How do heirs withdraw a deceased person's bank deposit (estate tax hold)?
Last updated: 2026-07-12 · Educational content; not legal advice.
Short answer
When a sole depositor dies, the bank cannot simply hand the balance to a relative — the deposit becomes part of the estate. Under the TRAIN Law (RA 10963, amending NIRC §97) the bank, once it knows of the death, may allow a withdrawal subject to a 6% final withholding tax on the amount withdrawn, and BIR Revenue Regulations 12-2018 lets heirs, executors, or administrators do this within one year of death without first securing an estate-tax clearance. Beyond that, releasing the deposit generally requires settling the estate — an extrajudicial settlement (if the heirs agree and there is no will/debt issue), payment of estate tax, and a BIR Certificate Authorizing Registration/clearance — then the bank releases the funds to the estate or the named heirs. Bring the death certificate, proof of heirship, and IDs; ask the bank for its exact documentary checklist.
Do it now — step by step
- Check the date of death. Within ONE YEAR of it, the bank may allow a withdrawal subject to a 6% final withholding tax without prior estate-tax clearance (RA 10963; BIR RR 12-2018). After that year, expect to settle the estate first.
- Ask the bank IN WRITING for its exact documentary checklist, and for confirmation of the balance as at the date of death. Every bank publishes its own list — getting it in writing is what stops a second and third trip.
- Gather the usual core: PSA death certificate, proof of heirship (extrajudicial settlement or court order), and the heirs' valid IDs.
- Do not treat the 6% as a bank charge. It is a final withholding tax the bank remits to the BIR against the estate's tax liability.
- For full release beyond that initial withdrawal, settle the estate — extrajudicial settlement where the heirs agree and there is no will or debt dispute, payment of estate tax, then the BIR Certificate Authorizing Registration — and the bank releases to the estate or the named heirs.
- If the bank refuses to act and will not put a reason in writing, escalate to the BSP.
Cost: 6% final withholding tax on the amount withdrawn (remitted to the BIR, not a bank fee).
The written ask — copy, fill the [brackets], send
To: [bank name] — Re: Account of the late [full name of depositor], account no. [number] I am the [relationship] of the depositor named above, who died on [date]. Please (1) note the death on the account; (2) confirm the balance as at the date of death; (3) send me your complete documentary checklist for the release of a deceased depositor's funds to the heirs; and (4) confirm whether a withdrawal within one year of death, subject to the 6% final withholding tax (RA 10963; BIR RR 12-2018), is available on this account. Please reply in writing to this email address, with a reference number and a named contact. [Your full name]
Primary sources
Frequently asked
Do we have to settle the estate tax before touching the money?
Not necessarily to make an initial withdrawal. Under the TRAIN Law, within one year of death the bank may allow a withdrawal subject to a 6% final withholding tax on the amount, without prior estate-tax clearance (BIR RR 12-2018). Full release of the deposit to heirs, however, generally follows estate settlement.
What is the 6% for?
It is a final withholding tax the bank deducts on the amount withdrawn from a deceased depositor's account, under NIRC §97 as amended by RA 10963. It is not a fee the bank keeps — it is remitted to the BIR against the estate's tax.
What documents will the bank ask for?
Typically the death certificate, proof of heirship (e.g., extrajudicial settlement or court order), the heirs' valid IDs, and BIR forms/clearances. Each bank publishes its own checklist — ask for it in writing so nothing is missed.
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