Woman at a table reviewing papers needed to withdraw a deceased parent's bank deposit in the Philippines

How to Withdraw a Deceased Parent’s Bank Deposit (Philippines)

By the CivilLaw.PH Editorial Team, led by publisher Anton Sheker.

Direct answer: Heirs in the Philippines can withdraw a deceased parent’s bank deposit without first settling the whole estate. Under Section 97 of the Tax Code, as amended by the TRAIN law, the bank must allow the withdrawal subject to a 6% final withholding tax on the amount withdrawn. BIR rules limit this route to withdrawals made within one year from death and require the estate’s TIN. After that, or when heirs disagree, expect the bank to ask for estate settlement papers and proof that estate tax has been settled.

Key takeaways

  • A deposit is a loan to the bank; on death, the right to collect it passes to the estate.[7][9]
  • Banks must allow withdrawals from a deceased depositor’s account, solo or joint, subject to a 6% final withholding tax.[1]
  • Under RR 12-2018, the 6% route applies only within one year from death, and the heir must present the estate’s TIN and a BIR Form 1904 stamped received by the BIR.[3]
  • For joint accounts, BIR guidance applies the 6% tax to the deceased’s share.[4]
  • Half of a deposit earned during the marriage may belong to the surviving spouse, not the estate.[6]
  • The heir who withdraws holds the money for all heirs and for any estate debts, not for himself.[5][10][11]
Authority What it says How it applies here
Tax Code (NIRC) Sec. 97, as amended by RA 10963 (TRAIN)[1] A bank that knows a depositor has died, whether the account is solo or joint, shall allow any withdrawal subject to a 6% final withholding tax. Withdrawal slips on joint accounts must carry a sworn statement that all joint depositors are still living. Heirs need not finish estate tax first, but 6% is withheld from what they take out.
RR No. 12-2018 (BIR, March 15, 2018)[3] The withdrawal may be made only within one year from death. The heir, executor or administrator must give the bank the estate’s TIN and BIR Form 1904 stamped received. The bank issues BIR Form 2306 for the tax withheld. Sets the bank’s paperwork and the one-year window.
Tax Code Secs. 84, 86 and 90, as amended[1][2] Estate tax is 6% of the net estate; standard deduction of ₱5,000,000; the estate tax return is due within one year from death. RA 11976 (EOPT) changed where returns are filed but did not amend Sec. 97. The withdrawal does not replace the estate tax return.
Civil Code Arts. 777 and 1980[7] Succession rights pass from the moment of death. Bank deposits are governed by the rules on simple loan. The bank owes the balance to the estate; the heirs step into the depositor’s shoes as creditors of the bank.[9][11]
Rules of Court, Rule 74 Secs. 1 and 4; Rule 86 Sec. 5[5] Out-of-court settlement only if there is no will and no debts; a bond equal to the value of personal property is required; distributees stay liable for two years (our explainer on the Rule 74 two-year liability covers who can enforce it). Money claims against a decedent go to the estate proceeding. Banks often want a published settlement deed before releasing balances outside the 6% route.
Family Code Arts. 75, 93, 103 and 116[6] Property acquired during marriage is presumed community or conjugal and is liquidated on death. The surviving spouse’s half of a marital deposit is not inheritance.

The two routes: within one year or after

Which route the bank will process depends mainly on the date of death.

Route A: withdrawal within one year from death (6% final withholding)

Section 97 orders the bank to allow the withdrawal once it knows of the death.[1] RR 12-2018 adds that this applies only to withdrawals made within one year from the date of death, and that the person withdrawing must supply the estate’s TIN through BIR Form 1904 stamped received by the BIR.[3] The bank withholds 6% of the amount withdrawn, remits it, and gives you BIR Form 2306 as proof.[3] Keep it for the estate tax return, covered in our guide to what heirs must pay in estate tax before any transfer.

Banks may still ask for their own documents, such as proof of relationship, an indemnity or the consent of all heirs.[4]

Route B: withdrawal after one year, or a full release to the heirs

Once the one-year window closes, the 6% route is no longer available under RR 12-2018.[3] Banks then usually release only on proof that estate tax was settled (eCAR or BIR clearance) plus a settlement document naming who gets the money. Our step-by-step on getting an eCAR for inherited property covers the BIR side. The settlement document is either a deed of extrajudicial settlement signed by all heirs or, if there is only one heir, an affidavit of self-adjudication for a sole heir.[5]

Question Route A (within 1 year) Route B (after 1 year)
Tax handled by Bank withholds 6% of amount withdrawn Heirs file estate tax return and pay through the BIR
BIR paper needed Estate TIN; BIR Form 1904 stamped received eCAR or BIR clearance for the deposit
Settlement deed needed? Not required by the tax rule, but the bank may ask Usually yes: extrajudicial settlement, self-adjudication or court order

Joint and “and/or” accounts

Section 97 covers joint accounts too. Every withdrawal slip on a joint account must state, under oath, that all joint depositors are still living.[1][3] Once one depositor has died, the survivor cannot truthfully sign that statement, so the withdrawal goes through the death procedure. BIR guidance in RMC 62-2018 computes the 6% on the deceased depositor’s share of the joint account, not on the whole balance.[4]

A separate question is who owns the balance. Many joint accounts carry a survivorship clause: on the death of one depositor, the balance belongs to the survivor. In Vitug v. Court of Appeals, the Supreme Court upheld such an agreement between spouses as an aleatory contract under Art. 2010 of the Civil Code, not a will or a donation, so the deposit belonged to the surviving husband and fell outside the estate.[8] But it may be struck down if it is a cloak for an inofficious donation, a transfer in fraud of creditors, or a way to defeat a compulsory heir’s legitime.[8] A child questioning such a clause should frame that argument; our page on the rights of a compulsory heir explains whose shares the law protects.

Whose money is it once withdrawn?

Withdrawing the cash does not make it the withdrawing heir’s money. Four rules decide the split.

  1. Spouse’s half first. If the parent was married and the deposit was built during the marriage, the law presumes it is community or conjugal property.[6] Only the deceased’s half becomes part of the estate.[6]
  2. Debts before shares. Out-of-court settlement assumes the deceased left no debts.[5] If creditors exist, money claims belong in the estate proceeding, and the Supreme Court has called filing there mandatory.[5][10] Our explainer on what happens to a deceased person’s debts shows how heirs are affected.
  3. Shares by law. Without a will, the estate half goes to the heirs in the proportions fixed by intestate succession. See who inherits when there is no will for the order and shares.
  4. Accounting to co-heirs. An heir who withdraws holds the funds for the estate. Personal spending invites an accounting and refund claim; see whether an heir may use estate money before settlement. Since Treyes v. Larlar, co-heirs may sue in an ordinary civil action without a prior judicial declaration of heirship, unless a special proceeding for the estate is pending.[11]

Check your facts: whether a deposit is part of the estate depends on when the money was earned, the account wording, any survivorship clause, and whether there are debts or a will.

Worked example

Rodolfo Dizon of Pasig City died on June 15, 2026, without a will and without debts. He married Teresita in 1995 with no marriage settlement, so absolute community applies.[6] They have two adult children, Paolo and Bea. Rodolfo’s savings account, in his name alone, holds ₱600,000, all saved during the marriage.

Step Figure
Last day for the 6% route (one year from death) Before June 15, 2027
Amount withdrawn on September 1, 2026 ₱600,000
6% final withholding tax kept by the bank ₱36,000
Net cash released ₱564,000
Estate tax return deadline (one year from death) On or before June 15, 2027

Teresita gets the estate TIN and presents BIR Form 1904 stamped received, the death certificate and her marriage certificate. The bank withholds ₱36,000 and gives her BIR Form 2306.[3] The money she receives is not all hers. Under the presumption of community property, half of the deposit is her own share, and the other half belongs to the estate, to be divided with Paolo and Bea.[6] The family records that split in their extrajudicial settlement and estate tax return, and should ask the Revenue District Office how the 6% withheld is reflected.

If the family waits until August 2027, the window has closed and the bank will typically want a published settlement deed and BIR clearance or eCAR first.[3][5]

Step-by-step process

  1. Notify the bank of the death (any heir; branch where the account is kept; as soon as possible). Bring the death certificate. Ask for the bank’s written checklist.
  2. Register the estate with the BIR (executor, administrator or any heir; Revenue District Office with jurisdiction over the deceased’s residence; before the withdrawal). File BIR Form 1904 to get the estate TIN and keep a copy stamped received.[3] Check current requirements with the RDO.
  3. Gather proof of heirship (heirs; PSA). Check current PSA fees.
  4. Decide the route by date (all heirs; within one year from death for the 6% route). If the window is open, file the withdrawal request with the estate TIN and Form 1904.[3]
  5. Receive the release and BIR Form 2306 (bank; on processing). The bank withholds 6% of the amount withdrawn.[1][3]
  6. Settle the estate (all heirs; notary public and Registry of Deeds; publication once a week for three consecutive weeks in a newspaper of general circulation).[5] Use a deed of extrajudicial settlement or, for a sole heir, an affidavit of self-adjudication. Check fees locally.
  7. File the estate tax return (heirs; within one year from death; through an authorized agent bank or BIR channel).[1][2] Returns showing a gross estate above ₱5,000,000 need a CPA-certified statement.[3]
  8. Distribute and keep records (heir holding the funds; after settlement). Keep receipts for at least two years, the period distributees stay answerable to excluded heirs and creditors.[5]

Documents to prepare

  • PSA death certificate of the depositor
  • Passbook or latest statement
  • Estate TIN and BIR Form 1904 stamped received by the RDO[3]
  • PSA marriage certificate of the surviving spouse
  • PSA birth certificates of the children or other heirs
  • For joint accounts: the account agreement showing any survivorship clause
  • Bank forms: claim or withdrawal request, indemnity undertaking, and written consent or SPA of non-appearing heirs
  • For release after one year: published extrajudicial settlement or affidavit of self-adjudication, affidavit of publication, and eCAR or BIR clearance

Common mistakes

  • Using the deceased’s ATM card after death. It skips the Section 97 process and leaves that heir answerable to co-heirs.
  • Missing the one-year window. The 6% route then closes.[3]
  • Treating the 6% as the full estate tax. The estate tax return is still due.[1]
  • Forgetting the spouse’s half. Dividing the whole deposit equally among spouse and children shortchanges the surviving spouse.[6]
  • Ignoring creditors. Distributed money stays exposed to claims for two years.[5]
  • Assuming a survivorship clause always wins. It can be attacked if it defeats a compulsory heir’s legitime or defrauds creditors.[8]

Frequently asked questions

Can the bank refuse to release a deceased parent’s deposit?

Under Section 97 and RR 12-2018, within one year from death the bank must allow withdrawal subject to the 6% final withholding tax, once the heir provides the estate TIN and BIR Form 1904 stamped received. Banks may still require their own documents. After one year, or where heirs dispute who is entitled, banks usually wait for settlement papers, BIR clearance or a court order.

Is the 6% withholding the same as estate tax?

No. The 6% is a final withholding tax on the amount withdrawn from the deceased’s account. Estate tax is a separate 6% tax on the net estate, reported in the estate tax return due within one year from death. Ask the Revenue District Office how the amount withheld by the bank is reflected in the estate tax return.

Do we need an extrajudicial settlement before withdrawing?

The tax rule for the one-year route asks for the estate TIN and BIR Form 1904, not a settlement deed. Many banks still ask for heir consent or an indemnity. For releases after one year or for large balances, expect to present a published extrajudicial settlement or affidavit of self-adjudication and proof that estate tax was settled.

What happens to a joint account when one owner dies?

The surviving co-depositor can no longer swear that all depositors are living, so the death procedure applies and BIR guidance taxes the deceased’s share at 6%. If the account has a survivorship clause, the Supreme Court in Vitug treated the balance as the survivor’s, unless the clause was used to defeat legitimes or creditors.

Can one sibling withdraw everything and keep it?

No. The money belongs to the estate and must answer for the spouse’s share, debts and the other heirs’ shares. A sibling who keeps it can be required to account and return the excess. After Treyes v. Larlar, co-heirs may file an ordinary civil action without first obtaining a separate judicial declaration of heirship.

What if our parent left debts?

Extrajudicial settlement assumes no debts. If creditors exist, they must be paid from the estate, and money claims are filed in the estate proceeding. Heirs who divide the deposit while debts are unpaid remain answerable for two years after distribution. Consider a judicial settlement when debts are significant or disputed.

What to do next

  • Mark the one-year deadline from death for the 6% route and the estate tax return.
  • Get the estate TIN from the RDO this week.
  • Ask the bank in writing for its deceased-depositor checklist.
  • Agree in writing who will hold the funds until settlement.
  • If heirs disagree or debts exist, read our guide on when court settlement of an estate is required before anyone withdraws.
  • If a co-heir has already withdrawn the money and refuses to account, send a written demand for an accounting and the return of the other heirs’ shares. If all of you are individuals living in the same city or municipality, file at the barangay first, because barangay conciliation is required before going to court in that case (Local Government Code, Secs. 408 and 412). If there is no settlement, an ordinary civil action for accounting may follow, without a prior declaration of heirship.[11] The Public Attorney’s Office assists qualified indigent clients.

Your next document: a bank claim letter. Address it to the branch manager and include: the depositor’s name, account numbers and branch; date and place of death; names, relationships and addresses of all heirs; the estate TIN; whether you claim under Section 97 within one year or after settlement; the amount and payee; attached documents; and signatures of all heirs, or one heir with SPAs from the rest. Banks may require their own forms, and notarization and BIR requirements still apply. No letter guarantees release.

Statutes and rules

  • [1] Republic Act No. 10963 (TRAIN Law), December 19, 2017, amending NIRC Secs. 84, 86, 90 and 97. Supreme Court E-Library
  • [2] Republic Act No. 11976 (Ease of Paying Taxes Act), January 5, 2024, amending NIRC Secs. 90 and 91 (Sec. 97 not amended). LawPhil
  • [3] Bureau of Internal Revenue, Revenue Regulations No. 12-2018 (Consolidated Revenue Regulations on Estate Tax and Donor’s Tax), March 15, 2018. BIR
  • [4] Bureau of Internal Revenue, Revenue Memorandum Circular No. 62-2018 (withdrawals from a decedent’s deposit account; for joint accounts, the 6% is based on the decedent’s share). BIR
  • [5] Rules of Court, Rule 74, Secs. 1, 2 and 4; Rule 86, Sec. 5. LawPhil
  • [6] Executive Order No. 209 (Family Code of the Philippines), Arts. 75, 93, 103 and 116. LawPhil
  • [7] Republic Act No. 386 (Civil Code of the Philippines), Arts. 777, 1980 and 2010. LawPhil

Supreme Court decisions

  • [8] Vitug v. Court of Appeals, G.R. No. 82027, March 29, 1990 (survivorship agreement in joint savings account valid as aleatory contract; limits). LawPhil
  • [9] Guingona, Jr. v. City Fiscal of Manila, G.R. No. L-60033, April 4, 1984 (bank deposits governed by rules on simple loan; bank is debtor, depositor is creditor). LawPhil
  • [10] Union Bank of the Philippines v. Santibañez, G.R. No. 149926, February 23, 2005 (filing of money claims against the decedent in the estate proceeding is mandatory). LawPhil
  • [11] Treyes v. Larlar, G.R. No. 232579, September 8, 2020, En Banc (heirs may sue without prior judicial declaration of heirship; succession rights transmitted from death). Supreme Court E-Library

Sources rechecked as of: October 11, 2026

This article is general legal information, not legal advice. For advice on your specific situation, consult a lawyer, the Public Attorney’s Office or the BIR Revenue District Office handling the estate.