SPECIAL PROCEEDINGS

RULE 73. Settlement of Estate of Deceased Persons

1. Settlement of Estate
1. Intestate: The decedent left no will.
2. Testate:
 The decedent left no will.
 Probate of will is mandatory.
 Takes precedence over intestate proceedings.
Note: Institution of intestate proceedings in another place may not proceed while
the probate of a purported will of the deceased is pending in another place.

2. Nature of Settlement Proceedings – it is a proceeding in rem which is binding

against the whole world. All person having interest in the subject matter involved,
whether they were notified or not are equally bound. (Philippine Savings Bank vs.
Lantin, 124 SCRA 483)

3. Modes of Settlement of Estate:

a. Extrajudicial Settlement – without court intervention

b. Judicial Settlement – with court intervention in the following scenarios
i. Summary Settlement of estate of small value
ii. Partition
iii. Settlement through letters testamentary or letters of administration
with or without the will annexed

4. Jurisdiction and Venue (Sec. 1)

a. Pursuant to RA 7691, the question as to which court shall exercise
jurisdiction over probate proceedings depends on the gross value of the
estate of the decedent.
 In Metro Manila if the gross estate is:
o Does not exceed Php 400,000.00 = Municipal Trial Court has
jurisdiction
o Exceeding Php 400,000.00 = Regional Trial Court has jurisdiction.
 Outside Metro Manila:
o Does not exceed Php 300,000.00 = MTC
o Exceeding Php 300,000.00 = RTC
b. VENUE
i. Resident of the Philippines: The residence at the time his death will
determine the venue of the proceedings.
ii. Non Resident: Venue lies in any province in which he had estate.
 Venue for ordinary civil actions and special proceedings have on and the
same meaning. As thus defined “residence”, in the context of venue provisions,
meant nothing more than person’s actual residence or place of abode, provided he
resides therein with continuity and consistency. (Quiazon vs. Belen, G.R. No.
189121, July 31, 2013)

Residence Domicile
Personal Residence Legal Residence
Simply requires bodily presence Requires bodily presence and intention
to make one’s domicile. (Garcia Fule
vs. CA, 74 SCRA 189)

c. The court first taking the cognizance of the settlement of the estate of a
decedent, shall exercise jurisdiction to the exclusion of other courts.
d. The jurisdiction once assumed by a court, so far as it depends on the place
of residence of the decedent, or of the location of his estate, shall not be
contested in a suit or proceeding, except in an appeal from that court, in the
original case or when the want of jurisdiction appears on the record.

5. Settlement of Conjugal Property – When the marriage is dissolve by death of the

husband or wife, the community property shall be inventoried, administered, and
liquidated, and the debts thereof paid, in the testate or intestate proceedings of the
deceased spouse. If both spouses have died, the conjugal partnership shall be
liquidated in the testate or intestate proceedings of either.

6. Court Processes – Probate court may issue warrants and processes necessary to
compel the attendance of witnesses or to carry into effect their orders and
judgments and all other powers granted by the law. It may also issue warrant for
the apprehension and imprisonment against person who disobey the order of
judgment until the latter performs such order or is released.

However, Probate courts cannot issue writs of execution because this orders
usually refer to the adjudication of claims against the estate which the executor or
administrator may satisfy without the need of executor processes, except:

a. To satisfy the contributive share of the devisees, legatees, and heirs on

possession of the decedent’s assets as laid down in Rule 88, Section 6;
b. To enforce payment of expenses of partition under Rule 90, Section 3; and
c. To satisfy the cost when a person is cited for examination in probate
proceedings.

7. Presumption of Death – a person is presumed dead if absent and unheard from

for the periods prescribed by the Civil Code. But if such person proves to be alive,
he shall be entitled to the balance of his estate after payment of all his debts. The
balance may be recovered by motion in the same proceeding.
 Art. 390 of the NCC – ordinary presumption of death
7 years – for all purposes, except for succession
10 years – for purposes of succession
5 years – if the absentee is more than 75 years old, for all purposes
including succession
Art 391. Extraordinary presumption of death – for all purposes including
succession, in cases of:
a. A person on board a vessel lost during a sea voyage, or an
aeroplane which is missing,, who has not been heard for four
years since the lost of the vessel or aeroplane;
b. A person in the armed forces who has taken in part in war and
has been missing for four years;
c. A person who has been in danger of death under other
circumstances and his existence has not been known for four
years.
Art. 392. If the absentee appears, or without appearing his existence is
proved, he shall recover his property in the condition in which it may be
found, and the price of any property that may have been alienated or the
property acquired therewith; but he cannot claim either fruits or rent.

Rule 74. Summary Settlement of Estates

Summary Settlement of Estates

The general rule is that when a person dies leaving property, the same should be
judicially administered and the competent court should appoint a qualified administrator
in the order established in Section 6 of Rule 78, in case the deceased left no will, or in case
he left one, should he fail to name an executor therein. (Utulo vs. Pasion Vda. de Garcia,
66 Phil. 303) except in cases of extrajudicial settlement and summary settlement of estate.

Extrajudicial Settlement Summary Settlement of Estate

1. Does not require court intervention Requires summary court adjudication
2. The value of the estate is immaterialApplicable when the gross value of the
estate is Php 10,000.00 or lower. The
amount is jurisdictional
3. Allowed only in intestate succession Allowed in both testate and intestate
succession
4. Proper when there are no outstanding Available even there are debts
debts of the estate at the time of the
settlement
5. Instituted by agreement of all heirs Instituted by any interested party and
even by a creditor of the estate, without
the consent of all the heirs
Requisites of Valid Extrajudicial Settlement:
1. The decedent died intestate;
2. The estate has no outstanding debts at the time of the settlement;
 It is presumed that the decedent left no debts if no creditor files a
petition for letters of administration within two years after the death of
the decedent
3. The heirs are of all of age, or the minors are represented by their judicial
guardians or legal representative;
4. The settlement is made in a public instrument, stipulation or affidavit duly
filed with the register of deed;
 Affidavit of self-adjudication is necessary if the distribute is a sole heir.
5. The fact of such judicial settlement must be published in a newspaper of
general circulation in the province once a week for three (3) consecutive weeks
6. In case of personal property, a bond equivalent to the value of personal
property posted with the Register of Deeds is required.

Summary Settlement of Estate of Small Value

It is a summary proceeding for the settlement of the estate of a deceased person

whether he died testate or intestate if the gross value of the estate is Php 10,000.00 without
the need of an appointment of an administrator or executor.

Procedure:
1. Filing of Petition
 By any interested person;
 The court will issue notice of hearing and order the notice be published
and to be sent to interested persons.
2. Publication
 In a newspaper of general circulation’
 Once a week for three (3) consecutive weeks
3. Hearing
 Must be held not less than one (1) month but not more than three (3)
months from the date of last publication
 Summary proceeding without delay
 No need for appointment of executor or administrator
4. Judgment
 Allowance of will;
 Determine persons legally entitle to participate in the estate
 To apportion and divide among the heirs after payment of debts
 Award possession of the portion of the estate.
Bond:
Bond is necessary before the court allows the partition of estate in accordance with the
summary settlement of estate. In case of personal property, the court may require the
distributees to file a bond in an amount to be fixed by the court.
Purposes of the bond
 Payment of debts outstanding against the estate which have not been paid or
 If other person has been unduly deprived of his lawful participation of settlement
payable in money.

Remedies of the aggrieved parties after the extrajudicial or summary settlement of

estate:
Section 4 provides for the three instances when an heir may be compelled to settle
the decedents estate in court:
i. There has been undue deprivation of lawful participation on the estate on the
part of an heir or other interested person;
ii. There exist debts against the estate
iii. There has been undue deprivation of lawful participation payable in money on
the part of an heir or other interested person.

Two (2) year prescriptive period under section 4, rule 74:

Section 4 of Rule 74 bars the distributees or heirs from objecting to an extrajudicial

partition after the expiration of two (2) years from such extrajudicial partition. It is
applicable only to persons who have participated or taken part or had notice of the
extrajudicial partition; and in addition, when the provisions of Section 1 of Rule 74 have
been complied with. (Sampio vs. CA 103 Phil. 71)

Persons who did not participate in the extrajudicial or summary settlement of

estate is not bound by the 2 year prescriptive period. The publication of extrajudicial
settlement or petition for summary settlement does not constitute constructive notice to
the heirs who had no knowledge or did not take part in it.(Cua vs. Vargas, G.R. No.
156563, October 31, 2006)

If the person authorized to file a claim is a minor or mentally incapacitated, or is

in prison, or outside of the Philippines, and the 2 year period ha prescribed, the minor or
incapacitated person may file his claim within one (1) year after such disability is
removed.

Rule 75. Production of Will Allowance of Will Necessary

Probate or allowance of wills

It is the act of proving in court a document purporting to be the last will and
testament of a certain deceased person for the purpose of official recognition, registration,
and carrying out its provision in so far as they are in accordance with the law. (Black’s
Law Dictionary)
 The doctrine of estoppel is not applicable in probate proceedings since the
presentation and the probate of will are required by public policy. (Fernandez, et al., vs.
Dimagiba, L-23638, October 12, 1967)

Under the “Exclusionary Rule,” when a probate court first takes cognizance and
jurisdiction over the settlement of the estate of a deceased person, it shall continue to
exercise jurisdiction over the same to the exclusion of other courts. Hence, upon
assumption, it cannot be divested of such jurisdiction by the subsequent acts of the parties
as when they enter into extrajudicial partition or by filing another petition for the
settlement in a court of concurrent jurisdiction.

Probate court is a court of limited jurisdiction. As such, it may only determine and
rule upon the issues that relate to the settlement of the estate of deceased person such as
administration, liquidation, and distribution of the estate.

The probate court may pass upon the question of title to property on the following
cases:

(a) The interested parties who are heirs of deceased consent thereto and the
interest of third parties are not impaired; (Coca, et al., vs. Pangilinan, et al.,L-
27082, January 31, 1978)
(b) In a provisional manner, to determine whether said property should be
included in or excluded from the inventory, without prejudice to the final
determination of title in a separate action. (Valera vs. Inserto, 149 SCRA 533)

Due Execution

No will shall pass either real or personal estate unless it is proved and allowed in
the proper court. Subject to the right of appeal, such allowance of the will is conclusive
as to its due execution. (Sec. 1, Rule 75)

Due execution or its extrinsic validity pertains to whether the testator, being of
sound mind, freely executed the will in accordance with the formalities prescribed by the
law. Due execution covers the following:

1. That the will was executed in accordance with the strict formalities of law
2. The testator was of sound and disposing mind at the time of execution
3. Consent is not vitiated by any duress, fear or threats
4. The will was not procured by any undue influence from the beneficiary or by
some other person for his benefit; and
5. The signature of the testator is genuine.

Custodian of a will
 A custodian refers to a person who receives a will with knowledge, or under such
circumstances that he ought to have known that he was receiving custody of a will. The
custodian a will shall, within 20 days after he knows of the death of the testator deliver
the will to the court having jurisdiction, or to the executor named in the will. (Section 2,
Rule 75)

Executor of a will

The executor named in the will is also given 20 days from either knowledge of the
testator’s death or knowledge that one has been named as executor to present the will to
the court having jurisdiction, unless the will reached the court in some other manner,. An
executor is given 20 days to signify to the court in writing the acceptance or refusal of
trust. (Sec. 3, Rule 75)

Liability of Custodian or Executor

If the custodian or the executor neglect any duties prescribe in section 2 and 3 of
rule 75, without excuse satisfactory to the court shall be fined not exceeding Php 2,000.00.
(Sec. 4, Rule 75)

If the custodian of the will neglects to deliver the will without reasonable cause
after the death of the decedent and after being ordered by the court to deliver the will,
the court may order hi to be committed to prison and there kept until he delivers the will
(Sec. 5, Rule 75.)

Prepared by:

Fernandez, Dyosa Anjenel N.

Talib, Elvie P.
Tudayan, Vincent Jan N.

Law-IIIA