BONDS OF EXECUTORS AND ADMINISTRATORS

SECTION 1. Bond to be given before issuance of letters. Amount. Conditions.

Before an executor or administrator enters upon the execution of his trust, and
letters testamentary or of administration issue, he shall give a bond, in such sum as
the court directs, conditioned as follows:

a) To make and return to the court, within three (3) months, a true and
complete inventory of all goods, chattels, rights, credits, and estate of the
deceased which shall come to his possession or knowledge or to the
possession of any other person for him;

b) To administer according to these rules, and, if an executor, according to

the will of the testator, all goods, chattels, rights, credits, and estate which
shall at any time come to his possession or to the possession of any other
person for him, and from the proceeds to pay and discharge all debts,
legacies, and charges on the same, or such dividends thereon as shall be
decreed by the court;

c) To render a true and just account of his administration to the court within
one (1) year, and at any other time when required by the court;

d) To perform all orders of the court by him to be performed.

What the bond secures:

1. To make an Inventory within 3 months;

2. To Administer the estate and pay the debts;
3. To Account within 1 year and at other time when
required by the court; and,
4. To Perform all judicial orders.
QUESTION: What is the purpose and nature of an
executors or administrators bond?
ANSWER: The purpose of the bond is to safeguard
the estate. The ability to give a bond is, therefore, in
the nature of a qualification for the office of the
executor or administrator. [Sison v. Teodoro, L-9271, March 29,
1957]

NB: The bond is to answer for any infidelity that may arise during the
administration of the property of the deceased.
Administrator bonds are:

a) For the benefit of Creditors, and heirs, and

b) To compel the administrator to perform the trust reposed in him and

discharge the duties incumbent upon him.

The object and purpose of administration bond is to secure a

faithful administration of the estate and a fair distribution of its
proceeds among those who, by the laws of this country or of the
country where the deceased had his domicile, shall be entitled to
them.
QUESTION: What is the extent of liability of the
surety on the bond?

ANSWER: The maximum liability of the surety on the

bond of an administrator is the stated amount of the
bond. [Ferrer, et.al., v. Lopez, 68 Phil. 668]
QUESTION: If the administrators bond becomes
liable, how may such be executed?

ANSWER: Either in the same special proceedings, or,

in a separate action. [Phil. Trust Co v. Luzon Surety, L-13031, May
30, 1961]
SECTION 2. Bond of executor where directed in will. When further bond required. - If the
testator in his will directs that the executor serve without bond, or with only his
individual bond, he may be allowed by the court to give bond in such sum and with such
surety as the court approves conditioned only to pay the debts of the testator; but the
court may require of the executor a further bond in case a change in his circumstances,
or for other sufficient cause, with the conditions named in the last preceding section.

The probate court, for good reasons, has the power to ignore testamentary
provisions dispensing with the bond. The executor named in the will may be
required by the court to file a bond, even if he had been exempted by the testator
from filing a bond.

This is done if the court deems the same necessary and prudent, as in the following
cases:

1. Where said executor named in the will is a non-resident, or

2. That he is insolvent, or
3. That the executors finances are precarious, to afford adequate security for the
due administration of the estate.
4. In addition, in all cases where the circumstances show it to be proper that a
bond should be required.
Section 3. Bonds of joint executors and administrators. - When two or more persons
are appointed executors or administrators the court may take a separate bond from
each, or a joint bond from all.

This contemplates the situation where more than one person had been
designated or appointed to act as executors or administrators.

The bond may be posted in a manner that is based on the sound discretion
of the Court, i.e., it may require each and every executor/administrator to
post their respective bond. Or, for them to post a joint bond, meaning, a
single bond.

However, the amount of this single bond must be equal to the totality of
the bond required for each of them.
Section 4. Bond of special administrator. - A special administrator before entering upon
the duties of his trust shall give a bond, in such sum as the court directs, conditioned
that he will make and return a true inventory of the goods, chattels, rights, credits, and
estate of the deceased which come to his possession or knowledge, and that he will
truly account for such as are received by him when required by the court, and will
deliver the same to the person appointed executor or administrator, or to such other
person as may be authorized to receive them.

This section relates to the giving of a bond, the bond conditioned on the
faithful execution of the administration of the property of the deceased. The
special administrator under this section is required:

i. To make and return a true inventory of the goods, chattels, rights, credits,
and estate of the deceased which come to his possession or knowledge,
and
ii. That he will truly account for such as are received by him when required
by the court, and
iii. Will deliver the same to the person appointed executor or administrator,
or to such other person as may be authorized to receive them.
QUESTION: May the administrators bond be
liable for the return of money which the
administrator spend in good faith and which he is
unable to repay?

ANSWER: No. The bond answers only for the faithful

administration of the estate, and not for the return of
money which the administrator, in good faith, spend
and which he is unable to repay. [Montemayor v. Heirs of
Gutierrez, L-16959, Jan. 30, 1962]
QUESTION: If the probate court orders
forfeiture of the administrators bond, is the
surety entitled to notice?

ANSWER: No, but he may be allowed to intervene if

he asks for leave of court. [Phil. Trust Co. v. Luzon Surety, May
30, 1961]
Additional note:

The alleged insufficiency of a bond fixed by the Court

is not by itself an adequate reason for the annulment
of the courts order. The filing of an insufficient or
defective bond does not dissolve absolutely and
unconditionally an injunction. The remedy in a proper
case is to order a party to file a sufficient bond.
[PVTC v. De Los Angeles, et.al., GR No. 27829, August 19, 1988]
 REVOCATION OF ADMINISTRATION, DEATH,
RESIGNATION, AND REMOVAL OF EXECUTORS
AND ADMINISTRATORS
Section 1. Administration revoked if will discovered; Proceedings thereupon. - If after
letters of administration have been granted on the estate of a decedent as if he had died
intestate, his will is proved and allowed by the court, the letters of administration shall
be revoked and all powers thereunder cease, and the administrator shall forthwith
surrender the letters to the court, and render his account within such time as the court
directs. Proceedings for the issuance of letters testamentary or of administration under
the will shall be as hereinbefore provided.

This section presupposes that a will has been discovered after the letters of
administration had been issued. In such a case, after the presentation, and
allowance of the discovered will, the letters of administration shall be revoked
and the powers granted thereto, terminated.

Thus: a person dies leaving estate, and no will is presented; he is therefore

treated as having died without a will, and intestate proceedings are
instituted; thereafter an administrator is appointed and letters of
administration issued; and then his will is discovered; the will, if thereafter
allowed in probate, will result in revocation of the letters of administration
previously issued.
QUESTION: What are the effects of such
revication?

ANSWER: The effects of such revocation are the

following:
a) All powers of administration shall cease;
b) The administrator shall forthwith surrender his letters to the court;
c) The administrator shall render his account within such time as the court
directs; and,
d) Proceedings for the issuance of letters testamentary or of administration
under the will shall be had.
Notes:
Mere discovery of a document purporting to be the last will and testament of the
decedent, after appointment of an administrator upon the assumption that the
decedent died without a will, DOES NOT, in view of Sec. 1, Rule 82, ipso facto
nullify the letters of administration already issued or even authorize their
revocation. The discovered will must first be proved and allowed. [Advincula v.
Teodoro, L-9282, May 31, 1956]

Acts of administration and claims against the estate made before the discovery and allowance of
the will are valid and effective.

Claims against the estate presented to the court during the administration prior to the
discovery and allowance of the will shall be considered submitted in the new proceedings as
of the date when first filed.

That which is done before the discovery and probate of the discovered will, is valid and
effectual for the purpose of administration, and the new executor or administrator thereafter
appointed takes up from the old administrator left it, and is his successor in trust, and is
bound by what he has done in the lawful execution of the powers of his appointment.
Section 2. Court may remove or accept resignation of executor or administrator; Proceedings
upon death, resignation, or removal. - If an executor or administrator neglects to render his
account and settle the estate according to law, or to perform an order or judgment of the court, or
a duty expressly provided by these rules, or absconds, or becomes insane, or otherwise incapable
or unsuitable to discharge the trust, the court may remove him, or, in its discretion, may permit him
to resign. When an executor or administrator dies, resigns, or is removed the remaining executor or
administrator may administer the trust alone, unless the court grants letters to someone to act with
him. If there is no remaining executor or administrator, administration may be granted to any
suitable person.

When An Executor or Administrator May Be REMOVED or PERMITTED TO

RESIGN:

1. Neglect to render his account;

2. Neglect to settle his estate according to law;
3. Neglect to perform an order or judgment of the court, a duty expressly
provided in the Rules of Court;
4. If he Absconds;
5. Id he becomes Insane;
6. If he becomes in Anyway incapable or unsuitable for the discharge of the
trust.
QUESTION: Are these grounds for removal
exclusive?

ANSWER: No, they are not exclusive because removal

of an executor or administrator lies within the
discretion of the court appointing him [Padilla v. Jugo,
64 Phil. 888]
Other Grounds:
1. Lack of Harmony or conflict of interest between the administrator and persons
interested in the estate like the heir or legatee, by reason of which it cause
inaccurate inventories and accounts filed by the administrator, and the proceedings
were clogged by a succession of opposition to the inventories and accounts these
also constitute good cause for the removal of the administrator [Padilla v. Jugo, 64 Phil.
888].

2. Active hostility to a creditor this constitutes such misconduct as called for the
removal of the executor.

3. False representations were used to obtain the administrators appointment

[Cabarrubias v. Dizon, 76 Ohil. 209].

4. Physical incapacity is a ground for removal [De Borja v. Tan, 93 Phil. 167].

5. Adverse interest in the estate and against the heirs makes the appointed
administration unsuitable to the trust [Arevalo v. Bustamante, 69 Phil. 656].

6. Delays in the winding or settlement of the estate under the administration are
resorted to by the administrator which are found unnecessary [Lizzarraga Hermanos v.
Abada, 40 Phil. 124; Del Rosario v. Del Rosario, 67 Phil. 652]
 Section 1. Administration revoked if will discovered; Proceedings
thereupon. - If after letters of administration have been granted on the estate
of a decedent as if he had died intestate, his will is proved and allowed by the
court, the letters of administration shall be revoked and all powers thereunder
cease, and the administrator shall forthwith surrender the letters to the court,
and render his account within such time as the court directs. Proceedings for
the issuance of letters testamentary or of administration under the will shall be
as hereinbefore provided.

Section 2. Court may remove or accept resignation of executor or

administrator; Proceedings upon death, resignation, or removal. - If an
executor or administrator neglects to render his account and settle the estate
according to law, or to perform an order or judgment of the court, or a duty
expressly provided by these rules, or absconds, or becomes insane, or otherwise
incapable or unsuitable to discharge the trust, the court may remove him, or, in
its discretion, may permit him to resign. When an executor or administrator
dies, resigns, or is removed the remaining executor or administrator may
administer the trust alone, unless the court grants letters to someone to act
with him. If there is no remaining executor or administrator, administration
may be granted to any suitable person.
 Section 3. Acts before revocation, resignation, or removal to be valid. -
The lawful acts an executor or administrator before the revocation of his letters
testamentary or of administration, or before his resignation or removal, shall
have the like validity as if there had been no such revocation, resignation, or
removal.

Section 4. Powers of new executor or administrator. - Renewal of license to

sell real estate. The person to whom letters testamentary or of administration
are granted after the revocation of former letters, or the death, resignation, or
removal of a former executor or administrator, shall have the like powers to
collect and settle the estate not administered that the former executor or
administrator had, and may prosecute or defend actions commenced by or
against the former executor or administrator, and have execution on judgments
recovered in the name of such former execution or administrator. An authority
granted by the court to the former executor or administrator for the sale or
mortgage of real estate may be renewed in favor of such person without further
notice or hearing.