ArticuLaw Primo
LSPU-LAW STAR CLASS
RULE 90
DISTRIBUTION AND PARTITION OF THE ESTATE
Prepared by: Ella Marie Sanico
Administration is for the purpose of liquidation of the estate and distribution og the residue among the heirs and legatees.
Liquidation means the determination of all assets of the estate and payment of all debts and expenses.
When order for distribution of residue made (Sec.1)
RULE: ORDER OF DISTRIBUTION shall be made AFTER payments of all debts, funeral expenses, expenses for administration, allowance to the widow and estate tax is effected or BEFORE payment, only if the distributees gives a bond in a sum fixed by court.
Proceedings for the settlement is deemed ready for final closure when:
- Order of distribution
- Payment of obligations
- Such order is upon proper and specific application for the purpose of the interested party or parties and not of the court.
Stages that must be followed (Order of Distribution)
Payment of obligations (Liquidation of Estate)
- No distribution shall be allowed until payment of the obligations has been made or provided for unless the distributees, or any of them, give a bond, in a sum fixed by court, conditioned for the payment of said obligations within such time as the court directs
Declaration of Heirs
To determine to whom the residue of the estate should be distributed
A separate action for the declaration of heirs is not proper, thus an action for compulsory recognition of a natural child may be instituted and decided in a proceeding for the settlement of the estate of the ancestor.
When is title vested?
- From FINALITY of order of distribution.
- Only after partition is approved and not before, the court may order the delivery to the heirs of their respective shares except when the heir file a bond conditioned to pay the debts.
- An order which determines the distributive shares of heirs is appealable. If not appealed, it becomes final.
- The probate court loses jurisdiction over the settlement proceedings only upon payment of all debts and expenses of the obligor and delivery of the entire estate to all the heirs.
CONDITIONS PRECEDENT to be complied with for the issuance of an order of distribution
- Showing that the executor, administrator or person interested in the estate applied for such; and
-The requirements as to notice and hearing upon such application have been fulfilled.
PROHIBITION AGAINST INTERFERENCE BY OTHER COURTS
- As long as the order of distribution of the estate has not been complied with, the probate proceedings cannot be deemed closed and terminated, because a judicial partition is not final and conclusive and does not prevent the heirs from bringing an action to obtain his share, provided the prescriptive period therefore has not elapsed.