Legal Opinion

Inheriting by right or representation

  • WHO will be the beneficiaries of a member who failed to submit his Members' Record to PERAA in case of death? How will his benefits be divided?

In the absence of a Member's Record or a last will and testament, the following will be the hierarchy of beneficiaries:

  1. Descendants (spouse and children)
  2. Ascendants (parents) in the absence of descendants
  3. Collateral relatives (brothers and sisters), in the absence of ascendants
    and descendants
  4. State, in the absence of 1, 2 & 3
  • WHAT if he is married with a wife and four children? How will his benefit be divided?

His wife and four children who will be his beneficiaries (descendants) will receive the following benefit share:

Wife - ½ of the benefit + ½ *1/5 of the remaining benefit
Child 1 - ½ * 1/5 of the benefit (or 1/10 of the benefit)
Child 2 - ½ * 1/5 of the benefit (or 1/10 of the benefit)
Child 3 - ½ * 1/5 of the benefit (or 1/10 of the benefit)
Child 4 - ½ * 1/5 of the benefit (or 1/10 of the benefit)

  • WHAT if Child 1 is married and dies after the father dies?

The benefit due to Child 1 will be automatically inherited by his descendants (spouse and children). Thus the benefits will be distributed as follows:

Wife - ½ of the benefit as the surviving spouse's 
          share in the marriage + ½ * 1/5 of the benefit as an heir
Child 2 - ½ * 1/5 of the benefit (or 1/10 of the benefit)
Child 3 - ½ * 1/5 of the benefit (or 1/10 of the benefit)
Child 4  -½ * 1/5 of the benefit (or 1/10 of the benefit)
Wife & Children - ½ * 1/5 of the benefit will be equally divided
  of Child 1          between wife and children

However, in case Child 1 died before the father dies, the benefit will be divided between the wife and the three surviving children and the children of Child 1 only. Children of Child 1 will inherit by right of representation, ½ * 1/5 of the benefit will be equally divided among them. The Spouse of Child 1 will have no share.

(Editor's Note: This legal opinion penned by Atty. Diosdado Madrid, legal counsel for corporate affairs, was gleaned from the Minutes of the Meeting last November 19, 2002 called by the PERAA president. Present were the actuarial officer and other concerned staff.)

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