PERIOD OF PAYMENT OF DEBTS
ACTIONS BY AND AGAINST THE EXECUTOR OR
SECTION 15 AND 16, RULE 88
a. After the Court has issued letters testamentary or of 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 ON (1) YEAR.
**Procedure:
1. Upon issuance of letters testamentary or of administration, the
Court will have to issue notices to the creditors
2. The executor must publish or post.
3. Within 15 days from receipt of claim, the executor or
administrator may allow or admit.
*if the claim is admitted, it is subject to the approval of the
Court. The executor or administrator is given 1 year subject to
extention.
*if it is contested, the clerk of court will set a hearing.
b. EXTENSION: On application of the executor or administrator, the
Court after summary hearing extend the time as the circumstances of the
estate require; but such period SHALL NOT EXCEED SIX (6)
MONTHS FOR A SINGLE EXTENSION, BUT THE WHOLE
PERIOD ALLOWED TO THE ORIGINAL EXECUTOR OR
ADMINISTRATOR SHALL NOT EXCEED TWO (2) YEARS.
c. When the executor or adminitrator dies, and a new administrator of
the same estate is appointed, the Court upon application and after
summary hearing may extend the time allowed to the original executor
or administrator; BUT SUCH ADDITIONAL PERIOD SHALL NOT
EXCEED SIX (6) MONTHS AT A TIME AND NOT EXCEEDING
SIX (6) MONTHS BEYOND THE TIME WHICH THE COURT
MIGHT HAVE ALLOWED TO SUCH ORIGINAL EXECUTOR OR
ADMINISTRATOR.
*The controlling period is 6 months and 2 years. The period serves
as guide to the Court and the purpose of such period is to expedite the
disposition or distribution of estate.
ADMINISTRATOR
* One of the powers of a testator or administrator is to initiate a
complaint for the protection of the estate and also as a party-defendant
in case there are certain cases during the lifetime of the decedent that
were not yet fully reserved or even if the testator dies already, tehre are
certain complains which survives the death of the decedent therefore
file a case against the estate as represented by the executor or
administrator.
Section 1, Rule 87
(a) Actions to recover real and personal property, or an interest
therein, from the estate;
*E.g Complaint for replevin, recovery of possession or petition for
a judicial foreclosure of mortgage.
(b) Actions to enforce a lien thereon; and,
(c) Actions to recover damages for an injury to person or property,
real or personal.
*e.g quasi-delict
HEIR MAY NOT SUE UNTIL SHARE ASSIGNED
SECTION 3, RULE 87
 As a rule, the HEIRS HAVE NO LEGAL STANDING IN COURT
to sue for recovery of property of the estate represented by the
executor or administrator.
*the estate as long as it is under administration proceedings, it is
within the representation of the executor or administrator. It does not
matter if you are an heir, an heir is not entitled to sue in favor of the
estate. If there is an appointed executor or administrator, all court
actions shall be initiated by the executor or administrator and the
party-defendant is the executor or administrator and not the heir
themselves as the heirs have no legal standing.
 Before distribution is made or before any residue is known, the
HEIRS AND DEVISEES HAVE NO CAUSE OF ACTION
AGAINST THE EXECUTOR OR ADMINISTRATOR FOR
 RECOVERY OF THE PROPERTY LEFT BY THE DECEDENT.
*It is only when the property is distributed to the heir where the
said heirs can have legal personality.
INSTANCES WHERE THE HEIRS THEMSELVES CAN BRING AN
ACTION
(a) When there is no appointed executor or administrator;
(b) When such executor or administrator refuses to file or prosecute an action;
or,
(c) When the said executor or administrator has participated in the act
complained of and suit has also been brought against him/her.
*RATIONALE of c: conflict of interest
*Legal effect if the heirs has no personality and filed a suit is DISMISSAL as
the heir is not considered a person or party in interest.
RATIONALE: Article 777, NCC- “that the rights to succession are
transmitted from the moment of the death of the decedent.”
PROCEEDINGS WHEN PROPERTY IS CONCEALED, EMBEZZED
OR FRAUDULENTLY CONVEYED
*There are instances wherein the property which must be included in the
estate is concealed or embezzled by another person or even an heir or the
decedent himself during his lifetime to defraud his or her creditors.
SECTION 6, RULE 87
* The proceedings filed also within the jurisdiction of the probate Court
or estate Court, it is merely to elicit information or to secure evidence.
PURPOSE: To elicit information or to secure evidence from those persons
suspected as having possessed or having knowledge of properties belonging to
the deceased, or having concealed, embezzled or conveyed away any
properties of the deceased.
GENERAL RULE: The probate court has no authority to decide whether or
not properties belong in the estate or to the person being examined since
probate courts are courts of limited jurisdiction.
EXCEPTIONS: (1) provisional determination of ownership for inclusion in
the inventory; or, (2) submission to the Court’s jurisdiction.
*Ownership is considered intrinsic validity and becomes extrinsic validity
provisionally only for purposes of inventory.
RULES OBSERVED IN RECOVERING
FIRST, the executor or administrator, heir, legatee, creditor or other
individual interested in the estate of the deceased MAY FILE A COMPLAINT
TO THE COURT HAVING JURISDICTION OF THE ESTATE THAT A
PERSON IS SUSPECTED OF HAVING CONCEALED, EMBEZZLED, OR
CONVEYED AWAY ANY OF THE MONEY, GOODS, OR CHATTELS
OR THE DECEASED. THE COURT THEN MAY SUMMON THE
SUSPECTED PERSON AND HAVE HIM/HER UNDER OATH.
*Once the complaint is filed, the Court may summon suspected person so
that the said person will be subject to examination by the Court or by the
lawyers of the heirs, legatees or creditors.
SECOND, if the person REFUSES TO APPEAR OR TO ANSWER, the
Court may PUNISH HIM/HER FOR CONTEMPT, AND MAY COMMIT
HIM TO PRISON UNTIL HE/SHE SUBMITS TO THE ORDER OF THE
COURT.
*QUESTION: MAY YOU REFUSE THE SUMMON?
ANSWER: yes. But it may be subject to certain sanctions.
*If you suspect a third person concealed a property of the decedent,
embezzled a property of the decedent that should be included in the inventory
or fraudulently conveyed a property of the decedent, file a complaint.
WHO MAY FILE A COMPLAINT? The executor, administrator,
heirs, legatee or creditor or any person interested.
WHO HAS JURISDICTION OVER THE COMPLAINT? The Court
having jurisdiction over the estate proceedings. It is not am independant
proceeding in another court as it will cause multiplicity of suit.
On complaint of the executor or administrator, the Court may also summon a
person entrusted by the said executor or administrator with any part of the
estate of the deceased person to appear before it and render a full account of
the money, goods, chattels, bonds, account or other papers belonging to such
estate; and if that person refuses to appear or render such account, the Court
may PUNISH HIM/HER FOR CONTEMPT BECAUSE OF
DISOBEDIENCE TO THE LAWFUL ORDER OF THE COURT;
** During the pendency of the estate proceeding, there is a real estate
lessor and the executor entrusted it to an heir. However, the heir is no longer
rendering an accounting of the rentals or lease. This being the case, on
complaint of the executor or administrator, may file a complaint against this
person to whom you have entrusted a portion of the estate and also to render
an account. If the said person refuses to appear as well as to render an
account, he or she may be punished for contempt of court on the ground of
disobedience to the lawful order of the Court.
IF BEFORE THE GRANTING OF LETTERS TESTAMENTARY OR OF PROPERTY FRAUDULENTLY CONVEYED BY THE
ADMINISTRATION a person has embezzled or alienated any fo the money,
goods, chattels or effects of the deceased, such person SHALL BE LIABLE
DECEDENT
FOR DOUBLE THE VALUE, of the property sold, embezzled or alienated in
CREDITOR MAY COMMENCE AND PROSECUTE THE ACTION,
an action filed by the executor or administrator, to be recovered for the benefit
PROVIDED THE FOLLOWING REQUISITES ARE COMPLIED
of the estate;
WITH:
*You know that there is an ongoing estate proceedings for issuance or
A. The executor or administrator has shown to have no desire to file the action
gant of letters testamentary or of administration. Before granting the letters
or failed to institute the same within reasonable time;
testamentary or of administration, you already sold the property to another
B. Leave is granted by the Court to the creditor to file the action;
person for the purpose that the said property will not be included in the
C. Bond is filed by the creditor as prescribed in the provisions of the ROC;
distribution of heirs. If this is the case, by virtue of the complaint filed
and,
executor or administrator, you shall be liable for double the value because it is
D. Action by the creditor is in the name of the executor or administrator.
clearly in bad faith.
*Under Rule 88, only the executor or administrator has legal personality
*it is not the executor or administrator who is entitled to the double the
to file an action by and against teh estate of the deceased.
value as executor or administrator cannot profit from it. The value even if it is
*the creditor has to ask permission from teh Court in order for the
doubled will go to the benefit of the estate.
creditor to commence and prosecute an action.
WHAT IS THE RULE IF THE ONE WHO FRAUDULENTLY OR
CONVEYANCE IN FAVOR OF THE EXECUTOR/ADMINISTRATOR
CONVERYED THE PROPERTY WAS THE DECEASED DURING
*during the lifetime of the decedent, it was fraudulently conveyed not in
HIS/HER LIFETIME?
favor of an heir but to the executor or administrator himself. The creditors may
still commence an action to recover fraudulently conveyed properties but he
RULE: When the deceased in his/her lifetime had conveyed real or personal
said case is against the executor or administrator and it is in the name of all
property with the intent to defraud his/her creditors or to avoid any right, debt,
creditors.
or duty and there is deficiency of assets in the hands of an executor or
administrator for the payment of debts and expenses of administration, THE
 These requisites need not be complied with if the conveyance or
EXECUTOR OR ADMINISTRATOR MAY COMMENCE AN ACTION
attempted conveyance was made by the deceased in his/her lifetime in
FOR THE RECOVERY OF SUCH PROPERTY, DEBT, OR CREDIT FOR
favor of the executor or administrator.
THE BENEFIT OF THE CREDITORS.
 The action which the creditor may bring SHALL BE IN THE NAME OF
ALL THE CREDITORS, AND THE LEAVE OF COURT AND FILING
CREDITOR/S MUST:
OF THE BOND ARE NOT NECESSARY.
A. File an application with the estate;
*Contents of motion:
1. You have a claim against the estate.
2. Your claim is secured by a real estate mortgage. RULE 90: DISTRIBUTION AND PARTITION
3. During the lifetime of the decedent, he fraudulently conveyed that OF THE ESTATE
property to one of his children and it is used to defraud you. *The net estate is distributed to the heirs of the decedent.
B. Pay the cost and expenses; or, WHEN PROPER
C. Give security to the executor or administrator, as the Court deems equitable. SECTION 1, RULE 90
 Order of distribution shall be made AFTER PAYMENT OF ALL
FAILURE TO FILE AN ACTION TO RECOVER THE DEBTS, FUNERAL EXPENSES, EXPENSES FOR
ADMINISTRATION, ALLOWANCE OF THE WIDOW AND
 INHERITANCE TAX IS EFFECTED.
 In these proceedings, the Court shall:
A) Collate;
B) Determine the lawful heirs; and,
C) Determine the share of each heir.
* The Court, upon motion of executor, administrator, heir, or any person
interested must issue an order of distribution.
* If an order of distribution is issued, the executor, administrator, heir, or
any person interested will have to subject a Project of Partition
PROJECT PARTITION
CONCEPT: a project of partition is made by the executor, administrator or
any person entitled to the estate, for the proper distribution of the property
belonging to it.
 It serves as a FORMAL PROPOSAL for the distribution of the hereditary
estate which the court may accept or reject.
NB: It is the Court that makes that distribution of the estate and determines the
person entitled thereto.
*Once there is distribution and approval of partition, the executor,
administrator or any person interested thereto will have to ask the Court for the
issuance of the Final Decree of Distribution.
FINAL DECREE OF DISTRIBUTION
 When the residue of the estate has already been distributed, the Court
shall issue the final decree of distribution.
IMPT: The final decree of distribution of the estate of the deceased person
that vest title to the land of the estate in the distributees.
REMEDY: appeal
Once it becomes final, binding like any other judgment in REM.
Where the court has validly issued a decree of distribution and the same has
become final, the validity or invalidity of the project of partition becomes
irrelevant.
*if there is a Final decree of partition, it does not matter if you are still
questioning the manner of partition. Any issue as to the partition is already
irrelevant.
CONDITION PRECEDENT TO BE COMPLIED WITH FOR THE
ISSUANCE OF AN ORDER OF DISTRIBUTION
A) Showing that the executor, administrator, or persons interested applied for
such; and,
*Executor, administrator, or persons interested shall file a Motion for the
issuance of the Final order of distribution which is subject to notice of hearing.
Hence, tehre is a need for the compliance of the requirement of notice of
hearing upon such application.
B) The requirement as to notice and hearing upon such application have been
fulfilled.
EFFECT OF FINAL DECREE OF DISTRIBUTION
 Probate Court loses jurisidiction of an estate under administration only
after the payment of all debts and the remaining estate is delivered to the
heirs entitled to the same.
*Final decree of distriution meaning the residual estate has already been
distributed, taxes are paid, then the probate court loses jurisdiction over the
estate in administration.
*If there are matters that needs to be settled, you can file a independent
civil action against teh heirs. For instance, if you did not participate, file a
separate action against the heirs. You can file Recission of agreement if the
given property is that of the property which should belong to your sibling.
*WHO SHOULDERS EXPENSES OF PARTITION? If there is enough
money on the estate, then it is the executor or administrator if there is
sufficient money retained. If not, it shall be paid by the heirs in proportion to
their shares.
FINAL ORDER OF DISTRIBUTION: WHEN CAN BE SET ASIDE
GROUND: an heir or a party in a probate proceeding is left out by reason of
circumstances beyond his/her control or through mistake or inadvertence not
imputable to negligence.
Heir who has not received his share.
*Even if the probate Court has lost its jurisdiction, what is your remedy if
you are an heir who has not received his share but there is already a final order
of distribution?
REMEDY:
A) File a motion with the probate court to deliver him his share/s; or,
B) If the estate proceeding has been closed, file a motion to re-open the
proceeding.
*WHY IS IT THAN EVEN IF THE PROBATE COURT HAS LOST ITS
JURISDICTION, THE REMEDY OF AN HEIR WHO HAS NOT
RECEIVED HIS SHARE IS TO FILE A MOTION TO THE PROBATE
COURT TO DELIVER HIS SHARE OR TO FILE A RE-OPENING OF
PROCEEDINGS?
-Equality of Courts. If the heir will file it in a different court having the
same jurisidiction as that of the probate court, then this particular court may
issue a decision that will render or nullify a decsion that was already rendered
final and executory. According to the rule, if an heir who has not received his
share must file now a motion with the same court that rendered the final order
of distribution. The distribution shall now be shuffled or re-shuffled the entire
distribution of the properties if the motion is filed on a separate Court.
*It is more logical to file the motion in the probate court and not in any
other Court because the tendency is that if the present court issues a decision,
it will render the probate Court’s decision null and void and the proceedings
shall be re-shuffled.

ADVANCE DISTRIBUTION
CONCEPT: Means that the estate can be distributed to the heirs even before
the payment of all the obligations of the estate provided that the distributees,
or any of them, post a bond that will answer for the obligations of the estate.
*Advance distribution is allowed even if the claims against the estate is
not yet settled provided the heir or distributee files a bond to answer for any
damages or any other claims by virtue of advance distribution.

REQUIREMENTS: (MANDATORILY COMPLIED WITH)

A) Only a part of the estate that is not affected by any pending controversy or
appeal may be subject to advance distribution; and,
B) The distributees must post a bond, fixed by the Court, conditioned for the
payment of outstanding obligations of the estate.