RULE 91 Note: A claim shall be barred forever if not made within the five (5 years
Escheat period).
ESCHEAT is a proceeding, unlike that f succession or assignment,
whereby the state, by virtue of its sovereignty, steps in and claims the real or
persona property of a person who died intestate leaving no heir. (Republic
vs. CA, G.R. No. 143483, January 31, 2002)
Q: Who files on behalf of the state?
A: It is the Solicitor General for and in behalf of the Republic of the
Philippines, who may file a petition for escheat.
JURISDICTION
The Regional Trial Court of the province where the deceased last resided, or
where he had property if he/she resided out of the Philippines, shall exercise
jurisdiction over the petition for escheat.
 It does not matter of the gross value of the estate. It will always be
the RTC which has jurisdiction.
The petition shall set forth all the relevant facts, and praying that the estate
of the deceased be declared escheated.
 Relevant facts:
The fact of death
The fact that the person has no known heir
The real and personal properties
PROCEDURE
If the petition is sufficient in form and substance, the court, shall fix the date
of hearing, which shall not be more than six (6) months from the issuance of
the order, and shall direct that a copy of the order be published once a week
for six (6) successive weeks in a newspaper of General Circulation.
DECISION OF THE ESCHEAT COURT
Once a hearing is held and the court has determined that the property shall
ne escheated in favor of the state, it shall make the following decision:
a. the court shall assign the personal estate to the city or
municipality where the decedent last resided;
b. the real estate belonging to the deceased shall be assigned to the
city or municipality where it is located; and
c. if the deceased was not a resident of the Philippines, all of
his/her estate shall be assigned to the city or municipality where
the same is situated.
IN THE ALTERNATIVE:
 In Lieu of the physical distribution of the property, the court, either
motu proprio or at the instance of the interested party, in the
exercise of its judicial discretion may instead order the
establishment of a permanent trust, so that the income from the
property shall be used.
 Appearance of an heir, devisee, legatee, widow or widower, or
other interested person entitled
 Any person alleging to have direct right or interest in the property
sought to be escheated is an interested party and may appear
and oppose the petition for escheat.
IMPORTANT: In the event a claimant appeared after the property has
already been escheated in favor of the state, such claimant must file his/her
claim to an escheated property within five (5) years from the date of
judgment, otherwise, forever barred.
IF THE OPPOSITION IS GRANTED:
a. Property is still intact: Such person shall have possession of and
title to the same.
b. Sold: The municipality or city shall be accountable to him/her for
the proceeds, after deducting reasonable charges for the care of
the estate.
Q: If there is a lawful claimant who is an heir of the estate, should the
escheat proceeding be converted into a settlement of estate?
A: No.
The escheat proceedings undertaken by the state through the solicitor
general cannot be converted into the settlement of estate. The court hearing
the petition for escheat has acquired jurisdiction to hear the petition by virtue
of the publication of such petition for escheat. The jurisdiction acquired
cannot be converted into one for distribution of the properties of the said
decedents for such proceedings (distribution of the estate) to be instituted,
the proper parties must be impleaded and the proceedings should comply
with the requirements of the rules. Hence, the RTC does not have the power
to order, or to proceed with, the distribution of the estate of the decedent in
an escheat proceeding, and adjudicate the properties to the oppositors.
(Municipality of Magallon, Isabela v. Bezore, Gr. No. L-14157, October 26,
1960).
OTHER KINDS OF ESCHEAT
1. Section 5, Rule in relation to Section, Art. XII of the 1987 PC
 Action for reversion filed against a person who acquired a
property in violation of constitutional or statutory provisions.
Note: Public alienable and disposable lands, except for
hereditary succession, foreigners cannot acquire lands
2. RA 8435, Agriculture and Fisheries Modernization Act of 1997
 The state can institute an action for escheat of an irrigated
agricultural land, seven (7) hectares or larger deliberately caused
to remain due or unproductive for more than two (2) years, except
through force majeure.
3. Sections 1 and 3 of act no. 3936, as amended by PD. 679, An Act
Requiring Banks, Trust Corporations, and Building and Loan
Associations, to unclaimed balances held by them to the treasurer of the
Philippines and for other purposes.
 The state can institute escheat on deposits of money, credits or
other evidence of indebtedness whose owner is known to be dead
or has not made further deposits or withdrawal for ten (10) years
or more.
In The Case of Rizal Commercial Banking Corporation v. Hitri Development
Corporation and Luz Bakunawa, G.R no, 192413, June 13, 2012
 The mere issuance of a manager’s check does not ipso facto
work as a n automatic transfer of funds to the account of the
payee. In case the procurer of the manager’s or cashier’s check
retains custody of the instrument, does not tender it to the
intended payee, or fails to make an effective delivery.