Claims against the estate Flashcards
When is notice issued?
Section 1. Notice to creditors to be issued by court. — Immediately after granting letters testamentary or of administration, the court shall issue a notice requiring all persons having money claims against the decedent to file them in the office of the clerk of said court.
How will notice be served to the creditor?
Section 3. Publication of notice to creditors. — Every executor or administrator shall, immediately after the notice to creditors is issued, cause the same to be published three (3) weeks successively in a newspaper of general circulation in the province, and to be posted for the same period in four public places in the province and in two public places in the municipality where the decedent last resided.
What is the deadline to claims?
Section 2. Time within which claims shall be filed. — In the notice provided in the preceding section, the court shall estate the time for the filing of claims against the estate, which shall not be more than twelve (12) not 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 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.
Is the deadline extendable?
No. The Court ruled that this is the most efficient time to settle the proceedings.(for justifiable reason it may be extended, court’s discretion though)
How is a copy of the printed notice filed?
Section 4. Filing of copy of printed notice. — Within ten (10) days after the notice has been published and posted in accordance with the preceding section, the executor or administrator shall file or cause to be filed in the court a printed copy of the notice accompanied with an affidavit (affidavit of publication) setting forth the dates of the first and last publication thereof and the name of the newspaper in which the same is printed.
What happens if the claim is filed beyond the time limit in the notice?
Barred forever.
Section 5. Claims which must be filed under the notice. If not filed, barred; exceptions. — All claims for money against the decent, arising from contract, express or implied, whether the same be due, not due, or contingent, all claims for funeral expenses and expense for the last sickness of the decedent, and judgment for money against the decent, must be filed within the time limited in the notice; otherwise they are barred forever, except that they may be set forth as counterclaims in any action that the executor or administrator may bring against the claimants. Where an executor or administrator commences an action, or prosecutes an action already commenced by the deceased in his lifetime, the debtor may set forth by answer the claims he has against the decedent, instead of presenting them independently to the court as herein provided, and mutual claims may be set off against each other in such action; and if final judgment is rendered in favor of the defendant, the amount so determined shall be considered the true balance against the estate, as though the claim had been presented directly before the court in the administration proceedings. Claims not yet due, or contingent, may be approved at their present value.
What are the exception to the barred forever rule?
except that they may be set forth as counterclaims in any action that the executor or administrator may bring against the claimants.
Is a certificate of forum shopping required in claims?
No. A claim against the estate is a motion and not an initiatory pleading which requires a CFS.
What is the statute of non-claims?
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, un
der the ordinary statute of limitations, have not yet prescribe
Under the Rule the following Claims must be Filed with the Probate Court within the Time provided in the notice
a. All claims for money against the decedent arising from contract, express or implied, whether the same be due, not due, or contingent;
b. All claims for funeral expenses and expenses for the last sickness of the decedent; and
c. Judgment for money against the decedent. The judgment must be presented as a claim against the estate, where the judg ment debtor dies before levy on execution of his properties.4
After an administrator was appointed by the Court, the Court where the settlement of estate was pending, issued an order requiring all claimants to the estate of the deceased to file their claims within seven (7) months from the date of the first publication of said Order. Creditor A was not able to file his claim within said period. Would it still be possible for Creditor A to file his claim?
Yes. Under Section 2, Rule 86, at any time before an order of distribution is entered, on application of a creditor who has failed to file his claim within the 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.
The administrator of the estate of Don Mariano filed a collection suit against Lito. During his lifetime however, Don Mariano was indebted to Lito. Unfortunately, Lito was not able to file his claim within the time set by the Court. Would it be possible for Lito to still claim his credit from the estate of Don Mariano?
Yes, it is still possible for Lito to claim his credit from the estate of Don Mariano. Under Section 5, Rule 86, the claim of the creditor may be set up a counterclaim instead of filing it as an independent claim in the settlement of estate court.
D during his lifetime contracted a loan with PNB. D was not able to pay the loan. PNB filed a collection suit against D. While the case was pending, D died.
Will the collection suit filed by PNB be dismissed on account of the death of D?
Should there be a final judgment already, may this judgment be executed?
NO. Under Section 20, Rule 3, when the action is for recovery of money arising from contract, express or implied, and the defendant dies before entry of final judgment in the court in which the action was pending at the time of such death, it shall not be dismissed but shall instead be allowed to continue until entry of final judgment. A favourable 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.
The judgment may not be executed. Under Section 5, Rule 86, a favourable judgment obtained by the plaintiff shall be enforced in the settlement of estate of the decedent.
