Extrajudicial settlement (EJS) in the Philippines refers to a process of dividing the properties or assets left behind by a deceased individual among the heirs without involving a court. When a property owner passes away, their assets, such as land, houses, bank accounts, or investments, need to be distributed to the rightful heirs.

In an EJS, the heirs (the people who are entitled to inherit the deceased person’s assets) come together and agree on how to divide those assets among themselves. They discuss and decide who will receive which property, how to handle any debts or obligations, and how to resolve any other issues related to the estate.

To make the EJS official and legally binding, the heirs must document their agreement in a written document, typically prepared by a lawyer. This document may include details about the assets, their values, and how they will be distributed. It is usually notarized to make it more authentic and recognized by authorities.

After the EJS is completed, the heirs can proceed with transferring the assets into their individual names. This involves updating the ownership records with relevant government agencies or institutions, such as transferring land titles or changing account ownership for bank assets.

It’s important to note that while EJS can be a faster and less costly option compared to going through a court process called probate, it may not be suitable for all cases. Complex situations or disagreements among the heirs may require the involvement of the court to resolve these issues.

If you are facing an estate distribution situation, you may contact us here at Ascendo Real Estate Inc. through the form below for a free consultation on your property concerns.