Special Proceeding Midterms

Front 1

Which court has jurisdiction in the settlement of estate

Back 1

If the decedent is an inhabitant of the Philippines at the time of his death, whether a citizen of an alien - 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.

The court first taking cognizance of the settlement of the estate of a decedent, shall exercise jurisdiction to the exclusion of all other courts

MTC, MeTC and MCTC shall exercise exclusive original jurisdiction where the value of the estate does not exceed P300,000 (outside Metro Manila) or
where such estate does not exceed P400,000 (in Metro Manila).

Front 2

Venue in judicial settlement of estate

Back 2

The residence of the decedent at the time of his death is determinative of the venue of the proceeding.
If he was a resident (inhabitant) of the Philippines, venue is laid exclusively in the province of his residence, the jurisdiction being vested in the Regional Trial Court thereof.

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, and
then CFI thereof first taking cognizance of the proceeding for settlement acquires jurisdiction to the exclusion of other courts

Front 3

How is domicile established

Back 3

it must have been one of choice, for which the following conditions are essential, namely: (1) capacity to choose and freedom of choice;
(2) physical presence at the place chosen; and
(3) intention to stay therein permanently

Front 4

Extent of jurisdiction of probate court

Back 4

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

The RTC acting a s a probate court exercises but limited jurisdiction

GR: The question of ownership is, as a rule, an extraneous matter
Ex: unless the claimant and all other parties have legal interest in the property consent (provisional determination on whether the properties should be included in the inventory)

Front 5

Powers and Duties of probate court

Back 5

(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);
(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).

Front 6

Summary settlement of estate

Back 6

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.

Front 7

Extrajudicial partition of the estate shall be valid when the following conditions concur:

Back 7

(a) The decedent left no will;
(b) The decedent left no debts, or if there were debts left, all had been paid;
(c) The heirs are all of age or if they are minors, the latter are represented by their judicial guardian or legal representative;
(d) The partition was made by means of a public instrument or affidavit duly filed with the Register of Deeds; and
(e) The fact of the extrajudicial settlement or administration shall be published in a newspaper of general circulation.

Front 8

Two-year prescriptive period (settlement of estate)

Back 8

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 (Sec. 1).

If it shall appear at any time within two (2) years after the settlement and distribution of an estate, it shall appear that there are debts outstanding against the estate
which have not been paid, or that an heir or other person has been unduly deprived of his lawful participation payable in money,
the court having jurisdiction of the estate may, by order for that purpose, after hearing,
settle the amount of such debts or lawful participation, and may issue execution, if circumstances require, against the bond

Front 9

Affidavit of self-adjudication by sole heir

Back 9

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 (Sec. 1).

Front 10

Summary settlement of estates of small value

Back 10

Whenever the gross value of the estate of a deceased person, does not exceed ten thousand pesos,
and that fact is made to appear to the Court of First Instance having jurisdiction of the estate
by the petition of an interested person and
upon hearing, which shall be held not less than (1) month nor more than three (3) months from the date of the last publication of a notice
which shall be published once a week for three (3) consecutive weeks in a newspaper of general circulation in the province,
and after such other notice to interested persons as the court may direct, the court may proceed summarily,
without the appointment of an executor or administrator, and without delay,
to grant, if proper, allowance of the will, if any there be,
to determine who are the persons legally entitled to participate in the estate, and
to apportion and divide it among them after the payment of such debts of the estate as the court shall then find to be due; and
such persons, in their own right, if they are of lawful age and legal capacity, or by their guardians or trustees

The court shall make such order as may be just respecting the costs of the proceedings, and all orders and judgments made or rendered in the course thereof
shall be recorded in the office of the clerk,
and the order of partition or award, if it involves real estate, shall be recorded in the proper register’s office

Front 11

Remedies of aggrieved parties after extra-judicial settlement of estate

Back 11

(1) The creditor may ask for administration of enough property of the estate sufficient to pay the debt

(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. A
fter 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

Front 12

Nature of probate proceeding

Back 12

Probate of a will is a proceeding in rem. I
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

Front 13

Who may petition for probate; persons entitled to notice

Back 13

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).

Front 14

Who are persons entitled to notice--petition for probate

Back 14

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.

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

Front 15

Contents of petition for allowance of will

Back 15

(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.

Front 16

Grounds for disallowing a will

Back 16

(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

Front 17

Reprobate of will proved outside

Back 17

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.

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

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

Front 18

Letters testamentary

Back 18

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).

Front 19

No person is competent to serve as executor or administrator who:

Back 19

(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).

Front 20

When are letters of administration granted

Back 20

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

Front 21

administration shall be granted:

Back 21

(a) Surviving spouse, or next of kin, or both, or person as such surviving spouse, or next of kin, requests;
(b) One or more of the principal creditors – if such surviving spouse, or next of kin, or the person selected, be
incompetent or unwilling, or
if they neglect for 30 days after the death of the decedent to apply for administration or
to request that administration be granted to some other person, it may be granted to, if competent and willing to serve;
(c) Such other person as the court may select.

Front 22

“next of kin”

Back 22

he reference is to those who are entitled, under the statute of distribution, to the decedent’s property--an heir

Front 23

"interested person"

Back 23

One who would be benefited by the estate, such as an heir, or one who has a claim against the estate, such as a creditor.

The interest must be material and direct

Front 24

Opposition to issuance of letters testamentary

Back 24

Any person interested in a will
may state in writing the grounds why letters testamentary should not issue to the persons named therein executors 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).

Front 25

Powers and duties of Executors and Administrators

Back 25

(1) Carry out the directions and requests in his will and to
dispose of his property according to his testamentary provisions after his death
(2) to administer and settle intestate estate and such testate estate as no competent executor was designated by the testator.
(3) to have access to partnership books and property
(4) Executor or administrator to keep buildings in repair.
(5) Tight to the possession and management of the real as well as the personal estate of the deceased so long as it is necessary for the payment of the debts and the expenses of administration (Sec. 3, Rule 84).

Front 26

restriction on the powers

Back 26

An administrator of an intestate cannot exercise the right of legal redemption over a portion of the property owned in common sold by one of the other co-owners since this is not within the powers of administration

Front 27

Fraud and its prescriptive period

Back 27

For fraud to become a basis for annulment of judgment, it has to be extrinsic or actual,
and must be brought within four years from the discovery of the fraud.

Front 28

Appointment of Special Administrator

Back 28

(1) When there is delay in granting letters testamentary or of administration
by any cause
the court may appoint a special administrator to take possession and charge of the estate of the deceased

(2) If the executor or administrator has a
claim against the estate he represents, he shall
give notice thereof,
in writing, to the court, and the
court shall appoint a special administrator
until the questions causing the delay are decided and executors or administrators appointed (Sec. 1, Rule 80).

Front 29

Grounds for removal of administrator

Back 29

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

Front 30

Administration

Back 30

Administration is for the purpose of liquidation of the estate and distribution of the residue among the heirs and legatees.

Front 31

Liquidation

Back 31

the determination of all the assets of the estate and payment of all debts and expenses.

Front 32

Time within which claims shall be filed

Back 32

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 (Sec. 2).

Front 33

Payment of debts

Back 33

(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);
(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);

Front 34

If the estate is insolvent, the debts shall be paid in the following manner:

Back 34

(a) The executor or administrator shall pay the debts in accordance with the preference of credits established by the Civil Code (Sec. 7);
(b) No creditor of any one class shall receive any payment until those of the preceding class are paid (Sec. 8);
(c) If there are no assets sufficient to pay the credits of any one class of creditors, each creditor within such class shall be paid a dividend in proportion to his claim (Sec. 8);

Front 35

Time for paying debts and legacies fixed, or extended after notice, within what periods

Back 35

On granting letters testamentary or administration the court shall allow to the executor or administrator a time for disposing of the estate and paying the debts and legacies of the deceased,
which 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 the time as the circumstances of the estate require
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

Front 36

Actions that may be brought against executors and administrators

Back 36

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,
may be commenced against the executor or administrator

Front 37

Requisites before creditor may bring an action for recovery of property fraudulently conveyed by the deceased

Back 37

(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
(c) The subject of the attempted conveyance would be liable to attachment by any of them in his lifetime;
(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).

Front 38

Before there could be a distribution of the estate, the following two stages must be followed:

Back 38

(a) Payment of obligations (liquidation of estate)

(b) Declaration of heirs – there must first be declaration of heirs to determine to whom the residue of the estate should e distributed.

Front 39

Distribution of a decedent’s assets may only be ordered under any of the following three circumstances

Back 39

(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;

Front 40

When order for distribution of residue made.

Back 40

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

Front 41

Project of partition

Back 41

Document prepared by the executor or administrator
setting forth the manner in which the estate of the deceased is to be distributed among the heirs

Front 42

Remedy of an heir entitled to residue but not given his share

Back 42

(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

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

Front 43

Instances when probate court may issue writ of execution

Back 43

(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).

Front 44

Escheat

Back 44

A proceeding whereby the real and personal property of a deceased person in the Philippines, become the property of the state upon his death, without leaving any will or legal heirs

Front 45

When to file an escheat proceeding

Back 45

When a person dies intestate,
seized of real or personal property in the Philippines,
leaving no heir or person by law entitled to the same,
the Solicitor General or his representative in behalf of the Republic of the Philippines, may
file a petition in the Court of First Instance of the province where
the deceased last resided or
in which he had estate, if he resided out of the Philippines

Front 46

Requisites for filing of petition

Back 46

(b) That he left no heirs or person by law entitled to the same; and
(c) That the deceased left properties.

Front 47

Remedy of respondent against petition; period for filing a claim

Back 47

While the Rules do not in fact authorize the filing of a motion to dismiss
there is no reason of a procedural nature which prevents the filing of a motion to dismiss based upon any of the grounds provided for by law for a motion to dismiss the complaint.

Front 48

Actions not allowed against executors and administrators

Back 48

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).

Front 49

Co-administrator

Back 49

performs all the functions and duties and exercises all the powers of a regular administrator, only that he is not alone in the administration.

Front 50

Residence

Back 50

means his personal, actual, or physical habitation, his actual residence or place of abode.

Front 51

Special proceeding

Back 51

It is a remedy whereby the petitioners therein seek to establish a status,
a right, or
a particular fact.

Front 52

Exception to the 2-year bar after the properties have been registered with the register of deeds

Back 52

GR: Upon the expiration of said period all third persons should be barred [from going] after the particular property
Ex: when the title remains in the hands of the heirs who have fraudulently caused the partition of the subject property or in those of their transferees who cannot be considered innocent purchasers for value.

Front 53

Principal administrator v. Ancillary administrator

Back 53

That which is granted in the jurisdiction of the decedent’s domicile is termed the principal administration, while any other administration is termed ancillary administration.

The ancillary administration is proper whenever a person dies leaving in a country other than that of his domicile, property to be administered in the nature of assets of the decedent, liable for his individual debts or to be distributed among his heirs

Front 54

Jurisdictional facts

Back 54

refer to the fact of death of the decedent, his residence at the time of his death in the province where the probate court is sitting, or if he is an inhabitant of a foreign country, the estate he left in such province

Front 55

What must be proven in order to probate a will executed outside of the Philippines

Back 55

(a) due EXECUTION of the will
(b) Law in FORCE at the time of its execution
(c) domicile

Front 56

Death of the defendant in an action for recovery of money before entry of final judgment

Back 56

The action shall not be dismissed but shall instead be
allowed to continue until entry of final judgment.
A favorable judgment obtained by the plaintiff therein shall be enforced in the manner especially provided in these Rules for
prosecuting claims against the estate of a deceased person