ArticuLaw Primo

Rule 85

Accountability and Compensation of Executors and Administrators

 

Prepared by Decemar R Escalante

 

 

Section 1. Executor or Administrator chargeable with all estate income.

• The whole of the estate;

• With all the interest; profit and income; and

• The proceeds of so much of the estate as is sold by him, at the price at which it was sold.

 

 

Section 2. Not to profit by increase or loss by decrease in value.

 

GENERAL RULE: The executor or administrator is accountable for the whole estate of the deceased.

 

EXCEPTION: He is not accountable for properties which never came to his possession.

 

EXCEPTION TO THE EXCEPTION: When through untruthfulness to the trust or his own fault or for lack of necessary action, the executor or administrator failed to recover part of the estate which came to his knowledge.

 

 

Section 3. When not accountable for debt due estate.

 

     Not accountable for debts due the deceased which remain uncollected without his fault.

 

 

Section 4. Accountable for income from realty used by him.

 

• If he uses or occupies any part of the real estate himself, he shall account for it as maybe agreed upon between him and the parties interested; or

• Adjusted by the court with their assent; and

• If the parties do not agree upon the sum to be allowed, the sum may be ascertained by the court, whose determination in the respect shall be final.

 

 

Section 5. Accountable if he neglects or delays to raise or pay money.

 

     When an executor or administrator neglects or unreasonably delays to raise money, by collecting the real and personal estate of the deceased, or neglects to pay over the money he has in his hands, and the value of the estate is thereby lessened or unnecessary cost of interest accrues, or the persons interested suffer loss, the same shall be deemed waste and the damage sustained may be charged and allowed against him in his account, and he shall be liable therefor on his bond.

 

 

Section 6. When allowed money paid as costs.

 

    Generally, costs charged or allowed against an executor or administrator in actions brought or prosecuted by or against him should be paid out of the estate of the deceased, unless he did not act in good faith.

 

 

Section 7. What expenses and fees allowed.

 

1. In any special case, where the estate is large and the settlement has been attended with great difficulty and has required a high degree of capacity on the part of the executor or administrator, a great sum may be allowed.

 

2. An executor or administrator shall be allowed the necessary expenses in the care, management, and settlement of the estate.

 

3. Those necessary for the management of the property, for protecting it against destruction or deterioration, and possibly for the production of fruits.

 

 

Section 8. When executor or administrator to render account.

 

RULE: The administrator shall render  an account of his administration within one year from the time of receiving letters testamentary or letters of administration.

 

EXCEPTION: There is allowed an extension of time for presenting claims against or paying the debts of the estate for disposing of the estate but even in such cases, the administration should be terminated in not more than two-years and a half.

 

 

Section 9. Examinations on oath with respect to account

 

    The court may examine the executor under oath with respect to the matter relating to any account rendered by him, and shall so examine him as to the correctness of his account before the same is allowed.

• The practice is for the administrator to take the witness stand, testify under oath on his accounts and identify the receipts, vouchers and documents evidencing his disbursements which are offered as exhibits.

 

 

Section 10. Account to be settled on notice.

 

     Before the account of an executor or administrator is allowed, notice shall be given to persons interested of the time and place of examination and allowing the same; and such notice may be given personally to such persons interested or by advertisement in a newspaper or newspapers, or both, as the court directs.

• Section 11. Surety on bond may be party to accounting.

 

   Upon the settlement of the account of an executor or administrator; a person liable as surety in respect to such account may, upon application, be admitted as party to such accounting.

 

 

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See Teresita C Yaptinchay v. Hon Judge Guillermo Torres, GR No. L-26462