Article 777 of the Civil Code: Rights pass at the moment of death
Status: In force
What does Article 777 say?
The rights to the succession are transmitted from the moment of the death of the decedent.
What does it mean in plain language?
Article 777 of the Civil Code fixes the moment when heirs acquire their rights: the death of the person who left the inheritance. From that moment the heirs hold the rights to the estate, even before any settlement or partition. Together with Articles 774, 776 and 1311, it also explains what passes to the heirs: property, rights and obligations, but with debts paid only up to the value of what the heirs receive.
How does it work in real life?
Cora's rights begin on the day of death
Cora's father dies without a will, leaving a house and a bank deposit. The rights of Cora and her siblings to the estate begin on the day of his death, even though they will sign the settlement months later.
Ramil and his father's loan
Ramil's father left property worth a certain amount and a loan bigger than that. Under Article 1311 and Hemady, the loan is paid from the estate, and Ramil is not liable beyond the value of what he receives from his father.
Three siblings and the farm
Three siblings inherit a farm. Until it is divided, Article 1078 makes them co-owners, and the farm remains subject to the payment of their mother's debts.
What does this mean in practice?
- Who inherits and how much: see inheritance without a will, legitime shares and Article 887.
- Settling an estate out of court: see extrajudicial settlement of estate.
- For the rules on wills, see Article 805 and wills and probate. For an overview, see inheritance.
- Estate tax is not covered on this page. For free or low-cost legal help, see where to find legal help.
What does Article 777 say?
The rights to the succession are transmitted from the moment of the death of the decedent.
The decedent is the person who died. Succession is the passing of his or her estate to others. Article 774 defines it:
Succession is a mode of acquisition by virtue of which the property, rights and obligations to the extent of the value of the inheritance, of a person are transmitted through his death to another or others either by his will or by operation of law.
So succession can happen by will (testate) or by law when there is no will (intestate).
What does the inheritance include?
The inheritance includes all the property, rights and obligations of a person which are not extinguished by his death.
The inheritance is more than land and money. It also includes the decedent's rights (for example, money others owe him) and obligations (for example, his debts), except those that end with death.
Are heirs liable for the debts of the deceased?
Only up to the value of what they receive. Article 1311 says:
The heir is not liable beyond the value of the property he received from the decedent.
In Estate of Hemady v. Luzon Surety (1956), the Supreme Court read Articles 774, 776 and 1311 together. It said the heirs' responsibility for the decedent's debts cannot exceed the value of the inheritance they receive, but the heirs succeed not only to the rights of the deceased but also to his obligations. In that case, the obligations of a man who had signed counterbonds (indemnity agreements) as a solidary surety passed to his estate.
Who owns the estate before it is divided?
Where there are two or more heirs, the whole estate of the decedent is, before its partition, owned in common by such heirs, subject to the payment of debts of the deceased.
In Substituted Heirs of Valiente v. Valiente (2023), the Court said the estate passes to the heirs at the moment of death and, under Article 1078, the heirs become co-owners. They are not obliged to stay co-owners: they may divide the estate among themselves extrajudicially, or go to court for partition if they disagree.
How are the creditors of the estate paid?
The Rules of Court (1964 text on the Supreme Court E-Library) set the procedure:
- Estate settled in court. Rule 86 requires creditors with money claims against the decedent to file them in the settlement case within the period stated in the court's notice. Claims not filed in time are barred, as the rule says.
- Payment before distribution. Rule 90 says the residue of the estate is distributed to the heirs after the debts, funeral charges and expenses of administration have been paid, unless the heirs give a bond.
- [Extrajudicial settlement](/law/glossary/extrajudicial-settlement). Rule 74 allows heirs to settle out of court if the decedent left no will and no debts and the heirs are all of age, or the minors are represented by their judicial or legal representatives. For two years after such a settlement, the court may order the heirs who received property to contribute to the payment of debts that were left unpaid.
Later amendments to these rules are not covered on this page.
Frequently asked questions
When do heirs acquire their rights to the inheritance?
Article 777 of the Civil Code says the rights to the succession are transmitted from the moment of the death of the decedent. No court order or deed is needed for the rights to arise, although settlement and partition come later.
Do heirs inherit the debts of the deceased?
Articles 774 and 776 say obligations not extinguished by death pass to the heirs, but Article 1311 says the heir is not liable beyond the value of the property he received from the decedent. In Estate of Hemady v. Luzon Surety (1956), the Court applied these articles together.
Do I have to pay my parent's debts from my own money?
Under Article 1311, an heir is not liable beyond the value of what he or she received from the decedent. The debts are paid from the estate before the heirs receive their shares.
Who owns the estate before it is divided?
Article 1078 says that where there are two or more heirs, the whole estate is owned in common by them before partition, subject to the payment of the debts of the deceased.
Are all rights of the deceased passed to the heirs?
No. Article 776 covers only property, rights and obligations not extinguished by death. Article 1311 also excludes rights and obligations that are not transmissible by their nature, by stipulation or by provision of law.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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