FROM 100% TO 50% OWNERSHIP

Once upon a time, a foreigner married a Filipina, and together they purchased a residential lot in the Philippines. After decades of marriage, the Filipina sadly passed away due to an illness.

Years later, the foreigner decided to sell the property. However, when he approached a broker for assistance, he was informed that he first needed to settle his late wife’s estate and have the title transferred solely to his name. Seeking guidance, he approached a firm specializing in estate settlements.

To his surprise, the firm explained that under Philippine law, he could only inherit 50% of the lot, while the remaining 50% would go to his wife’s siblings.

End of story.

Was the firm correct in saying that the foreigner only inherits 50%, with the rest going to his late wife’s siblings? And can a foreigner even own land in the Philippines?

The answer is yes to both questions.

1.⁠ ⁠Foreigners can only acquire land in the Philippines through intestate succession (when no will is left by the deceased).

2.Inheritance distribution follows the rules of the Civil Code. A foreigner can only inherit 100% of the property if:

+ The couple had no children, and

+ The deceased wife had no surviving parents.

Legal Basis:

+ Article 995, Civil Code (NCC) – If there are no legitimate descendants (children) or ascendants (parents), the surviving spouse inherits the entire estate.

+ Article 997, Civil Code (NCC) – If the deceased has surviving parents, the surviving spouse inherits only 50%, while the parents get the other 50%.

So how did the wife’s siblings inherit the 50%?

At the time of the wife’s passing, they didn't have kids. Moreover, her father was still alive, making him the rightful heir to the other 50% share. However, when the father passed away years later, the father's share was then inherited by his five remaining children—the wife's siblings.

Why is this a horror story? Because the siblings don't want to sell the land.

Key Takeaway:

Foreigners married to Filipinas should be aware of these inheritance laws to avoid legal surprises.