ArticuLaw Primo
LSPU-LAW STAR CLASS
Rule 86
Claims against Estate
Prepared by: Marcko Lim
Claim any debt or pecuniary demand against the decedent’s estate.
Question: When may a court issue notices to creditors to file their claims?
Answer: Immediately issued after granting letters testamentary or of administration.
PURPOSE
For the speedy settlement of the affairs of the deceased person and early delivery of the property of the estate into the hands of the persons entitled to receive it.
Claims arising AFTER his death cannot be Presented except for:
a) funeral expenses; and
b) expenses of the last sickness of the decedent.
Claims for taxes (inheritance and estate) due and assessed after the death of the decedent need not be presented in the form of a claim. The court in the exercise of its administrative control over the executor or administrator may direct the latter to pay such taxes. And the heirs, even after distribution are liable for such taxes.
STATUTE OF NON-CLAIMS (Sec.2)
Question: When should the claims be filed?
Answer
GENERAL RULE: Within in the time fixed in the notice which shall not more that 12 MONTHS nor less than 6 MONTHS after the date of the FIRST PUBLICATION. Otherwise, they are BARRED FOREVER. Even if the testator acknowledged the debt in his will and instructed the executor to pay the debt, the statute of non-claims must still be complied with; otherwise the claim may also be barred.
EXCEPTION: Belated Claims.
Belated Claims are claims not filed within the original period fixed by the court. On application of a creditor who has failed to file his claim within the time previously limited, at ANY TIME BEFORE an order of distribution is entered, the court MAY, for cause shown and on such terms as are equitable, allow such claim to be filed within a time NOT EXCEEDING 1 MONTH from the order allowing belated claims.
Statute of Non-Claims supersedes the Statute of Limitations insofar as the debts of deceased persons are concerned. However, BOTH statute of Non-Claims and Statute of Limitations MUST CONCUR in order for a creditor to collect.
Claims which are not filed within the Statute of Non-Claims are barred forever (Sec.5)
Claims referred to under this section refer to claims for the recovery of money and which are not secured by a lien against the property of the estate. (Olave vs. Carlos, 208 Phil 678)
Question: Claims which should be filed under the Statute of Non-claims?
Answer: a. Money claims, debts incurred by deceased during his lifetime arising from contract
express or implied;
b. due or not due;
c. absolute or contingent; and
d. Claims for funeral expenses and for the last illness of the deceden.
Judgment for money against decedent.
Contingent Claim – conditional claim or claim that are subject to the happening of a future uncertain event.
Claims not yet due or contingent may be approved at their present value. HOWEVER, a creditor barred by the Statute of Non-claims may file a claim as a COUNTERCLAIM in any suit that the executor or administrator may bring against such creditor.
SOLIDARY OBLIGATION OF DECEDENT (Sec.6)
Claim should be filed against decedent as if he were the only debtor without prejudice on the part of the estate to recover contribution from the other debtor. (JaucianvsQuero, 38 Phil 707l)
Joint obligation of decedent
The claim must be confined to the portion belonging to the decedent.
MORTGAGE DEBT DUE FROM ESTATE (Sec.7)
ALTERNATIVE REMEDIES Of The Creditor Holding A Claim Secured By A Mortgage Or Other Collateral Security
a. ABANDON security and prosecute his claim against the estate and share in the same general distribution of the assets of the estate;
b. FORECLOSE his mortgage or realize upon his security by action in court making executor or administrator a party defendant and if there is judgment for DEFICIENCY, he may file a claim (contingent) against the estate within the statute of non-claims.
Agency coupled with an interest
The power to foreclose a mortgage is not an ordinary agency that contemplates exclusively the representation of the principal by the agent but is primarily an authority conferred upon the mortgagee for latter’s own protection. That power survives the death of the mortgagor. (Bicol Savings and Loan Association vs. CA)
RELY SOLELY ON HIS MORTGAGE and foreclose the name at anytime within the period of the statute of limitation but he cannot be admitted as creditor and shall not receive in the distribution of the other assets of the estate;
These remedies are alternative, the availment of one bars the availment of other remedies.
JUDGMENT ALLOWING CLAIM (Sec.13)
Judgment against executor and administrator shall not create any lien upon the property of the estate or does not constitute a specific lien which may be registered on such property. Judgment of a probate court approving or disapproving a claim is appealable.
The mode of appeal is record on appeal and must be filed within 30 DAYS from notice of judgment.
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