Executors & Administrators (PPT)

7/25/2019 Executors & Administrators (PPT)

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EXECUTORS &

ADMINISTRATORS

Ar

ts. 1058 - 1067


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ART. 1058EXECUTORS &

ADMINISTRATORS


3/91

All matters relating to the appointment, powers and duties Ofexecutors and administrators and concerning the Administrationof estates of deceased persons shall be Governed by the Rules

of Court


4/91

ART. 1058: Governed by Rules 78-90 Rules !"

C!urt

!o executor " administrator must beappointed until proof of the decedent#sdeath has been shown

EXECUTOR DE SON TORT:

$ also %nown as executor de facto&$ one who wor%s before appointment is con'rmedby the court (in his own wrong&)$ An executor of a will cannot o*cially act as suchbefore his appointment is con'rmed by the court


5/91

EXECUTOR #S. ADMINISTRATOR $IT% A$I ANNEXED

E'e(ut!r:A person appointed

when a testator leavesa will

Court issues +etters estamentary

A)*+,+str t!r / +ll

,,e'e):-f there is a will butthere is no executor

Or when such executoris incompetent orunwilling

Court issues +etters ofAdministration Annexed


6/91

ADMINISTRATOR ENDENTEITE

(.pecial Administrator) / one appointed tota%e charge of the estate in the meantimewhere there is a 01+A2 in theappointment of the regular executor "

administrator

.uch a delay occasioned by certaincauses such as an appeal from the

allowance " disallowance of a will Rule 80Se(. 1 ROC2


7/91

ADMINISTRATOR ENDENTEITE

Allowed to .1++ part of the property, upon Court#sapproval Rule 80 Se(. 3 ROC2

!O allowed " re3uired to pay the debts of thedeceased

4ut if no ob5ection has been raised in the trialcourt, an action to recover the debt can be madeagainst the special administrator, as long as theestate is not pre5udiced

his ob5ection cannot be raised for the 6 st time onappeal

. A is not re3uired to satisfy 5udgment out of theestate but of the regular administrator " executor


8/91

1. A44!+,te)e e, "ter t ere+s lre ) re ul r e'e(ut!r/ )*+,+str t!r

7hen regular executor "administrator see%s torecover his own credit orclaim against the estate

OT%ER INDS O S ECIAADMINISTRATION

3. Dur ,teM+,!re Aet te

Appointed when theperson who has theright to becomeexecutor " administratoris still a minor

Appointment

continues until the endof such minority


9/91

RE;U AR ADMINISTRATOR


10/91

ORDER O RE ERENCE ORA OINTMENT

-f no person is named in the will or theexecutors are incompetent, refuse the trust, orfail to give bond, or a person dies intestate,administration shall be granted= Rule 78 Se(. 6ROC2

6 o the sur + +, s4!use ,e't !" >+, !r ?OT%: o such person as any of the above9mentionedre@uests t! e 44!+,te) if competent and willingto serve

=. r+,(+4 l Cre)+t!rs / -f any of the above9mentionedbecomes incompetent, is unwilling, or neglects for ;>days after death of the person to apply foradministration " to re3uest that administration begranted to some other person

.Su( !t er 4ers!, as the court may select


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his order of preference may be disregardedby ?robate Court, provided no abuse ofdiscretion has been made

B!+,t / lur l )*+,+str t!rs - may beappointed, particularly when the estate islarge and there are di@erent interests to berepresented


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AUT%ORIT AS ADMINISTRATOR ENDS$IT%:

6 he closing of the settlement, testate orintestate proceedings

: 0eath, resignation or removal


13/91

RINCI A DUT OADMINISTRATOR

6 Administer, settle, and close theadministration without delay

: 0etermine what properties must belong tothe estate

; 4ring the needed actions for their recoveryif they be in the possession of others

< 7ithin = MONT%S after appointment /must submit an inventory and appraisal ofthe deceden#ts real and personal property7ithin A EAR after appointment / mustrender proper accounting


14/91


1ven if one is expressly appointed asadministrator " executor in a will but theintent was to ma%e him a trustee, then theappointment still should be construed asthat of a TRUSTEE

7hen the estate of a dead person is alreadythe sub5ect of testate or intestateproceedings, the administrator CA!!Oenter into any transaction regarding theestate without prior approval of the probatecourt


15/91


;R = it is the executor " administrator who is?R-8AR-+2 +-A4+1 for the attorneyBs fees due thelawyer who rendered legal services for the executor "administrator in relation to the settlement of theestate

he executor " administrator may see%reimbursement from the estate for the sum paid inattorneyBs fees - it can be shown that the lawyerBsservices redounded to the bene't of the estate

A claim for attorneyBs fees parta%es in the nature ofan administration expense

A claim for reimbursement must be superior to therights of the bene'ciaries


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ART. 1059INSO #ENC O

T%E ESTATE


17/91

-f the assets of the estate of a decedent which can be applied to the payment ofdebts are not su*cient for that purpose, the provisions of Articles ::;D 9 :: 6 on?reference of Credits shall be observed, provided that the expenses referred to in

Art ::


18/91

ART. 1059 RU ES ON RE ERENCE AND CONCURRENCE OCREDITS are to be applied in case of insolvency of

the estate (Art ::


19/91

ORDER O RE ERENCEArt. 33 : $+t re"ere,(e t! !t er 4r!4ertre l ,) 4ers!, l !" t e )e t!r t e "!ll! +,(l +*s !r (re)+ts s ll e 4re"erre) +, t e !r)er, *e):

(6) ?RO?1R F!1RA+ 1 ?1!.1. for the debtor, orchildren under his or her parental authority who haveno property of their own, when approved by the courtH

(:) CR10- . for services rendered the insolventby employees, laborers, or household helpers forone year preceding the commencement of theproceedings in insolvencyH


20/91

ORDER O RE ERENCE(;) 1 ?1!.1. 0FR-!G I1 +A. -++!1.. O I1014 OR or of his or her spouse and children underhis or her parental authority, if they have no property

of their ownH

(


21/91

ORDER O RE ERENCE

(L) -!1. A!0 C-J-+ -!018!- -CA -O! arising froma criminal o@enseH

(E) +1GA+ 1 ?1!.1., and expenses incurred inthe administration of the insolventBs estate for thecommon interest of the creditors, when properlyauthoriMed and approved by the courtH

(D) A 1. A!0 A..1..81! . 0F1 I1 !A #+GOJ1R!81! , other than those mentioned inArticles ::


22/91

ORDER O RE ERENCE

(6>) A 1. A!0 A..1..81! . 0F1 A!2 ?ROJ-!C1,other than those referred to in Articles ::


23/91

ORDER O RE ERENCE

(6


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ART. 1060 BUDICIA

ENTITIES ACTIN;

IN A IDUCIAR


25/91

A corporation " association authoriMed to conduct the business of a trust

company in the ?hilippines 8ay be appointed as an executor,administrator, guardian of an estate, or trustee, in li%e manner as an

individualH but it shall not be appointed guardian of the person of a ward


26/91

ART. 1060

Nuridical person referred to can be appointed

guardian of the ?RO?1R 2 (estate only), butnot of the person of the ward


27/91

CO ATION Computing or adding certain values to theestate, and charging the same to the+1G- -81

Computing or adding certain values to theestate, and charging the same to the R11?OR -O!

NON-CO ATIONA? E means=6 -t should be imputed or added, but should be

charged to the R11 ?OR -O!: -t should !O even be computed or added to the

estate for it is not part of the same

here can be collation in both testamentary andlegal succession


28/91

ART. 1061CO ATION ?COM U SOR

%EIRS


29/91

1very compulsory heir, who succeeds with other compulsory heirs, must bring

into the mass of the estate any property or right which he may have receivedfrom the decedent, during the lifetime of the latter, by way of donation, or anyother gratuitous title, in order that it may be computed in the determination of

the legitime of each heir, and in the account of the partition


30/91

ART. 1061 .pea%s of collation of the 'rst %ind / adding

values to the estate and charging them tothe +1G- -81

?FR?O.1= to produce e3uality as amongcompulsory heirs of the same class

1very donation inter vivos given to alegitimate child is considered generally asan advance of his legitime or inheritance

!ot necessary if there are no compulsoryheirs


31/91

ART. 1061

As long as there are compulsory heirs,donations to them as well as to . RA!G1R.must be collated=

6 hose donated to compulsory heirs must beimputed to their legitime

: hose donated to strangers must beimputed to the free portion


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RO?EM


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Mr. #er!, s 1M. %e + es )!, t+!, +,ter + !s !"100 000 t! B ,,us +s el)er( +l). ter e )+e) +,test tele +, t e re* +,+,

900 000.D+ +)e t e est te et ee,

B ,,us t e el)er ( +l) ,) B+ll

t e !u, er ( +l).


34/91

ANS$ER:

900 000 remaining estate100 000 collationabledonation1M hereditary netestate

1M )+ +)e) 3 F 500 "!re ( ( +l):

D+str+ ut+!,:

500 000 B+ll00 000 B ,,us100 0 00 D!, t+!, +,ter

+ !s t! B ,,us

+


35/91

$ t +" t e )!, t+!, +,ter+ !s !" 100 000 s +, t e"!r* !" ( r +( ( , ls!

e + e, t! B+llG


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ANS$ER:

B ,,us ,) B+ll * re(e+ e t e

re* +,+, 00 000 e ( +, t e"!r* !" ( s s !ul) t ere e( s +, t e est te.


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DECIDED CASES

?U%A DE ROMA #S. C.A.2

he fact that a donation is irrevocable does

not necessarily exempt the donated propertiesfrom collation he decedent9donor would have included anexpress prohibition to collate, if that wasindeed his intention


38/91

DECIDED CASES

UCERNA #DA. DE TU AS #S. RTC2

-no*cious donation is collationable

Jalue is imputable into the hereditary estateof the donor at the time of his death for thepurpose of determining the legitime of theforced " compulsory heirs and the freelydisposable portion of the estate his is also true for donations to strangers asof gifts to compulsory heirs


39/91

DECIDED CASESSANC%EH #S. C.A.2

0eeds of sale do not involve gratuitoustransfers of future inheritance hese were contracts of sale perfected bythe decedents during their lifetime herefore, properties conveyed thereby are!O collationable

7hat is essential in collation is thatproperties were conveyed inter vivos by thedecedent to an heir by way of donation orother gratuitous title


40/91

DECIDED CASESHARA;OHA #S. C.A. & MOR;AN2

A partition done by the decedent9donorduring his lifetime is JA+-0As long as it is done without impairing thelegitime of compulsory heirs his is determined after collation bycompulsory heirs of what they received during

the lifetime of the deceased throughdonation " any other gratuitous title


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RE ERENCE TO COM U SOR%EIRS

7hile it is true that the surviving spouse is also acompulsory heir, still she is not included in this article

0onations to her during the marriage are null and void

Ownership over said donated property still pertains tothe donor (or his estate)

8oderate donations such as birthday " anniversarygifts are not to be computed

0onation given to the future spouses (by the other)are considered donation O . RA!G1R., because atthat said time, one is not yet the compulsory heir of theother


42/91

1. C!ll t+!, +,#A UE

-n the form of cash

INDS O CO ATION3. Retur,+, +,

INDFsually occurs when the

donee has no money withwhich to reimburse in casedonation turns out to betotally " completelyino*cious he same thing donated

are not to be brought tocollation partition, but

only their value at the timeof donation, even thoughtheir 5ust value may nothave been assessed


43/91

DECIDED CASESNAHARENO #S. C.A2

-n the presence of an implied trust involving the lotsin 3uestion, collation is said to exist

his is so in the case of an innocent purchaser forvalue who relied on the petitioner#s title

he rule is settled that every person dealing withregistered land may safely rely on the correctness ofthe certi'cate of title issues therefore and the law will inno way oblige him to go behind the certi'cate todetermine the condition of the property


44/91

1. D+re(t /Or)+, rD!, t+!,

INDS O DONATION

3. I,)+re(tD!, t+!,1x= Remitted debt Renunciation ofanother inheritance bythe deceased in favorof the compulsory heirs .ums paid by a parent

in satisfaction of thedebts of his children 1lection expenses

?roceeds in a life insurance policy and mutual bene'ts contractare not donations, therefore non9collationable


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$E%A#E A

RO? EMA;AIN


46/91

+* ,) Bust+,e re ;er l) s( +l)re,. Dur+, ;er l) sl+"et+*e e e +* 100 . I,

+s +ll e )+str+ ute) +sre* +,+, est te !" 900 s"!ll! s:150 000 +*

350 000 Bust+,e500 000 C r+st+ , +s "r+e,)+* (!*4l +,e) st t+, t t

s e ) ,!t ee, + e, er r+ t

le +t+*e. Is s e r+ tG


47/91

ANS$ER:

0istribution=>>P / ree portion (goes to

Christian): >P / Nustine6 >P / Pim6>>P / 0onati on inter vivosto Pim

900 000 remaining estate100 000 collationabledonation1M hereditary netestate

T ere"!re +* ( ,,!t(!*4l +,

+

68 " : Q >>P ( ?"+egitime)>>P (legitime) " : Q : >P

: >P for each child


48/91

DIS UTE SETT EMENT

0isputes between heirs with respect to theobligation to collate may be determined in thecourse of the A08-!-. RA -O! ?ROC110-!G.


49/91

1. A *ere* t e* t+( l!4er t+!, t e

))+t+!, !"lue !")!, t+!,s * )e

t e Test t!rt! t e lue !"t e ere)+t rest te.

CONCE TS O DONATION

3. T e retur,st! t e

ere)+t r

est te !"4r!4ert)+s4!se) !" lu(r t+ e t+tle

t e Test t!r)ur+, +sl+"et+*e.


50/91

DECIDED CASES

ARRE ANO #S. ASCUA 2

.iblings are collateral relatives, therefore,not entitled to any legitime

-f a person does not have any compulsoryheir entitled to legislative, he"she has theliberty to donate all his"her properties even if

nothing is left for his"her siblings


51/91

ART. 1063$%ENCOM U SOR

%EIRS $I NOT


52/91

Collation shall not ta%e place among compulsory heirs if thedonor should have so expressly decided, if the donee should

repudiate the inheritance, unless the donation should bereduced as ino*cious


53/91

ART. 1063

Although the law says collation shall notta%e place if the donee should repudiate the

inheritance&, donation must still be computedto 'nd out what the legitime is, and if foundino*cious, it must be reduced


54/91

1. I" t e )!,!re'4ressl4r! +)es

?FR?O.1= so that4re"ere,(e , not e3uality,is obtained / as long as thelegitime of others are notimpaired

Ie wants to give thedonee the property inA00- -O! to the latter#slegitime

CASES $%ERE DONATION INTER#I#OS TO COM U SOR %EIRS

ARE NOT TO ?E CO ATED3. I" )!,ees !ul)RE UDIATE t e+, er+t ,(e

Ie ceases to be an heirbecause he waives thelegitime

Ie becomes a . RA!G1Rto the inheritance

JJ 0onation shall becharged to the REE

ORTION JJ


55/91

MORE

RO? EMS


56/91

Arr C r* +,e s t ! s!,sR e ,) ,) M e. S e eR e ,) )!, t+!, !" 100 ,)e'4ressl st te) t t +t s ,!t(!ll t+!, le. I" s e )+es+,test te le +, 900 !s !ul) t e s *e e )+ +)e)G


57/91

ANS$ER:

900 000 remaining estate shall bedivided E,>>> S 6>>,>>> Q550 0008abe gets 50 000 only


58/91

Arr C r* +,e s t ! s!,sR e ,) ,) M e. S e eM e t +s t+*e )!, t+!, !"800 ,) e'4ressl st te) t t+t s ,!t (!ll t+!, le. I" s e)+es +,test te le +, 300 !*u( !ul) e t e s re !"e ( G


59/91

ANS$ER:

6 Add the values to 'nd out if the legitimehas been impaired or not= E>>P S :>>P Q68 (net hereditary estate)

: 68 divided by : Q >>P ; >>P divided by : Q : >P / each other#s

legitime

R e ,) ets t e !le 300 4lus50 *!re t! e t >e, !ut !" t e)!, t+!, t! M e.


60/91

;r ,,e

Mr. Ar4!, t e D ) )!, te)600 t! R+el +s s!,. %e )+e)

+,test te le +, =00 sre* +,+, est te.


61/91

I" ll t e ( +l)re, +,(lu)+, R+el +ll((e4t s !ul) t e )!, t+!, t! R+ele re)u(e)G $ G

I" ;r ,,e ,) ;e, ((e4t utR+el re4u)+ tes s !ul) t e)!, t+!, t! R+el e re)u(e)G $ GI" s! ! *u( G


62/91

ANS$ERS:

S+,(e A ((e4te) +,(lu)+,R+el t e )!, t+!, t! +* +ll NOT

e re)u(e).

6 K>>P S ;>>P Q D>>P / total estate: D>>P divided by : Q < >P ; < >P divided by ; Q 150 "!r e (( +l)

he legitimes of Granney and Gen are notimpaired


63/91

ANS$ERS:

I" ;r ,,e ,) ;e, ((e4t utR+el re4u)+ tes t ere +ll !,l e3 (!*4uls!r e+rs.

6 D>>P / total estate: D>>P divided by : Q < >P (legitime "ree ?ortion)

; D>>P / K>>P (donation to Riel) Q ;>>P(impaired legitime)

< K>>P / 6 >P Q 50 )!, t+!, t! R+el;>>P S 6 >P Q 50 le +t+*e !";r ,,e ,) ;e,


64/91

ART. 106=TESTAMENTARDIS OSITIONS

;ENERA $I


65/91

?roperty left by will is not deemed sub5ect to

collation, if the testator has not otherwise provided,but the legitime shall in any case remain unimpaired


66/91

ART. 106=?roperty not sub5ect to collation& / meansthat the +1GAC2 " 01J-.1 given should beimputed to the free portion and not to thelegitime, unless testator provides otherwise

DIS OSITION INTER #I#OS )!, t+!,s2:;R: e3ualityX N: preference

DIS OSITIONS MORTIS CAUSA le (+eset(.2

;R: preferenceX N: e3uality


67/91

$%EN T%IS ARTIC E IS NOTA ICA? E

-n case of a distribution and partition of the1! -R1 1. A 1 by the testatrix 7- IOF herhaving made any previous donations during

her lifetime which would re3uire collation todetermine the legitime of each heir, there isno reason to apply Arts 6>K6, 6>K: and 6>K;

-f only part of the estate had been given bywill, Art 6>K; may apply


68/91

SOMEMORERO? E

MS.


69/91

Ms. E*4 s+s s 3 le +t+* te( +l)re, l ,) Bess . S e* )e +ll + +, l le (!" 100 . T ere s ,! !t er4r! +s+!, t! t e +ll. Est te s1M. %! s ll t e est te e)+ +)e)G


70/91

ANS$ER:

6 68 (total estate) / 6>>P (legacy to+ala) Q D>>P : D>>P divided by : Q < >P

T%ERE ORE:l ets 50 K 100 le ( 2 F550

Bess ets 50 !,l

TT 8s 1mp hasis intended to give +ala apreference

TT -f this was a donation and not a legacy, itwould have been divided as >P for +ala,


71/91

Ms. T+, s 3 le +t+* te( +l)re, ?er, )ette ,) Bul+ ,.S e * )e +ll + +,?er, )ette le ( !" 800 .T ere s ,! !t er 4r! +s+!, t!t e +ll. Est te s 1M. %!s ll t e est te e )+ +)e)G


72/91

ANS$ER:

6 E>>P (legacy) S :>>P (remainingestate) Q 68: 68 divided by : Q >>P ; >>P (legitime) divided by : Q

: >P"child

T%ERE ORE:T e re* +,+, 300 !es t! Bul+ ,

4lus 50 t >e, !ut !" t e 800le ( t! ?er, )ette t! s t+s"

+s le +t+*e.


73/91

Ms. D+!l!l s 3 le +t+* te( +l)re, M r> ,) I ,.Est te s !r+ +, ll 1M.

S e e M r> )!, t+!, !"100 .S e e I , le ( !" 100 .

T ere e+, ,! !t er 4r! +s+!,+, t e +ll ! +ll t ere* +,+, 800 e )+ +)e)G$ G


74/91

ANS$ER:

6 E>>P (remainder) S 6>>P (donationto -an) Q D>>P : D>>P divided by : Q < >P

T%ERE ORE:I , s !ul) !r+ +, ll re(e+ e 50

ut s+,(e e lre ) re(e+ e)100 s ) ,(e e +ll ,!!,l et =50 .

M r> +ll st+ll et t!t l !" 550 .T t s 50 "r!* t e le +t+*e K

le ( !" 100 +*4ute) !, t e


75/91

ART. 106

CO ATION ?;RANDC%I DREN


76/91

7hen grandchildren, who survive with their uncles, aunts, or cousins, inherit

from their grandparents in representation of their father or mother, they shallbring to collation all that their parents, if alive, would have been obliged tobring, even though such grandchildren have not inherited the property


77/91

hey shall also bring to collation all that they may have received

from the decedent during his lifetime, unless the testator hasprovided otherwise, in which case his wishes must be respected,

if the legitime of the co9heirs is not pre5udiced


78/91

ART. 106

?ar 6 gives an exception to the rule thatonly the donees should collate

?ar 6 applies only when the grandchildinherits by R-GI O R1?R1.1! A -O!, notwhen he inherits in his own right

?ar 6 although applying apparently only inthe case of ?R101C1A.1, applies also in both-!CA?AC- 2 and 0-.-!I1R- A!C1


79/91

I USTRATION

;l ) s Bust+,e


80/91

ART. 1065

DONATIONS TO;RANDC%I DREN


81/91

?arents are not obliged to bring to collation in the

inheritance of their ascendants any property which mayhave been donated by the latter to their children


82/91

E

RO? EMSL


83/91

S * ,t s 3 le +t+* te( +l)re, ) ,) #e) . )

s ( +l) C r+st+ ,.

S * ,t )!, te) 100 t!C r+st+ ,.S * ,t )+es +,test te le +,

, est te !" 900 .

. D+ +)e.

. D!es C r+st+ , e t!(!ll teG


84/91

ANS$ERS:

A. 900 )+ +)e) 3 F 50 e ("!r ) ,) #e)TT +ady is not re3uired to collate what herchild Christian had received by way of

donationTT .he should not collate for she herself hadnot received the donation

?. ES +" !,l t! ,) !ut +" t ele +t+*e s ee, +*4 +re) !r ,!tNO +" +t *e ,s t! (!*4uteC r+st+ , s le +t+*e

TTChristian is not .amantha#s compulsory heirTT


85/91

ART. 1066

DONATIONS TOS OUSE O

C%I D IN A$2


86/91

!either shall donations to the spouse of the child be brought to

collationH but if they have been given by the parent to thespouses 5ointlyH the child shall be obliged to bring to collation U

of the thing donated


87/91

ART. 1066 he donee is not a compulsory heir of theparents9in9law .ince the donations were notgiven to the child himself, he should not beobliged to collate what he did not receive

NON-CO ATION does not mean that thevalue should not be computedH it means thatalthough the value of the donation should becomputed, the value should not be consideredas an advance of the legitime of the childhimself

Ialf share given to the child should beconsidered an advance of his legitime (if given

5ointly, U share will be collated)


88/91

ART. 1067

EX ENSES ORSU ORT


89/91

1xpenses for support, education, medical attendance,even in extraordinary illness, apprenticeship, ordinary

e3uipment, or customary gifts are not sub5ect to collation


90/91

ART. 1067 NOT SU?BECT TO CO ATION / theirvalues are not added to the hereditary estateHthe are not considered as advances of theinheritance, whether as part of the legitime orfree portion

EDUCATION / usually pertains only up tohigh school, but in Art 6>KE, College may beincluded within the scope

.upport after death, namely allowancesduring the li3uidation of the estate, are notincluded in this article .aid allowances are

advances of the inheritance


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Executors & Administrators (PPT)