RULE 84

General Powers
and Duties of
Executors and
Administrators
Sec. 1, Rule 84

• Contemplates that the partner, during his

lifetime, was a member of a partnership;
Powers of Executor/Administrator (Secs. 1-
3)

1. to have access to, and examine and take copies of books and papers relating to the
partnership business;
2. to examine and make invoices of the property belonging to the partnership;
3. to maintain in tenantable repair the houses and other structures and fences belonging
to the estate, and deliver the same in such repair to the heirs or devisees when directed
by the court;
4. to make improvements, with leave of court, except for necessary repairs;
5. to possess and manage the estate when necessary:
• for the payment of debts;
• for the payment of expenses for administration.
Restrictions on the Power of
Executor/Administrator (Secs. 1-3)

1. Can’t acquire property under

administration;
2. Can’t borrow money without authority
from the court;
3. Can’t speculate with fund under
administration;
RULE 85
Accountability and
Compensation of
Executors and
Administrators
• E/A is accountable for the whole estate of the decedent
that has come to his possession at the value of the
appraisement
• E/A not accountable for property that, although it
came to his knowledge, does not come to his
possession (except if the E/A gains knowledge
respecting the deceased’s estate, he may be held
accountable if he fails to recover possession through
his fault or negligence
• E/A should not profit from the increase of the estate or
be liable for any decrease in the estate
• E/A should not be held accountable if
debt remains uncollected without his
fault
• if E/A occupies real property subject of
admin., he must account for it
Sec. 5: E/A accountable if he neglects or
delays to raise or pay money

When accountable:
1. If E/A:
• neglects or unreasonably delays to raise money, or
• neglects to pay over the money he has in his hands; and
2. the value of the estate is lessened, or unnecessary costs
or interest accrues, or interested persons suffer loss
Expenses of Administration

those necessary for the management of the property, for protecting it

against destruction and deterioration, and possibly for the production of
fruits
Compensation if there is no provision in the will:
1. Php 4/day
2. Commission
3. Greater sum is allowed if:
• estate is large
• settlement is attended with difficulty
• settlement has required high degree of capacity
• Sec. 8, E/A must render an account within one year from
the time he received LT or LA, or in such instances where
the court orders an accounting to be done
RULE 86

Claims Against the

Estate
Immediately after granting LT or LA, the court shall issue
notice:

1. requiring all persons having money claims against the

estate; and

2. to file them in the office of the Clerk of Court

• “money claims”: claims for money, debt, or interest
thereon upon a liability contracted by the decedent prior
to his death
• claim need not be in any particular form. sufficient if it
states the character and amount of the claim
• claims arising after decedent’s death cannot be presented
except for:

1. funeral expenses; and

2. expenses of last sickness of the decedent.

• claims for taxes due and assessed need not be presented
in the form of a claim.
• heirs, even after distribution, are liable for taxes
Sec. 2: Time within which claims shall be
filed

Statute of Non-Claims: period fixed by the

rule for the filing of the claims against the
estate
General Rule: within the time fixed in the
notice which shall not be more than 12
months nor less than 6 months after the date
of first publication.
Exception: belated claims
• on application of a creditor, at any time before an order of
distribution is entered.
• filed within a time not exceeding 1 month from the order
allowing belated claims
NOTE: Statute of Non Claims supersedes Statute of
Limitations

BUT, both statutes must concur in order for a creditor to

collect
Claims which should be filed under the Statute of
Non-Claims

1. Money claims, debts incurred by the deceased arising contract:

a. express or implied;
b. due or not due;
c. absolute or contingent
2. Claims for funeral expenses
3. Expenses from last illness of the decedent
4. Judgment for money against decedent.
• Absolute Claim: such a claim as, if contested between
living persons, would be proper subject of immediate
legal action and would supply a basis of a judgment for a
sum certain
• Contingent Claim: conditional claim that is subject to the
happening of a future uncertain event.

- Has reference to the uncertainty of liability and not to

uncertainty of collection
Sec. 7: Mortgage Debt Due from Estate

• Creditor holding a claim secured by a mortgage or other collateral

security
• Alternative remedies:
1. abandon/waive security and prosecute claim against the estate and share
in the general distribution of the assets of the estate.
2. Foreclose mortgage or realize upon his security by action in court
making the executor or administrator a party defendant. If there is
judgment for deficiency, he may file a claim against the estate within the
statute of non-claims
3. rely solely on his mortgage and foreclose anytime within the statute of
limitations
Sec. 8: Claim of Executor/Administrator
Sec. 9: How to File a Claim

1. Deliver the claim with the necessary vouchers to the clerk

of court;
2. Serve a copy thereof on the executor or administrator;
3. If claim is due, it must be supported by an affidavit stating
the amount due and the fact that there has been no offsets;
4. If the claim is not due or contingent, it must be
accompanied by an affidavit stating the particulars thereof.
Sec. 10: Answer of E/A
Sec. 11: Disposition of Admitted Claim

• Within 15 days after service of copy to

them
• E/A may file a counterclaim
• Heir, legatee, or devisee may oppose the
claim admitted by the E/A
Sec. 12: Trial
Sec. 13: Judgment Appealable

• Court may refer the claim to a Commissioner

• Judgment against the E/A shall not create any
lien upon the property of the estate or does not
constitute a specific lien which may be
registered on such property
• Judgment is appealable
RULE 87

ACTIONS BY AND
AGAINST THE
EXECUTORS AND
ADMINISTRATORS
Sec. 1

• No money claim (whether debt or interest

thereon) shall be commenced against the E/A
• But, recovery of real or personal property, or
an interest therein, from the estate, or to
enforce lien thereon, and actions to recover
damages, may be commenced against him.
Actions which may be commenced against the
E/A

1. Recovery of real/personal property or an

interest therein;
2. Enforcement of a lien on real/personal
property;
3. Recovery of damages for an injury to
person or property, whether real or
personal.
Sec. 1, R87 v Sec. 5, R86

1. R87: Actions that may be commenced directly

against the E/A
R86: Actions commenced against the estate
2. R87: Recovery of real/personal property or an
interest therein;
Enforcement of a lien on real/personal property;
Recovery of damages for an injury to person or
property, whether real or personal.
R86: Money claims, debts incurred by the
deceased during his lifetime arising from
contract;
claims for funeral expenses or for the last
illness of the decedent;
judgement for money against decedent
Sec. 3: Heir may not sue until share assigned

• Before distribution is made or before any residue is

known, the heirs and devisees have no cause of
action against the administrator for recovery of
property left by the deceased.
• Gen. Rule: Heirs have no legal standing to sue for
recovery of property of the estate during the
pendency of administration proceedings.
Exceptions:
1. Pending the filing of administration proceedings;
2. Admin. proceedings have already been commenced,
but an administrator has not yet been appointed;
3. The E/A is unwilling or refuses to bring suit; and
4. The E/A is alleged to have participated in the act
complained of, and he is made a party defendant.
• An heir is not entirely precluded from
suing the E/A. However, the suit may
only prosper if:
1. there is an order of the court assigning
the property to such heir; or
2. the time allowed for the payment of a
debt has expired.
Sec. 4: E/A may compound with debtor

• E/A may compromise with the

decedent’s debtor
Sec. 5: Mortgage due estate may be
foreclosed

• there is no need for a special authority

from the court for the E/A to bring an
action for foreclosure on behalf of the
estate
Sec. 6: Proceedings when property concealed,
embezzled, or fraudulently conveyed

• Interested party must bring fact of

concealment, embezzlement, or
fraudulent conveyance to the court’s
attention
• person suspected shall be ordered to
appear in court
Two situations:

1. when E/A, heir, legatee, creditor, or other interested party

complains to the court that a person is suspected of having
C, E, or C away any of the money, goods, or chattels of the
deceased; or
2. such person has in his possession or has knowledge of any
deed, conveyance, bond, contract, or other writing, which
contains evidence of or tends or discloses a right, title,
interest, or claim of the deceased.
• Purpose of the proceeding is to elicit evidence.
• Court is not authorized to enforce delivery of possession
of the things involved.
• Ordinary action is the recourse to obtain possession.
Sec. 7: Person entrusted with the estate
compelled to render account

• refers to person entrusted by the E/A with

any part of the estate
• such person must render an account
• may be punished for contempt if he does
not render an account
Sec. 8: Embezzlement before letters issued

• responsible person shall be liable for an

action in favor of the E/A of the estate
for double the value of the property sold,
embezzled, or alienated, or to be
recovered for the benefit of the estate.
Sec. 9: Property Fraudulently conveyed by
the deceased

• E/A may file an action for the recovery of the property, right, interest, debts, or credit for
the benefit of the creditors when the following circumstances concur:
1. deceased in his lifetime has converted real/personal, right or interest therein, or debt or
credit;
2. Such conveyance was:
• made with intent to defraud creditors;
• made to avoid any right, debt, or duty or had so conveyed such property, right, interest,
debt, or creditors; and
• the subject of the attempted conveyance would be liable to attachment by any of them in
his lifetime; and
3. there is deficiency in assets to cover debts and expenses of administration.
Sec. 10: When creditor may bring action.
Lien for costs

• Creditor may bring action in the name of the E/A for the recovery of
property fraudulently conveyed by the deceased provided the following are
present:
1. deficiency of assets;
2. deceased in his lifetime had made or attempted to convey with intent to
defraud creditors, or to avoid any right, debt, or duty
3. E/A has not commenced the action; and
4. creditor has filed a bond executed to the E/A in an amount approved by
the court, conditioned to indemnify the E/A against the costs and
expenses incurred in relation to such action.
• if creditor is successful, he shall have a lien upon any
judgment recovered by him for reasonable costs and
expenses
• if the conveyance was in favor of E/A, then action shall
be in the name of all creditors. (court’s permission and
filing of the bond are dispensed with)
RULE 88
PAYMENT OF
DEBTS OF THE
ESTATE
• Writ of execution is not the proper
procedure to satisfy debts
• court must order the sale or mortgage of
properties of decedent
Requisites before E/A may pay money
claims:

1. Hearing
2. amount of claims ascertained
3. sufficient assets to pay the debt
Order of Preference for the payment of debts
of the estate:

1. from the portion or property designated

in the will;
2. from the personal property;
3. from the real property.
• in case of deficiency, it shall be satisfied from the
contribution of the devisees, legatees, or heirs who have
been in possession of portions of the estate before the
debts and expenses have been settled and paid.
• if decedent is insolvent , preference of credit must be
followed
Instances when realty can be charged first

1. personal property is insufficient;

2. sale of personal property shall be detrimental to the participants of the
estate;
3. sale of personal property may injure the business or interests of those
interested in the estate;
4. testator has not made sufficient provisions for the payment of such debts,
expenses, and legacies;
5. decedent, during his lifetime, was under contract to deed real property to
beneficiary;
6. decedent held property in trust for another.
Requisites for exception to apply:

1. E/A makes an application with the

court;
2. written notice given to interested
persons;
3. hearing by the court
Sec. 4: Estate to be retained to meet
contingent claims

• Requisites:
1. contingent claim is duly filed;
2. claim has become absolute; and
3. the court is satisfied that the claim is
valid
Sec. 5: How contingent claim becoming
absolute in 2 years allowed and paid

1. Paid in the same manner as the other

absolute claims;
2. If contingent claims mature after the
expiration of 2 years, the creditors may sue
the distributees, who are liable in proportion
to the shares in the estate respectively
received by them
Points to consider:

• if estate is insolvent, concurrence and

preference of credit applies
• if decedent was a nonresident at the time of his
death, and he died insolvent, estate in the
Philippines shall be so disposed of that his
creditors in and outside the Philippines may
receive an equal share, in proportion to their
respective credits