SPECIAL PROCEEDINGS

RULE 74SUMMARY SETTLEMENT OF

ESTATES

SPECIAL PROCEEDINGSWHAT ARE THE RULES WITH RESPECT TO THE ESTATE LEFT BY A DECEDENT ?

the general rule is that when a person dies leaving a property, the same should be judicially administered and the court should appoint a qualified administrator, in the order established in section 6, rule 78, in case the deceased left no will, or in case he had left one, should he fail to name an executor there in.

SPECIAL PROCEEDINGS

EXTRAJUDICIAL SETTLEMENT BY AGREEMENT OF HEIRS

SCENARIO 1DECEDENT LEFT SEVERAL HEIRS

SCENARIO 2DECEDENT HAS ONLY ONE HEIR

SPECIAL PROCEEDINGSDecedent left several heirs

If the decedent left no will and no debts and the heirs are of legal age, the party without securing letters of administration may divide the estate among themselves by means of public instrument or by stipulation for partition and shall file it at the registry of together with a bond equivalent to the value of the property involved as certified to under oath by the parties concerned.

SPECIAL PROCEEDINGSREQUISITE OF VALID EXTRAJUDICIAL SETTLEMENT

•Decedent died intestate

•The estate has no outstanding debts at the time of settlement

•The heirs are of all legal age, or the minor are represented by judicial guardians or legal representative

SPECIAL PROCEEDINGSREQUISITE OF VALID EXTRAJUDICIAL SETTLEMENT

•Settlement is made in public instrument, stipulation or affidavit duly filed in the registry of deeds with a bond equivalent to the amount of property

•The fact must be published in news paper of general circulation once a week for three consecutive weeks

SPECIAL PROCEEDINGS

Judicial Administration of the Estate

If the heirs cannot agree in the extra judicial partition and apportionment of the estate, the heirs can institute a special proceeding for administration of the estate.

SPECIAL PROCEEDINGS There must be a good reason to warrant judicial administration but not including the following reason:

Dispute among heirsMultiplicity of suits

To have legal capacity to appear

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DECEDENT LEFT ONLY ONE HEIR

Under the Rule if there is only one heir, he may adjudicate to himself the entire estate by means of an affidavit filed in the office of registry of deeds.

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AFFIDAVIT OF SELF ADJUDICATION

It is an affidavit require in Rule 74, Sec. 1 to be executed by the sole heir of the deceased person in adjudicating to himself the entire estate left by the decedent. It is filed with the registry of deeds

SPECIAL PROCEEDINGSThe rule provides that the sole heir who adjudicates the entire estate to himself by means of an affidavit shall file simultaneously with and as a condition precedent to the filing of the public instrument or stipulation in the action for partition, or of the affidavit in the registry of deeds, and a bond with the said registry of deeds, in amount equivalent to the value of the property involved as certified to under oath by the parties concerned and conditioned upon the payment of any just claim that may be filed under Section 4 of this Rule.

SPECIAL PROCEEDINGS

SUMMARY OF ESTATE OF SMALL VALUE

It is a summary proceeding without need of an appointment of an administrator or executor for the settlement of the estate of a deceased person who died testate or intestate. Where the gross value thereof does not exceed P10,000.00

SPECIAL PROCEEDINGSSummary of estate of small value•Value of estate does not exceed P10,000.00•Died testate or intestate•RTC has jurisdiction over person in interest•Published once a week for 3 consecutive week in newspaper of general circulation in the province •Hearing for not less than 1 month nor more than 3months•Notice to the interested person•The court direct may direct without executor or administrator to settle the estate

SPECIAL PROCEEDINGSDistinguished extrajudicial from settlement of small

value.Requires court intervention Requires court intervention by

summary proceedingsValue of estate is immaterial Applicable where the gross value of

the estate is P10,000.00. Allowed only in intestate

successionAllowed in both testate and intestate

estates.Proper when there are no

outstanding debts of the estate at the time of settlement

Available even if there are debts.

Instituted by agreement of all heirs Instituted by any interested party and even by the creditor of the estate, without the consent of all the heirs

SPECIAL PROCEEDINGS

BOND TO BE FILED BY DISTIBUTEES

The court before allowing the partition may require the distributees if the property other than real is to be distributed , to file a bond in an amount to be fixed by the court conditioned for the payment of any just claims which may filed.

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PRESUMPTION OF THAT THE DECEDENT LEFT NO DEBTS

It shall be presumed that the decedent left no debts if no creditor files a petition for letters of administration within two (2) years after the death of the decedent.

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The rule bars distributees or heirs from objecting the partition after two years from such partition. Is the rule applicable to persons who had no knowledge of it?

SPECIAL PROCEEDINGS The limitation are not applicable. The provision of Sec. 4, barring the distributee or heirs from objecting to an extra judicial partition is applicable only to :

1.Person who participated or taken part or had notice of the extra judicial partition

2.When the provision of Sec.1 has been strictly complied with.

SPECIAL PROCEEDINGSPERIOD FOR THE MINOR OR AN INCAPACITATED

PERSON TO FILE CLAIM.

Section 5 provides that if on the date of the expiration of the period of two years prescribed in preceding section the person authorized to file claim is a minor or mentally incapacitated , or is in prison or outside of the Philippines he may present his claim within one year after such disability is removed.

SPECIAL PROCEEDINGSREMEDIES Within 2 years: claims against bond or the real estate or bothRescission: incase of preterition of compulsary heir in partition tainted with bad faithReconveyance of real propertyAction to annul a deed of extra judicial settlementPetition for relief Action to annul settlement within two years

SPECIAL PROCEEDINGSA died intestate, leaving several heirs and substantial property here in the Philippines.1.Assuming that A died without debts, as a counsel for A heirs, what step would you suggest to settle A’s estate in least expensive manner.2.Assuming that A left only one heir and no debts, as counsel for A’s lone heir what step would you suggest?3.Assuming that the value of A’s estate does not exceed P10,000.00 what remedy is available to obtain speedy settlement of his estate

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As a counsel for the heir of A, I would suggest that the estate be settled in a least expensive manner by an extrajudicial settlement of estate by agreement among heirs executed by means of public instrument to be file to the registry of deeds together with a bond in an amount equivalent to the value of the property involved as certified under oath and conditioned upon payment of any just claim that may be filed within two years by an heir or other person unduly deprived of participation in the estate.

SPECIAL PROCEEDINGS

A’s lone heir may adjudicate to himself the entire estate by executing an affidavit of self adjudication to be filed with the office of the registry of deed upon submission of other documents.

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To obtain speedy settlement of his estate the remedy available is to proceed with the summary settlement of estate of small value under adhering to the provision of Section 2, Rule 74 of the rules of court

SPECIAL PROCEEDINGSNico claim to be an illegitimate child of the

deceased Charis, instituted an intestate proceeding to settle the estate of the latter. He also prayed that he be appointed administrator of the said estate. Caloy the surviving spouse opposed to the petition and Nico’s application to be appointed as administrator of the said estate. Subsequently Caloy claiming to be the sole heir of Charis executed an affidavit of adjudication, adjudicating unto himself the entire estate of the deceased wife. Afterwards Caloy sold the entire estate to Tricia.

SPECIAL PROCEEDINGSThe action of Caloy in adjudicating the entire estate his late wife to himself is not legal because under the Rules of Court, an affidavit of self adjudication is allowed only if the affiant is the sole heir of the deceased. In this case , it appears that there is someone who also claims to be an heir that there is a pending judicial proceeding for the settlement of the estate would suggest that there is a doubt to whether he is the sole heir.

SPECIAL PROCEEDINGS

Q. If the person had no knowledge or had not participated in the extrajudicial settlement, is he bound thereby by reason of constructive notice of publication.

SPECIAL PROCEEDINGSAnswer:

No, publication in this case does not constitute constructive notice. Extrajudicial Settlement of Estate under Sec.1 of Rule 74 is an ex-parte proceeding, and the rule plainly states that person who does participate or had no notice of an extra judicial settlement will not be bound thereby and contemplate a notice that has has sent out or issued before any deed of settlement or partition is agreed upon, and not after such an agreement has been executed.

SPECIAL PROCEEDINGS

The publication of the settlement does not constitute constructive notice of the heirs who had no knowledge or did not take part in it because the same was notice after the fact of execution; the requirement of publication is geared for the protection of the creditor and was never intended to deprived heirs of their lawful participation in the decedent estate.

SPECIAL PROCEEDINGS

CASE:UTOLO VS PASCION VDA DE GARCIA,

66 PHIL 303

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