You are on page 1of 8


City of Manila


Under Professor Jose Cabangon


CLAIMS AGAINST THE ESTATE What are the claims that may be filed against the estate of the decedent? a. All claims for money against the decedent, arising from contract, express or implied, whether the same to be due, not due or contingent; b. All claims for funeral expenses and expense for the last sickness of the decedent; and c. Judgment for money against the decedent (Sec. 5, Rule 86). A.TIME WITHIN WHICH CLAIMS SHALL BE FILED; EXCEPTIONS Within what period shall the claims against the estate of the decedent will be filed? Claims must be filed within the time fixed in the notice to the creditors. The period shall not be more than 12 months nor less than 6 months after the date of the first publication (Sec. 5, Rule 86) State the effect if the claimant does not file his claim against the state of the decedent within the period prescribed by law. Failure to do so shall bar the claim forever. (Sec. 5, Rule 86) Is the rule absolute? No. The exceptions to the rules are the Belated Claims. This are claims that are not filed within the original period fixed by the court. On application of a creditor who has failed to file his claim within the time previously limited at any time before an order of distribution is entered, the court may, for cause shown and on such terms as are equitable , allow such claim to be filed within a time not exceeding 1 month from the order allowing belated claims (Sec. 2, Rule 86) B. STATUTE OF NON-CLAIMS What is the statute of non-claims? The statute of non-claims is the term used to refer to the provision of rule 86 in fixing the period for the filing of claims against the estate of the decedent (Santos v. Manarang, G.R. No. L-8235, March 19, 1914). Between the statute of non-claims and the statute of limitation, which will prevail? Insofar as claims against the estates of the deceased persons are concerned, the statute of non-claims supersedes the statute of limitations. Hence if a debtor dies, his creditors must present their claims, whether the same be due, not due or contingent, in the settlement

proceeding of the estate of the deceased debtor within the time provided in the statute of nonclaims, or the same shall be barred forever (Albano, p. 856 citing In Re: Estate of De Dios, G.R. No. L-7940, March 27, 1913). C. CLAIM OF EXECUTOR OR ADMINISTRATOR AGAINST THE ESTATE What shall the executor or administrator do if he has a claim against the estate of the decedent? The executor or administrator shall give notice in writing to the court of such claim. The court shall then appoint a special administrator who shall, in the adjustment of the claim, have the same power and be subject to the same liability as a general administrator or executor. The court may order the claiming administrator/executor to pay the special administrator the necessary funds to defend such claims (Sec. 8, Rule 86). D. PAYMENT OF DEBTS Give an outline on how the executor or administrator shall pay the debts of the estate of the decedent. The following shall be followed: a. Where the estate is sufficient to pay all the debts of the decedent, the executor or administrator shall pay them within the time limited for that purpose (Sec. 1, Rule 88); b. Where the will provides for the property which shall be used in the payment of the debts, such debts will be paid according to the provisions of the will (Sec.2, Rule88); c. Where the property stipulated is not sufficient or where no stipulation was made, the debt shall be paid using personal property not disposed of, and if still lacking, from the real property not disposed of the will (Ibid.); d. Where devisees, legatees, or heirs have entered into possession of portions of the estate before the debts and expenses have been settled and paid, the court may order them, after hearing, to pay the debts based on the contributive share they received (Sec.6, Rule 88); e. The executor or administrator shall retain sufficient estate to pay contingent claims when the same becomes absolute (Sec.4, Rule 88).


The following action may be commenced directly against the executor or administrator. a. Recovery of real or personal property or any interest therein from the estate; b. Enforcement of a lien on the abovementioned, or c. An action to recover damages from any injury to a person or property, real or personal (Sec.1, Rule 87). What actions may not be brought against the executor or administrator? No action upon a claim for recovery of money or debt or interest thereon shall be commenced against the executor or administrator (Sec.1, Rule 87). State the action which may be brought by an executor of administrator. For the recovery or protection of the property or rights of the deceased, an executor or administrator may bring or defend, in the right of the deceased, actions for causes which survive (Sec.2, Rule 87). B. REQUISITES BEFORE CREDITOR MAY BRING AN ACTION FOR THE RECOVERY OF PROPERTY FRAUDULENTLY CONVEYED BY THE DECEASED. State the requisites before a creditor may bring an action for recovery of properties fraudulently disposed of by the decedent. They are the following: a. There is a deficiency of assets in the hands of an executor or administrator for the payment of the debts and expenses of administration; b. The deceased in his lifetime had made fraudulent conveyance of his properties, real or personal, or a right or interest therein, or a debt or credit; c. The conveyance was done with the intent to defraud his creditors or to avoid any right, debt or duty, or credit; d. By law, the conveyance would be void as against his creditors and the subject of the attempted conveyance would be liable to attachment in his lifetime (Sec. 9, Rule 88);

e. The executor or administrator has shown no desire to file action or failed to institute the same within a reasonable time; f. Leave is granted by the court to the creditor to file the action; g. A bond is filed by the creditor; and h. The action by the creditor is in the name of the executor or administrator. However, the last three requisites may be dispensed with when the grantee of the fraudulent conveyance is the executor or administrator himself. In such case the action should be in the name of all the creditors (Sec. 10, Rule 88) DISTRIBUTION AND PARTITION A.LIQUIDATION Define liquidation. Liquidation refers to the determination of all the assets of the estate and the payment of all the debts and expenses (Bernardo v. Court of Appeals, G.R. No. L-18148, February 28, 1963). Outline the steps for distribution and partition of the estate of the decedent. The steps for distribution and partition are the following: a. After the debts, funeral charges, and expenses of administration, the allowance to the widow, and inheritance tax, if any, chargeable to the estate in accordance with law, have been paid, the court, on the application of the executor or administrator, or of a person interested in the estate, and hearing upon notice, shall assign the residue of the estate to the persons entitled to the same (Sec. 1, Rule 90); b. No distribution shall be allowed until the payment of the obligations above mentioned has been made or provided for, unless the distributes, or any of them, give a bond, in a sum to be fixed by the court, conditioned for the payment of said obligations within such time as the court directs (Ibid.); c. Questions as to advancement made, or alleged to have been made, by the deceased to any heir may be heard and determined by the court having jurisdiction of the estate proceedings (Sec. 2,Rule 90); d. Expenses of the partition may be paid by the executor or administrator out of the assets in his hands of sufficient; otherwise, they shall be paid by the parties in proportion to their respective shares or interest (Sec. 3,Rule 90); e. Certified copies of final orders and judgments of the court relating to the real estate or the partition thereof shall be recorded in the registry of deeds of the province where the property is situated (Sec. 4,Rule 90);

f. Controversies as to who are the lawful heirs of the deceased as to the distributive shares of each shall be heard and decided as in ordinary cases (Sec. 1, Rule 90). PROJECT OF PARTITION What is a project of partition? It is a document prepared by the executor or administrator setting forth the manner in which the estate of the deceased is to be distributed among the heirs. If the estate is a testate estate, the project of partition must conform the terms of the will; if intestate, the project of partition must be in accordance with the provisions of the Civil Code (Albano, p.875, citing Camia de Reyes v. Reyes de Ilano, G.R. No. L-42092, October 28, 1936). The heirs may, by agreement, submit a project of partition to serve as a basis for the order of distribution. The heirs who disagree may submit a counter-project of partition, it is not necessary for the court to state the specific property adjudicated to an heir, but may award the same to the heirs pro indiviso shares. If they cannot then agree on their respective specific participations, they can resort to an action for partition under Rule 69. C.REMEDY OF AN HEIR ENTITLED TO RESIDUE BUT NOT GIVEN HIS SHARE What is the remedy of an heir who is entitled to receive his distributive share from the residue but was not given the same? It depends: a. If he is excluded from the proceedings, he may move for the reopening of the proceedings before the order declaring the same closed has become final and executory. b. If he is not excluded, but only has not received his distributive share under the project of partition, the remedy is to file motion with the probate court for the delivery to him of his share of the estate. c. If the estate proceedings have already closed, he should file a motion for reopening of the proceeding, within the prescriptive period. The remedy is not to file an independent action for annulment of the project of partition (Guilas v. Judge of CFI Pampanga, G.R. No. L-26695, January 31, 1972). D.INSTANCES WHEN THE PROBATE COURT MAY ISSUE WRIT OF EXECUTION May the probate court issue a writ of execution? As a general rule, no. Its orders usually refers to the adjudication of claims against the estate which the executor or administrator may satisfy without the necessity of resorting to a

writ of execution. The probate court as such, does not render any judgment enforceable by execution (Dinglasan v. Ang Chia, G.R. No. L-3342, April 18, 1951). NOTE: The following are the only instances when the probate court may issue a writ of execution: a. To enforce the contributive share of the devisees, legatees or heirs when they have entered into prior possession of the estate before the debts and expenses have been settled and paid (Sec. 6,Rule 88); b. To enforce the payment of the expenses of partition against the party not paying for the sum assessed (Sec. 3,Rule 90); c. To satisfy the costs when a person is cited for examination in the probate proceedings (Sec. 13,Rule 142). ESCHEAT Define escheat. Escheat is a proceeding where the real and personal property of the deceased person in the Philippines, who dies without leaving any will and legal heirs, becomes the property of the State upon his death (Municipal Council of San Pedro, Laguna v. Colegio de San Jose, Inc., et al., G.R. No. L-45460, February 25, 1938). A.WHEN TO FILE If a person dies intestate, seized of real property in the Philippines, leaving no heir or person by law entitled to the same, an escheat proceeding may be filed (Sec. 1,Rule 91). Who may be the parties in the petition for escheat? They are: a. An escheat proceeding must be initiated by the government through the Solicitor General or his representative; b. All interested parties, especially the actual occupants and the adjacent lot owners shall be personally notified of the proceeding and given the opportunity to present their valid claims; otherwise, it will be reverted to the State (Bermudo v. Intermediate Appellate Court, G.R. No. L-38622, October 26, 1987); c. Any person alleging to have a direct right of interest in the property sought to be escheated, likewise an interested and necessary party, may properly oppose the petition for escheat or file a claim thereto with the court within the period provided for (Municipal Council of San Pedro, Laguna v. Colegio de San Jose, Inc., et al., supra);

d. Under the Unclaimed Balance Law, a depositary bank should be joined as a respondent in an action for escheat since a decree of escheat would necessarily deprive it of the use of such deposits (Sec. 3, Act No. 3936; Republic v. CFI-Manila, G.R. No. L-30381, August 30, 1988). B. REQUISITES FOR FILING OF PETITION What are the requisites for the filing of a petition for escheat? They are: a. That a person died intestate; b. He left no heirs or persons by law entitled to the same; c. The deceased left properties in the Philippines (In re Estate of Lao Sayco, G.R. No. L4824, February 13, 1912). C. REMEDY OF RESPONDENT AGAINST THE PETITION; PERIOD OF FILING A CLAIM What is the remedy of respondent against a petition for escheat? When a petition for escheat does not state facts which entitle the petitioner to the remedy prayed for, and even admitting them hypothetically, it is clear that there is no ground for the court to proceed to the inquisition provided by law, an interest party should not be disallowed from filing a motion to dismiss the petition (Herrera, p.227-228). When and by whom may a claim to escheated property be filed? A devisee, legatee, heir, widow, widower, or other persons entitled to the estate, may appear and file a claim thereto with the court within 5 years from the date of such judgment. Such person shall have possession of and title to the property, or if it had been sold, the municipality or city shall be accountable for the proceeds after deducting reasonable charges for the care of the estate. A claim not within the 5-year period shall forever be barred (Sec. 4,Rule 91).