Rule 78

Sec. 1Who are incompetent to serve as executors & administrators?

1. Minor2. Not a resident of the Philippines3. Is in the opinion of the court unfit to execute the

duties of the trust by reason of:a. Drunkennessb. Improvidence, orc. Want of understanding or integrity ord. By reason of conviction of an offense

involving moral turpitude

Sec. 2Rule: The executor of an executor shall not, as such, administer the estate of the first testator

Sec. 3Rule: A married woman may serve as executrix or administratix, and the marriage of a single woman shall not affect her authority so to serve under a previous appointment

Sec. 4When will letters of testamentary be issued?

1. When a will has been proved and allowed2. If the person is:

a. Competentb. Accepts the trust, andc. Gives bond as required by these rules

To whom issued? To the person named as executor in the will

Sec. 5What happens when some executors are disqualified?

Letters testamentary may issue to such of them as are

o Competento Accept o And give bond

They may perform the duties and discharge the trust required by the will

Sec. 6When will administration be granted?

1. If no executor is named in the will, or2. The executor(s) are incompetent3. Refuse trust4. Fail to give bond, or

5. A person dies intestate

To whom administration shall be granted?1. To the surviving husband or wife, or2. Next of kin, or3. Both (in the discretion of the court), or4. To such person as such surviving husband or

wife/next of kin requests to have appointed5. Creditors

a. When creditors will be appointed?i. If the husband or widow/next of

kin neglects to apply for 30 days administration

ii. Must be 1. Competent2. Willing to serve

6. Other person as the court may select

Rule 79

Opposition to the letters testamentary/ of administration; procedure

Sec. 1Who may oppose?

Any person interested in a will

How?1. In writing2. Stating the grounds why letters testamentary should

not issue to the persons named therein as executors, or any of them

Procedure:1. File petition for letters of administration

simultaneous with opposition2. Court shall fix a time and place for hearing3. Notice to:

a. Known heirsb. Creditorsc. Other persons believed to have an interest

in the estate4. Filing of opposition to letters of administration5. Court shall pass upon such grounds to letters

testamentary & hear the petition for letters of administration

6. Court shall hear the proofs of the parties in support of their respective allegations

7. If the court is satisfied that the decedent left no will, or that there is no competent and willing executor, it

shall order the issuance of letters of administration to the party best entitled thereto

Sec. 2Contents of Petition for letters of administration

1. Jurisdictional facts2. Names, ages, residence of the heirs3. Names & residences of creditors4. The probable value and character of the property of

the estate5. Name of the person for whom letters of

administration are prayed

NOTE: No defect in the petition shall render void the issuance of letters of administration

Sec. 4Grounds for opposition of letters of administration

1. Incompetency of the person for whom letters are prayed therein

2. Contestant’s own right to the administration

Prayer in opposition of letters of administration1. That letters issue to himself, or2. To any competent person(s) named in the

opposition

Sec. 6May letters of administration be granted to any qualified applicant though it appears that there are other competent persons having better right to administration?

YesWhen?

If such competent persons having better rights fail to appear when

o Notified ando Claim the issuance of letters to themselves

Rule 80

Sec. 1When will a special administrator be appointed?

When there is delay in granting letters of administration or testamentary

By any cause (including appeal from the allowance or disallowance of the will)

What is the function of a special administrator?

To take possession and charge of the estate of the deceased until questions causing the delay are decided and executors or administrators appointed

Sec. 2Powers & duties of a Special Administrator:

1. Take possession and charge of the a. Goodsb. Chattelsc. Rightsd. Credits, ande. Estate of the deceased

2. Preserve the estate for the executor or administrator afterwards appointed

3. May commence and maintain suits as administrator4. May sell

a. Perishableb. Other property as the court orders sold

Rule: special administrator shall not be liable to pay debts of the deceased

Exception: unless ordered by the court

Sec. 3When does the power of the special administrator ceases?

When letters testamentary or of administration are granted on the estate of the deceased

What shall he do after?1. He shall forthwith deliver to the executor the goods,

chattels, money and estate of the deceased.

What happens to the suits commenced by the special administrator?

The executor or administrator may prosecute to final judgment suits commenced by such special administrator

Rule 81: Bonds of executors & administrators

Sec. 1When will bond be given?

1. Before an executor or administrator enters upon the execution of his trust, and letters testamentary or of administration issue

How much?2. In such sum as the court directs

Conditions:

1. To make and return to the court a true and complete inventory

a. Of what?i. all goods,

ii. chattels,iii. rights, iv. credits, and v. estate of the deceased

b. which shall come to i. his possession or knowledge

ii. or possession of any other person for him

c. Period:i. Within 3 months

2. To administer according to these rules or according to the will of the testator

3. To pay and discharge all a. debts, b. legacies, and c. charges on the same, or d. such dividends thereon as shall be decreed

by the court4. to render a true and just account of his

administration to the courta. period:

i. within 1 year orii. at any other time when required

by the court5. to perform all orders of the court by him to be

performed

Sec. 2What if the testator in his will directs that the executor serve without bond, or with only his individual bond?

1. He may be allowed by the court to give such bond in such sum and with such surety as the court approves conditioned:

a. Only to pay debts of the testator2. But the court may require of the executor a further

bond in case ofa. a change in his circumstancesb. Or for other sufficient causec. With conditions named in last section

Sec. 3If there are two or more persons appointed as executors/ administrators

1. Court may take a separate bond from each or2. Joint bond from all

Sec. 4

Bond of Special administrator

When given?3. Before entering upon the duties of his trust

How much?4. In such sum as the court directs

Conditions:1. He will make and return a true inventory of

a. Goodsb. Chattelsc. Rightsd. Creditse. And estate of the deceased which come to

his possession or knowledge andf. That he will truly account for such as

received by him when required by court, and

g. Will deliver the same toi. the person appointed as executor

or administrator, orii. To such other person as maybe

authorized to receive them

Rule 82: Revocation of Administration. Death, Resignation, and Removal of Executors and Administrators

Sec. 1What happens to letters of administration if will is discovered, proved and allowed by court?

1. Letters of administration shall be revoked and2. All powers thereunder cease3. And the administrator shall forthwith surrender the

letters to the court, and4. Render his account with such time as the court

directs

Sec. 2When may an executor be removed by the court or permit him to resign?

1. If an executor or administrator neglects to render his account and settle the estate according to law

2. Or to perform an order or judgment of the court3. Or a duty expressly provided by these rules, or4. Absconds, or5. Becomes insane, or6. Otherwise incapable or unsuitable to discharge the

trust

Effects of resignation/ removal:

1. The remaining executor or administrator may administer the trust alone

a. Except: when the court grants letters to someone to act with him

2. If there is no remaining E/A:a. Administration may be granted to any

suitable person3. The lawful acts of an executor or administrator

before the revocation, removal, resignation shall have the like validity as if there had been no such revocation, resignation, or removal

Sec. 4Powers of the new E/A:He shall have the like powers that the former had to

1. Collect,2. Settle the estate3. May prosecute/ defend actions commenced by or

against the former E/A, and4. Have execution on judgments recovered in the name

of such former executor or administrator5. the authority granted by the court to the former E/A

for the sale or mortgage of a real estate may be renewed in favor of such person without further notice or hearing

Rule 83:

Sec. 1Rule: Every E/A shall return to the court a true inventory and appraisal of all the real and personal estate of the deceased which has come to his possession or knowledge

Period: within 3 months after his appointment

Sec. 2What shall not be included in the inventory?

1. The wearing apparel of the surviving husband or wife and minor children

2. The marriage bed and bedding3. Such provisions and articles as will necessarily be

consumed in the subsistence of the family of the deceased

These shall not be 1. Considered as assets2. Administered3. Not included in the inventory

Sec. 3

Who may receive allowance (as provided by law) during settlement of estate under the direction of the court:

1. The widow2. Minor or incapacitated children

Rule 84: General Powers and Duties of E & A

Sec. 1Powers of E/A of a deceased partner:

1. Shall at all times have access to books and papers relating to the partnership

2. May examine and 3. take copies of books and papers4. make invoices of the property belonging to such

partnership5. surviving partner(s), shall exhibit to him all books,

papers, and property in their hands or controla. on request

How are these rights enforced?1. On written application of such E/A2. court may order any such surviving partner(s) to

freely permit a. the exercise of the rights andb. may punish any partner failing to do so for

contempt

Sec. 2General Powers & duties of E/A

1. maintain in tenable repair the a. houses andb. other structures andc. fences belonging to the estate

2. deliver the same in such repair to the heirs, or devisees when directed to do so by the court

3. right to the possession and management of the deceased so long as it is necessary for the payment of

a. debts andb. the expenses of administration

Rule 85:

Sec. 1Rule: every executor or administrator is chargeable in his account

1. with the whole of the estate of the deceased which has come into his possession a

a. at the value of the appraisement contained in the inventory

b. with all the

i. interestii. profit, and

iii. income of such estate2. and with the proceeds of so much of the estate as is

sold by hima. at the price at which it is sold

Exception:

Sec. 2Rules on Accountability of E/A:

1. No E/A shall profit by the increase, or suffer loss by the decrease or destruction of any part of the estate

a. Requirements:i. Without his fault

2. He must account for the excess when he sells any part of the estate for more than the appraisement

3. If any is sold less than the appraisement:a. He is not responsible for the loss if:

i. The sale has been justly made4. If he settles any claim against the estate for less than

the nominal value:a. He is entitled to charge in his account only

the amount he actually paid on the settlement

5. No E/A shall be accountable for debts due the deceased which remain uncollected

a. Requirements:i. Without his fault

6. If the E/A uses or occupies any part of the real estate himself:

a. He shall account for it as may be agreed upon

i. between him & the parties interested or

ii. adjusted by the court with the parties’ assent

b. if the parties do not agree upon the sum to be allowed:

i. the same shall be ascertained by the court whose determination shall be final

7. When the E/A neglects or unreasonably delaysa. To:

i. Raise money, by1. Collecting debts2. Selling the real or

personal estate of the deceased

ii. Pay over the money he has in his hands

b. And the value of the estate is thereby i. Lessened or

ii. Unnecessary cost or interest accrues

iii. Or person interested suffer lossc. Effects:

i. The same shall be deemed waste and

ii. The damage sustained may be charged and allowed against him in his account

iii. Shall be liable therefor on his bond.

8. The amount paid by an E/A for costs awarded against him shall be allowed in his administration account

a. Exception:i. If it appears that the action or

proceeding in which the costs are taxed was prosecuted or resisted

1. without just cause and2. not in good faith

Sec. 7What are expenses are allowed:

1. necessary expenses in thea. careb. management, and c. settlement of the estate

2. his servicesa. amount:

i. 4php per day for the time actually and necessarily employed

ii. Or a commission upon the value of so much of the estate as

1. comes into his possession and

2. finally disposed of by him in the payment of

a. debtsb. expensesc. legacies, or

iii. distributive sharesiv. by delivery to heir, devisees

1. 2%- first 5k2. 1% - value exceeding 5k-

30k3. .5%- value exceeding 30k-

100k4. .25%- exceeding 100k

v. Greater sum if:

1. Where the estate is large and

2. Settlement is attended with great difficulty

3. And has required high degree of capacity on the part of E/A

What if there are objection to the fees allowed be taken? Allowance may be re-examined on appeal

What is the compensation if there are 2 or more E/A? Shall be apportioned among them by the court

according to:o The services actually rendered by them

respectively

May an E/A, who is an attorney, charge professional fees for legal services rendered?

NO.

What if the deceased, by will, makes some other provision for the compensation of his executor?

1. That provision shall be a full satisfaction for his services

a. Exception: i. If a written instrument is filed in a

court renouncing all the claim to the compensation provided in the will

Sec. 8Rule: every executor/administrator shall render an account of his administration within 1 year from the time of receiving letters testamentary or of administration

Exception: 1. Unless the court otherwise directs because

a. Of extensions of time i. presenting claims against,

ii. paying debts of the estate iii. for disposing the estate

he shall render such further accounts as the court may require until the estate is wholly settled

Sec.9The court may

1. examine the executor or administrator with respect to every matter relating to any account rendered by him

a. Under oathb. As to:

i. Correctness of his account before it is allowed

c. Exception:i. When no objection is made to the

allowance of the account and ii. its correctness is satisfactorily

established by competent proof2. examine the heirs, legatees, distributes, and

creditors on any matter relating to an administration account

Sec. 10Procedure for allowance of account of E/A:

1. notice of the time & place of examining & allowing shall be given to persons interested

a. how?i. Personally or

ii. Advertisement in a newspaper(s), or

iii. Both as the court directs2. Allowance of account

Sec. 11 May a person liable as surety be admitted as party to such accounting?

Yes

Requirements:1. Upon application

When? Upon the settlement of the account of an executor

or administrator

RULE 86: Claims Against Estate

Sec. 1Procedure:

1. Court shall issue a notice requiring all persons having money claims against the decedent to file them.

a. Where will the claims be filed?i. Office of the clerk of said court

b. When will the notice be given?i. Immediately after granting the

letters testamentary or of administration

c. Contents of the notice (Sec. 2)i. Time for the filing of the claims

against the estate

1. Must not be more than 12 nor less than 6 months after the date of the first publication of the notice

2. E/A shall cause the notice to be published & posteda. Publication:

i. 3 weeks successivelyii. In a news paper of general

circulation in the provinceb. Posting

i. 3 weeks successivelyii. In four public places in the

province &iii. In 2 public places in the

municipality where the decedent has last resided

3. The E/A shall file or cause to be filed in the courta. What to be filed?

i. A printed copy of the noticeii. And affidavit setting forth

1. Dates of first & last publication

2. Name of newspaper in which the same is printed

b. When to file?i. Within 10 days after the notice has

been published and posted4. Filing of Claims by the creditors

a. How?i. By delivering the same with

necessary vouchers to the COC (clerk of court) and

ii. Serving a copy thereof on the E/A5. Claim shall be attached to the record of the case in

which the letters testamentary or of administration were issued

a. Exception:i. When the court orders all the

claims to be collected in a separate folder

1. Purpose: matter of convenience & discretion

6. The E/A shall fie his answer admitting or denying the claim

a. Period to file:i. Within 15 days after service of a

copy of the claimb. Contents:

i. Substance of the matters which are relied upon to support the admission or denial

ii. or want of knowledge (if he has no knowledge sufficient to enable him to admit or deny specifically)

iii. allege in offset any claim which the decedent before death had against the claimant

7. A copy of the answer shall be served by the E/A on the claimant

8. The approved claim shall immediately be submitted by the clerk to the court

9. The court maya. Approve the same without hearingb. Order that known heirs, legatees or

devisees be notified and be heardi. In its discretion

10. If hearing is conducted, the court may allow devisees, legatees, heirs to file an answer to the claim

a. Period:i. Within 15 days

11. The clerk of court shall set the claim for trial a. Period:

i. Upon the filing of an answer or ii. Upon the expiration of the time for

such filing12. Notice of trial shall be given to both parties13. Trial14. Court shall render judgment upon the contested

claim15. The judgment shall be filed with the record of the

administration proceedings16. Notice to both parties

Sec. 2May the court still allow claims not filed within the time fixed in the notice?

Yes

When may this be filed Anytime before an order of distribution is entered

Requisites:1. On application of a creditor who has failed to file a

claim within the time previously limited2. Caue shown on terms as are equitable

Time within which to file a claim: 1 month

Sec. 5

What must be filed under the notice?1. All claims for money against the decedent arising

from contract2. All claims for funeral expenses and3. Expenses for the last sickness of the decedent4. Judgment for money against the decedent

Rule: all claims as above enumerated must be filed within the time limited in the notice, otherwise they are barred forever

Exceptions:1. If the claim is set forth as counterclaim in any action

that the E/A may bring against the claimant2. Where an E/A prosecutes an action already

commenced by the deceased in his lifetime, the debtor may set forth the claims through answer

Effects of the Exceptions:1. If final judgment is rendered in favor of the

defendant (claimant)a. The amount so determined shall be

considered the true balance against the estate as though the claim has been presented directly before the court in the administration proceedings

2. Claims not yet due or contingent may be approved at their present value

Sec. 6What if the obligation of the decedent is SOLIDARY WITH another debtor?

1. The claim shall be filed against the decedent as if he were the only debtor

2. The estate shall have the a right to recover contribution from the other debtor

If it is a JOINT obligation:1. The claim shall be confined to the portion belonging

to him

Sec. 7What if the claim is SECURED BY MORTGAGE OR OTHER COLLATERAL security? What are the options of a creditor?

1. Abandon the security and prosecute his claim in the manner provided in this rule

a. Effects:

i. He shall share in the general distribution of the assets of the estate

2. Foreclose his mortgage/ realize upon his securitya. How?

i. By action in courtii. Making the E/A a party defendant

What happens if there is deficiency in the proceeds of the foreclosure? Creditor may

1. Claim his deficiency judgment in the manner provided in the preceding section or

2. He may upon his mortgage or other security alone and foreclose the same at any time within the period of the statute of limitations

a. Effects:i. He shall not be admitted as

creditorii. Shall receive no share in the

distribution of the other assets of the estate

May the E/A redeem the property mortgaged/ security after its foreclosure?

Yes How?

o By paying the debt for which it is held as security

o Under direction of the court If it is for the best interest of the

estate

Sec. 8What if the E/A has a claim himself against the estate? ; Procedure

1. He shall give notice to the courta. In writing

2. Court shall appoint a special administratora. Powers:

i. Same power of the E/A in the adjustment of such claim

Note: the court may order the E/A to pay the special E/A necessary funds to defend such claim

Sec. 9If the claim be founded on a bond, bill note or any other instrument:

1. A copy thereof with all indorsements shall be attached to the claim and filed therewith

Note: the original document can be exhibited1. On demand by E/A or2. By order of the court or judge

Exception:1. If the original is lost 2. Or destroyed

What shall the claimant do if the original is demanded but it is lost or destroyed?

1. Claimant must accompany his claim with affidavit(s) containing

a. A copy or particular description of the instrument and

b. Stating its loss or destruction2. If the claim is due,

a. It must be supported by affidavit(s) statingi. The amount justly due

ii. That no payments have been made thereon which are not credited and

iii. That there are no offsets to the same to the knowledge of the affiant

3. If the claim is not due:a. It must be supported by affidavit(s) stating

i. The particulars thereof4. If the affidavit is set forth other than the claimant

a. Reason why it is not made by the claimant

Sec. 10Effect of failure to allege by the E/A in his answer any offset which the decedent before death had against the claimant?

It shall bar the claim forever

May the court extend the time to file answer? Yes In its discretion

Sec. 12May the court refer the trial of contesting claims to a commissioner?

Yes

Sec. 13Remedy against judgment of the court approving or disproving the claims:

ordinary appeal

A judgement AGAINST the executor or administrator shall be that:

1. he pay the amount ascertained to be due2. and it shall not create a lien upon the property of the

estate, or give to the judgement creditor any priority of payment

Sec. 14Costs

What are the effects if the E/A (1) admits in his answer the claim and (2) offers to pay a part of the claim and the (3) claimant refuses to accept the amount, (4) thereafter claimant fails to obtain a favorable judgment?

1. Claimant cannot recover costs2. Must pay to the E/A costs from the time of the offer

Who recovers costs where (1) an action is commenced (2) against the deceased (2) for money and (3) has been discontinued?

1. The prevailing party shall be allowed the costs of his action up to the time of discontinuance.

RULE 87

Sec. 1What are the actions which MAY be brought against the E/A?

1. To recover real or personal property or any interest therein

2. To enforce a lien thereon3. To recover damages for an injury to a person or

property

Actions which MAY NOT be brought against E/ATo recover money or debt or interest thereon

Sec. 2What actions may the E/A bring/defend?

1. Actions for causes which survive a. For the recovery orb. Protection of the property or rights of the

deceased

Sec. 3Rule: No action to recover the title or possession of lands or for damages done to such lands shall be maintained against E/A by an heir or devisee until

1. there is an order of the court assigning such lands to such heir/ devisee or

2. until the time allowed for paying the debts has expired

Sec. 4What may the E/A do?

1. May compound with the debtor of the deceased a debt due, and

2. May give a discharge of such debt on receiving a just dividend of the estate of the debtor

3. May foreclose a mortgage belonging to the estate of a deceased person as a mortgagee or assignee

Sec. 6Proceedings when property of the deceased is concealed, embezzled or fraudulently conveyed:

Who may complain?1. E/A2. Heir3. Legatee4. Devisee5. Other individual interested in the estate

Where to complain? Court having jurisdiction

Subject of the complain?1. That a person is suspected of having concealed,

embezzled or conveyed away any of thea. Moneyb. Goods orc. Chattels of the deceased

2. A person has knowledge of anya. Deedb. Conveyancec. Bondd. Contracte. Last will and testamentf. Or other writing

which contains evidence of or tends to disclose the right, title, interest, or claim of the deceased to real or personal estate

Action of the court:1. Court may cite such person to appear before it2. May examine him on oath

If the person refuses to appear or answer on such examination/ interrogatories

3. Punish him for contempt4. Commit him to prison until he submits to the order

of the court

Form of Interrogatories:1. Must be in writing and2. Filed in the clerk’s office

Sec. 7If a person is entrusted by the E/A with any part of the estate of the deceased, and the E/A complains to the court, the court may:

1. Cite the person to appear before it2. May require him to render full account of the goods,

money, chattels, bonds, accounts, or other papers belonging to such estate as came to his possession in trust for the E/A

a. Under oath3. Punish him for contempt (if so cited and refuses to

appear to render such account)

Sec. 8What if a person embezzles or alienates the money, property of the deceased before letters testamentary is issued?

1. Such person shall be liable to an action in favor of the E/A

a. How much?i. Double the value of the property

sold, embezzled or alienated

Sec. 9Property fraudulently conveyed by the deceased may be recovered.

When?1. When there is a deficiency of assets in the hands of

the E/A2. For the payment of

a. debts & b. expenses of administration

3. the deceased in his lifetime had conveyed a. real or personal property or b. a right or interest therein, orc. a debt or credit

4. with intent a. to defraud his creditors orb. to avoid any right, debt or duty

5. OR so conveyed such property that by law shall be void

a. As against creditors orb. Subject of the conveyance will be liable to

attachment by any of the creditors

Requirements:

1. Must be upon Application of the creditors of the deceased

2. Creditors making the application a. pay such part of the costs and expenses orb. give security to the E/A

i. as the court deems equitable

Sec. 10May the creditor himself commence and prosecute to final judgment instead the E/A in such case mentioned in sec. 9?

Yes, he may commence and prosecute in the name of the E/A

Requirements:1. Creditor must secure permission of court and2. file a bond

a. Executed to the E/Ab. In an amount approved by the judgec. Conditioned to indemnify the E/A against

costs and expenses incurred by reason of such action

Effect:1. Such creditor shall have a lien upon such judgment

What if the fraudulent conveyance has been made by the deceased during his lifetime in favor of the E/A?

1. The action shall be in the name of all creditors instead

2. Permission of court & bond is NOT necessary

RULE 88

Sec.1If it appears, after hearing of all claims, that there are SUFFICIENT assets to pay the debts:

E/A shall pay the same Within the time limited for that purpose

Sec. 2If the testator makes a provision by his will or designates the estate to be appropriated for the payment of his debts, expenses of administration, family expenses

They shall be paid according to the will

If the provision made is not sufficient for that purpose Such part of the estate (real or personal) as is not

disposed of by will shall be appropriated for that purpose

Sec. 3Order of charging of debts:

1. Personal estate not disposed of by will2. Whole of real estate not disposed of by will

a. When resorted to?i. If personal estate is not sufficient

orii. Would redound to the detriment

of the participants of the estateb. Only as is necessary shall be soldc. Obtaining the authority of the court is

needed3. Contributions according to sec. 6

Sec. 4If the court is satisfied that a contingent claim duly filed is valid, it may order the E/A:

1. Retain sufficient estate to pay such contingent claim 2. Sufficient to pay a portion equal to the dividend of

the other creditors (if the estate is insolvent)

Sec. 5Procedure if the claim becomes absolute:

1. Claim is presented a. Where

i. To the courtii. Or E/A

b. Periodi. Within 2 years

2. May be allowed or disallowed by the courta. When allowed?

i. If not disputed3. If allowed, the creditor shall receive payment to the

same extent as the other creditors

What if the claim is presented not within 2 years but still allowed?

The claim shall be paid from the assets retained in the hands of E/A not exhausted in the payment of claims and shall be distributed by order of the court to persons entitled

May the assets already distributed answer for such late claim?

Yes The creditor may also maintain an action against the

distributes to recover the debt Effect:

a. Such distributes and their estates shall be liable for the debt in portion to the estate

they have respectively received from the property of the deceased

Sec. 6Contributive shares of devisees, legatees, or heirs

When will they be liable for contributive shares?1. Where D,L, or H have entered in possession of estate2. Before the debts and expenses have been paid3. And have become liable to contribute for the

payment of such debt and expenses

Court shall 1. Settle the amount of their several liabilities2. Order how much and in what manner each person

shall contribute3. May issue execution as circumstances may require

Requirements:1. By order2. After hearing

Sec. 7What if the assets are not sufficient to pay debts?

Refer to Civil codeo 1059

If the assets of the estate of a decedent which can be applied to the payment of debts are not sufficient for that purpose, the provisions of Articles 2239 to 2251 on Preference of Credits shall be observed, provided that the expenses referred to in Article 2244, No. 8, shall be those involved in the administration of the decedent's estate.

o 2239-2251 Preference of credits

Sec. 8What if, applying the preference of credits, there are no assets sufficient to pay the credits of any one class after paying the credits entitled to it?

Each creditor within such class shall be paid a dividend in portion to his claim

Rule: No creditor in one class shall receive any payment until those of the preceding class are paid

Sec. 9

How does an estate of an insolvent non-resident disposed of? His estate found in the phils shall be disposed of that

his creditors here and elsewhere (in equal share), in proportion to their respective credits

Sec. 10If (1) claims have been proven in another country (2)against estate of a resident of the Phil at the time of his death (3)and that E/A had knowledge of the presentation of claims in such country (4) and it appears to the probate court that such claim has been duly proven:

1. The court shall receive a certified list of such claims and add the same to the list of claims

a. Purpose: for a just distribution may be made equally among all its creditors

Exception:1. If the property of such deceased person there found

(in the other country) is not equally apportioned to the creditors residing in the Philippines and the other creditors according to their respective claims

Sec. 11Order of payment; when given by the court

Before the expiration of the time limited for the payment of the debts

Contents:1. Order of payment and2. Distribution of assets among the creditors

Sec. 12May the order of payment be suspended?

Yes When?

1. If an appeal has been taken from a decision of a court concerning a claim

The E/A shall leave in his hands sufficient assets to pay the claim disputed and appealed

Sec. 13May the court make further orders from time to time for the distribution of assets?

Yes

When?1. If the whole debts are not paid on the first

distribution, and whole assets are not distributed2. Or other assets afterwards come to the hands of the

E/A

Sec. 14Procedure:

1. Court makes order of payment2. E/A shall pay the creditors

a. As soon as the time of payment arrivesb. Amount of the creditor’s claimc. In accordance with the terms of such order

Sec. 15Time for payment of Legacies and debts

Generally: 1 year from the granting of letters testamentary or administration

May this be extended? Yes

1. Not exceeding 6 months- for a single extension

2. Staggered extensions- not exceeding 2 years

3. If the original executor dies (sec. 16) Not exceeding 6 months beyond

the time which the court might have allowed to the original E/A

Requirements:1. Application of E/A2. Hearing3. Notice of time & place given to all persons interested