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§97) the bank, once it knows of the death, may allow a withdrawal subject to a 6% final withholding tax on the amount withdrawn, and BIR Revenue Regulations 12-2018 lets heirs, executors, or administrators do this within one year of death without first securing an estate-tax clearance.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.
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It is a final withholding tax the bank deducts on the amount withdrawn from a deceased depositor's account, under NIRC §97 as amended by RA 10963.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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