Special Proceedings Flashcards
(101 cards)
Is the estate of the deceased person burdened with lien of creditors?
Yes. Upon the death of a person, all his property is burdened with all his debts.
His death creates an equitable lien for the benefit of the creditors.
This lien continues until the debts are extinguished.
Statute of Non-Claims
This is the period fixed by law for the filing of certain claims against the estate. Certain creditors of a deceased person must present their claims for examination and allowance within a specified period.
SPECIFIED PERIOD: Shall not be more than 12 months nor less than 6 months after the first date of publication of the notice.
Are extensions allowed under the Statute of Non-Claims?
Yes. Money claims against the estate may be allowed any time before an order of distribution is entered AT THE DISCRETION OF THE COURT FOR CAUSE AND UPON SUCH TERMS AS ARE EQUITABLE.
86 - What claims must be filed before the probate court under the notice?
- All money claims against the decedent arising from contract , express or implied, whether the same be due, not due or contingent
- All claims for funeral expenses and expenses for the last sickness of the decedent; and
- Judgment for money against the decedent. The judgment must be presented as a claim against the estate, where the judgment debtor dies before levy on execution of his properties.
Who will administer the estate left by the decedent if he dies intestate, fails to name an executor or such executor is incompetent or refuses the trust or furnishes the bond?
The estate shall be judicially administered and the competent court shall appoint a qualified administrator in the order established in section 6 of Rule 78.
Who are incompetent to serve as executors?
No person is competent to serve as an executor or administrator who is:
1. A minor
2. Not a resident of the Philippines
3. In the opinion of the court unfit to execute the duties of the trust by reason of drunkenness, improvidence or want of understanding or integrity or conviction of an offense involving moral turpitude (DIWC)
Differentiate an Executor and an Adminstrator
E - person expressly named by the deceased in his will to Administer, Settle and Liquidate his estate.
A - Appointed by the intestate court to administer the estate of a deceased who:
a. dies without a will
b. did not name an executor if there was a will
c. if named, he is incompetent, refuses the trust or fails to furnish a bond
d. will is declared void
Letters Testamentary vs Administration
T - Authority issued to an executor named in a will to administer the estate
A - authority issued by the court to a competent person for one who died intestate
Order of preference in granting letters of administration
- To the surviving husband or wife, or both, in the discretion of the court, or to such person as the H/W, or next of kin requests to have appointed, if competent or willing to serve
- If such surviving H/W or next of kin, or person selected by them is INCOMPETENT OR UNWILLING or NEGLECTS FOR 30 days after the death of the person to apply for adminstration - it may be granted to one or more of the principal creditors if competent and willing to serve
- If there is no such creditor competent and willing to serve, it may be granted to such other person the court may select.
Rationale on Order of preference in granting letters of administration
Those who will reap the benefit of a wise, speedy and economical adminstration of the estate will likewise suffer consequences in the waste, improvidence or mismanagement. These people have the highest interest to administer the estate correctly.
Is Order of preference in granting letters of administration absolute?
No. It depends on the attendant facts and circumstances of each case. Example - case where adminstrator failed to submit report within 7 years from appointment
In the Order of preference in granting letters of administration, due legitimate children have a superior right over illegitimate children?
No. Preference given to the SS, next of kin or creditors is not absolute. However, this rule is not absolute.
Appointment greatly depends on the attendant facts and circumstances of each case. The principal consideration is the interest in said estate of one to be appointed as administrator.
Scope or limit of administration
Administration extends only to the assets of a decedent found within the state or country where it was granted.
Who may file an opposition to the issuance of letters testamentary?
Any interested person may state in writing the grounds why letters testamentary should not issue to specific persons.
Who may file a petition for letters of administration? Define an interested party
Must be filed by an interested party.
An interested party is one who would be benefited in the estate such as an heir , or one who has claims against the estate.
Enumerate the contents of a petition for letters of administration
- Jurisdictional facts
- Name, ages residence of the heirs, creditors and decedent
- Probable value and character of the property of the estate
- Name of the person to whom LoA are prayed.
Grounds for opposition for petition for administration?
By filing a written opposition, contest the petition on the ground of
1. incompetency of the person to whom letters of are prayed therein
2. contestant’s own right to the administration
When can the court appoint a special administrator?
When there is delay in granting letters testamentary or administration occasioned by an appeal
Does Order of preference in granting letters of administration apply to special administrators?
No. Appointment of SA’s lies entirely in the sound discretion of the court.
Regular Administrator vs Special Administrator
RA - Appointed when intestate, no will, void will, or executor fails to furnish bond or accept the trust
SA - appointed when there is delay in granting letters testamentary or administration
RA - obliged to pay debts of the estate
SA - not obliged to pay the debts of the estate
RA - subject to order of preference
SA - not subject to order of preference
What is the effect if a will is later discovered during an intestate proceeding?
Proceedings for the probate of the latter should discontinue or suspend the intestate proceedings even if at that stage, an administrator had been appointed AND let the probate of the will
Consolidate the intestate with the testate proceedings and the court hearing the testate proceedings will be the one to hear both proceedings
Replace the testate with the intestate proceedings.
This is all subject to the sound discretion of the court handling the intestate proceedings.
Does the discovery of the will ipso facto nullify the letter of administration?
No. The will must be proved and allowed in order to revoke the LoA.
Define Liquidation
- Determination of all assets of the estate and payment of all debts and expenses. Approval of partition does not terminate administration
Grounds to remove or accept the resignation of an executor or adminstrator
- AE neglects to render his account and settle his estate according to law.
- Neglects to perform an order or judgment of the court, or a duty provided by the RoC
- Absconds, becomes insane or otherwise incapable or unsuitable to discharge the trust
These grounds are not exclusive.