Rule 85 ACCOUNTABILITY AND COMPENSATION OF EXECUTORS AND ADMINISTRATORS

WINTERTemplateRULE 85

ACCOUNTABILITY AND COMPENSATION OF

EXECUTORS AND ADMINISTRATORS

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The executor or administrator is accountable for the WHOLE OF THE ESTATE of the deceased which has come into his possession but not for the estate which he

has never possessed.

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Exception to the exception:

If the administrator or executor failed to recover part of the estate which came to his knowledge, he is accountable for the property so lost.

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If the executor is in Manila and the real property is in Cebu, the executor can take possession by an annotation lis pendens on the TCT of the real property.

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Lis pendens- a written notice concerning a dispute over title and ownership interest of real property and is usually filed in the country land records office where the property is located.

Special ProceedingsWhat is the extent of accountability of administrator or executor?

The administrator or executor shall not profit by the increase of the estate nor shall be held liable for any decrease which the estate without his fault might have sustained.

Special ProceedingsWhat kinds of debts are contemplated in Sec. 3, Rule 85?

The debts contemplated in this section are confined to MONEY CLAIMS.

The administrator or executor is not accountable for the uncollected debts without his fault.

Special ProceedingsCan an administrator be a lessee of the estate he is administering?

YES. If the administrator was the original lessee before he was named as administrator. but NOT during the pendency of his administration for it would amount to self-dealing.

Special ProceedingsWhat is the liability of an administrator or executor who neglects or delays to pay or raise money?

the value of the estate is thereby lessened.unnecessary cost or interest accrues, or persons interested suffers loss.

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Expenses of Administration- refers to those necessary for the management of the property, for protecting it against destruction or deterioration, and possibly for the production of fruits.

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What are expenses and fees allowed to the administrator or executor?• the necessary expenses in the care, management and settlement of the estate.Attorney’s fees may be allowed as expenses of administration when attorney’s service have been rendered to the executor to assist him in the execution of his trust.

Special ProceedingsIs the administrator or executor be entitled to compensation for his service?

YES. The administrator or executor is entitled to either per diem or a commission but not to both.

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Administrator’s duty to render accounting

Administrator or executor is under obligation to a true and just account of his administration to the court.

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Generally, every executor or administrator shall render an account of his administration within 1 year from the time of receiving letters testamentary or letters of administration.

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EXCEPTION:

The extension is allowed by the court for presenting claims against, or paying debts of the estate, or disposing the estate; and he shall render such further accounts as the court may require until the estate is wholly settled.

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What can the probate court or lawyer do to verify accounting done by the executors or administrator?

The court may examine the executor or administrator under oath to verify the accounting done. Same shall be extended to the heirs, legatees, and creditors.

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Notice may be sent to the executor or administrator or to the interested parties.

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END OF PRESENTATION

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KRISTINA C. DE VERA