Dear PAO,

My husband got a life insurance policy wherein he made as beneficiary our only 3-year-old child
without my knowledge. Unfortunately, he already passed away last year. I immediately went to the
insurance officer to file a claim upon learning this life insurance plan. However, I could not get the
amount for my son because they said that I have to secure first a guardianship bond. Where do I get
this bond? Do I need to secure this considering that I am the biological parent?
Bea

Dear Bea,
The Family Code provides that pursuant to the natural right and duty of parents over the person and
property of their unemancipated children, parental authority and responsibility shall include the
caring for and rearing them for civic consciousness and efficiency and the development of their
moral, mental and physical character and well-being (Article 209, Family Code). The father and the
mother shall jointly exercise parental authority over the persons of their common children (Article
211, Family Code). They shall also exercise joint legal guardianship over the property of their
unemancipated common child without necessity of a court appointment (Article 225, Family Code).

By the death of your husband, your child, being the beneficiary of the formers life insurance, has
gained property in the form of proceeds from a life insurance policy. However, since he is a minor,
your child needs your assistance or that of a guardian to claim the said proceeds. Although, as
stated above, parents exercise legal guardianship over the properties of their minor children, you
cannot claim the same in behalf of your child if the life insurance proceeds exceeds P50,000 without
posting a guardianship bond in accordance with Article 225 of the Family Code which provides that
where the market value of the property or the annual income of the child exceeds P50,000, the
parent concerned shall be required to furnish a bond in such amount as the court may determine,
but not less than ten per centum (10%) of the value of property or annual income, to guarantee the
performance of the obligations prescribed for general guardian.

Before you can post a guardianship bond, you must first institute a verified petition for the approval
of the bond in the proper court of the place where your child resides, or, if your child resides in a
foreign country, in the proper court of the place where the property or any part thereof is situated
(Article 225, Family Code). The posting of bond is conditioned as follows: (1) that you make and
return to the court, within three months after the issuance of your letters of guardianship, a true and
complete inventory of all the property, real or personal of your child, which shall come to your
possession or knowledge or to the possession or knowledge of any person in his behalf; (2) to
faithfully execute the duties of the trust, to manage and dispose of the property accordingly for the
best interests of your child, and to provide for his proper care, custody and education; (3) to render a
true and just account of all the properties of your child in your hands, and of all proceeds or interest
derived therefrom xxx; (4) to perform all orders of court and such other duties as may be required by
law (Section 13, A.M. No. 03-02-05-SC, RE: Proposed Rule on Guardianship of Minors).

Please be reminded that the above legal opinion is solely based on our appreciation of the problem
that you have stated. The opinion may vary when other facts are stated or elaborated.

Editors note: Dear PAO is a daily column of the Public Attorneys Office. Questions for Chief Acosta
may be sent to dearpao@manilatimes.net

GUIDELINES ON GUARDIANSHIP PROCEEDINGS FOR MINORS

A. WHO IS A MINOR?

A minor is any person under 18 years of age.

Minors do not have the capacity to transact or enter into contracts in their

own behalf.

B. WHEN DOES SUN LIFE REQUIRE GUARDIANSHIP PROCEEDINGS FOR

MINORS?

a. When the beneficiary who will receive the proceeds under a life insurance

policy or pre-need plan is a minor; or

b. When ownership has transferred to a minor because the original owner of

the life insurance policy or pre-need plan has died.

In both situations, the guardian of the minor beneficiary or minor owner would

be the one to transact with the Company.

C. Who is a Guardian?

Guardians may either be created by law or appointed by the Court.

1. Legal Guardian. Legal guardians are those who are such by provision of

law without need of judicial (i.e. court) appointment.

Parents under the Family Code of the Philippines have the natural right and

duty over the person and property of their minor children pursuant to their

parental authority.
 Parental authority and responsibility may not be removed, renounced or

transferred except in cases authorized by law.

Thus, if the minor has a parent or parents living, such parent/s is/are the

legal guardian/s over the minors person and property without need of

judicial (court) appointment.

2. Judicial Guardian. A judicial guardian is appointed by the court to

represent the minor (in default of parents) in all of the latters civil acts

and transactions.

D. In case the minor has a qualified PARENT, what does the parent need to

submit to Sun Life? The Parent/Legal Guardian needs to submit

A Guardians Bond if the market value of the property of the minor

exceeds Fifty Thousand Pesos

(Ps 50,000.00) per Article 225 of the Family Code.

This Guardians Bond is determined by the Court and shall not be less that

Ten Percent (10%) of the market value of the minors property.

There is no need to submit a Guardians Bond if the minors property is worth

Ps 50,000.00 or less or when such requirement is waived by Sun Life.

E. How does a Parent/Legal Guardian apply for a Guardians Bond for a minor

with property worth over Ps 50,000.00?

1. File a Petition in Court for the approval of the Guardians Bond;

2. The Petition is filed:

a. in the place where the minor resides, or

b. if the minor resides in a foreign country, the place where the

property of the minor is situated;

3. The Court shall determine the amount of the Guardians Bond through

a Court Order;
4. Petitioner secures a Guardians Bond from a Non-Life Insurance

Company;

5. Petitioner submits to the Court the Guardians Bond;

6. Court issues an Order or Decision approving the Guardians Bond;

F. In default of qualified parents, who may exercise substitute parental

authority (hence Legal Guardianship) over the minor?

Article 216 of the Family Code mandates that in default of parents or a

judicially appointed guardian, the following shall exercise substitute

parental authority1

in accordance with this order of preference:

1. The surviving grandparent;

2. The oldest sibling, over 21 years old, unless unfit or disqualified;

3. The minors actual custodian, over 21 years old, unless unfit or

disqualified.

G. Who may apply for Judicial Guardianship of a minor (in default of the

Persons exercising substitute parental authority over the person of minors with
properties worth

over P50,000.00 are also required to submit a Court-approved Guardians Bond.

above listed persons)?

In default of qualified parents and the persons enumerated above in order of

preference, ANY of the following may apply as Guardian:

1. Relative/s;

2. Friend/s; or

3. Other person/s on behalf of the minor.

H. How does one apply for Judicial Guardianship of minors?

1. File a Petition for General Guardianship in Court;

The Petition is filed:

a. in the place where the minor/incompetent resides, or

b. if the minor resides in a foreign country, the place where the

property of the minor is situated;

2. The Court shall fix the time and place for hearing the Petition and shall

cause the other parties to be notified, including the minor subject of the

petition;

3. Any interested person may file an Opposition to the Petition and state in

such Opposition his/her grounds for the same;

4. The Court shall hear the evidence of the parties and issue a Decision/Order

appointing the minors Guardian;

5. Before the Court issues letters of guardianship, the Judicial Guardian must

secure a Guardians Bond from a Non-Life Insurance Company;

6. Judicial Guardian submits to the Court the Guardians Bond;

7. Court issues an Order or Decision approving the Guardians Bond;

8. Court issues Letters of Guardianship.

IMPORTANT NOTE: Sun Life has issued these guidelines merely as a general tool for
the

assistance of its claimants. These guidelines do not and are not meant to serve as
legal

advice to claimants. Claimants are advised and encouraged to seek legal advice of
their

own legal counsel.

Rule 94: Bonds of Guardians

RULE 94 : BONDS OF GUARDIANS

Sec. 1. Bond to be given before issuance of letters; Amount; Conditions. Before a guardian
appointed enters upon the execution of his trust, or letters of guardianship issue, he shall give a
bond, in such sum as the court directs, conditioned as follows:
(a) To make and return to the court, within three (3) months, a true and complete inventory of all the
estate, real and personal, of his ward which shall come to his possession or knowledge or to the
possession or knowledge of any other person for him;

(b) To faithfully execute the duties of his trust, to manage and dispose of the estate according to
these rules for the best interests of the ward, and to provide for the proper care, custody, and
education of the ward;

(c) To render a true and just account of all the estate of the ward in his hands, and of all proceeds or
interest derived therefrom, and of the management and disposition of the same, at the time
designated by these rules and such other times as the court directs; and at the expiration of his trust
to settle his accounts with the court and deliver and pay over all the estate, effects, and moneys
remaining in his hands, or due from him on such settlement, to the person lawfully entitled thereto;

(d) To perform all orders of the court by him to be performed.

Sec. 2. When new bond may be required and old sureties discharged. Whenever it is deemed
necessary, the court may require a new bond to be given by the guardian, and may discharge the
sureties on the old bond from further liability, after due notice to interested persons, when no injury
can result therefrom to those interested in the estate.

Sec. 3. Bonds to be filed; Actions thereon. Every bond given by a guardian shall be filed in the
office of the clerk of the court, and, in case of the breach of a condition thereof, may be prosecuted in
the same proceeding or in a separate action for the use and benefit of the ward or of any other person
legally interested in the estate.

Monday, March 06, 2006

Laban o Bawi : Parents obligations in handling their childrens property
You probably saw more than a week ago that Channel 7 news broadcast about two grade
schoolers who won a million pesos each in the very popular Laban o Bawi portion of the
noontime show Eat Bulaga.

In the news broadcast, the boy, from his young mind, enumerated all the things that he planned to
do with his windfall. Because of his young age, it is most probably his parents who will make
decisions on the disposition of that money.

The Family Code, in Articles 225 up to 227, enumerates the legal obligations of parents in
handling the property of their children.
Art. 225. The father and the mother shall jointly exercise legal guardianship over the property of the
unemancipated common child without the necessity of a court appointment. In case of
disagreement, the father's decision shall prevail, unless there is a judicial order to the contrary.

Where the market value of the property or the annual income of the child exceeds P50,000,
the parent concerned shall be required to furnish a bond in such amount as the court may
determine, but not less than ten per centum (10%) of the value of the property or annual
income, to guarantee the performance of the obligations prescribed for general
guardians. [emphasis by boldfacing supplied ]

A verified petition for approval of the bond shall be filed in the proper court of the place where the
child resides, or, if the child resides in a foreign country, in the proper court of the place where the
property or any part thereof is situated.

The petition shall be docketed as a summary special proceeding in which all incidents and issues
regarding the performance of the obligations referred to in the second paragraph of this Article shall
be heard and resolved.

The ordinary rules on guardianship shall be merely suppletory except when the child is under
substitute parental authority, or the guardian is a stranger, or a parent has remarried, in which case
the ordinary rules on guardianship shall apply.
Art. 226. The property of the unemancipated child earned or acquired with his work or
industry or by onerous or gratuitous title shall belong to the child in ownership and shall be
devoted exclusively to the latter's support and education, unless the title or transfer provides
otherwise.

The right of the parents over the fruits and income of the child's property shall be limited
primarily to the child's support and secondarily to the collective daily needs of the family.
[emphasis by boldfacing supplied ]

Art. 227. If the parents entrust the management or administration of any of their properties to an
unemancipated child, the net proceeds of such property shall belong to the owner. The child shall be
given a reasonable monthly allowance in an amount not less than that which the owner would have
paid if the administrator were a stranger, unless the owner, grants the entire proceeds to the child. In
any case, the proceeds thus given in whole or in part shall not be charged to the child's legitime.

Posted by Atty. Gerry T. Galacio at Monday, March 06, 2006

2 comments :

Anonymous said...
 In filing a verified petition for approval of a guardian's bond do we need to implead anybody?
Parents of the deceased father? Do you have any forms that I may use for filing the same in
court? I am the mother of two minors whose father recently died and I was told that I need a
guardianship bond to get the measly insurance proceeds of my deceased husband but the
amount exceeded P 50, 000.00?

November 21, 2008 9:52 AM

Atty. Gerry T. Galacio said...

Letters of guardianship over your children and their property must be obtained from the
court. You need to retain the services of a lawyer in order to file this petition in court.

If you are from Metro Manila, you can try to ask for free legal help from the OLA (Office of
Legal Aid) of the UP College of Law in Diliman, Quezon City. You can also try to ask for free
help from the PAO (Public Attorneys Office) or the IBP (Integrated Bar of the Philippines)
chapter in your town or city. These offices usually help only indigents or those below a
certain monthly income BUT you can say that you do not have enough financial means to
retain the services of a private lawyer.

This provision of the Family Code is meant for the protection of the children.

November 24, 2008 11:08 AM

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