SPECIAL PROCEEDINGS

Rule 82 (8)

1. What could cause the court to revoke the letters administration that it had issued?
- There are two instances when the court revoke letters of administration that it had already issued or granted. First, when the
decedent’s will is discovered and admitted to probate. Second, when letters of administration are illegally issued or issued without
jurisdiction.

2. What are the effects of the revocation of letters of administration?

- The effects of the revocation of letters of administration are the following:
a. All powers under the letters of administration cease;
b. The administrator shall surrender the letters to the court;
c. The administrator must render his account within the time given by the court;
d. Proceedings for the issuance of letters testamentary or administration shall follow.

3. Differentiate between “revocation” as contemplated under Section 1 of Rule 82 from “removal” as contemplated under section 2 of
the same rule.
- Section 1 of rule 82 speaks of revocation of the letters of administration, while Section 2 of Rule 82 refers to the administrator’s
removal.
The difference is as follows: In Section 1, the letters of administration should not have been issued in the first place, where letters of
administration are revoked for circumstances or grounds that exist prior to its issuance. In Section 2, the letters of administration
were lawfully issued, but for reasons that occur after the letters are issued, there is sufficient basis to remove the person appointed
as administrator.

4. What are the grounds for the removal of an administrator/testator? Are the grounds exclusive?
- The grounds for the removal of an administrator/executor are as follows:
a. Neglect to render one’s account and settle the estate according to law;
b. Neglect to perform an order or judgment of the court, or a duty expressly provided by the Rule of Court.
c. Abscond;
d. Becomes insane or otherwise incapable or unsuitable to discharge the trust
- No. The enumeration of grounds for an administrator’s removal is not exclusive, because the court is justified in removing an
administrator if it loses confidence in him. The removal of an administrator under Section of Rule 82 lies within the discretion of the
court appointing him. (Note page 118)

5. If the executor/administrator voluntarily resigns, what are the conditions for the court to accept his resignation?
- The conditions for the court to accept the voluntary resignation of an executor/administrator are the following:
a. The administrator/executor submits a resignation letter to the court;
b. The administrator prepares an inventory of the properties in his possession.

6. What is the status of the acts of an executor/administrator before the revocation of letters testamentary/administration or before his
removal or resignation?
- Acts done prior to the revocation or removal of an executor/administrator shall remain valid.; they are not nullified by the
revocation of the letters of administration or administrator’s removal.
NOTE: Effect of revocation of letters testamentary/administration and administrator’s removal- terminates his authority to administer
the decedent’s estate.

7. What are the powers of the new administrator who gets appointed vice the removed or resigned executor/administrator?
- The new administrator or executor is given the following powers:
a. To collect and settle the estate not administered that the former/previous executor or administrator had;
b. To prosecute or defend actions commenced by or against the former/previous executor or administrator;
c. To execute on judgments recovered in the name of such former/previous executor or administrator

8. Can the new executor sell properties belonging to the estate under the same license/written authority issued to his predecessor?
- No. the new administrator or executor cannot sell or mortgage the decedent’s real estate pursuant to an authority granted to the
previous/former administrator or executor.
Hence, the new administrator or executor is required to secure a renewal of such authority from the court, where a notice and
hearing are not required for purposes of renewing said authority.

Rule 83 (4)

1. What is the purpose of requiring the executor/administrator to return to the court a true inventory and appraisal of all the personal
and real estate of the deceased? What is the period given to him to comply with the same? Is the period mandatory?
 - The purposes or objective of the Rules in requiring the inventory and appraisal of the estate of the decedent are the following:
a. To aid the court in revising the accounts and determining the liabilities of the executor or the administrator;
b. In making a final and equitable distribution (partition) of the estate.
c. To facilitate the administration of the estate.
- The obligation of the administrator or executor to submit a true inventory of the decedent’s estate is within 3 months from his
appointment.
- No. The period is not mandatory.

2. What if the property is registered under the name of a third person, is that a valid ground for the executor/administrator to exclude
such in the inventory he will submit to the court?
- No. The fact that the properties were already covered by Torrens titles in the name of third person, would cannot be a valid basis for
immediately excluding certain properties from the inventory. The Torrens system is not a mode of acquiring title to lands, as it is
merely a system of registration of titles to lands.
Also, the supreme court held in the case of Aranas v. Mercado, that the usage of the word “all” in section 1, of Rule 83 means that
no properties appearing to belong to the decedent can be excluded from the inventory.

3. Are there certain belongings owned by the decedent that the executor/administrator is excused from including in the inventory?
- Yes. Section 2 of Rule 83 provides for certain belongings owned by the decedent that the executor/administrator is excused from
including in the inventory. These are the following:
a. Wearing apparel of the surviving husband or wife, and minor children
b. Marriage bed and bedding
c. Other articles as will necessarily be consumed in the subsistence of the family of the deceased under the discretion of the court.
- NOTE: The enumeration above are not considered as assets, nor administered as such, and shall not be included in the inventory.

4. Can the surviving spouse and minor children demand to receive advances from their inheritance even before the estate proceedings
are terminated?
- Yes, the surviving spouse, minor and incapacitated children of the decedent are entitled to receive an allowance while the estate is
being settled, wherein these allowances are in the nature of advance payments of their share in the estate, which shall be deducted
from their respective shares that may be allotted to them.
a. If yes, will this not be prejudicial to the creditors whose claims against the estate has not yet been settled? (PAGE 122)
- No. It is prejudicial to creditors, where the allowance may be denied when the decedent’s liabilities exceed the estate’s value where
the surviving spouse did not contribute any property to the marriage.
- In such case the surviving spouse and the minor or incapacitated children CANNOT BE GRANTED AN ALLOWANCE, because there
would be no property left from which their advances may be deducted after the creditors are paid.

b. What if the children who are demanding for allowance are no longer minors?
- According to Article 188 of the Civil Code, the children need not be minors or incapacitated to be entitled to allowance. Therefore,
children who are no longer minors may still demand for allowance.

- ARTICLE 188. From the common mass of property support shall be given to the surviving spouse and to the children during the
liquidation of the inventoried property and until what belongs to them is delivered; but from this shall be deducted that amount
received for support which exceeds the fruits or rents pertaining to them. (1430)

Rule 84 (2)

1. Differentiate between acts of ownership v. acts of administration.

a. Can an executor/administrator exercise acts of administration?

- Yes. An executor or administrator may only allowed to perform all acts of administration even without a court order.

b. Can an executor/administrator exercise acts of ownership?

- No. An executor or administrator cannot perform acts of ownership.

2. What are the general powers and obligations of an executor/administrator?

- The General Powers are:
a. Possess and manage the estate of the deceased to pay debts and expenses of administration
b. Have access to, examine and take copies of, books and papers relating to the partnership business, and examine and make
invoices of the property belonging to such partnership.
c. With the approval of the court, to compound or compromise with a debtor of the deceased.
- The obligations (duties) are:
a. Maintain the estate in tenantable repair
b. Deliver the same in such repair to the heirs or devisees when directed by the court.
Rule 85 (6)

1. What is the extent of the accountability of an executor/administrator?

- They are accountable for the whole estate of the decedent which has come to his possession at the value of the appraisement.

2. Explain Sections 2, 3, 4, 5 and 6 of Rule 85.

- Section 2: Not to profit by increase or lose by decrease in value
- Section 3: When not accountable for debts due estate
- Section 4: Accountable for income from realty used by him
- Section 5: Accountable if he neglects or delays to raise or pay money
- Section 6: When allowed money paid as cost (PAGE 128)

3. What expenses and fees are allowed to be charged by the executor/administrator against the estate?
- They are allowed to the necessary expenses in the care, management, and settlement of the estate. Entitled also for Administration
expenses which are necessary for the management of the estate, for protecting it against destruction or deterioration and possibly,
for the production of fruits.
- Those are expenses entailed for the preservation and productivity of the estate and its management for purposes of liquidation,
payment of debts and distribution of residue among the persons entitled thereto. (NOTE: PAGE 130)

4. Can a lawyer have appointed as executor/administrator charge attorney’s fees for services rendered by him in favor of the estate?
- Section 7, par. 3 of Rule 85.
- No!

- The administrator or executor of the estate cannot charge professional fees for legal services against the
same estate, as explicitly provided under Section 7, Rule 85 of the Rules of Court of 1985. 34 No such rule
exists barring direct recovery of professional legal fees from the estate by the lawyer who is not the executor
or administrator of the said estate.

- The limitations on such direct recovery are nonetheless established by jurisprudence, as evinced by the rulings
in Escueta and Occeña.

- The character of such claim for attorney's fees bears reiteration. As stated in Escueta, it partakes the nature of an administration
expense. Administration expenses include attorney's fees incurred in connection with the administration of the estate. 35 It is an
expense attending the accomplishment of the purpose of administration growing out of the contract or obligation entered into by
the personal representative of the estate, and thus the claim for reimbursement must be superior to the rights of the
beneficiaries.36

- Notwithstanding, there may be instances wherein the estate should not be charged with attorney's fees. If the costs of counsel's
fees arise out of litigation among the beneficiaries thereof themselves or in the protection of the interests of particular persons,
the estate generally cannot be held liable for such costs, although when the administrator employs competent counsel on
questions which affect his/her duties as the administrator and on which he/she is in reasonable doubt, reasonable expenses for
such services may be charged against the estate subject to the approval of the court. 37 It has also been held that an administrator
who brings on litigation for the deliberate purpose of defrauding the legitimate heirs and for his own benefit is not entitled to
reimbursement for counsel's fees incurred in such litigation. 381avvphil.net

- Clearly then, while the direct recovery of attorney's fees from the estate may be authorized if the executor refuses to pay such
fees, and claimed through the filing of the proper petition with the probate court, such claim remains controvertible. This is
precisely why Escueta and its progenies require that the petition be made with notice to all the heirs and interested parties.

5. How much compensation are executors/ administrators entitled to?

- Section 7 of rule 85 is entitled for 4 pesos per day for the time actually and necessarily employed; a commission upon the value of so
much of the estate as comes into his possession and is finally disposed of by him in the payment of debts, expenses, legacies or
distributive shares, or by delivery to heirs or devisees (PAGE 129)
- The amount of their fee in special cases under the Rules is a matter largely in the discretion of the probate court. Ang in order to
entitle the executor/administrator to additional compensation, the estate must be large. The settlement is extraordinarily difficult.
And a high degree of capacity demonstrated by him.

6. What is the executor/administrator obliged to submit for the court to be able to monitor and ensure that the estate is not being
mismanaged? When does he submit this?
- They shall render an account of his administration. He also shall render such further accounts as the court may require until the
estate is wholly settled.
- The account shall be rendered within 1 year from the time of receiving letters testamentary or of administration.

Rule 86 (16)

1. What should the court do immediately after issuing/granting letters testamentary/administration?

- The court shall issue a notice:
a. Requiring all persons having money claims against the estate
 b. To file them in the office of the clerk of court.

2. What should the Executor/Administrator do after it issues a “notice to creditors”?

- After the probate court had been apprised with the existence of claims of creditors, the probate court shall make a proper and
timely arrangement for its payment in full or by pro rate portion in the due course of the administration. Inasmuch, as upon the
death of a person, his entire estate is burdened with the payment of all of his debts and no creditor shall enjoy any preference or
priority. All creditors shall share pro rata in the liquidation of the estate of the deceased.

- PAGE 138) Immediately after the notice to the creditors is issued, the executor or administrator shall cause the following:
a. Publication of the notice, 3 weeks successively in a newspaper of general circulation in the province;
b. Posting of the notice for 3 weeks successively in the following places: 4 public places in the province; and 2 public places in the
municipality where the decedent last resided. (Sec. 3 Rule 86)

3. How should a money claim contracted before the decedent’s death be pursued?
- There is no particular form for a claim against the decedent’s estate. It is sufficient if it states the: 1) character and amount of the
claim; 2) it enables the representative to provide for its payment, 3) serves to bar all other claims by reason of its particularity of
designation.

4. How should a money claim contracted after the decedent’s death be pursued?
- Money claims contracted after the decedent’s death may be allowed as expenses of administration, but not as money claims under
Rule 86. These expenses of administration may be collected from the administrator or executor personally or by motion in the
testate or intestate proceedings without the formality and limitations for money claims against the decedent.

5. Explain the statute of non-claims. Is this rule exclusive?

- Statute of non-claims is the period fixed for the filing of claims against the estate. Such that claims not filed within the said period
are barred forever. This statue is effectively shortening the statute of limitations as regards the right of action to pursue the debtor is
concerned. Thus, the statute of limitations and non-claims must both concur before a creditor may collect against the estate. (PAGE
137) NOTE THE GUIDELINE AS TO THE STATUTE OF NON-CLAIMS.
- No. The rule is not exclusive as it partakes of 2 exceptions:
a. The creditor may apply with the court for a new period not exceeding 1 month from the order allowing the same for just cause
in accordance with Rule 86, section 2
b. The creditor may set up his claim as a counterclaim in an action filed by the executor or administrator against him in accordance
with Rule 86, Section 5.

6. What claims must be filed within the statute of non-claims, otherwise they will be barred?
- Claims which should be filed under the statute of non-claims are the following:
a. Money claims, debts incurred by deceased during his lifetime arising from contract: express or implied, due or nor due,
absolute or contingent;
b. Claims for funeral expenses;
c. Expenses for the last illness of the decedent
d. Judgment for money against the decedent
- Enumeration is exclusive.

7. Can the creditor just opt to file an ordinary action against the executor/administrator?
- No. The filing of an ordinary action to recover said claim is not allowed in any court. Section 1 of Rule 87 provides that no action
upon a claim for the recovery of money or debt or interest thereon shall be commenced against the executor or administrator.
Hence, a claim arising from a contract by a creditor may be pursued only be filing the same in the administration proceedings that
may be taken to settle the estate of the decedent.

8. How should the following claims be pursued by the decedent’s creditors?

a. Contingent claims
Refers to claims in which liability depends on some future event that may or may not happen, and which makes it uncertain whether
there will ever be any liability. (Ex. If adjudged liable to a person, a future event that may or may not happen).
Section 5, Rule 88:
If contingent claim becomes ABSOLUTE and is PRESENTED to the 1) Court; or 2) Executor; or 3) Administrator, WITHIN 2
YEARS from the time limited for other creditors to present their claims:
a. MAY BE ALLOWED BY THE COURT if not disputed by the executor or administrator; and
b. if disputed, MAY BE PROVED, AND ALLOWED OR DISALLOWED BY THE COURT as the facts may warrant.
- If Contingent Claim is ALLOWED- the creditor shall receive payment to the same extent as the other creditors, if the estate retained by the
executor or administrator is sufficient.
- If Claim is not presented, after having become absolute within 2 years, and ALLOWED- the assets retained in the hands of the executor or
administrator, not exhausted in the payment of claims, shall be distributed by the order of the court to the persons entitled therein.
Assets so distributed may still be applied to the payment of the claim when established, and the creditor may maintain an action
against the distributees to recover the debt.
Such distributes and their estates shall be liable for the debt in proportion to the estate they have respectively received from the
property of the deceased.
Absolute Claim- subject to no contingency and may be proved and allowed as a debt by the committee of claims. It is a claim, if contested
between living persons, would be the proper subject of immediate legal action and would supply a basis of a judgment for sum certain.
 b. Implied contracts
Includes those arising from ex lege or quasi-contract, such as for the return of goods from the person to whom the goods were
mistakenly delivered, who then becomes a Debtor in favor of the true owner who is a Creditor, under an implied contract.

Solutio Indebiti- to avoid unjust enrichment. Arises when something is delivered through mistake to a person who has no right to
demand it. It obligates such person who has no right to demand, to return what has been received through mistake.

c. Claims for damages arising from breach of contract

Contingent claims must first have been established and allowed in the probate court before the creditors can file in an action
directly, against the distributes. Suit for the claim of damages was a money claim against a dead debtor, and should be filed in the
testate or testate proceedings.

d. Claims which survive the death

Includes claims for civil liability if the same is based on a source of obligation other than delict; such as contract, law, quasi-contract
and quasi-delict.
- A separate civil action may be enforced either against: a) the estate of the accused in case of a contract; b) the executor or
administrator, in case of law, quasi-contract and quasi-delict.
- Civil actions for tort or quasi-delict, survive the death of the decedent and may be filed and commenced against the administrator
pursuant to Section 1, Rule 87. It does not fall within the class of claims to be filed under the notice to creditors required under Rule
86.

e. Judgement for money

Section 5 of Rule 86 provides that a judgment for money against the decedent must be filed with the court in the proceeding for the
settlement of the estate. In other words, the cut-off date is the date of actual levy of execution.
- If the judgment debtor dies after such levy – property levied may be sold
- If before the money judgment must be presented as a claim against the estate- money judgment need no longer be proved, the
judgment itself being conclusive.
- Judgment creditor will share the estate with other creditors, subject only to such preferences as are provided by the law.

9. What is the effect if the decedent left a solidary obligation? What is the obligation is joint?
- If the obligation left by the decedent is solidary- the creditor is mandated to file a claim against the decedent as if he was the only
the debtor (like in collecting the entire amount). And if the creditor succeeds in collecting from the decedent debtor, the estate has
the right to recover the respective contributions of the other debtors.
Failure to file a claim for the solidary obligation against the decedent’s estate bars it. Failure to file a claim for solidary
obligation does not result to extinction of the obligation. However, a cursory perusal of Section 6 of Rule 86 reveals that
nothing therein prevents a creditor from proceeding against the surviving solidary debtors.
Section 6 of Rule 86 merely sets up the procedure in enforcing collection in case a CREDITOR CHOOSES TO PURSUE HIS CLAIM
AGAINST THE ESTATE of the deceased solidary debtor. Here, the creditor in a solidary obligation has the OPTION whether to file
or not to file a claim against the estate of the solidary debtor. NOTED PAGE 150-151
- If the obligation left by the decedent is joint- the claim shall be properly limited to the portion owed by the decedent.

10. What options are available to A secured creditor?

Section 7 of Rule 86: A secured creditor holding a claim against the deceased has 3 OPTIONS:
(Here, the creditor is secured by mortgage or other collateral security)
1. Abandon the security and prosecute his claim against the estate and share in general distribution of the assets thereof.
2. Foreclose his mortgage judicially or realize upon his security by action in court, making the executor or administrator a party
defendant, and if there is judgment for deficiency, secured creditor may file a contingent claim against the estate within the statute
of non-claims.
3. Rely solely on his mortgage, and foreclose the same extra judicially at any time within the period of the statute of limitations, but he
cannot be admitted as creditor and shall not receive in the distribution of the other assets of the estate. (the result of adopting this
last mode of foreclosure is that the creditor waives his right to recover any deficiency from the estate)

- These remedies are distinct, independent and mutually exclusive from each other; thus, the election of one effectively bars the
exercise of the others.
- The law does not permit the secured creditor to have both remedies. If he elects one, he must renounce the other. If he fails in one,
he fails utterly. The secured creditor is not permitted under Section 7, to annoy those interested in the estate of deceased persons,
by two actions for exactly the same purpose.

NOTE: Page 152 (The mentioned 3 options grants to the mortgagee three distinct, independent and mutually exclusive remedies
that can be alternatively pursued by the mortgage creditor for the satisfaction of his credit in case the mortgagor dies) (mortgagor
may alternatively adopt for the satisfaction of his indebtedness)

11. Can the executor/administrator also file a claim against the estate?
- Yes. He can file a claim against the estate he represents which he is required to give written notice to the court. He cannot simply
pay himself from the estate.
 It is not proper and unlawful for an executor or administrator of an estate to pay for himself claims he may have against the
deceased, and to take possession of property of the same to which he thinks he is entitled, without observing the procedure fixed by
the law.
- The court will then appoint a special administrator who is vested with the same power, and subjected to the same liability as the
general executor or administrator, but only as to the adjustment of the claim.

12. How are claims against the estate filed?

13. What happens to claims against the estate which are readily admitted and uncontested?

14. What happens to claims against the estate which are contested?

15. What is the remedy of a creditor whose claim against the estate is denied?

16. Explain Section 4, Rule 86.

Rule 87. 88, 89 (15)

1. What actions may and may not be brought against the executor/administrator?

2. What actions may be commenced por defended by the executor/administrator?

3. Can heirs also sue the estate’s debtors?

4. Can creditors bring an action in lieu of the executor/administrator?

5. What if the properties belonging to the estate are being concealed, embezzled, or fraudulently conveyed?

6. What are the requisites before the executor/administrator can pay the money claims against the estate?

7. What is the order of preference in the payment of the debts of the decedent?

8. How are contingent claims paid?

9. When and how are claims proved outside of the Philippines against the insolvent resident’s estate paid?

10. If a claim against the estate is found to be valid, can the executor/administrator pay the same sans court order?

11. What are the court’s options if the claimant appeals from a decision denying his claim?

12. What is the time frame given to executor/administrator to pay all the estate’s debts?

13. When and how can the executor/administrator cause the sale of personal property belonging to the estate? What about real
property?

14. What if the decedent contracted and obliged himself to convey a realty but he died without being able to do so, Is the
executor/administrator bound to convey the same?
15. What if the decedent held several properties in trust, is the executor/administrator bound to convey the same?

Rule 90 (7)

1. When is the order for distribution of residue made?

2. What is the effect of a final decree of distribution?

3. What are the two requisites before the estate is actually distributed?

4. What is a project of partition?

5. What is the remedy of an heir entitled to a share in the residue but was not given the same?

6. What is the remedy available to a preiterited heir?

7. What are the instances when the court may issue a writ of execution?