SETTLEMENT OF ESTATE

OF DECEASED PERSONS
SPECIAL PROCEEDINGS CCDC RUTH BAWAYAN
 Settlement of Estate of Deceased
Persons, Venue and Process (Rule 73)
 Which court has jurisdiction
 (1) If the decedent is an inhabitant of the Philippines at the
time of his death, whether a citizen of an alien, his will shall
be proved, or letters of administration granted, and his
estate settled, in the RTC in the province in which he resides
at the time of his death, and if he is an inhabitant of a
foreign country, the RTC of any province in which he had his
estate.

 (2) Under RA 7691, MTC, MeTC and MCTC where the value
of the estate does not exceed P200,000 (outside Metro
Manila) or where such estate does not exceed P400,000 (in
Metro Manila).
 Venue in judicial settlement of estate

 (1) The residence of the decedent at the time of his

death is determinative of the venue of the
proceeding.

 (2) It is only where the decedent was a nonresident of

the Philippines at the time of his death that venue lies
in any province in which he had estate
Extent of jurisdiction of Probate Court

 (1) The main function of a probate court is to settle

and liquidate the estates of deceased person either
summarily or through the process of administration.

 (2) The jurisdiction of the probate court merely relates

to matters having to do with the settlement of the
estate and the probate of wills, the appointment and
removal of administrators, executors, guardians and
trustees.
 Powers and Duties of Probate Court
 (1) In probate proceedings, the court:
 (a) Orders the probate of the will of the decedent
(Sec. 3, Rule 77);
 (b) Grants letters of administration of the party best
entitled thereto or to any qualified applicant (Sec. 5,
Rule 79);
 (c) Supervises and controls all acts of administration;
 (d) Hears and approves claims against the estate of
the deceased (Sec. 11, Rule 86);
 (e) Orders payment of lawful debts (Sec. 11, Rule 88);
 (f) Authorizes sale, mortgage or any encumbrance of
real estate (Sec. 2, Rule 89);
 Powers and Duties of Probate Court
 (g) Directs the delivery of the estate to those entitled thereto
(Sec. 1, Rule 90);
 (h) Issue warrants and processes necessary to compel the
attendance of witnesses or to carry into effect their orders and
judgments, and all other powers granted them by law (Sec. 3,
Rule 73);
 (i) If a person defies a probate order, it may issue a warrant
for the apprehension and imprisonment of such person until he
performs such order or judgment, or is released (Sec. 3, Rule
73).
 (2) The court acts as trustee, and as such, should jealously guard
the estate and see to it that it is wisely and economically
administered, not dissipated (Timbol vs. Cano, 111 Phil. 923).
Summary Settlement of Estates (Rule 74)

 a judicial proceeding wherein, without the

appointment of executor or administrator, 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
(Sec. 2).
Extrajudicial settlement by agreement
between heirs, when allowed
 (1) If 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, divide the estate among
themselves as they see fit by means of a public
instrument filed in the office of the register of
deeds, and should they disagree, they may do so
in an ordinary action of partition.
Extrajudicial settlement by agreement
between heirs, when allowed
 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

 a bond with the said register of deeds

 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.
Extrajudicial settlement by agreement
between heirs, when allowed

 extrajudicial settlement or administration shall

be published in a newspaper of general
circulation

 no extrajudicial settlement shall be binding

upon any person who has not participated
therein or had no notice thereof (Sec. 1).
Two-year prescriptive period

 an heir or other person has been unduly deprived

of his lawful participation in the estate,
may compel the settlement of the estate
Remedies of aggrieved parties after
extra-judicial settlement of estate
 (1) 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
 (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 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).
Production and Probate of Will (Rule 75)

 Nature of probate proceeding

 (1) Probate of a will is a proceeding in rem.
 It is mandatory as no will shall pass either real or
personal property unless proved and allowed in
accordance with the Rules.
 It is imprescriptible
Who may petition for probate; persons
entitled to notice
 (1) Any executor, devisee, or legatee named in
a will, or any other person interested in the
estate, may, at any time after the death of the
testator, petition the court having jurisdiction to
have the will allowed, whether the same be in
his possession or not, or is lost or destroyed.
 The testator himself may, during his lifetime,

petition the court for the allowance of his will

(Sec. 1, Rule 76).
 Who may petition for probate; persons
entitled to notice
 (2) The court shall also cause copies of the notice of the
time and place fixed for proving the will to be
addressed to the designated or other known heirs,
legatees, and devisees of the testator resident in the
Philippines at their places of residence, and deposited in
the post office with the postage thereon prepaid at least
twenty (20) days before the hearing, if such places of
residence be known. A copy of the notice must in like
manner be mailed to the person named as executor, if he
be not be petitioner; also, to any person named as co-
executor not petitioning, if their places of residence be
known.
Who may petition for probate; persons
entitled to notice

 Personal service of copies of the notice at least

ten (10) days before the day of hearing shall be
equivalent to mailing. If the testator asks for the
allowance of his own will, notice shall be sent only
to his compulsory heirs (Sec. 4, Rule 76).
Allowance or Disallowance of Will
(Rule 76)
 Contents of petition for allowance of will
 (1) A petition for the allowance of a will must show, so far
as known to the petitioner:
 (a) The jurisdictional facts;
 (b) The names, ages, and residences of the heirs,
legatees, and devisees of the testator or decedent;
 (c) The probable value and character of the property of
the estate;
 (d) The name of the person for whom letters are prayed;
 (e) If the will has not been delivered to the court, the
name of the person having custody of it.
 Grounds for disallowing a will
 (1) The will shall be disallowed in any of the following cases;
 (a) If not executed and attested as required by law;
 (b) If the testator was insane, or otherwise mentally incapable
to make a will, at the time of its execution;
 (c) If it was executed under duress, or the influence of fear, or
threats;
 (d) 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;
 (e) If the signature of the testator was procured by fraud or
trick, and he did not intend that the instrument should be his will
at the time of fixing his signature thereto (Sec. 9, Rule 76).
 Reprobate; Requisites
 (1) Will proved outside Philippines may be allowed here.
Wills proved and allowed in a foreign country, according to
the laws of such country, may be allowed, filed, and
recorded by the proper Court of First Instance in the
Philippines (Sec. 1, Rule 77).
 (2) When will allowed, and effect thereof. If it appears at
the hearing that the will should be allowed in the
Philippines, the court shall so allow it, and a certificate of its
allowance, signed by the judge, and attested by the seal of
the court, to which shall be attached a copy of the will,
shall be filed and recorded by the clerk, and the will shall
have the same effect as if originally proved and allowed in
such court (Sec. 3, Rule 77).
Reprobate
 When a will is thus allowed, the court shall grant letters
testamentary, or letters of administration with the will
annexed, and such letters testamentary or of
administration, shall extend to all the estate of the
testator in the Philippines. Such estate, after the
payment of just debts and expenses of administration,
shall be disposed of according to such will, so far as
such will may operate upon it; and the residue, if any,
shall be disposed of as is provided by law in cases of
estates in the Philippines belonging to persons who are
inhabitants of another state or country (Sec. 4, Rule 77).
Reprobate
 Certificate of allowance attached to proved will. To be
recorded in the Office of Register of Deeds. If the court
is satisfied, upon proof taken and filed, that the will
was duly executed, and that the testator at the time of
its execution was of sound and disposing mind, and not
acting under duress, menace, and undue influence, or
fraud, a certificate of its allowance, signed by the
judge, and attested by the seal of the court shall be
attached to the will and the will and certificate filed
and recorded by the clerk. Attested copies of the will
devising real estate and of certificate of allowance
thereof, shall be recorded in the register of deeds of
the province in which the lands lie (Sec. 13, Rule 76).
 Reprobate
 (5) The general rule universally recognized is that
administration extends only to the assets of the
decedent found within the state or country where it was
granted, so that an administrator appointed in one
state or country has no power over the property in
another state or country (Leon & Ghezzi vs.
Manufacturer’s Life Ins., 80 Phil. 495).
Letters Testamentary and of
Administration (Rule 78)
 (1) Letters testamentary is the appointment
issued by a probate court, after the will has
been admitted to probate, to the executor
named in the will to administer the estate of
the deceased testator, provided the executor
named in the will is competent, accepts the trust
and gives a bond (Sec. 4).
When and to whom letters of
administration granted
 (1) No person is competent to serve as executor or
administrator who:
 (a) Is a minor;
 (b) Is not a resident of the Philippines; and
 (c) Is in the opinion of the court unfit to execute the
duties of the trust by reason of drunkenness,
improvidence, or want of understanding or integrity,
or by reason of conviction of an offense involving
moral turpitude (Sec. 1).
Letters Testamentary and of
Administration (Rule 78)
 2) Executor of executor not to administer estate.
 (3) Married women may serve.
 (4) Letters testamentary issued when will allowed. If
he is competent, accepts the trust, and gives bond
as required by these rules (Sec. 4).
 (5) Where some coexecutors disqualified others may
act. When all of the executors named in a will
cannot act because of incompetency, refusal to
accept the trust, or failure to give bond, on the part
of one or more of them,
Letters Testamentary and of
Administration (Rule 78)
 (6) If no executor is named in the will, or the executor or
executors are incompetent, refuse the trust, or fail to
give bond, or a person dies intestate, administration
shall be granted:
 (a) To the surviving husband or wife, as the case may
be, or next of kin, or both, in the discretion of the court,
or to such person as such surviving husband or wife, or
next of kin, requests to have appointed, if competent
and willing to serve;
 (b) it may be granted to one or more of the principal
creditors, if competent and willing to serve;
 (c) to such other person as the court may select (Sec. 6).
Opposition to issuance of letters testamentary;
simultaneous filing of petition for administration

 (1) ANY PERSON INTERESTED in a will may state in

writing the grounds why letters testamentary should
not issue to the persons named therein 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 same time, be filed
for letters of administration with the will annexed
(Sec. 1, Rule 79).
Powers and duties of Executors and
Administrators; restrictions on the powers (Rule 84)

 (1) An executor is the person nominated by a testator

to carry out the directions and requests in his will and
to dispose of his property according to his
testamentary provisions after his death (21 Am. Jur.
369).
 (2) An administrator is person appointed by the court,
in accordance with the governing statute, to administer
and settle intestate estate and such testate estate as
no competent executor was designated by the testator.
Powers and duties of Executors and Administrators;
restrictions on the powers (Rule 84)

 (3) Executor or administrator to have access to

partnership books and property

 (4) Executor or administrator to keep buildings in repair.



 (5) Executor or administrator to retain whole estate to

pay debts, and to administer estate not willed.
Appointment of Special Administrator

 (1) When there is delay in granting letters

testamentary or of administration by any cause
including an appeal from the allowance or
disallowance of a will

 until the questions causing the delay are decided

and executors or administrators appointed (Sec. 1,
Rule 80).
Grounds for removal of administrator

 (1) Administration revoked if will discovered.

Proceedings thereupon.
 (2) Court may remove or accept resignation of
executor or administrator. Proceedings upon death,
resignation, or removal. If an executor or
administrator neglects to render his account and
settle the estate according to law, or to perform an
order or judgment of the court, or a duty expressly
provided by these rules, or absconds, or becomes
insane, or otherwise incapable or unsuitable to
discharge the trust, the court may remove him, or, in
its discretion, may permit him to resign.
 Claims Against the Estate (Rule 86)

 (1) Administration is for the purpose of liquidation of

the estate and distribution of the residue among the
heirs and legatees. Liquidation means the
determination of all the assets of the estate and
payment of all debts and expenses.
 (2) The purpose of presentation of claims against
decedents of the estate in the probate court is to
protect the estate of deceased persons.
Time within which claims shall be
filed; exceptions
 (1) In the notice provided in the preceding section, the
court shall state the time for the filing of claims against
the estate, WHICH SHALL NOT BE MORE THAN
TWELVE (12) NOR LESS THAN SIX (6) MONTHS after
the date of the first publication of the notice. However,
at any time before an order of distribution is entered,
on application of a creditor who has failed to file his
claim within the time previously limited, the court may,
for cause shown and on such terms as are equitable,
allow such claim to be filed within a time not
exceeding one (1) month
 Statute of Non-claims
 (1) The rule requires certain creditors of a deceased
person to present their claims for examination and
allowance within a specified period, the purpose
thereof being to settle the estate with dispatch, so that
the residue may be delivered to the persons entitled
thereto without their being afterwards called upon to
respond in actions for claims, which, under the ordinary
statute of limitations, have not yet prescribed (Santos
vs. Manarang, 27 Phil. 213).
 Claim of Executor or administrator
against the Estate
 (1) he shall give notice thereof, in writing, to the court,
and the court shall appoint a special administrator,
who shall, in the adjustment of such claim, have the
same power and be subject to the same liability as the
general administrator or executor in the settlement of
other claims.
 The court may order the executor or administrator to
pay to the special administrator necessary funds to
defend such claim (Sec. 8).
 Payment of Debts (Rule 88)
 (1) If there are sufficient properties, the debts shall be paid,
thus:
 (a) All debts shall be paid in full within the time limited for the
purpose (Sec. 1);
 (b) If the testator makes provision by his will, or designates the
estate to be appropriated for the payment of debts they shall
be paid according to the provisions of the will, which must be
respected (Sec. 2);
 (c) If the estate designated in the will is not sufficient, such part
of the estate as is not disposed of by will shall be
appropriated for the purpose (Sec. 2);
 (d) The personal estate not disposed of by will shall be first
chargeable with payment of debts and expenses (Sec. 3);
 Payment of Debts (Rule 88)
 (e) If the personal estate is not sufficient, or its sale
would be detrimental to the participants of the estate,
the real estate not disposed of by will shall be sold or
encumbered for that purpose (Sec. 3);
 (f) Any deficiency shall be met by contributions from
devisees, legatees and heirs who have entered into
possession of portions of the estate before debts and
expenses have been paid (Sec. 6);
 (g) The executor or administrator shall retain sufficient
estate to pay contingent claims when the same
becomes absolute (Sec. 4).
Time for paying debts and legacies fixed, or
extended after notice, within what periods.

 shall not, in the first instance, exceed one (1) year;

but the court may, on application of the executor or
administrator and after hearing on such notice of
the time and place therefor given to all persons
interested as it shall direct, extend
 not exceeding six (6) months for a single extension
nor so that the whole period allowed to the original
executor or administrator shall exceed two (2) years
(Sec. 15).
Actions by and against Executors and
Administrators (Rule 87)
 (1) No action upon a claim for the recovery of money or debts or
interest thereon shall be commenced against the executor or
administrator (Sec. 1).
 Actions that may be brought against executors and
administrators
 (1) An action to recover real or personal property, or an interest
therein, from the estate, or to enforce a lien thereon, and actions to
recover damages for an injury to person or property, real or
personal
 (2). The heirs of the deceased may be allowed to be substituted for
the deceased, without requiring the appointment of an executor or
administrator and the court may appoint a guardian ad litem for the
minor heirs.
 (3) prosecuting claims against the estate of a deceased person (Sec.
20, Rule 3).
Actions by and against Executors and
Administrators (Rule 87)
 (1) For the creditor to file and action to recover property
fraudulently conveyed by the deceased, the following
requisites must be present:
 (a) There is a deficiency of assets in the hands of an
executor or administrator for the payment of debts and
expenses of administration;
 (b) The deceased in his lifetime had made or attempted to
make a fraudulent conveyance of his real or personal
property, or a right or interest therein, or a debt or credit,
with intent to defraud his creditors or to avoid any right,
debt or duty; or had so conveyed such property, right, debt,
or credit that by law the conveyance would be void as
against his creditors;
 (c) The subject of the attempted conveyance would be liable
to attachment by any of them in his lifetime;
Actions by and against Executors and
Administrators (Rule 87)
 (1) For the creditor to file and action to recover
property fraudulently conveyed by the deceased, the
following requisites must be present:
 (d) The executor or administrator has shown to have no
desire to file the action or failed to institute the same
within a reasonable time;
 (e) Leave is granted by the court to the creditor to file
the action;
 (f) A bond is filed by the creditor as prescribed in the
Rules;
 (g) The action by the creditor is in the name of the
executor or administrator (Sec. 10).
Distribution and Partition (Rule 90)
 (1) Before there could be a distribution of the estate,
the following two stages must be followed:
 (a) Payment of obligations (liquidation of estate) –
under the Rules, the distribution of a decedent’s assets
may only be ordered under any of the following three
circumstances: (1) when the inheritance tax, among
other is paid; (2) when a sufficient bond is given to
meet the payment of the inheritance tax and all other
obligations; and (3) when the payment of the said tax
and all other obligations has been provided for; and
Distribution and Partition (Rule 90)
 (1) Before there could be a distribution of the estate,
the following two stages must be followed:

 (b) Declaration of heirs – there must first be

declaration of heirs to determine to whom the residue
of the estate should e distributed. A separate action
for the declaration of heirs is not proper. And likewise
after, not before the declaration of heirs is made may
the residue be distributed and delivered to the heirs.
Distribution and Partition (Rule 90)

 (2) The settlement of a decedent’s estate is a

proceeding in rem which is binding against the whole
world.
 All persons having interest in the subject matter
involved, whether they were notified or not, are
equally bound.
Liquidation
 Sec. 1. When order for distribution of residue made. When
the debts, funeral charges, and expenses of administration,
the allowance to the widow, and inheritance tax, if any,
chargeable to the estate in accordance with law, have been
paid,
 the court, on the application of the executor or
administrator

 No distribution shall be allowed until the payment of the

obligations above mentioned has been made or provided
for, unless the distributees, or any of them, give a bond, in a
sum to be fixed by the court
Liquidation
 Sec. 2. Questions as to advancement to be determined.
Questions as to advancement made, or alleged to
have been made, by the deceased to any heir may be
heard and determined by the court having jurisdiction
of the estate proceedings;
 and the final order of the court thereon shall be
binding on the person raising the questions and on the
heir.
Liquidation
 Sec. 3. By whom expenses of partition paid.
 by such executor or administrator;
 by the parties in proportion to their respective shares
or interest in the premises,
 if any person interested in the partition does not pay
his proportion or share, the court may issue an
execution in the name of the executor or administrator
against the party not paying for the sum assessed.
 Project of Partition
Remedy of an heir entitled to residue but
not given his share
 (1) If there is a controversy before the court as to who
are the lawful heirs of the deceased person or as to the
distributive shares to which each person is entitled
under the law, the controversy shall be heard and
decided as in ordinary cases (Sec. 1).
 (2) The better practice for the heir who has not received
his share is to demand his share through a proper
motion in the same probate or administration
proceedings, or for reopening of the probate or
administrative proceedings if it had already been
closed, and not through an independent action, which
would be tried by another court or judge (Ramos vs.
Octuzar, 89 Phil. 730).
Remedy of an heir entitled to residue but
not given his share
 (3) It has been held that an order which determines the
distributive share of the heirs of a deceased person is
appealable. If not appealed within the reglementary
period, it becomes final (Imperial vs. Muñoz, 58 SCRA).
 (4) The Court allowed the continuation of a separate
action to annul the project of partition by a preterited
heir, since the estate proceedings have been closed
and terminated for over three years (Guilas vs. Judge
of the CFI of Pampanga, 43 SCRA 117), and on the
ground of lesion, preterition and fraud (Solivio vs. CA,
99 Phil. 1069).
Instances when probate court may issue
writ of execution
 Instances when probate court may issue writ of
execution
 (1) The only instances when the probate court may issue a
writ of execution are as follows:
 (a) To satisfy the contributive shares of devisees, legatees
and heirs in possession of the decedent’s assets (Sec. 6,
Rule 88);
 (b) To enforce payment of expenses of partition (Sec. 3,
Rule 90); and
 (c) To satisfy the costs when a person is cited for
examination in probate proceedings (Sec. 13, Rule 132).