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SETTLEMENT OF
ESTATE
A SUMMARY
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General Rule:

The rules on special proceedings

ordinarily require that the estate of
the deceased should be judicially
administered through an
administrator or executor
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EXCEPTION: Rule 74 Sec 1:
 Where the decedent left no will and no debts and the
heirs are all of age, or the minors are represented by their
judicial or legal representatives duly authorized for the
purpose, the parties may without securing letters of
administration,
a. divide the estate among themselves by means of public
instrument filed in the office of the register of deeds,,
b. should they disagree, they may do so in an ordinary
action of partition.
c. If there is only one heir, he may adjudicate to himself the
entire estate by means of an affidavit filed in the office of
the register of deeds.
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EXCEPTION: RULE 74 SEC 2

 Whenever the gross value of the estate of a deceased

person whether he died testate or intestate, does not
exceed ten thousand pesos, and that fact is made to
appear to the Regional Trial Court having jurisdiction
of the estate by the petition of an interested person
and upon hearing, which shall be held not less than
one (1) month nor more than three (3) months from the
date of the last publication of a notice which shall be
published once a week for three consecutive weeks in
a newspaper of general circulation in the province,
and after such other notice to interested persons as the
court may direct, the court may proceed summarily,
without the appointment of an executor or
administrator, to settle the estate
+ REQUIREMENTS: VALID
EXTRAJUDICIAL PARTITION

 The decedent left no will;

 The decedent left no debts, or if there were debts left, all
had been paid;
 The heirs are all of age or if they are minors, the latter are
represented by their judicial guardian or legal
representative;
 The partition was made by means of a public instrument or
affidavit duly filed and/or registered with the Register of
Deeds; and
 (e) The fact of the extrajudicial settlement or
administration shall be published in a newspaper of
general circulation once a week for three consecutive
weeks.
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DECEDENT LEFT NO DEBTS:

It shall be presumed that the

decedent left no debts if no creditor
files a petition for letters of
administration within two (2) years
after the death of the decedent
(Sec. 1)
+ TWO YEAR PRECRIPTIVE PERIOD
Rule 74 Section 4:

 If it shall appear at any time within two (2) years

after the settlement and distribution of an estate
in accordance with the provisions of either of the
first two sections of this rule, that an heir or other
person has been unduly deprived of his lawful
participation in the estate, such heir or such other
person may compel the settlement of the estate
in the courts in the manner hereinafter provided
for the purpose of satisfying such lawful
participation.
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 And if within the same time of two (2) years, it shall appear
that there are debts outstanding against the estate which
have not been paid, or that an heir or other person has
been unduly deprived of his lawful participation payable
in money, the court having jurisdiction of the estate may,
by order for that purpose, after hearing, settle the amount
of such debts or lawful participation and order how much
and in what manner each distributee shall contribute in
the payment thereof, and may issue execution, if
circumstances require, against the bond provided in the
preceding section or against the real estate belonging to
the deceased, or both. Such bond and such real estate
shall remain charged with a liability to creditors, heirs, or
other persons for the full period of two (2) years after such
distribution, notwithstanding any transfers of real estate
that may have been made (Sec. 4).
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Remedies of Creditors after Extra-
Judicial Settlement:
 The creditor may ask for administration of enough property of the
estate sufficient to pay the debt, but the heirs cannot prevent such
administration by paying the obligation (McMicking vs. Sy
Conbieng, 21 Phil. 211);

 (2) Where the estate has been summarily settled, the unpaid
creditor may, within the two- year period, file a motion in the court
wherein such summary settlement was had for the payment of his
credit. After the lapse of the two-year period, an ordinary action
(ten year prescriptive period) may be instituted against the
distributees within the statute of limitations, but not against the
bond.

 (3) The action to annul a deed of extrajudicial settlement on the

ground of fraud should be filed within four years from the
discovery of the fraud (Gerona vs. De Guzman, L-19060, May 29,
1964).
+ Summary of Judicial Proceedings for
Settlement of Estate:
 Filing of initiatory pleading
 Notice of hearing – publication once a week for three
consecutive weeks, with notice to heirs, legatees,
devisees, interested parties
 Allowance of will (probate)
 Issuance of letters testamentary or of administration
 Filing and approval of claims against the estate
 Payments of debts, etc.
 (g) Determination of heirs and distribution
 (h) Closure – delivery of remaining estate to heirs.