RULE 91.

ESCHEATS
Escheat is a proceeding whereby the real and
personal property of a deceased person become the
property of the state upon his death without leaving
any will or legal heirs.

It is a special proceeding which should be

commenced by petition.

Refers to the judicial process in which the state by

virtue of its sovereignty steps in and claims
abandoned, left vacant or unclaimed property
without an interested person having legal claim
thereof.
Section 1, Rule 91. WHEN AND BY WHOM PETITION
FILED
When to file the petition?
 May be filed when a person dies intestate, seized
of real or personal property in the Philippines
leaving no heir or person entitled by law.

Who and where to file the petition?

Solicitor General or his representative in behalf of
the Republic of the Philippines may file a petition in
the Regional Trial Court of the province where the
deceased last resided or in which he had estate.
Requisites for the filing of petition:

That a person died intestate;

That he left no heirs or person by law

entitled to the same; and

That the deceased left properties

Three instances of Escheats:

 When a person dies intestate, seized of real or

personal property in the Philippines and leaving no
heir or person by law entitled to the same;

Reversion or escheat of lands which were sold to

aliens disqualified from acquiring lands under the
Constitution; and

Unclaimed balances or dormant bank accounts

Unclaimed Balances Act or Act 3936

Shall include credits or deposits of money, bullion,

security or other evidence of indebtedness of any kind,
and interest thereon with banks, buildings and loan
associations, and trust corporations, as hereinafter
defined, in favor of any person known to be dead or who
has not made further deposits or withdrawals during the
preceding ten years or more.

Such unclaimed balances, together with the increase and

proceeds thereof, shall be deposited with the Treasurer
of the Philippines to the credit of the Government of the
Republic of the Philippines to be used as the National
Assembly may direct.
Extent of state’s inquiry into dormant accounts

In the case of dormant accounts, the state

inquires into the status, custody and ownership of
the unclaimed balance to determine whether the
inactivity was brought about by the fact that the
depositor’s:

 Death
 Absence
 Abandonment
Escheat of dormant accounts and remedies of claimants

 If after the proceedings the property remains

without a lawful owner interested to claim it, the
property shall be reverted to the state “to forestall an
open invitation to self-service by the first comers”.

If interested parties have come forward and lain

claim to the property, the courts shall determine
whether the credit or deposit should pass to the
claimants or be forfeited in favor of the state.
Sec. 2. Act 3936
Within the month of January of every odd year, all banks,
building and loan associations, and trust corporations shall
forward to the Treasurer of the Philippines a statement, under
oath, of their respective managing officers, of all credits and
deposits held by them in favor of persons known to be dead, or
who have not made further deposits or withdrawals during the
preceding ten years or more, arranged in alphabetical order
according to the names of creditors and depositors
A copy of the above sworn statement shall be posted in a
conspicuous place in the premises of the bank, building and
loan association, or trust corporation concerned for at least
sixty days from the date of filing thereof: Provided, That
immediately before filing the above sworn statement, the
bank, building and loan association, and trust corporation shall
communicate with the person in whose favor the unclaimed
balance stands at his last known place of residence or post
office address.
Section 2, Rule 91. Order of Hearing

If the petition for escheat is sufficient in form and

substance, the court shall issue an order fixing the
date and place of hearing thereof which shall be not
more than six (6) months after the entry of the order
and directing that a copy of the order be published
before the hearing at least once a week for six (6)
successive weeks in a newspaper of general
circulation in the province.
Section 3. Hearing and judgment.
Upon satisfactory proof, the court shall
 Adjudge that the estate of the deceased in the Philippines, after
the payment of just debts and charges, shall escheat; and
Assign the personal estate to the municipality or city where he
last resided in the Philippines, and the real estate to the
municipalities or cities, respectively, in which the same is
situated.
 If the deceased never resided in the Philippines, the whole estate
may be assigned to the respective municipalities or cities where
the same is located for the benefit of public schools, and public
charitable institutions and centers in said municipalities or cities.
The court, at the instance of an interested party, or on its own
motion, may order the establishment of a permanent trust, so that
the only income from the property shall be used.
Section 4, Rule 91. When and by whom claim to estate
filed.

Period within which a claimant must file his claim?

Claimant to an escheated property must file his claim

within five (5) years from the date of such judgment,
such person shall have possession of and title to the
same, or if sold, the municipality or city shall be
accountable to him for the proceeds after deducting
reasonable charges for the care of the estate; but a claim
not made within the said time shall be forever barred.
Actions for escheat; where instituted?

Shall be governed by Rule 91 of the Rules of

Court except that the action shall be instituted in
the province where the land lies in whole or part.
Guardianship

 Is the power of protective authority given by law and

imposed on an individual who is free and in enjoyment of
his rights over one whose weakness on account of his age
or other infirmity renders him unable to protect himself
and is intended primarily to safeguard the rights and
interests of minors and incompetent persons.

A trust relation of the most sacred character, in which

one person, called a “guardian” acts for another called
the “ward” whom the law regards as incapable of
managing his own affairs.
Guardian

 Is a person in whom the law has entrusted the

custody and control of the person or estate or
both of an infant, insane or other person
incapable of managing his own affairs
Kinds of guardians according to the scope or
extent of powers:

Guardian of the person

Guardian of the property

General guardian
Kinds of guardians according to constitution:

 Legal guardians – without need of court

appointment

Guardians ad litem – appointed by courts of justice

to prosecute or defend a minor, insane or person
declared incompetent in an action in court

Judicial guardians – appointed by court in

pursuance of law
RULE 92. VENUE

Section 1, Rule 92. Where to institute proceedings

Instituted in the RTC of the province where he

reside; or
In case of non resident incompetent, where his
property is located

Note: Provided however, that where the value of the

property of such incompetent exceeds the jurisdiction
of MTC the proceedings shall be instituted in the RTC.
Section 2, Rule 92. Meaning of word “Incompetent”

Persons though of sound mind but by reason of age,

disease, weak mind or other similar causes are
incapable of taking care of themselves and their
property without outside aid .
Who are considered incompetents:

 those persons suffering the penalty of civil

interdiction;
Those who are hospitalized lepers;
Prodigals;
Deaf and dumb who are unable to read and write;
Those who are of unsound mind even though they have
lucid intervals;
Those persons not being of unsound mind but who by
reason of age, disease, weak mind and other similar
causes cannot, without outside aid, take care of
themselves and manage their property thus becoming
easy prey for deceit and exploitation
Rule 93. Appointment of guardians
Section 1, Rule 93. Who may petition for appointment of
guardian for resident
MINOR
- Any relative
- Other person in behalf of a
minor
- The minor himself if fourteen
years of age or over
- The Secretary of the DSWD
and by the Secretary of DOH in
case of an insane minor who
needs to be hospitalized
INCOMPETENT
-Any relative
- A friend
- Other person in behalf of the
resident incompetent who has
no parents or lawful guardian
- The Director of Health in favor
of an insane person who
should be hospitalized or in
favor of an isolated leper
- Anyone interested in the
estate of a non-resident
incompetent
Section 2 Rule 93. Contents of petition
MINOR
- Jurisdictional facts
- Name, age and residence of the
prospective ward
- Ground rendering the appointment
necessary or convenient
- Death of parents of the minor or
termination, deprivation or suspension
of their parental authority
- The remarriage of the minor’s
surviving parent
- Names, ages and residences of relative
within 4th civil degree of minor and of
persons having him in their care and
custody
- Probable value, character and location
of property of the minor
- Name, age and residence of the
person from whom letters of
guardianship are prayed
INCOMPETENT
- Jurisdictional facts
- Incompetency rendering the
appointment necessary or
convenient
- Probable value and character of
his estate
- Names, ages and residences of
relatives of the incompetent and
of the persons having him in their
care
- Name of the person for who,
letters of guardianship are prayed
- Anyone interested in the estate
of a non-resident incompetent
Section 3, Rule 93. Court to set time for hearing; Notice
thereof.

Section 4, Rule 93. Opposition to petition.

Section 5, Rule 93. Hearing and order for letters to issue.

Section 6, Rule 93. When and how guardian for non

resident appointed; Notice.

Section 7, Rule 93. Parents as guardians.

Section 8, Rule 93. Service of judgment.

RULE 94 BONDS OF GUARDIANS
Conditions of the bond of a guardian:
 To file with the court complete inventory of the estate
of ward within 3 months;
 To faithfully execute the duties of his trust to manage
and dispose the estate according to the Rules for the best
interests of the ward and to provide proper use, custody
and education of the ward;
 To render true account of all estate and management of
disposition of the same;
 To settle his accounts with the court and deliver over all
the estate remaining in his hands to person entitled
thereto;
 To perform all orders of the court.
RULE 95 SELLING AND ENCUMBERING PROPERTY OF
WARD

Legal guardian’s limited power of alienation

 It only has the plenary power of administration

of the minor’s property. It does not include the
power of alienation which needs judicial
authority.
 Grounds when guardian authorized to sell or
encumber:

 when the income of the estate is insufficient to

maintain the ward and his family;

When the income of the estate is insufficient to

maintain and educate the ward who is a minor;

When it appears that such sale or encumbrance of

the estate or some part thereof will be for the
benefit of the ward.
Show-cause order to next kin and interested parties

 The court shall make an order directing the next

of kin of the ward and all persons interested in the
estate to appear at a reasonable time and place
specified therein to show cause why the prayer of
the petition should not be granted.
Effectivity of order of sale

The authority to sell shall be in force only within a

period of one year.

Section 5, Rule 95. Court may order investment of

proceeds and direct management of estate.