Special Proceedings Flashcards
Is the estate of the deceased person burdened with lien of creditors?
Yes. Upon the death of a person, all his property is burdened with all his debts.
His death creates an equitable lien for the benefit of the creditors.
This lien continues until the debts are extinguished.
Statute of Non-Claims
This is the period fixed by law for the filing of certain claims against the estate. Certain creditors of a deceased person must present their claims for examination and allowance within a specified period.
SPECIFIED PERIOD: Shall not be more than 12 months nor less than 6 months after the first date of publication of the notice.
Are extensions allowed under the Statute of Non-Claims?
Yes. Money claims against the estate may be allowed any time before an order of distribution is entered AT THE DISCRETION OF THE COURT FOR CAUSE AND UPON SUCH TERMS AS ARE EQUITABLE.
86 - What claims must be filed before the probate court under the notice?
- All money claims against the decedent arising from contract , express or implied, whether the same be due, not due or contingent
- All claims for funeral expenses and expenses for the last sickness of the decedent; and
- Judgment for money against the decedent. The judgment must be presented as a claim against the estate, where the judgment debtor dies before levy on execution of his properties.
Who will administer the estate left by the decedent if he dies intestate, fails to name an executor or such executor is incompetent or refuses the trust or furnishes the bond?
The estate shall be judicially administered and the competent court shall appoint a qualified administrator in the order established in section 6 of Rule 78.
Who are incompetent to serve as executors?
No person is competent to serve as an executor or administrator who is:
1. A minor
2. Not a resident of the Philippines
3. 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 conviction of an offense involving moral turpitude (DIWC)
Differentiate an Executor and an Adminstrator
E - person expressly named by the deceased in his will to Administer, Settle and Liquidate his estate.
A - Appointed by the intestate court to administer the estate of a deceased who:
a. dies without a will
b. did not name an executor if there was a will
c. if named, he is incompetent, refuses the trust or fails to furnish a bond
d. will is declared void
Letters Testamentary vs Administration
T - Authority issued to an executor named in a will to administer the estate
A - authority issued by the court to a competent person for one who died intestate
Order of preference in granting letters of administration
- To the surviving husband or wife, or both, in the discretion of the court, or to such person as the H/W, or next of kin requests to have appointed, if competent or willing to serve
- If such surviving H/W or next of kin, or person selected by them is INCOMPETENT OR UNWILLING or NEGLECTS FOR 30 days after the death of the person to apply for adminstration - it may be granted to one or more of the principal creditors if competent and willing to serve
- If there is no such creditor competent and willing to serve, it may be granted to such other person the court may select.
Rationale on Order of preference in granting letters of administration
Those who will reap the benefit of a wise, speedy and economical adminstration of the estate will likewise suffer consequences in the waste, improvidence or mismanagement. These people have the highest interest to administer the estate correctly.
Is Order of preference in granting letters of administration absolute?
No. It depends on the attendant facts and circumstances of each case. Example - case where adminstrator failed to submit report within 7 years from appointment
In the Order of preference in granting letters of administration, due legitimate children have a superior right over illegitimate children?
No. Preference given to the SS, next of kin or creditors is not absolute. However, this rule is not absolute.
Appointment greatly depends on the attendant facts and circumstances of each case. The principal consideration is the interest in said estate of one to be appointed as administrator.
Scope or limit of administration
Administration extends only to the assets of a decedent found within the state or country where it was granted.
Who may file an opposition to the issuance of letters testamentary?
Any interested person may state in writing the grounds why letters testamentary should not issue to specific persons.
Who may file a petition for letters of administration? Define an interested party
Must be filed by an interested party.
An interested party is one who would be benefited in the estate such as an heir , or one who has claims against the estate.
Enumerate the contents of a petition for letters of administration
- Jurisdictional facts
- Name, ages residence of the heirs, creditors and decedent
- Probable value and character of the property of the estate
- Name of the person to whom LoA are prayed.
Grounds for opposition for petition for administration?
By filing a written opposition, contest the petition on the ground of
1. incompetency of the person to whom letters of are prayed therein
2. contestant’s own right to the administration
When can the court appoint a special administrator?
When there is delay in granting letters testamentary or administration occasioned by an appeal
Does Order of preference in granting letters of administration apply to special administrators?
No. Appointment of SA’s lies entirely in the sound discretion of the court.
Regular Administrator vs Special Administrator
RA - Appointed when intestate, no will, void will, or executor fails to furnish bond or accept the trust
SA - appointed when there is delay in granting letters testamentary or administration
RA - obliged to pay debts of the estate
SA - not obliged to pay the debts of the estate
RA - subject to order of preference
SA - not subject to order of preference
What is the effect if a will is later discovered during an intestate proceeding?
Proceedings for the probate of the latter should discontinue or suspend the intestate proceedings even if at that stage, an administrator had been appointed AND let the probate of the will
Consolidate the intestate with the testate proceedings and the court hearing the testate proceedings will be the one to hear both proceedings
Replace the testate with the intestate proceedings.
This is all subject to the sound discretion of the court handling the intestate proceedings.
Does the discovery of the will ipso facto nullify the letter of administration?
No. The will must be proved and allowed in order to revoke the LoA.
Define Liquidation
- Determination of all assets of the estate and payment of all debts and expenses. Approval of partition does not terminate administration
Grounds to remove or accept the resignation of an executor or adminstrator
- AE neglects to render his account and settle his estate according to law.
- Neglects to perform an order or judgment of the court, or a duty provided by the RoC
- Absconds, becomes insane or otherwise incapable or unsuitable to discharge the trust
These grounds are not exclusive.
Period in which the AE is to make a return of the inventory and appraisal of the estate.
AE is duty bound to make an inventory and appraisal of all real and personal proerpty of the estate which has come into his possession or knowledge within 3 months after his appointment.
This 3 month period is not mandatory
What are administration expenses?
Those which are necessary for the management of the estate, for protecting it against ddestruction or deterioration, and for the production of fruits.
Its management for purposes of liquidation, payment of debts and distribution of the estate among persons entitled thereto
Necessary Expenses
Expenses entailed for the preservation and productivity of the estate and for its management for purposes of liquidation, payment of debts and distribution of residue among persons entitled thereto.
Remedies to collect Atty.s’ fees in estate proceedings?
IF RENDERED IN AID OF EXECUTION OF TRUST - AE is liable for the fees but can move for reimbursement from the estate.
IF RENDERED IN LITIGATION INVOLVING SUCH AE - Atty’s fees is chargeable to the estate.
The Atty. may either file an independent action against the AE orfile a petition in the administration proceedings for te probate court to allow the same.
General Powers and Duties of Administrators?
- At all times shall have access to, and may examine and take copies of, books and papers relating to the partnership business
- May examine and make invoices of the property belonging to such partnership
- Maintain in tenantable repair the houses and other structures and fences belonging to the estate, and deliver the same in such repair to the heirs or devisees when directed so to do by the court
- Shall have the right 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 admninstration
Can an executor or administrator profit by an increase or lose by decrease in value?
No. Section 2. Not to profit by increase or lose by decrease in value. — No executor or administrator shall profit by the increase, or suffer loss by the decrease or destruction, without his fault, of any part of the estate.
When should an executor or administrator render an account? Is the period mandatory?
Every AE must render an account of his administration within 1 year from the time of receiving the letters TA
Yes the period is mandatory. The only exception is when the court otherwise directs because of extensions of time presenting claims against the estate, payments of debts or disposing of assets of the estate.
May a party whose claim is contingent compel the administrator to render an accounting?
No. A person whose claim is contingent has no right to demand the same.
What is the significance of publication of notice to creditors?
It is a constructive notice to all. Hence, a creditor cannot be permitted to file his claim beyond the period fixed in said notice on the bare ground that he had no knowledge of the administration proceeding.
What are the three distinct and alternative remedies available to mortgage creditor upon the death of the mortgagor?
- Waive security mortgage and claim the entire debt from the estate as an ordinary claim. Choosing this excludes option to file a foreclosure suit.
- Foreclose the mortgage judicially and prove any deficiency as an ordinary claim. This suit is filed against the AE.
- Extrajudicial Foreclosure. Rely on the mortgage and foreclose the same at any time before it is barred by prescription. This mode precludes one from recovery from any balance of indebtedness against the estate and frees the latter from any liability.
Actions that may be commenced against the AE?
- Recovery of real or personal property or any interest therein from the estate;
- Enforcement of a lien thereon;
- Action to recover damages for any injury to person or property, real or personal
These are actions that survive the death of the decedent.
What actions may NOT be brought against the AE?
A claim for recover of money or debt or interest therein may not be commenced against the AE. It must be against the estate itself.
When may heirs sue for recovery of the property of the estate represented by an AE?
- If the AE is unwilling to bring the suit
- When the AE is made a party defendant where he is alleged to have participated in the act complained of
- When there is no appointed AE
Is a judicial declaration of heirship necessary in order for an heir to assert his right to the estate of the deceased?
No. Rights to succession are transmitted from the moment of death of the decedent. A judicial declaration of heirship is not necessary for an heir to assert his right.
Where a special proceeding had been finally close and terminated, what is the remedy ofa n heir who lost the right to declare himself as a co-heir?
An ordinary civil action can be filed for his declaration as heir in order to bring about the annulment of the partition or distribution or adjudication of a property/ies belonging to the estate.
Does the probate court have the power to issue a writ of execution to pay claims?
GR: No. Proper procedure is to order:
1. the sale of personal estate
2. mortgage of real property
XP:
1. To satisfy the distributive shares of devisees, legatees and heirs in possession of the decedent’s assets
- To enforce payment of the expenses of partition
- To satisfy the costs when a person is cited for examination on probate proceedings
