ArticuLaw Primo

Rule 74

SUMMARY SETTLEMENT OF ESTATES

 

Prepared by: Jaylyn Ammang

 

 

Section 1. Extra judicial settlement by agreement between heirs

 

     Sect. 1 of Rule 74 is an exception to the general rule that when a person dies leaving  property, the same should be judicially administered;

 

    There are different modes of settlement of estate of a deceased person, one of which is by virtue of an EXTRAJUDICIAL SETTLEMENT OF ESTATE;

 

   Judicial administration and the appointment of an administrator is a superfluous and unnecessary proceeding which is why such process is not favored;

 

     If it cannot be helped, there must be “good reason” to warrant judicial administration;

 

     “Good Reason” will depend on the circumstances of each case;

 

Note: The following are not considered as “good reasons”

•Dispute among heirs;

•Multiplicity of suits;

•Having legal capacity to appear

 

    Partition although oral, is valid and binding;

 

    Compromise agreements among heirs are also valid;

 

    However, the heirs cannot divest the court of its already acquired jurisdiction.

 

 

Section 2. Summary Settlement of Estates of Small Value

 

    Whenever the gross value of the estate of a deceased person does not exceed ten thousand pesos (Php 10,000.00), which fact is made to appear upon hearing which would be held:

 

“not less than one (1) month nor more than three (3) months from the date of the last publication of a notice which shall be published once a week for three (3) consecutive weeks”

 

    After which, the court may proceed summarily without the appointment of an administrator and without delay to grant, if proper, the allowance of will, and to determine who may legally participate in the estate;

 

    This order shall be in the office of the clerk or the register’s office.

 

Amendment : MeTC, MTC, MCTC probate jurisdiction not exceeding Php 100,000.00 or Php 200,000.00 in Metro Manila

 

 

Section 3. Bond to be filed by Distributees

 

    If property other than real is to be distributed, the court may require the distributees to file a bond prior to partition in an amount fixed by court;

 

    Said bond is conditioned for payment of any just claim which may be filed under section 3.

 

 

Section 4. Liability of distributees and estates

 

     If, within two (2) years, it shall appear that:

 

- An heir has been unduly deprived of his lawful participation in the estate or money payable to him/her;

- There are outstanding debts against the estate which have not yet been paid;

 

Such heir, other person or court may either:

 

•Compel the settlement of the estate in such manner so as to satisfy such lawful participation;

•Settle the amount of such debts or lawful participation and order how much  and in what             manner each distributee shall contribute;

•If circumstances require, issue execution of the bond provided in section 3.

 

- This rule, however, is not applicable to those who had no knowledge of the settlement;

- The prescriptive period to annul settlement is four (4) years; An action for reconveyance is ten (10)              years;

- When the plaintiff is in possession of the land to be reconveyed, prescription cannot be invoked in an       action for reconveyance.

 

 

Section 5. Period for Claim of Minor or Incapacitated Persons

 

    If, on the date of the expiration of the two (2) year period, the person authorized to file a claim is under any of the following conditions, he may present his claim within one (1) year after such disability is removed:

 

•Minority;

•Mentally incapacitated;

•In prison;

•Outside the Philippines.

 

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See MARIA SOCORRO AVELINO vs. COURT OF APPEALS