An extrajudicial settlement of estate is a legal process involving surviving heirs of a deceased person to distribute the deceased person’s property. It is a private agreement between the heirs of the deceased person that sets out how the estate of the deceased will be divided among them. This process does not involve the court (extrajudicial means “out-of-court”) . It is usually completed after someone dies and avoids costly litigation as long as all the beneficiaries agree. The following are the requirements for an extrajudicial settlement of estate to be valid:

• The decedent died intestate, i.e., without a valid will.
• The estate has no outstanding debts at the time of the extrajudicial settlement.
• The heirs are all of legal age or the minors are duly represented by their judicial or legal representatives.
• The extrajudicial settlement is made in a public instrument, stipulation, or affidavit duly filed with the Register of Deeds.
• The fact of such extrajudicial settlement must be published in a newspaper of general circulation once a week for three consecutive weeks.
• A bond is filed with the Register of Deeds.

It is important to note that an extrajudicial settlement of estate is not binding upon any person who has not participated therein or had no notice thereof[[5]](https://abetterconsult.com/extrajudi...