Rule 83. Inventory and Appraisal. Provision for Support of Family.
This, however, does not extend to the testators grandchildren.
Sec. 1. Inventory and appraisal to be returned within 3 months.
Within 3 MONTHS after his appointment every executor or
administrator shall return to the court a TRUE INVENTORY and
APPRAISAL of all the real and personal estate of the deceased which has
come into his possession or knowledge. In the appraisement of such estate,
the court may order one or more of the inheritance tax appraisers to
give his or their assistance.
The 3-month period provided herein is NOT MANDATORY and the
court retains jurisdiction even if the inventory is filed after
such period, but such delay, if not satisfactorily explained, may be
a ground for the removal of the administrator under Sec. 2,
Rule 82.
Sec. 2. Certain articles NOT to be inventoried.
The (1) wearing apparel of the surviving husband or wife and minor children,
(2) the marriage bed and bedding, and (3) such provisions and other articles
as will necessarily be consumed in the subsistence of the family of the
deceased, under the direction of the court, shall not be considered as
assets, nor administered as such, and shall not be included in the
inventory.
Sec. 3. Allowance to widow and family.
The WIDOW or INCAPACITATED CHILDREN of a deceased person, during
the settlement of the estate, shall receive therefrom, under the
direction of the court, such ALLOWANCE as are provided by law.
Property claimed by third persons may be included in the
inventory as part of the assets of the estate and the probate court
may order such inclusion, but such order of the probate court is only
a prima facie determination and does not preclude the
claimants from maintaining an ordinary civil action for the
determination of title.
Art. 188 of the Civil Code permits support to the children of the
deceased, without requiring that they be minors or incapacitated. It
was believed that such allowances should include even the children
of legal age as the right and duty to support, especially the right to
education, subsists even beyond the age of majority. At any rate, the
allowances for support are subject to collation and deductible
from the share in the inheritance of said heirs insofar as they exceed
the fruits or rents pertaining to them.
Rule 84. General Powers and Duties of Executors and
Administrators.
What are the general powers and duties of executors or
administrators?
DREAM
1. At all times have access to, and may examine and take copies of
books and papers relating to the partnership business (Sec. 1);
2. He may Examine and make invoices of the property belonging to
such partnership (Sec. 1);
3. He shall Maintain in tenable repair the houses and other structures
and fences belonging to the estate (Sec. 2);
4. He shall Deliver the same in such repair to the heirs or devisees
when directed to do so by the court (Sec. 2);
5. He has 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 expenses of administration (Sec.
3).
The surviving partner or partners, on request, shall exhibit to the
administrator or executor all such books, papers, and property in
their hands and control.
On the written application of such executor or administrator, the
court having jurisdiction of the estate may order any such surviving
partner or partners to freely permit the exercise of the rights, and to
exhibit the books, papers, and property, as in this section provided,
and may punish any partner failing to do so for contempt.
An administrator or executor has all the powers necessary for the
administration of the estate and which powers he can exercise
WITHOUT LEAVE OF COURT.
The constitution of a lease over property of the estate is an act of
administration and leave of court is not required. Any interested
party who desires to impugn the same must do so in an ordinary
civil action as the probate court has no jurisdiction over the lessee.
 If the lease contract exceeds 1 year, the same is no longer a
mere act of administration and LEAVE OF COURT should be
REQUIRED.
Rule 85. Accountability and Compensation of Executors and
Administrators.
Sec. 1. Executor or administrator chargeable with all estate and
income.
Except as otherwise expressly provided in the following sections, every
executor or administrator is chargeable in his account with the whole of
the estate of the deceased which has come into his possession, at
the value of the appraisement contained in the inventory; with all the
interest, profit, and income of such estate; and with the proceeds of so much
of the estate as is sold by him, at the price at which it was sold.
Sec. 2. Not to profit by increase or lose by decrease in value.
The executor or administrator shall not profit by the increase, or suffer
loss by the decrease or destruction, without his fault, of any part of
the estate.
He must account for the excess when he sells any part of the estate for
more than the appraisement.
If any is sold for less than the appraisement, he is not responsible for
the loss, if the sale has been justly made.
If he settles any claim against the estate for less than its nominal
value, he is entitled to charge in his account only to the amount he actually
paid on the settlement.
Sec. 3. When not accountable for debts due to the estate.
The executor or administrator shall not be accountable for debts due
the deceased which remain uncollected without his fault.
Sec. 4. Accountable for income from realty used by him.
If the executor or administrator uses or occupies any part of the
real estate himself he shall account for it (1) as may be agreed upon
between him and the parties interested, or (2) adjusted by the court with
their assent.
If the parties do not agree upon the sum allowed the same
may be ascertained by the court, whose determination in this
respect shall be final.
Sec. 5. Accountable if he neglects or delays to raise or pay money.
When an executor or administrator (1) neglects or unreasonably delays
to raise money, by collecting debts or selling the real or personal estate of
the deceased, or neglects to pay over the money he has in his hands,
and (2) the value of the estate is thereby lessened or unnecessary
cost or interest accrues, or the persons interested suffer loss, the
same shall be deemed waste and the damage sustained may be
charged and allowed against him in his account, and he shall be liable
therefor on his bond.
Sec. 6. When allowed money paid as costs.
The amount paid by an executor or administrator for costs awarded
against him shall be allowed in his administration account, unless it
appears that the action or proceeding in which the costs are taxed was
prosecuted or resisted without just cause, and not in good faith.
Sec. 7. What expenses and fees allowed executor or administrator.
Not to charge for services as attorney. Compensation provided by
will controls unless renounced.
An executor or administrator shall be allowed the necessary expenses in the
care, management and settlement of the estate and for his services:
1. Four pesos per day for the time actually or necessarily
employed; or
2. A commission of the value of so much of the estate as comes
into his possession and is finally disposed of by him in the
payment of debts, expenses, legacies, or distributive shares, or by
delivery to his heirs or devisees, of:
a. 2% of the first P5,000 of such value;
b. 1% of so much of such value as exceeds P5,000 and does not
exceed P30,000;
c. % of so much of such value as exceeds P30,000 and does not
exceed P100,000; and
d. % of so much of such value as exceeds P100,000.
When may a greater sum be allowed by the court?
In any special case, where the following requisites concur: LSR
1. Large estate;
2. Settlement has been attended with great difficulty; and
3. It has Required a high degree of capacity on the part of the executor
or administrator.

If the objection to the fees allowed be taken, the allowance may be
reexamined on appeal.
If there are 2 or more executors or administrators the compensation
shall be apportioned among them by the court according to the services
actually rendered by them respectively.
When the executor or administrator is an ATTORNEY he shall not
charge against the estate any professional fees for legal services rendered
by him.
When the deceased by will makes some other provision for the
compensation of his executor that provision shall be a full satisfaction
for his services unless by written instrument filed in the court he
renounces all claim to the compensation provided by the will.
The following items are not proper expenses of administration and,
therefore, not chargeable against the estate:
1. Services rendered by an administrator in favor of an heir which
services were not beneficial to the estate;
2. Premiums for his bond;
3. Expenses for the repair of property of the estate being occupied and
used by him;
4. Expenses for the keeping of ordinary records and receipts involved in
his administration work;
5. Losses incurred in the conduct of business with the use of the funds
of the estate.
Where an attorney renders services to the administrator or
executor personally to aid in the execution of his trust, the latter is
liable for the fees, but he can move for reimbursement and charge
such fees as expenses of administration where the same is
reasonable and proved beneficial to the estate.
Where, however, the attorneys fees were rendered in a litigation
involving such administrator or executor in his capacity as trustee of
the estate and for the protection of the interest of such estate, the
attorneys fee is chargeable to the estate.
To recover the attorneys fees, the attorney may either:
1. Bring an independent action personally against the executor
or administrator; or
2. File a petition in the administration proceedings for the
probate court to allow the same and to direct the payment of his
fee as an expense of administration.
Sec. 8. When executor or administrator to render account.
Every executor or administrator shall render an account of his
administration WITHIN 1 YEAR from the time of receiving the letters
testamentary or of administration, unless the court otherwise directs
because of extensions of time for (1) presenting claims against, or (2)
paying the debts of, the estate, or for (3) disposing of the estate; and he
shall render such further accounts as the court may require until the
estate is wholly settled.
Inventory and Appraisal within 3 months after appointment as
executor or administrator.
Rendition of Account within 1 year after letters testamentary or
of administration has been received.
Sec. 9. Examinations on oath with respect to account.
The court may examine the executor or administrator upon oath with respect
to every matter relating to any account rendered by him, and shall so
examine him as to the correctness of his account before the same is allowed
except when no objection is made to the allowance of the account and its
correctness is satisfactorily established by competent proof. The heirs,
legatees, distributees, and creditors of the estate shall have the same
privilege as the executor or administrator of being examined on oath on any
matter relating to an administration account.
Sec. 10. Account to be settled on notice.
Before the account of an executor is allowed, NOTICE shall be given
to persons interested of the TIME and PLACE of examining and
allowing the same; and such notice may be given personally or by
advertisement in a newspaper or newspapers, or both, as the court
directs.
Sec. 11. Surety on bond may be party to accounting.
Upon the settlement of the account of the executor or administrator, a
person liable as surety in respect to such account may, UPON
APPLICATION, be admitted as party to such accounting.
Rule 86. Claims Against Estate.
Sec. 1. Notice to creditors to be issued by the 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 court.
Sec. 2. Time within which claims shall be filed.
In the notice provided in the preceding section, the court shall state the
TIME FOR FILING OF CLAIMS against the estate, which shall not be more
than 12 nor less than 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 1 month.
This is the so-called statute of non-claims. The period for the filing barred; exceptions.
of such claims starts to run from the date of the first publication of
the notice referred to in Sec. 1 and runs even against the State.
The filing of claims contemplated in Sec. 2 should be during a period
of 6 months starting from the 6 th month after the date of the first
publication of the notice down to the 12 th month. Within the range of
said period, the probate court is permitted to set the period for filing
of claims and the period once fixed by the court is mandatory.
The motion for leave to file a claim beyond the original period
may be filed at any time during the administration proceedings
provided no order of distribution has yet been entered.
Sec. 2 should not be interpreted to mean that the one-month period
commences to run from the expiration of the original period for the
filing of claims. What it means is that said claims must be filed within
a time not exceeding one month from the order of the court allowing
the filing of such particular claim.
Sec. 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 3 WEEKS
SUCCESSIVELY in a newspaper of general circulation in the province, and to
be posted for the same period in 4 places in the province and in 2 public
places in the municipality where the decedent last resided.
Sec. 4. Filing copy of printed notice.
Within 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 (1) printed copy of the notice
accompanied with an (2) affidavit setting for the dates of the first and
last publication thereof and the name of the newspaper in which the
same is printed.
A notice to creditors to file their claims is not proper if only a special
administrator has been appointed.
The publication of notice to the creditors is 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 proceedings, since the
proceedings for the filing of claims is in rem.
Sec. 5. Claims which must be filed under the notice. If not filed,
Claims which must be filed under the notice: MF-LJ
1. Money claims against the decedent, arising from contract, express or
implied, whether the same be due or not due, or contigent;
2. Claims for Funeral expenses;
3. Claims for expenses for the Last sickness of the decedent; and
4. Judgment for money against the decedent.
Those enumerated above 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.
If the 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 proceeding.
Claims not yet due, or contingent, may be approved at their present
value.
Sec. 6. Solidary obligation of the decedent.
Where the obligation of the decedent is solidary with another debtor
the claim shall be filed against the decedent as if he were the only debtor,
without prejudice to the right of the estate to recover contribution from the
other debtor.
In a joint obligation of the decedent the claim shall be confined to the
portion belonging to him.
The claims referred to in Sec. 5 must be for money which are not
secured by a lien against property of the estate. If the claim is for the
recovery of real or personal property from the estate or the
enforcement of any lien thereon, an action should be instituted for
that purpose against the executor or administrator. Furthermore,
these claims must have arisen from liabilities contracted by the
decedent before his death and money claims arising after his
death cannot be presented, except funeral expenses of his last
illness.
A money claim against the estate arising from a crime or quasi-
delict committed by the decedent is not included in the concept
of claims which have to be filed under this Rule, but should be the
subject of an action against the executor or administrator or against
the heirs.
Also, claims by the Government for unpaid taxes, filed within the
period of limitations prescribed in the NIRC, are not covered by the
statute of non-claims as these are monetary obligations created
by law. In fact, even after the distribution of the estate, claims for
taxes may be enforced against the distributees in proportion to their
shares in the inheritance.
Contingent claim one which depends for its demandability upon
the happening of a future uncertain event. Contingent claims may be
approved at their present value but as no payment thereof can yet
be authorized by the court until their demandability arises, a portion
of the estate may be reserved for the payment of such claims.
Claims not filed within the period for the filing of claims are barred,
but if the claimant is sued by the administrator or executor, either
within the period for the filing of claims or thereafter, such claim may
be availed of by the defendant as a counterclaim and if he proves
the same, he may recover thereon, against the estate.
If final judgment has already been rendered against the decedent
prior to his death, but without levy on execution having been
effected against his property, such judgment for a sum of money
must also be filed as a claim against the estate in the manner
provided by this Rule. If levy has already been made before his
death, execution shall proceed.
However, if the final judgment rendered against the decedent in his
lifetime is for the recovery of real or personal property other
than money, or the enforcement of a lien thereon, then the
claimant has merely to obtain a writ of execution for enforcement
against the executor, administrator or successor-in-interest of the
deceased.
Sec. 7. Mortgage debt due from estate.
REMEDIES of a MORTGAGEE holding a claim against the deceased:
1. He can Abandon his security and prosecute claim in the manner
provided in this rule, and share in the general distribution of the
assets of the estate;
- The mortgagee creditor naturally loses preference, and he can
claim only as an ordinary creditor.
2. He can Foreclose his mortgage or realize upon his security, by action
in court, making the executor or administrator a party defendant.
- In case of a deficiency judgment, he can prove such deficiency
judgment later in the probate court against the estate of the
deceased.
3. He can Rely upon his mortgage or other security alone, and
foreclose the same at any time within the period of the statute of
limitations.
- In that event, he shall not be admitted as a creditor, and shall
receive no share in the distribution of the other assets of the
estate.
But nothing herein contained shall prohibit the executor or
administrator from redeeming the property mortgaged or pledged,
by paying the debt for which it is held as security, under the direction of the
court, if the court shall adjudge it to be for the best interest of the estate
that such redemption shall be made.
Under the third recourse, if at the time he files the foreclosure
suit the administration proceedings are still pending the
executor or administrator shall be made the party defendant.
However, if at the time of the foreclosure suit there has
already been an order of distribution then the party
 defendants should be the heirs to whom the mortgaged property has
been awarded.
Where he mortgagor died during the pendency of a judicial
foreclosure suit against him the decision therein shall be
enforced by the trial court by writ of execution in the foreclosure
proceeding. Such enforcement cannot be delegated to the probate
court handling the settlement of the estate of the decedent, since
the probate court, as a court of limited jurisdiction, has no authority
to enforce a mortgage lien.
Sec. 8. Claim of executor or administrator against an estate.
If the executor or administrator has a claim against the estate he
represents he shall give notice thereof, in writing, to the court.
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. 9. How to file a claim. Contents thereof. Notice to executor or
administrator.
A claim may be filed by delivering the same with the necessary vouchers to
the clerk of court and by serving a copy thereof on the executor or
administrator.
If the claim is FOUNDED on a BOND, BILL, NOTE, or any other
instrument the original need not be filed, but a copy thereof with all the
endorsements shall be attached to the claim and filed therewith. On
demand, however, of the executor or administrator, or by order of the court
or judge, the original shall be exhibited, unless it be lost or destroyed, in
which case the claimant must accompany his claim with affidavits containing
a copy or particular description of the instrument and stating its loss or
destruction.
When the CLAIM is DUE it must be supported by affidavit stating: ANN
1. The Amount justly due;
2. That No payments have been made thereon which are not credited;
and
3. That there are No offsets to the same to the knowledge of the
affiant.
If the CLAIM is NOT DUE, or is CONTIGENT, when filed it must also be
supported by affidavit stating the particulars thereof.
When the AFFIDAVIT is made by a person other than the claimant
he must set forth therein the reason why it is not made by the claimant.
The claim once filed shall be attached to the record of the case in which the
letters testamentary or of administration were issued, although the court, in
its discretion, and as a matter of convenience, may order all the claims to be
collected in a separate folder.
Sec. 10. Answer of executor or administrator. Offsets.
Within 15 DAYS after the service of a copy of the claim on the
executor or administrator he shall file in his answer admitting or
denying the claim specifically, and setting forth the substance of the matters
which are relied upon to support the admission or denial.
If the executor or administrator has no knowledge sufficient to
enable him to admit or deny specifically he shall state such want of
knowledge.
The executor or administrator in his answer shall allege in OFFSET any
claim which the decedent before death had against the claimant,
and his failure to do so shall bar the claim forever. A copy of the
answer shall be served by the executor or administrator on the claimant. The
court in its discretion may extend the time for filing such answer.
Sec. 11. Disposition of admitted claim.
A CLAIM ADMITTED ENTIRELY by the executor or administrator shall
immediately be submitted by the clerk to the court who may approve the
same without hearing; but the court, in its discretion, before approving the
claim, may order that known heirs, legatees, or devisees be notified and
heard.
If upon hearing, an heir, legatee, or devisee opposes the claim the
court may, in its discretion, allow him 15 days to file an answer in the
manner prescribed in the preceding section.
Sec. 12. Trial of contested claim.
Upon the filing of an answer to a claim, or upon the expiration of the time for
such filing, the clerk of court shall set the claim for trial with notice to
both parties. The court may refer the claim to a commissioner.
Sec. 13. Judgment appealable.
The judgment of the court approving or disapproving a claim, shall be filed
with the record of the administration proceedings with notice to
both parties, and is APPEALABLE as in ordinary cases. A judgment
against the executor or administrator shall be that he pay, in due
course of administration, the amount ascertained to be due, and it shall not
create any lien upon the property of the estate, or give to the judgment
creditor any priority of payment.
Sec. 14. Costs.
When the executor or administrator, in his answer, admits and offers
to pay part of a claim and the claimant refuses to accept the amount
offered in satisfaction of his claim, if he fails to obtain a more
favorable judgment, he cannot recover costs, but must pay to the
executor or administrator costs from the time of the offer.
When the action commenced against the deceased for money has
been discontinued and the claim embraced therein presented as in
this rule provided the prevailing party shall be allowed the costs of his
action up to the time of its discontinuance.