2.

5 Claims against the estate

RULE 86 Section 5. Claims which must be filed under the notice. If not filed, barred;
Claims Against Estate exceptions. — All claims for money against the decent, arising from contract,
express or implied, whether the same be due, not due, or contingent, all claims for
Section 1. Notice to creditors to be issued by court. — Immediately after granting funeral expenses and expense for the last sickness of the decedent, and judgment for
letters testamentary or of administration, the court shall issue a notice requiring all money against the decent, must be filed within the time limited in the notice;
persons having money claims against the decedent to file them in the office of the otherwise they are barred forever, except that they may be set forth as counterclaims
clerk of said court. in any action that the executor or administrator may bring against the claimants.
Where an executor or administrator commences an action, or prosecutes an action
Section 2. Time within which claims shall be filed. — In the notice provided in the already commenced by the deceased in his lifetime, the debtor may set forth by
preceding section, the court shall estate the time for the filing of claims against the answer the claims he has against the decedent, instead of presenting them
estate, which shall not be more than twelve (12) not less than six (6) months after the independently to the court as herein provided, and mutual claims may be set off
date of the first publication of the notice. However, at any time before an order of against each other in such action; and if final judgment is rendered in favor of the
distribution is entered, on application of a creditor who has failed to file his claim defendant, the amount so determined shall be considered the true balance against the
within the previously limited, the court may, for cause shown and on such terms as estate, as though the claim had been presented directly before the court in the
are equitable, allow such claim to be filed within a time not exceeding one (1) administration proceedings. Claims not yet due, or contingent, may be approved at
month. their present value.

Section 3. Publication of notice to creditors. — Every executor or administrator Section 6. Solidary obligation of decedent. — Where the obligation of the decedent
shall, immediately after the notice to creditors is issued, cause the same to be is solidary with another debtor, the claim shall be filed against the decedent as if he
published three (3) weeks successively in a newspaper of general circulation in the were the only debtor, without prejudice to the right of the estate to recover
province, and to be posted for the same period in four public places in the province contribution from the debtor. In a joint obligation of the decedent, the claim shall be
and in two public places in the municipality where the decedent last resided. confined to the portion belonging to him.
 Publication is constructive notice to the whole world
Section 7. Mortgage debt due from estate. — A creditor holding a claim against
Section 4. Filing of copy of printed notice. — Within ten (10) days after the notice the deceased secured by mortgage or other collateral security, may abandon the
has been published and posted in accordance with the preceding section, the executor security and prosecute his claim in the manner provided in this rule, and share in the
or administrator shall file or cause to be filed in the court a printed copy of the notice general distribution of the assets of the estate; or he may foreclose his mortgage or
accompanied with an affidavit setting forth the dates of the first and last publication realize upon his security, by action in court, making the executor or administrator a
thereof and the name of the newspaper in which the same is printed. party defendant, and if there is a judgment for a deficiency, after the sale of the

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mortgaged premises, or the property pledged, in the foreclosure or other proceeding which are not credited, and that there are no offsets to the same, to the knowledge of
to realize upon the security, he may claim his deficiency judgment in the manner the affiant. If the claim is not due, or is contingent, when filed, it must also be
provided in the preceding section or he may rely upon his mortgage or other security supported by affidavits stating the particulars thereof. When the affidavit is made by
alone, and foreclosure the same at any time within the period of the statute of a person other than the claimant, he must set forth therein the reason why it is not
limitations, and in that event he shall not be admitted as a creditor, and shall receive made by the claimant. The claim once filed shall be attached to the record of the case
no share in the distribution of the other assets of estate; but nothing herein contained in which the letters testamentary or of administration were issued, although the court,
shall prohibit the executor or administrator from redeeming the property mortgaged in its discretion, and as a matter of convenience, may order all the claims to be
or pledged, by paying the debt for which it is held as security, under the direction of collected in a separate folder.
the court, if the court shall adjudge it to be for the best interest of the estate that such
redemption shall be made. Section 10. Answer of executor or administrator. Offsets —Within fifteen (15)
days after service of a copy of the claim on the executor or administrator, he shall
Section 8. Claim of executor or administrator against an estate. — If the file his answer admitting or denying the claim specifically, and setting forth the
executor or administrator has a claim against the estate he represents, he shall give admission or denial. If he has no knowledge sufficient to enable him to admit or deny
notice thereof, in writing, to the court, and the court shall appoint a special specifically, he shall state such want of knowledge. The executor or administrator in
administrator, who shall, in the adjustment of such claim, have the same power and his answer shall allege in offset any claim which the decedent before death had
be subject to the same liability as the general administrator or executor in the against the claimant, and his failure to do so shall bar the claim forever. A copy of
settlement of other claims. The court may order the executor or administrator to pay the answer shall be served by the executor or administrator on the claimant. The
to the special administrator necessary funds to defend such claim. court in its discretion may extend the time for filing such answer.

Section 9. How to file a claim. Contents thereof. Notice to executor or Section 11. Disposition of admitted claim. — Any claim admitted entirely by the
administrator. — A claim may be filed by delivering the same with the necessary executor or administrator shall immediately be submitted by the clerk to the court
vouchers to the clerk of court and by serving a copy thereof on the executor or who may approve the same without hearing; but the court, in its discretion, before
administrator. If the claim be founded on a bond, bill, note, or any other instrument, approving the claim, may order that known heirs, legatees, or devisees be notified
the original need not be filed, but a copy thereof with all indorsements shall be and heard. If upon hearing, an heir, legatees, or devisee opposes the claim, the court
attached to the claim and filed therewith. On demand, however, of the executor or may, in its discretion, allow him fifteen (15) days to file an answer to the claim in the
administrator, or by order of the court or judge, the original shall be exhibited, unless manner prescribed in the preceding section.
it be list or destroyed, in which case the claimant must accompany his claim with
affidavit or affidavits containing a copy or particular description of the instrument Section 12. Trial of contested claim. — Upon the filing of an answer to a claim, or
and stating its loss or destruction. When the claim is due, it must be supported by upon the expiration of the time for such filing, the clerk of court shall set the claim
affidavit stating the amount justly due, that no payments have been made thereon for trial with notice to both parties. The court may refer the claim to a commissioner.

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 the estate of the testator, real or personal, as is not disposed of by will, if any shall be
Section 13. Judgment appealable. — The judgment of the court approving or appropriated for that purpose.
disapproving a claim, shall be filed with the record of the administration proceedings
with notice to both parties, and is appealable as in ordinary cases. A judgment Section 3. Personalty first chargeable for debts, then realty. — The personal
against the executor or administrator shall be that he pay, in due course of estate of the deceased not disposed of by will shall be first chargeable with the
administration, the amount ascertained to be due, and it shall not create any lien upon payment of debts and expenses; and if said personal estate is not sufficient for tat
the property of the estate, or give to the judgment creditor any priority of payment. purpose, or its sale would redound to the detriment of the participants for the estate,
the whole of the real estate not dispose of by will, or so much thereof as is necessary,
Section 14. Costs. — When the executor or administrator, in his answer, admits and may be sold, mortgaged, or otherwise encumbered for that purpose by the executor
offers to pay part of a claim, and the claimant refuses to accept the amount offered in or administrator, after obtaining the authority of the court therefor. Any deficiency
satisfaction of his claim, if he fails to obtain a more favorable judgment, he cannot shall be met by contributions in accordance with the provisions of section 6 of this
recover costs, but must pay to the executor or administrator costs from the time of rule.
the offer. Where an action commenced against the deceased for money has been
discontinued and the claim embraced therein presented as in this rule provided, the Section 4. Estate to be retained to meet contingent claims. — If the court is
prevailing party shall be allowed the costs of his action up to the time of its satisfied that a contingent claim duly filed is valid, it may order the executor or
discontinuance. administrator to retain in his hands sufficient estate to pay such contingent claim
RULE 88 when the same becomes absolute, or if the estate is insolvent, sufficient to pay a
portion equal to the dividend of the other creditors.
Payment of the Debts of the Estate
Section 5. How contingent claim becoming absolute in two years allowed and
Section 1. Debts paid in full if estate sufficient. — If, after hearing all the money paid. Action against distributees later. — If such contingent claim becomes
claims against the estate, and after ascertaining the amount of such claims, it appears absolute and is presented to the court, or to the executor or administrator, within two
that there are sufficient assets to pay the debts, the executor or administrator pay the (2) years from the time limited for other creditors to present their claims, it may be
same within the time limited for that purpose. allowed by the court if not disputed by the executor or administrator and, if disputed,
it may be proved and allowed or disallowed by the court as the facts may warrant. If
Section 2. Part of estate from which debt paid when provision made by will. — the contingent claim is allowed, the creditor shall receive payment to the same extent
If the testator makes provision by his will, or designates the estate to be appropriated as the other creditors if the estate retained by the executor or administrator is
for the payment of his debts, the expenses of administration, or the family expenses, sufficient. But if the claim is not so presented, after having become absolute, within
they shall be paid according to the provisions of the will; but if the provision made said two (2) years, and allowed, the assets retained in the hands of the executor or
by the will or the estate appropriated, is not sufficient for that purpose, such part of administrator, not exhausted in the payment of claims, shall be disturbed by the order

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of the court to the persons entitled to the same; but the assets so distributed may still and elsewhere may receive each an equal share, in proportion to their respective
be applied to the payment of the claim when established, and the creditor may credits.
maintain an action against the distributees to recover the debt, and such distributees
and their estates shall be liable for the debt in proportion to the estate they have Section 10. When and how claim proved outside the Philippines against
respectively received from the property of the deceased. insolvent resident's estate paid. — If it appears to the court having jurisdiction that
claims have been duly proven in another country against the estate of an insolvent
Section 6. Court to fix contributive shares where devisees, legalitees, or heirs who was at the time of his death an inhabitant of the Philippines, and that the
have been possession. — Where devisees, legalitees, or heirs have entered into executor or administrator in the Philippines had knowledge of the presentation of
possession of portions of the estate before the debts and expenses have been settled such claims in such country and an opportunity to contest their allowance, the court
and paid, and have become liable to contribute for the payment of such debts and shall receive a certified list of such claims, when perfected in such country, and add
expenses, the court having jurisdiction of the estate may, by order for that purpose, the same to the list of claims proved against the deceased person in the Philippines so
after hearing, settle the amount of their several liabilities, and order how much and in that a just distribution of the whole estate may be made equally among all its
what manner each person shall contribute, and may issue execution as circumstances creditors according to their respective claims; but the benefit of this and the
require. preceding sections shall not be extended to the creditors in another country if the
property of such deceased person there found is not equally apportioned to the
Section 7. Order of payment if estate insolvent — If the assets which can be creditors residing in the Philippines and the other creditor, according to their
appropriated for the payment of debts are not sufficient for that purpose, the executor respective claims.
or administrator shall pay the debts against the estate, observing the provisions of
Articles 1059 and 2239 to 2251 of the Civil Code. Section 11. Order for payment of debts. — Before the expiration of the time
limited for the payment of the debts, the court shall order the payment thereof, and
Section 8. Dividends to be paid in proportion to claims. — If there are no the distribution of the assets received by the executor or administrator for that
assets sufficient to pay the credits of any once class of creditors after paying the purpose among the creditors, as the circumstances of the estate require and in
credits entitled to preference over it, each creditor within such class shall be paid a accordance with the provisions of this rule.
dividend in proportion to his claim. No creditor of any one class shall receive any
payment until those of the preceding class are paid. Section 12. Orders relating to payment of debts where appeal is taken. — If an
appeal has been taken from a decision of the court concerning a claim, the court may
Section 9. Estate of insolvent non-resident, how disposed of. — In case suspend the order for the payment of the debts or may order the distributions among
administration is taken in the Philippine of the estate of a person who was at the time the creditors whose claims are definitely allowed, leaving in the hands of the
of his death an inhabitant of another country, and who died insolvent, hi estate found executor or administrator sufficient assets to pay the claim disputed and appealed.
in the Philippines shall, as far as practicable, be so disposed of that his creditors here When a disputed claim is finally settled the court having jurisdiction of the estate

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shall order the same to be paid out of the assets retained to the same extent and in the the original executor or administrator, not exceeding six (6) months at a time and not
same proportion with the claims of other creditors. exceeding six (6) months beyond the time which the court might have allowed to
such original executor or administrator; and notice shall be given of the time and
Section 13. When subsequent distribution of assets ordered. — If the whole of place for hearing such application, as required in the last preceding section.
the debts are not paid on the first distribution, and if the whole assets are not
distributed, or other assets afterwards come to the hands of the executor or
administrator, the court may from time to time make further orders for the -Rule 3, Sec. 16, 20
distributions of assets.
Section 16. Death of party; duty of counsel. — Whenever a party to a pending
Section 14. Creditors to be paid in accordance with terms of order. — When an action dies, and the claim is not thereby extinguished, it shall be the duty of his
order is made for the distribution of assets among the creditors, the executor or counsel to inform the court within thirty (30) days after such death of the fact
administration shall, as soon as the time of payment arrives, pay the creditors the thereof, and to give the name and address of his legal representative or
amounts of their claims, or the dividend thereon, in accordance with the terms of representatives. Failure of counsel to comply with his duty shall be a ground for
such order. disciplinary action.

Section 15. Time for paying debts and legacies fixed, or extended after notice, The heirs of the deceased may be allowed to be substituted for the deceased, without
within what periods. — On granting letters testamentary or administration the court requiring the appointment of an executor or administrator and the court may appoint
shall allow to the executor or administrator a time for disposing of the estate and a guardian ad litem for the minor heirs.
paying the debts and legacies of the deceased, which shall not, in the first instance,
exceed one (1) year; but the court may, on application of the executor or The court shall forthwith order said legal representative or representatives to appear
administrator and after hearing on such notice of the time and place therefor given to and be substituted within a period of thirty (30) days from notice.
all persons interested as it shall direct, extend the time as the circumstances of the
estate require not exceeding six (6) months for a single extension not so that the If no legal representative is named by the counsel for the deceased party, or if the
whole period allowed to the original executor or administrator shall exceed two (2) one so named shall fail to appear within the specified period, the court may order the
years. opposing party, within a specified time to procure the appointment of an executor or
administrator for the estate of the deceased and the latter shall immediately appear
Section 16. Successor of dead executor or administrator may have time for and on behalf of the deceased. The court charges in procuring such appointment,
extended on notice within certain period. — When an executor or administrator if defrayed by the opposing party, may be recovered as costs. (16a, 17a)
dies, and a new administrator of the same estate is appointed, the court may extend
the time allowed for the payment of the debts or legacies beyond the time allowed to

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Section 20. Action and contractual money claims. — When the action is for
recovery of money arising from contract, express or implied, and the defendant dies
before entry of final judgment in the court in which the action was pending at the
time of such death, it shall not be dismissed but shall instead be allowed to continue
until entry of final judgment. A favorable judgment obtained by the plaintiff therein
shall be enforced in the manner especially provided in these Rules for prosecuting
claims against the estate of a deceased person. (21a)

-Rule 39, Sec. 7

-Union Bank vs. Edmund Santibanez, GR No. 149926, 23 Feb. 2005

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-Aldamiz vs. Judge of CFI of Mindoro, GR L-2020, 29 Dec. 1949

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-Heirs of the Late Spouses Maglasang, GR No. 171206, 23 Sept. 2013

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 Section 3. By whom expenses of partition paid. — If at the time of
2.6 Distribution and closure of estate distribution the executor or administrator has retained sufficient effects in his hands
which may lawfully be applied for the expenses of partition of the properties
-Rule 90 distributed, such expenses of partition may be paid by such executor or administrator
when it appears equitable to the court and not inconsistent with the intention of the
Distribution and Partition of the Estate testator; otherwise, they shall be paid by the parties in proportion to their respective
shares or interest in the premises, and the apportionment shall be settled and allowed
Section 1. When order for distribution of reside made. — When the debts, by the court, and, if any person interested in the partition does not pay his proportion
funeral charges, and expenses of administration, the allowance to the widow, and or share, the court may issue an execution in the name of the executor or
inheritance tax, if any, chargeable to the estate in accordance with law, have been administrator against the party not paying the sum assessed.
paid, the court, on the application of the executor or administrator, or of a person
interested in the estate, and after hearing upon notice, shall assign the residue of the Section 4. Recording the order of partition of estate. — Certified copies of
estate to the persons entitled to the same, naming them and the proportions, or parts, final orders and judgments of the court relating to the real estate or the partition
to which each is entitled, and such persons may demand and recover their respective thereof shall be recorded in the registry of deeds of the province where the property
shares from the executor or administrator, or any other person having the same in his is situated.
possession. If there is a controversy before the court as to who are the lawful heirs of
the deceased person or as the distributive shares to which each person is entitled
under the law, the controversy shall be heard and decided as in ordinary cases.

No distribution shall be allowed until the payment of the obligations above

mentioned has been made or provided for, unless the distributees, or any of them,
give a bond, in a sum to be fixed by the court, conditioned for the payment of said
obligations within such time as the court directs.

Section 2. Questions as to advancement to be determined. — Questions as to

advancement made, or alleged to have been made, by the deceased to any heir may
be heard and determined by the court having jurisdiction of the estate proceedings;
and the final order of the court thereon shall be binding on the person raising the
questions and on the heir.

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-Fe D. Quita vs. CA, GR No. 124862, 22 Dec. 1998

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-Emilio Pacioles, Jr. vs. Miguela Chuatoco-Ching, GR No. 127920, 9 August 2005

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3. ESCHEATS cities where the same is located. Shall estate shall be for the benefit of public
-Rule 91 schools, and public charitable institutions and centers in said municipalities or cities.
Escheats
The court, at the instance of an interested party, or on its own motion, may order the
Section 1. When an by whom petition filed. — When a person dies intestate, establishment of a permanent trust, so that the only income from the property shall
seized of real property in the Philippines, leaving no heir or person by law entitled to be used.
the same, the Solicitor General or his representative in behalf of the Republic of the
Philippines, may file a petition in the Court of First Instance of the province where Section 4. When and by whom claim to estate filed. — If a devisee, legatee,
the deceased last resided or in which he had estate, if he resided out of the heir, widow, widower, or other person entitled to such estate appears and files a
Philippines, setting forth the facts, and praying that the estate of the deceased be claim thereto with the court within five (5) years from the date of such judgment,
declared escheated. such person shall have possession of and title to the same, or if sold, the municipality
or city shall be accountable to him for the proceeds after deducting reasonable
Section 2. Order for hearing. — If the petition is sufficient in form and charges for the care of the estate; but a claim not made within the said time shall be
substance, the court, by an order reciting the purpose of the petition, shall fix a date forever barred.
and place for the hearing thereof, which date shall be not more than six (6) months
after the entry of the order, and shall direct that a copy of the order be published Section 5. Other actions for escheat. — Until otherwise provided by law,
before the hearing at least once a week for six (6) successive weeks in some actions reversion or escheat of properties alienated in violation of the Constitution or
newspaper of general circulation published in the province, as the court shall be of any statute shall be governed by this rule, except that the action shall be instituted
deem best. in the province where the land lies in whole or in part

Section 3. Hearing and judgment. — Upon satisfactory proof in open court on

the date fixed in the order that such order has been published as directed and that the
person died intestate, seized of real or personal property in the Philippines, leaving
no heir or person entitled to the same, and no sufficient cause being shown to the
contrary, the court shall adjudge that the estate of the estate of the deceased in the
Philippines, after the payment of just debts and charges, shall escheat; and shall,
pursuant to law, assign the personal estate to the municipality or city where he last
resided in the Philippines, and the real estate to the municipalities or cities,
respectively, in which the same is situated. If the deceased never resided in the
Philippines, the whole estate may be assigned to the respective municipalities or

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-Republic vs. CA, GR No. 143483, 31 Jan. 2002

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