Request by Widow for Authority to Withdraw from Bank Account of Deceased Pending Extra-judicial Settlement of Estate

May 21, 1998 BIR RULING NO. 068-98 000-00-068-98 Go Cojuangco Mendoza Ligon & Castro Suites 52-53 Legaspi Suites 178 Salcedo Street Legaspi Village Makati City Attention: Atty . Eric D . Himan Gentlemen : This refers to your letter dated March 25, 1998 requesting this Office to issue an authority in favor of your client, Mrs. Josefina R. Soliman, widow of the late Jesus B. Soliman, to withdraw the amount of P20,000.00 from the bank account of the deceased maintained with the Prudential Bank of Tarlac, for her basic needs pending the extra-judicial settlement of the estate between the deceased's widow and their only child. LLpr In reply, please be informed that pursuant to Section 97 of the Tax Code of 1997, pertinent portion of which states: "xxx xxx xxx "If a bank has knowledge of the death of a person, who maintained a bank deposit account alone, or jointly with another, it shall not allow any withdrawal from the said deposit account, unless the Commissioner has certified that the taxes imposed thereon by this Title have been paid: Provided, however , that the administrator of the estate or any one (1) of the heirs of the decedent may, upon authorization by the Commissioner, withdraw an amount not exceeding twenty thousand pesos (P20,000.00) without the said certification. . ." Based on the foregoing, it is clear that unless a certification has been issued by the Commissioner that the estate tax has been paid, only the amount of P20,000.00 may be authorized by the Commissioner to be withdrawn from the bank account of the deceased. Such being the case, the widow of the late Jesus B. Soliman is hereby authorized to withdraw the amount of P20,000.00 from the bank account maintained by the decedent with the Prudential Bank of Tarlac. LexLib Very truly yours, (SGD.) LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue