B.E.

Johannes vs Judge Carlos

Imperial
February 20, 2014
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Taxation Estate Tax Deductions Judicial Expenses
Civil Law Succession Deductions from the Estate
In August 1921, Carmen Johannes died leaving an estate of about P109k deposited in
the Philippine National Bank. At the time of her death, Carmen was domiciled in Singapore.
In October 1921, Alfred DAlmeida, brother of Carmen in the Philippines was appointed as
administrator of Carmens estate in the Philippines. It also appears that in September 1921,
a Singapore court appointed B.E. Johannes, widower of Carmen as the administrator of
Carmens estate. In January 1922, Johannes filed an opposition against the appointment of
Alfred as administrator of Carmens estate in the Philippines.
The trial court, presided over by Judge Carlos Imperial, disallowed the opposition and
ordered Johannes to pay, among others, the attorneys fees incurred by the estate in view of
the opposition filed by Johannes.
ISSUE: Whether or not the award of attorneys fees is proper.
HELD:
Yes, it is proper. It was an expense incurred by the estate for its settlement. The Supreme
Court clarified that since the issue here was a question of administration [of the estate], then
expenses incurred by the estate are deductible as judicial expenses. But may be
compensated by the award of attorneys fees.
If the issue had been one where the question was whether the brothers and sisters of the
deceased are entitled to a share in her estate, or whether the petitioner only, as the
surviving husband, then expenses incurred thereon are not deductible for the issue
becomes personal to the parties involved.