RULE 90

Distribution and Partition of the Estate

Partial distribution of the decedents estate pending the final termination of the estate or intestate proceeding should as much
as possible be discouraged by the courts.
o HOWEVER, where the estate has sufficient assets to ensure an equitable distribution of the inheritance in
accordance with law, and it does not appear that there are unpaid obligations, such partial distribution may be
allowed.
Before the court can issue an order of distribution, the debts, funeral charges, expenses of administration, allowance to the
widow and inheritance tax must first have been paid.
While Sec 1, Rule 90 speaks of allowance to widows, this should also include allowance to the children of the deceased.
Under Sec 1, Rule 90, the probate court is specifically granted jurisdiction to determine who are the lawful heirs of the
deceased, as well as their shares.
o Hence there is no further need to institute an independent civil action to pass upon the status of the person who
claims to be an heir.
o BUT if the proceedings have been closed, the same may be opened to pass upon the status of one claiming to be an
heir.
The judicial decree of distribution vests title in the distributees and any objection thereto should be duly raised in a seasonable
appeal, otherwise it will have binding effect like any other judgment in rem.
o Heirs may submit this project of partition to serve as a basis of the order of distribution. The heirs who do not agree
may submit a counter-project of partition. If they cannot agree on their respective participations, they can thereafter
resort to an action for partition. (Rule 69) Judicial decree of distribution
The probate court loses jurisdiction of an estate under administration only after payment of all debts and the delivery of the
remaining estate to the heirs.
o As long as the order of distribution has not been complied with, the probate proceeding cannot be deemed
terminated.
The better practice for the heir who has not received his share is to demand the same through a proper motion in the same
probate / administration proceedings, OR for reopening of said proceedings if already closed, BUT still within the reglementary
period for appeal, and not through an independent action.

How distribution is made*

In accordance with the will

In accordance with the law

Partition by the heirs

Following the recommendation of the executor/administrator

RULE 91
Escheats
Act No. 3936

Section 1. Unclaimed balances, within the meaning of this Act, shall include credits or deposits of money, bullion, security or
other evidence of indebtedness of any kind, and interest thereon with banks, buildings and loan associations, and trust
corporations, as hereinafter defined, in favor of any person known to be dead or who has not made further deposits or
withdrawals during the preceding ten years or more. Such unclaimed balances, together with the increase and proceeds
thereof, shall be deposited with the Treasurer of the Philippines to the credit of the Government of the Republic of the
Philippines to be used as the National Assembly may direct.
When does escheat happen?

When a person dies intestate with no heir, his properties revert back to the State.

Even if the decedent died testate, but his will was not admitted to probate, it is as if he died intestate, hence the properties can
still be escheated.

Illegal sales of land to disqualified aliens. (Sec. 5)

What can be escheated?

Land transferred to foreigners

Public utilities and other nationalized industries, if it violates the Constitutional prohibition
o What are escheated are the shares of stock owned by foreigners

Bank deposits
Where to file?

If the deceased was a resident of the PH in the RTC of the province where he last resided

If the deceased was NOT a resident of the PH in the RTC where he had estate (where property is located)
Summary of Procedure:
1. Filing of petition for escheat by Sol Gen (or his representative)

2.

3.

Notes*

Setting the date for hearing

a. Hearing must not be more than 6 months after the entry of the order
b. The order setting the date for the hearing must be published at least once a week for 6 consecutive weeks in some
newspaper of general circulation in the province
After hearing and upon the finding of the court that escheat is proper:
a. Payment of debts of the estate
b. Personal properties go to the municipality or city where the deceased last resided
c. Real properties go to the municipality or city where they are located
There is a seeming inconsistency between Rule 91, Sec 4 and the Fallon case.
o The provision seems to allow the escheat court to become the de facto probate court.
o However, Fallon explicitly states that escheat proceedings CANNOT be converted into settlement proceedings
o Take into consideration the fact of the judicial policy of preventing multiplicity of suits.
o ** The escheat proceedings could be converted into settlement proceedings if the notice requirement in settlement
proceedings is complied with, in order to avoid multiplicity.
RULE 92 97
Guardianship

Three kinds of guardian

1. Legal
o No need for court appointment (e.g. parent)
2. Guardian ad litem
o Court appointed for purposes of a particular action
o Availed of as a provisional remedy (i.e. custody cases)
3. Judicial guardian
o Court appointed over the person and/or property of the ward
o Independent proceeding. This is the special proceeding contemplated by these rules.
Guardianship, in general

Applies to guardianship of incompetents as defined in Rule 92, Sec 2

There is a special rule on the guardianship of minors, hence, minors are excluded from the rules provided underthe ROC.
o Rule on Guardianship of Minors, Sec. 27
Where to file? (Rule 92, Sec 1)

RTC of the province where the incompetent resides

If the incompetent is a non-resident, in the RTC where his property is located

Notice required

Note that notice to all relatives of the ward is required upon the filing of the petition for appointment of a general guardian.

This requirement is jurisdictional.

Who can file?

Relative, friend or other person on behalf of the incompetent

Officer of the Federal Administration

Director of Health (in case of an insane person or an isolated leper)

General powers and duties of the guardian (Rule 96)

Pay wards debts

Collect debts due to the ward

Appear for and represent the ward in all actions and proceedings

Manage the estate of the ward

Submit an annual inventory of the wards estate to the court

Grounds for removal of guardian

Insanity of guardian

Incapability of discharging his duties

Waste or mismanagement of the wards estate

Failure to render an account or make a return within 30 days after such is due
Termination of guardianship

How effected:
1. Resignation
2. Removal

3. Termination of cause for guardianship

Where to file: Same court as guardianship proceedings
o The court which appointed the guardian is also the court competent to decide the petition for restoration to capacity,
which is merely a continuation of the original guardianship proceeding
o The petition for removal must be filed in the same guardianship proceeding
o The grounds for removal of a guardian must be satisfactorily proved

Power of the guardianship court to rule on title

General Rule: When in a guardianship case an issue arises as to who has a better right or title to properties conveyed in the
course of the guardianship proceedings, the controversy should be threshed out in a separate ordinary action as the dispute is
beyond the jurisdiction of the guardianship court.

Exception: Where the right or title of the ward to the property is clear and indisputable, the guardianship court may issue an
order directing its delivery or return.
Guardianship v. Administration of Estate
Sale or Encumbrance of property
Power to sell property
Accounting

GUARDIANSHIP
Petition must be waived
Effective for only 1 year
Guardian must render an inventory and
account annually

ADMINISTRATION OF ESTATE
Petition does not need to be verified
Does not lose effectivity
Executor must render an account within
one year and at any time when required by
the court

A.M. No. 03-02-05-SC Rule on Guardianship of Minors

Where to file?

In the case of a resident Family Court (RTC) where the minor resides

In case of a non-resident Family Court (RTC) where property is located

Who can file?

Parent or any relative

The minor himself or some other person on behalf of the minor

DSWS Secretary

Health Secretary (in case of an insane minor who needs hospitalization

New features of the AM

Allows the participation of the DSWD through a case study

Prescribes specific grounds for the petition for guardianship

Prescribes specific qualifications for guardians, and a specific order of preference as to who will be appointed guardian
Grounds for petition (Sec. 4)

Death, continued absence, or incapacity of parents

Suspension, deprivation or termination of parental authority

Remarriage of surviving parent, if the latter is found unsuitable to exercise parental authority

When the best interests of the minor so require

Who may be appointed guardian, in order of preference (Sec 6)
1. Parents
2. Guardian ad litem
3. Surviving grandparent
4. Oldest brother or sister, over 21 years old, unless unfit or disqualified
5. Actual custodian, over 21 years old, unless unfit or disqualified
6. Any person who, in the sound discretion of the court, would serve the minors best interest
Factors to consider in appointing a guardian (Sec. 5)

Moral character

Physical, mental, and psychological condition

Financial status

Relationship of trust with the minor

Availability to exercise the powers and duties of a guardian for the full period of the guardianship

Lack of conflict of interest with the minor

Ability to manage the property of the minor

Comparative table between Rules 92-97 and AM 03-02-05 SC

Applicability
Venue
Who can file

Procedure
Grounds for the petition for guardianship

Grounds for removal guardian

AM 03-02-05-SC
Specific to minors
Family Court (RTC) where the minor
resides / where his property is located
Parent / Any relative / Minor himself / Other
person on behalf of the minor / DSWD
Secretary / Health Secretary (in the case of
an insane minor who needs hospitalization)
DSWD is involved through the submission
of a case study report (Sec. 9)
-Death, continued absence, or incapacity
of parents
-Suspension, deprivation or termination of
parental authority
-Remarriage of surviving parent, if the
latter is found unsuitable to exercise
parental authority
-When the best interests of the minor so
require
Insanity of guardian
Incapability of discharging of his duties
Waste or mismanagement of the wards
estate
Failure to render an account or make a
return within 30 days after such is due

RULES 92-97
Incompetents (Rule 92, Sec 2)
MTC / RTC where the incompetent resides
or where the incompetents property is
located
Relative, friend or other person on behalf
of the incompetent / Officer of the Federal
Admin / Director of Health (in case of an
insane person or an isolated leper)
Purely court proceedings, no intervention
of any other body
Incompetence of the person sought to be
put under guardianship

Insanity of guardian
Incapability of discharging of his duties
Waste or mismanagement of the wards
estate
Failure to render an account or make a
return within 30 days after such is due

RULE 98
Trustees
When does this apply?

The rule comes into play only when the trustee is not named.
o Testator omits to appoint a trustee.
o Such appointment is necessary to carry into effect the provisions of the will.

Applies only to express trusts, not to implied trusts.

Where to file

RTC which allowed the will (same probate proceedings)

RTC of place where the property is located