SETTLEMENT OF ESTATE OF

DECEASED PERSON
By: GILBERT R. HUFANA
Professor, Law Special Proceedings
Estate
HOW IS THE ESTATE OF A
DECEASED PERSON SETTLED?
1. EXTRAJUDICIAL SETTLEMENT
 Settlement is out of court
 Agreement between and among the heirs

2. JUDICIAL SETTLEMENT
 Estate is settled by the court
EXTRAJUDICIAL SETTLEMENT
OF ESTATE OF DECEASED
PERSON
EXTRAJUDICIAL SETTLEMENT/
SELF-ADJUDICATION (Sec 1, Rule 74)
 Decedent died intestate
 No outstanding debts at the time of
settlement
 Heirs are all of legal age or minors
represented by judicial guardians or legal
representative
 Settlement is made in a public instrument or
an affidavit in case of a sole heir duly
registered with the ROD
 Publication of the deed in newspaper
of general circulation in
the province
once a week for 3 consecutive weeks
DECEDENT LEFT NO WILL
 In order for this presumption to arise, no
creditor should have filed a petition for letters
of administration within two (2) years after the
decedent’s death
NO OUTSTANDING DEBTS AT THE
TIME OF SETTLEMENT
 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.
ACTION FOR PARTITION
 If the heirs disagree on how they will
distribute the decedent’s estate, their remedy
would be to file an ordinary action for partition
FILING OF BOND (Sec 3, Rule 74)
 Required only when a personal property is
involved in the summary settlement of estate
 The amount is to be fixed by the court
 The bond is conditioned for the payment of
any just claim that may be filed
Prescriptive Period to assail the
validity of the Settlement (Sec 4, Rule 74)
 An heir or interested person who was able to
participate in the extrajudicial or summary
settlement of estate of the decedent has a
period of 2 years after the settlement to assail
its validity.
 Only applies to persons who participated, took
part in or had notice of the settlement of the
estate
 Persons who did not participate in the extrajudicial
or summary settlement of estate are not bound
 Publication of the settlement does not
constitute constructive notice to the heirs who
had no knowledge or did not take part in it.
(Cua v Vargas, GR No. 156536, October 31,
JUDICIAL SETTLEMENT OF
ESTATE OF DECEASED
PERSON
JUDICIAL SETTLEMENT OF
ESTATE OF DECEASED PERSON
 In this proceeding, petitioners seek to
establish a status, right or a particular fact:
 The fact of death of the decedent
 Recognition of the heirs
 Establishment of the right to participate
in the settlement and
liquidation of the
estate of the decedent
JUDICIAL SETTLEMENT OF
ESTATE OF DECEASED PERSON
1. TESTATE PROCEEDINGS
 Decedent left a will

2. INTESTATE PROCEEDINGS
 Decedent left no will
 Decedent left a will but invalidated or not
admitted

Testate proceedings takes precedence over

intestate over the same estate.
COMPULSORY JUDICIAL
SETTLEMENT OF ESTATE
 (Sec 4, Rule 74) The following are the
instances when an heir may be compelled to
settle the decedent’s estate in court:
 There has been undue deprivation of lawful
participation on the estate on the part of an
heir or other interested person;
 There exists debts against the estate; or
 There has been undue deprivation of lawful
participation payable in money on the part of
an heir or other interested person.
JURISDICTION
 It depends on the gross value of the estate

 Municipal Trial Court:

 Gross Value does not exceed Php300,000.00
 Gross Value does not exceed Php400,000.00 in
Metro Manila

 Regional Trial Court:

 Gross Value is Php300K or
Php400K (Metro Manila) and up
VENUE
 Rule 73 Section 1 relates to venue of the
proceeding and not jurisdiction
 If the decedent was residing in the Philippines
at the time of death, it must be settled in the
decedent’s place of residence
 If the decedent was NOT residing in the
Philippines at the time of death, at any place
where any of the decedent’s properties
are located
 The court first taking cognizance of the
settlement proceeding shall exercise
jurisdiction to the exclusion of all other courts.
Testate proceedings are given preference.
RESIDENCE defined
 Refers to one’s personal, actual or physical,
or a actual residence or place of abode
provided one resides therein with continuity
and consistency
 It signifies “physical” presence in a place and
“actual” stay thereat
 In Garcia-Quiazon v Belen, the SC upheld the
jurisdiction of RTC Las Pinas City
where decedent

actually resided even

if the death certificate
stated
JURISDICTION OVER QUESTIONS
OF TITLE TO PROPERTY
 For purposes of determining whether a certain
property should be or should not be
included in the
inventory,
the probate court may pass
upon the title thereto
but
such determination is not
conclusive and is subject
to a final
decision in a
separate action regarding ownership
 Exceptions: (1) interested parties are the heirs
who have all appeared in the proceedings;
SETTLEMENT OF CONJUGAL
PROPERTY (SEC 2, RULE 73)
 A creditor cannot sue the surviving spouse of
a decedent chargeable against the conjugal
property
 Remedy: File a claim in the settlement of
estate of the decedent
 Rationale: upon death of one
spouse, powers of
administration
of surviving spouse ceases and
is passed to the
administrator
appointed by the probate court
 If both spouses died, the conjugal partnership
PROCESSES (SEC 3, RULE 73)
 Probate court:
 May issue warrants and processes
to compel attendance of
witnesses

 May issue warrant for the apprehension

and imprisonment of such
person until he
performs such order or judgment,
or is released
PRESUMPTION OF DEATH
 No independent action for declaration of
presumptive death
 Except: declaration of presumptive death for
purposes of remarriage under the Family Code
 Absence of 10 years & Absence of 5 years
after 75 y/o – absentee’s succession can be
opened
 Absence of 4 years – (1) on board a sea
vessel lost during sea
voyage;
(2) taken part in war & has been missing;
(3) in danger of death &
existence is
PRESUMPTION OF DEATH
 A person who was erroneously declared
presumptively dead may recover one’s
property in the condition it may be found and
the price of the property that may have
alienated or property acquired with such
sums, but the fruits and rents may not be
recovered. (Art. 392, NCC)
SUMMARY SETTLEMENT OF
ESTATE OF SMALL VALUE
a judicial proceeding wherein, without the
appointment of executor or administrator, and
without delay, the competent court summarily
proceeds:
 to value the estate of the decedent;
 ascertain his debts and order payment
thereof;
 allow his will if any;
 declare his heirs, devisee and legatees; and
 distribute his net estate among his known
heirs, devisees, and legatees,
who shall thereupon be entitled to receive and
enter into the possession of the parts of the
SUMMARY SETTLEMENT OF
ESTATES OF SMALL VALUE
 Sec 2, Rule 74 of the Rules of Court
 May be chosen by the heirs regardless of
whether the decedent died testate or
intestate
 Requisites:
 Gross value of the estate does not exceed
Php10K
 Bond duly filed in the amount fixed by the
court
 Proper Hearing
 It is within the exclusive jurisdiction of first
level courts (MTC, MTCC, MCTC, MeTC)
PROCESS

Hearing

Fil Pub Appointm

ent of
administr
Apporti
on/

e lica ator &

executor
Distrib
ute
Probate a

tion will if remain

pe &
there be
any
Determin
ing
estate

titi
e the
heirs among
Not Order the
payment
those

on
of debts if entitle
ice there be
any
d
EXTRAJUDICIAL VS SUMMARY
SETTLEMENT
EXTRAJUDICIAL
SETTLEMENT
Does not require court
intervention
Value of estate is immaterial
Only in intestate succession
Proper only when no
outstanding debts at time of
settlement
Only at the instance and by
agreement of all heirs
Bond is equal to the value of
the personal property
SUMMARY SETTLEMENT
Involves judicial adjudication
although summarily
Applies only where gross
estate does not exceed
Php10,000
Allowed both in intestate and
testate
Available even if there are
debts
May be instituted by any
interested party
Bond determined by the
court
TESTATE PROCEEDINGS
PROBATE OF WILL
 Mandatory
 Do not prescribe and cannot be barred by
laches because it is against
public policy
 It is the duty of the custodian of the
will to deliver it to court –
w/in 20 days after knowledge of testator’s
death
 A decedent’s heirs are precluded from
disregarding the will and partitioning the
estate as they please. They can only validly
partition the estate after the will has been
probated.
THE PROBATE COURT
 Limited jurisdiction – concerned with the
administration, liquidation, and distribution of
the estate either summarily or through the
process of administration.
 Approve the sale of properties of a deceased before
final adjudication
 Determine who are the heirs of the decedent
 Recognition of a natural child
 Status of a woman claiming to be the legal wife of
the decedent
 Legality of disinheritance of an heir
 Pass upon the validity of a waiver of a heir
 Includes also matters incidental to or collateral to the
settlement and distribution of the estate
PROBATE PROCEEDINGS
 In rem – binds the whole world by virtue of the
publication of the petition
 Once a will is allowed, res judicata applies,
meaning, the Court conclusively found the
following:
 Testator was of sound mind at the time he
executed the will
 Was not acting under duress, menace, fraud,
or undue influence
 Will was signed by him in the presence
of the required witnesses
 The will is genuine and not a forgery
PROBATE PROCEEDINGS
 Court ‘s authority is limited only to the
extrinsic validity of the will
 It is only after the will is admitted that the
court will look into its intrinsic validity
 EXCEPTION: if the will is intrinsically valid on its
face
 Nuguid v Nuguid, GR No L-23455, June 23, 1966,17
SCRA 449
PROBATE OF WILL
 Who may file the petition?
 A: executor, devisee, legatee, any other
person interested in the estate (heir or
creditor), and the testator himself
 The proceeding shall prosper regardless
whether the petitioner has the will in his
possession, is lost, or destroyed.
 When will the probate happen?
 A: GR, after the testator’s death.
Exception: Testator, himself, petitions the
court for the probate of his will
CONTENTS OF PETITION (SEC 2,
RULE 76)
 Jurisdictional facts:
 Testator’s death
 Testator’s residence at the time of death
 The place where the testator left estate; if he is a
non-resident
 That the will has been delivered to the court and is
in possession thereof, unless not yet delivered;
and
 The value of the estate to determine the court
with jurisdiction.
 Names, ages & residences of the heirs,
legatees, devisees
 Name of the person whom letters are prayed

ACQUISITION OF JURISDICTION
 Attachment of a copy of the will to the
petition; or
 Delivery of the will to the court
 If the will is delivered to the court , it may,
motu propio, take steps to fix time and place for
proving the will and issue corresponding
notices
 Fix the time and place for proving the will when all
concerned may appear to contest its allowance
 Cause the notice of the time and place to be
published in for 3 consecutive weeks in a
newspaper of general circulation in the province
 Notify known heirs, legatees and devisees who are
WHAT TO PROVE DURING
COMPLIANCE HEARING?
 Evidence that the order of the court fixing the
time and place for proving the will has been
published for 3 successive weeks prior to the
time appointed
 Evidence that notice of such hearing has been
served upon the known heirs, legatees,
devisees at least 20 days prior & the executor
at least 10 days prior
 If the petitioner is not the executor, evidence
that notice has been served upon the
executor if place of residence is known
 Testimonies of the subscribing witnesses in
support of the will.
LOST OR DESTROYED WILL –
HOW PROBATED? (Sec 6 Rule76)
 A lost or destroyed will may be proved by a
photocopy of the same coupled with the
testimony of the subscribing witnesses
 For holographic will, the original must be
presented because the will is best and only
evidence to prove the handwriting of the
testator
 Lost or destroyed will may only be proved upon
the concurrence of the following:
 Execution and validity are established
 It must have existed at the time of the testator’s
death or shown to have been fraudulently or
accidentally destroyed during the lifetime of testator
without his knowledge
TESTIMONY OF WITNESSES NOT
THE SUBSCRIBING WITNESSES
 The court may examine witnesses other than
the subscribing witnesses in the following
instances:
 The subscribing witness is insane;
 The subscribing witness is dead; or
 None of the subscribing witness reside in the
Philippines
 Deposition can be resorted to
CONTESTING A WILL (Sec 10 & 11
Rule76)
 The opposition in the probate or allowance of
a will must be in written form
 Serve copy of the opposition to the petitioner
& other interested parties
 The oppositor must have an interest in the
estate of the deceased being settled
 If a notarized will is contested, all the
subscribing witnesses and the notary public
who notarized the will must testify in the
probate proceedings
 If a holographic will is contested, at least 3
witnesses must testify to the testator’s
handwriting and signature
GROUNDS FOR DISALLOWING A
WILL (Sec 9 Rule 76)
 If not executed and attested as required by
law;
 If the testator was insane, or otherwise
mentally incapable to make a will, at the time
of its execution;
 If it was executed under duress, or the
influence of fear, or threats;
 If it was procured by undue and improper
pressure and influence, on the part of the
beneficiary, or of some other person for his
benefit;
 If the signature of the testator was procured
by fraud or trick and he did not intend that the
FOREIGN WILL PROBATED
ABROAD
 The foreign will must still go to Philippine
courts so that it can be proved that the will is
valid.
 There are some common situations where this
applies:
 If the deceased was a foreigner regarding
Philippine property/stock
 If the deceased was a Filipino/dual citizen who
created a will abroad regarding Philippine
property/stock
 Administrative bodies will not transfer
Philippine real property or stocks without the
Philippine court’s decision, so probate
becomes a necessary step before transferring
FOREIGN WILL PROBATED IN THE
PHILIPPINES
 Can a foreign will be probated in the
Philippines without probate abroad?
 Yes. It is not a requirement that a foreign will
be probated abroad before being probated in
the Philippines. [G.R. 169144, Jan 2011]
 So, say you have an Filipino aunt who died abroad
and who left you property in a will.
 This will can be probated in the Philippines without
probate abroad.
 This will validate the will and allow transfer of
property.
 LETTERS TESTAMENTARY &
LETTERS OF ADMNISTRATION
LETTERS TESTAMENTARY
 The authority issued to the EXECUTOR named
in the will to manage and administer the
estate
 When issued:
 The executor is competent
 Accepts the trust; and
 Gives the required bond.
 Qualifications of an Executor (Sec 1, Rule 78)
 Not a minor; at least 18 years old
 A resident of the Philippines
 The person is fit
 Issued after the allowance/admission of the
LETTERS OF ADMINISTRATION
 The authority issued by the court to a
competent person to administer the estate of
the deceased if the executor named in the will
refuses to accept the office, is incompetent or
fails to give bond.
 The authority issued by the court to a
competent person to administer the estate of
the deceased who died intestate or with a
void will.
 To whom given:
 The surviving spouse or next of kin or a person
requested by the surviving spouse or next of kin
 Principal creditor

OPPOSITION TO THE ISSUANCE
OF THE LETTERS (Sec 1 Rule 79)
 Any person interested in a will may state in
writing the grounds why letters testamentary
should not issue to the person named therein
as executors, or any of them, and the court
after hearing upon notice, shall pass upon the
sufficiency of such grounds.
 A petition may, at the time, be filed for letters
of administration with the will annexed.
PETITION FOR LETTERS OF
ADMINISTRATION (Sec 2 Rule 79)
 Filed by any interested person
 Content of petition:
 Jurisidictional facts
 Names, ages and residences of the heirs of
the decedent
 Names and residences of the creditor of the
decedent
 Probable value and character of the property
of the estate
 Name of the person whom letters of
administration are prayed
PUBLICATION & NOTICE (Sec 3
Rule 79)
 Jurisdictional – meaning the absence of which
makes the court orders affecting other
persons, subsequent to the petition void and
subject to annulment
 Without the requisite publication & notice, the
court does not acquire jurisdiction over the
subject matter.
 The court shall fix the time and place of
hearing
 The court shall cause notice of the time &
place of hearing to be given to:
 Decedent’s known heirs
 Decedent’s known creditor
HEARING (Sec 5 Rule 79)
 Prove notice has been given – heirs, creditors
& other persons with interest in the estate
 Court shall hear the proofs of parties in
support of their respective allegations
 If the court is satisfied that decedent left no
will or there is no competent and willing
executor, it shall order the issuance of letters
of administration to the party best entitled
thereto
SPECIAL ADMINISTRATOR (Sec 1
Rule 80)
 An officer of the court who is subject to its
control and supervision
 The appointment is justified when there is
delay in granting letters testamentary or of
administration
 The principal object of the appointment of a
temporary administrator is to preserve the
estate until it can pass to the hands of a
person fully authorized to administer it in
behalf of creditors and heirs
 The appointment of a special administrator is
within the court’s discretion
POWERS & DUTIES OF SPECIAL
ADMINISTRATOR
 Possession and charge of decedent’s estate
 Preservation of decedent’s estate
 Commencement and maintenance of suits
 Sale only of perishable and other property in
accordance with the order of the court
 Payment of decedent’s debts if ordered by the
court
 Prepare & return a true inventory of the
decedent’s estate that may cone into his
possession or knowledge
 Render an accounting of the decedent’s estate
he received
