Settlement of Estate of Deceased Persons

Jurisdiction: MTC/RTC depending on gross value of estate

Venue: a. Resident citizen/resident alien – RTC/MTC where he resides at the time of
death;
b. Non-resident citizen – RTC/MTC of province where estate is located
Initiatory pleading:
1. Testate –
a. With Executor – Allowance of Will and Letters Testamentary
b. Without Executor – Allowance of Will and Letters of Administration
2. Intestate – Letters of Administration

Where the marriage is dissolved by death of husband or wife, the community property
shall be inventoried, administered, and liquidated, and debts thereof paid in the
testate/intestate proceedings of the deceased spouse.
- Without debts: If no settlement of estate has been instituted, the surviving spouse
shall liquidate the community property or conjugal partnership judicially or
extrajudicially;
- With debts: surviving spouse has to file a proceeding for the settlement of estate
of the deceased spouse.
If both spouses have died, the conjugal partnership shall be liquidated in the testate or
intestate proceedings of either.

1. Extrajudicial Settlement – outside of court settlement

EJS by Agreement Between Heirs –

- no will, no debts, heirs are all of legal age, minors are rightfully represented
a. Filing of a public instrument with the RD – the parties may, without securing
letters of administration, divide the estate among themselves by means of
a public instrument filed in the RD;
b. Ordinary action for partition – in case of disagreement between the parties;
c. Affidavit of self-adjudication – if there is only one heir, he may adjudicate
for himself the entire estate by means of an affidavit filed in the RD
- The parties shall file a bond simultaneously with, and as a condition
precedent to the filing of a, b, or c with the RD in an amount equivalent to the
value of personal property involved and conditioned upon payment of any
claim under Section 4 (2-year lien). The bond is required only if there is
personal property involved. If only real properties are involved, the 2-year
lien shall be enough.

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 - It is presumed that there are no debts if no creditor files a petition for letters
of administration within 2 years from death of the decedent.
- 2-year Lien –
- 2-year period to commence from date of registration
- Within said 2-year period, if it shall appear that:
a. An heir or other person has been unduly deprived of his lawful
participation in the estate;
b. There are outstanding debts against the estate
- Court shall settle amount of debt or lawful participation and make a new
division or the court may issue execution against the bond or the real
estate belonging to the deceased or both.
- Claim of Minor or Incapacitated –
- If on the date of the expiration of the 2-year line period, the person
authorized to file a claim is a
a. Minor;
b. Incapacitated;
c. In prison; or
d. Outside the Philippines
- He may present his claim within 1 year after such disability is removed.
- The fact of EJS or administration shall be published in a newspaper of
general circulation. No EJS shall be binding upon any person who has not
participated therein or had no notice thereof.

Summary Settlement of Estates of Small Value –

- Gross value of estate is does not exceed P10,000.00, and that fact is made to
appear by petition of an interested person and upon hearing, the court may
proceed summarily, without appointment of executor or administrator, to
grant and divide the same among persons entitled thereto, after payment of
debts of the estate.

2. Judicial Settlement – involves court process

NCC. Execution of Wills –

“ARTICLE 15. Laws relating to family rights and duties, or to the
status, condition and legal capacity of persons are binding upon
citizens of the Philippines, even though living abroad.

ARTICLE 16. Real property as well as personal property is subject to

the law of the country where it is situated.

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 However, intestate and testamentary successions, both with respect to
the order of succession and to the amount of successional rights and to
the intrinsic validity of testamentary provisions, shall be regulated by
the national law of the person whose succession is under
consideration, whatever may be the nature of the property and
regardless of the country wherein said property may be found.

ARTICLE 17. The forms and solemnities of contracts, wills, and other
public instruments shall be governed by the laws of the country in
which they are executed.

When the acts referred to are executed before the diplomatic or

consular officials of the Republic of the Philippines in a foreign
country, the solemnities established by Philippine laws shall be
observed in their execution.

Prohibitive laws concerning persons, their acts or property, and those

which have for their object public order, public policy and good
customs shall not be rendered ineffective by laws or judgments
promulgated, or by determinations or conventions agreed upon in a
foreign country.”
Check codal for notes

“ARTICLE 784. The making of a will is a strictly personal act; it cannot

be left in whole or in part to the discretion of a third person, or
accomplished through the instrumentality of an agent or attorney.”

Brief Procedure
1. Filing of Petition for Allowance of Will or Petition for Letters
Testamentary

- Executor, devisee, legatee named in will, or any other person interested in

the estate, may, at any time after the death of the testator, petition the
court having jurisdiction to have the will allowed, whether the same be in
his possession or not, or is lost or destroyed;
- Testator himself may, during his lifetime, petition the court for the
allowance of his will.

2. Notice of Hearing

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 - The court shall fix a time and place of proving the will and shall cause
notice thereof to be published for 3 weeks successively in a newspaper of
general circulation in the province. No publication shall be made where
the petition for probate has been filed by the testator himself.
- Executor, heirs, devisees, legatees residing in the Philippines shall be
notified by mail, at least 20 days before the hearing, or personally, at least
10 days before the hearing.

3. Probate Proper

- At the hearing, publication and personal notice or notice by mail must be

proven
a. Will is uncontested:
i. Notarial Will – testimony of one of the subscribing witnesses shall
be sufficient. If the subscribing witness does not reside in the
province, his deposition may be taken. If the subscribing witnesses
are dead, insane, or out of the country, testimony of other witnesses
proving the sanity of the testator and due execution of the will may
be admitted.
ii. Holographic Will – testimony of one witness who knows the
handwriting and signature of the testator shall be sufficient. In the
absence thereof, expert testimony may be resorted to.
b. Will is contested:
i. Notarial Will – all subscribing witnesses and notary public must be
presented and examined. If they do not reside in the province, their
depositions may be taken. If they all testify against the due
execution of the will, it may still be allowed if the court is satisfied
from the testimonies of other witnesses that the will was executed
and attested in the manner required.
ii. Holographic Will – at least three witnesses who know the
handwriting and signature of the testator. In the absence thereof,
expert testimony may be resorted to.

*Wills proved and allowed in a foreign country, according to the laws of such
country, may be allowed, filed, and recorded by the RTC. A copy of such will
and order or decree of allowance shall be filed with a Petition for Allowance in
the Philippines. If it appears at the hearing that the will should be allowed, the
Court shall so allow it, and such will shall have the same effect as if originally
proved and allowed in such court. When the will is thus allowed, the court shall
grant letters testamentary or administration, and such shall extend to all the
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 estate of the testator in the Philippines. Such estate shall be disposed of according
to such will, and the residue, if any, shall be disposed of as provided by law in
cases of estates in the Philippines belonging to persons who are inhabitants of
another state or country.

4. Issuance of Letters Testamentary and of Administration