APPOINTMENT OF SPECIAL ADMINISTRATOR
When there is delay in granting letters testamentary or of
administration by any cause including an appeal from the
allowance or disallowance of a will, the court may appoint
a special administrator to take possession and charge of
the estate of the deceased until the questions causing the
delay are decided and executors or administrators
appointed.
GROUNDS FOR REMOVAL OF ADMINISTRATOR
Administration revoked if will discovered - If after letters
of administration have been granted on the estate of a
decedent as if he had died intestate, his will is proved and
allowed by the court, the letters of administration shall be
revoked and all powers thereunder cease, and the
administrator shall forthwith surrender the letters to the
court, and render his account within such time as the court
directs. Proceedings for the issuance of letters
testamentary or of administration under the will shall be
as hereinbefore provided.
If an executor or administrator neglects to render his
account and settle the estate according to law, or to
perform an order or judgment of the court, or a duty
expressly provided by these rules, or absconds, or
becomes insane, or otherwise incapable or unsuitable to
discharge the trust, the court may remove him, or, in its
discretion, may permit him to resign. When an executor or
administrator dies, resigns, or is removed the remaining
executor or administrator may administer the trust alone,
unless the court grants letters to someone to act with him.
If there is no remaining executor or administrator,
administration may be granted to any suitable person
(Sec. 2, Rule 82).
CLAIMS AGAINST THE ESTATE (RULE 86)
Administration is for the purpose of liquidation of the
estate and distribution of the residue among the heirs and
legatees. Liquidation means the determination of all the
assets of the estate and payment of all debts and expenses.
The purpose of presentation of claims against decedents of
the estate in the probate court is to protect the estate of
deceased persons. That way, the executor or administrator
will be able to examine each claim and determine whether
it is a proper one which should be allowed.
Further, the primary object of the provisions requiring
presentation is to apprise the administrator and the
probate court of the existence of the claim so that a proper
and timely arrangement may be made for its payment in
full or by pro rata 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 his
debts and no creditor shall enjoy any preference or
priority; all of them shall share pro rata in the liquidation
of the estate of the deceased.
TIME WITHIN WHICH CLAIMS SHALL BE FILED; EXCEPTIONS
The court shall state the time for the filing of claims against
the estate, which shall not be more than twelve (12) nor
less than six (6) months after the date of the first
publication of the notice. However, at any time before an
order of distribution is entered, on application of a
creditor who has failed to file his claim within the time
previously limited, the court may, for cause shown and on
such terms as are equitable, allow such claim to be filed
within a time not exceeding one (1) month.
STATUTE OF NON-CLAIMS
A claim by a person against the estate of deceased should
be made in not less than 6 months nor more than 12
months since the first publication of allowance of the will.
If the said claims are not filed within the time limited in
the notice, they are forever be barred.
CLAIM OF EXECUTOR OR ADMINISTRATOR AGAINST THE
ESTATE
If the executor or administrator has a claim against the
estate he represents, he shall give notice thereof, in
writing, to the court, and the court shall appoint a special
administrator, who shall, in the adjustment of such claim,
have the same power and be subject to the same liability as
the general administrator or executor in the settlement of
other claims.
The court may order the executor or administrator to pay
to the special administrator necessary funds to defend
such claim.
PAYMENT OF DEBTS (RULE 88)
If there are sufficient properties, the debts shall be paid,
thus:
1) All debts shall be paid in full within the time
limited for the purpose (Sec. 1);
2) If the testator makes provision by his will, or
designates the estate to be appropriated for the
payment of debts they shall be paid according to
the provisions of the will, which must be
respected (Sec. 2);
3) If the estate designated in the will is not sufficient,
such part of the estate as is not disposed of by will
shall be appropriated for the purpose (Sec. 2);
4) The personal estate not disposed of by will shall
be first chargeable with payment of debts and
expenses (Sec. 3);
5) If the personal estate is not sufficient, or its sale
would be detrimental to the participants of the
estate, the real estate not disposed of by will shall
be sold or encumbered for that purpose (Sec. 3);
6) Any deficiency shall be met by contributions from
devisees, legatees and heirs who have entered into
 possession of portions of the estate before debts
and expenses have been paid (Sec. 6);
7) The executor or administrator shall retain
sufficient estate to pay contingent claims when the
same becomes absolute (Sec. 4).
If the estate is insolvent, the debts shall be paid in the
following manner:
1) The executor or administrator shall pay the debts
in accordance with the preference of credits
established by the Civil Code (Sec. 7);
2) No creditor of any one class shall receive any
payment until those of the preceding class are
paid (Sec. 8);
3) If there are no assets sufficient to pay the credits
of any one class of creditors, each creditor within
such class shall be paid a dividend in proportion
to his claim (Sec. 8);
4) Where the deceased was a nonresident, his estate
in the Philippines shall be disposed of in such a
way that creditors in the Philippines and
elsewhere may receive an equal share in
proportion to their respective credits (Sec. 9);
5) Claims duly proved against the estate of an
insolvent resident of the Philippines, the executor
or administrator, having had the opportunity to
contest such claims, shall e included in the
certified list of claims proved against the
deceased. The owner of such claims shall be
entitled to a just distribution of the estate in
accordance with the preceding rules if the
property of such deceased person in another
country is likewise equally apportioned to the
creditors residing in the Philippines and other
creditors, according to their respective claims
(Sec. 10);
6) It must be noted that the payments of debts of the
decedent shall be made pursuant to the order of
the probate court (Sec. 11).
On granting letters testamentary or administration the
court shall allow to the executor or administrator a time
for disposing of the estate and paying the debts and
legacies of the deceased, which shall not, in the first
instance, exceed one (1) year; but the court may, on
application of the executor or administrator and after
hearing on such notice of the time and place therefor given
to all persons interested as it shall direct, extend the time
as the circumstances of the estate require not exceeding
six (6) months for a single extension nor so that the whole
period allowed to the original executor or administrator
shall exceed two (2) years (Sec. 15).
ACTIONS BY AND AGAINST EXECUTORS AND
ADMINISTRATORS (RULE 87)
No action upon a claim for the recovery of money or debts
or interest thereon shall be commenced against the
executor or administrator.
ACTIONS THAT MAY BE BROUGHT AGAINST EXECUTORS AND
ADMINISTRATORS
An action to recover real or personal property, or an
interest therein, from the estate, or to enforce a lien
thereon, and actions to recover damages for an injury to
person or property, real or personal, may be commenced
against the executor or administrator.
Whenever a party to a pending action dies, and the claim is
not thereby extinguished, it shall be the duty of his counsel
to inform the court within thirty (30) days after such death
of the fact thereof, and to give the name and address of his
legal representative or representatives. Failure of counsel
to comply with this duty shall be a ground for disciplinary
action. The heirs of the deceased may be allowed to be
substituted for the deceased, without requiring the
appointment of an executor or administrator and the court
may appoint a guardian ad litem for the minor heirs.
The court shall forthwith order said legal representative or
representatives to appear and be substituted within a
period of thirty (30) days from notice. If no legal
representative is named by the counsel for the deceased
party, or if the one so named shall fail to appear within the
specified period, the court may order the opposing party,
within a specified time, to procure the appointment of an
executor or administrator for the estate of the deceased
and the latter shall immediately appear for and on behalf
of the deceased. The court charges in procuring such
appointment, if defrayed by the opposing party, may be
recovered as costs.
When the action is for recovery of money arising from
contract, express or implied, and the defendant dies before
entry of final judgment in the court in which the action was
pending at the time of such death, it shall not be dismissed
but shall instead be allowed to continue until entry of final
judgment. A favorable judgment obtained by the plaintiff
therein shall be enforced in the manner especially
provided in these Rules for prosecuting claims against the
estate of a deceased person.
REQUISITES BEFORE CREDITOR MAY BRING AN ACTION FOR
RECOVERY OF PROPERTY FRAUDULENTLY CONVEYED BY THE
DECEASED
1) There is a deficiency of assets in the hands of an
executor or administrator for the payment of debts
and expenses of administration;
2) The deceased in his lifetime had made or attempted to
make a fraudulent conveyance of his real or personal
property, or a right or interest therein, or a debt or
credit, with intent to defraud his creditors or to avoid
any right, debt or duty; or had so conveyed such
property, right, debt, or credit that by law the
conveyance would be void as against his creditors;
3) The subject of the attempted conveyance would be
liable to attachment by any of them in his lifetime;
4) The executor or administrator has shown to have no desire to file the action or failed to institute the
same within a reasonable time;
5) Leave is granted by the court to the creditor to file the action;
6) A bond is filed by the creditor as prescribed in the Rules;
7) The action by the creditor is in the name of the executor or administrator.