Testate Estate of the Late Felix J. de Guzman. Victorino G.

De Guzman,
Versus Crispina De Guzman-Carillo et.
G.R. No. L-29276 May 18, 1978
Second Division, Aquino, J.

Facts: Victorino De Guzman was the administrator of the properties left by his
late father Felix De Guzman. Victorino submitted four accounting reports for
the period from June 1964 to September 1967, three heirs, Crispina Arsenio and
Honorata objected the disbursements therein in the total of 13,610.48Php. The
lower court allowed the items contested as legitimate expenses of
administration, and from that order come the respondents appeal to this
Court. The contested disbursements were for the improvement and renovation
of the decedent’s residential house, living expenses of Librada while
occupying the family home without paying rent; house help, light and water
bills, gas oil and floor wax. It also included other expenses such as lawyer’s
substinence, gratuity pay in lieu of medical fee, stenographic notes, food for
decedent’s death anniversary, representation expenses. And lastly, irrigation
fees.

Issue(s): Whether improvement and renovation of the decedent’s residential

house, living expenses in the family home, irrigation fees and other expenses
may be considered as proper administration fees.

Decision: Partly yes, the lower court is affirmed except in respect of the
following expenses, that used for Librada De Guzman’s stay in the family home,
that from stenographic notes, representation expenses and that used for the
death anniversary of the decedent.

Here, Librada’s living expenses were personal, the stenographic notes too and
as admitted, should be disallowed, while the representation fees should also
be disallowed since it is unexplained. Pursuant to the rule, the said expenses
were disallowed because they have no connection with the care,
management and settlement of the decedent's estate (Nicolas vs. Nicolas 63
Phil 332).

Lizarraga Hermanos v. Abada held that Administration expenses should be

those which are necessary for the management of the estate, for protecting it
against destruction or deterioration, and, possibly, for the production of fruits.
They are expenses entailed for the preservation and productivity of the estate
and its management for purposes of liquidation, payment of debts, and
distribution of the residue among the persons entitled thereto.

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