition insertion), or erasure on the validity of
the will
If made by the hand of the testator & authenticated by him: alters the will
without affecting its validity
If made by the hand of the testator but was not authenticated by him: deemed
as if not written at all
If made by testator but not handwritten: entire will is nullified
By a stranger & the testator has authenticated the same: entire will is nullified
Made by a stranger but not authenticated by the testator: deemed as if not
written at all
What is a codicil? It is a supplementary or addition to a will, made after
the execution of the will & annexed to be taken as part by which any
disposition in the original will may be explained, added to or altered.

14

Qualifications of a witness and a testator:

Witness
At least 18 years old
Physically fit (not deaf, dumb, blind)
Literate, able to read and write
No prior conviction for perjury/false testimony/falsification
Not the notary public before whom the will is acknowledged
Sound mind
Domiciled in the Philippines
Same
May be blind, deaf or deaf-mute
No literacy requirement
No such requirement
Testator
No such requirement
REVOCATION OF A WILL:
By implication of law
By the execution of a documentation with all the requisites of a will
By the physical act of destruction coupled with the intent to revoke
PROBATE It is a the special proceeding by which the validity of a will
maybe established
Matters to be proved in a probate:
Whether the instrument which is offered for probate is the last will and
testament of the decedent
Whether the will has been executed in accordance with the formalities
prescribed by law
Whether the testator had testamentary capacity at the time of the execution of
the will

15

GROUNDS FOR DISALLOWANCE OF A WILL:

The testator did not possess testamentary capacity at the time of execution
The testator failed to comply with prescribed formalities
The execution of the will is attended by a vice of consent
INSTITUTION OF HEIR an act by virtue of which a testator
designates in his will the person or persons who are to succeed him in his
property and transmissible rights and obligations
Requisites for a valid institution of heir:
Designation in will of person/s to succeed
Will specifically assigns to such person an inchoate share in the estate
The person so named has capacity to succeed
The will is formally valid
No vice of consent is present
No preterition results from the effect of such will
3 principles in the institution of heirs:
Equality: heirs who are instructed without a designation of shares inherit in
equal parts
Individuality: heirs collectively instituted are deemed individually named
unless contrary intent is proven
Simultaneity: when several heirs are instituted, they are instituted
simultaneously & not successively
PRETERITION:
1. There must be an omission of one, some or all of the heir/s in the
will
The omission must be that of a COMPULSORY HEIR
Compulsory heir omitted must be of the DIRECT LINE
The omitted compulsory heir must be LIVING at the time of testators death
or must at least have been CONCEIVED before the testators death

16

Effects of preterition:
The institution of heirs is annulled
Devises & legacies shall remain valid as long as they arent officious
DISINHERITANCE It is the act by which the testator, for just cause,
deprives a compulsory heir of his right to the legitime.
Preterition vs. Disinheritance Disinheritance Preterition
Express deprivation of legitime
Tacit deprivation of legitime
Always voluntary
May also be voluntary but is presumed to be involuntary (as its an
omission to mention as an heir or though mentioned, isnt instituted as
an heir)
Legal cause is present
Presumed by law to be a mere oversight
Even a compulsory heir may be totally excluded
Compulsory heir is merely restored to his legitime
Requisites for a valid disinheritance
Heir disinherited must be designated by name or in such a manner as to leave
no room for doubt as to who it is intended
Disinheritance must be for a cause designated by law
It must be made in valid will
It must be made expressly, stating the cause in the will itself
Cause must be certain & true, & must be proved by interested heirs if the
person disinherited should deny it
It must unconditional
Must be total
The compulsory heirs may be classified into (1) primary, (2) secondary, and (3)
concurring. The primary compulsory heirs are those who have precedence over and
exclude other compulsory heirs; legitimate children and descendants are primary
compulsory heirs. The secondary compulsory heirs are those who succeed only in the
absence of the primary heirs; the legitimate parents and ascendants are secondary

17

compulsory heirs. The concurring compulsory heirs are those who succeed together
with the primary or the secondary compulsory heirs; the illegitimate children, and the
surviving spouse are concurring compulsory heirs.

18