Rule 83 and 84 Powerpoint

RULE 83INVENTORY AND APPRAISAL; PROVISION FOR SUPPORT OF FAMILY

RULE 84GENERAL POWERS AND DUTIES OF EXECUTORS AND ADMINISTRATORS


Rules of Court: Rule 83 and Rule 84

Sec 1. Inventory and appraisal to be returned within three months

WHO : the executor or administrator with the assistance of one or more inheritance tax appraisers of the BIR

WHAT : submit true inventory and appraisal of the estateWHEN : within a period of 3 months from the assumption of the

trust or after appointmentWHERE : to the court having jurisdiction of the estate proceedingsWHY : to aid the court in revising the accounts and determining

the liabilities of the executor or administrator;: to aid the court in making a final and equitable distribution of the estate; and: to aid the court in facilitating the distribution of the estate




NOTE:• If there is any property which may come into the knowledge of the

executor or administrator but possession thereof has not yet been acquired, said executor or administrator should institute the necessary court action to obtain possession of the property. [Tan v. Del Rosario, 57 Phil 411]

• Inclusion of the property in the inventory is NOT a competent proof of ownership thereof. Such determination of the court is merely prima facie and without prejudice to the right of interested persons to raise questions in the proper court and in the proper action. [Garcila v Martir, GR No. L-9233, June 29, 1957]




RULE:• Questions regarding title to real property cannot be settled in the

testate or intestate proceedings of the deceased [Adapon v. Maralit, 69 Phil 383]

• The probate court may pass title to the property only for the purpose of ascertaining whether the property should be included or not but the decision is not conclusive and may be subject to final decision in a separate action. [Garcia v Garcia, 67 Phil 353]

EXCEPTION:• Where all the claimants to the property included in the inventory

are ALL HEIRS, and they ALL agree to submit to the probate court the question of ownership, the probate court has the authority and jurisdiction to pass upon said question of ownership and pass judgment definitely. [Bernardo v CA, GR L-18148, February 28, 1963]




Sec. 2. Certain articles not to be inventoried.

Articles not inventoried:1. Wearing apparel of surviving spouse;2. Wearing apparel of minor children;3. Marriage bed and bedding; and4. Such other provisions and other articles as will

necessary be consumed in the subsistence of the family of the deceased.




Sec. 3. Allowance to widow and family.

Who are entitled to allowance:• Surviving legitimate spouse• Minor or incapacitated children

Not entitled:• Grandchildren [Bilbao v Villavicencio, 44 Phil

921]




Art 133. From the common mass of property support shall be given to the surviving spouse and to the children during the liquidation of the inventoried property and until what belongs to them is delivered; but from this shall be deducted that amount received for support which exceeds the fruits or rents pertaining to them. Art. 194. Support comprises everything indispensable for sustenance, dwelling, clothing, medical attendance, education and transportation, in keeping with the financial capacity of the family. The education of the person entitled to be supported referred to in the preceding paragraph shall include his schooling or training for some profession, trade or vocation, even beyond the age of majority. Transportation shall include expenses in going to and from school, or to and from place of work.




A. Access to Partnership books and property (Section 1)

B. Keep buildings in repair (Section 2)

C. Retain whole estate to pay debts (Section 3)

D. Administer estate not willed (Section 3)


Sec. 1. Executor or administrator to have access to partnership books and property; How right enforced.

WHO : the administrator or executorWHAT : have access to, examine and take copies of partnership books

and papers relating to the partnership business: examine and make invoices of the property belonging to such partnership

WHEN : AT ALL TIMESHOW : on the written application of such executor or administrator the court having jurisdiction of the estate may order any such

surviving partner or partners to:• freely permit the exercise of the rights;• to exhibit the books, papers, and property; and• may punish any partner failing to do so for contempt


Rules of Court: Rule 83 and Rule 84Rules of Court: Rule 83 and Rule 84

NOTE:

• The administrator of the decedent does not have administration of, and is not the person to liquidate, the said partnership assets;

• The administrator of the estate of the deceased has no legal interest in the partnership assets and no legal right to interfere in their administration;

• But if the surviving partner in the partnership unnecessarily delays settlement of the partnership affairs, the administrator of the deceased partner’s estate has the duty of bringing the matter to the attention of the settlement court.


Rules of Court: Rule 83 and Rule 84Rules of Court: Rule 83 and Rule 84

Pertinent Civil Code provisions:

• Where the dissolution is caused by the act, death or insolvency of a partner, each partner is liable to his co-partners for his share of any liability created by any partner acting for the partnership as if the partnership had not been dissolved (Article 1833)

• The individual property of a deceased partner shall be liable for all obligations of the partnership incurred while he was a partner, but subject to the prior payment of his separate debts. (Article 1835)

• The right to an account of his interest shall accrue to any partner, or his legal representative as against the winding up partners or the surviving partners or the person or partnership continuing the business (Article 1842)



Sec. 2. Executor or administrator to keep buildings in repair.

RULE:• The power to make repairs extend only to such repairs

as are necessary to keep the property in good condition. It does not authorize the making of improvements.

EXCEPTION:• But the court may direct an administrator to complete a

building begun by the decedent where this is necessary to preserve the estate.



Sec. 3. Executor or administrator to retain whole estate to pay debts and to administer estate not willed.

• The executor or administrator shall have the right to take possession of the real and personal property of the deceased so long as it is necessary for the payment of debts and expenses of administration. [Malahacan v Ignacio, 19 Phil 434]

• During the period of administration, the heirs, devisees and legatees have no right to interfere with the administrator or executor in the discharge of his duties and they have no right, without his consent, to possession of any part of the property, real or personal.



• Rights of heirs are inchoate and subject to right of creditors until such time as claims against the property of the decedent are bared in the course of judicial administration of estate, or otherwise legally discharged [Centenera v Sotto, 78 Phil 432]

• Creditors of an heir cannot intervene in administration. Only after all debts of the decedent have been paid and when the net assets are determinable and divisible.

• Where there are no debts to be paid, there is no reason for the executor or administrator’s taking possession of the estate, which would pass to the heirs. [Buenaventura v Ramos, 43 Phil 704]



ACTS OF ADMINISTRATION

The executor or administrator can perform pure acts of administration without further authority from the court, the reason being that the court has already authorized him to perform acts of administration by the issuance of letters.



ACTS OF OWNERSHIP OR DOMINION

Special authority from the court is required:• Payment of debts;• Borrowing money;• Buying property;• All other acts constituting acts of ownership and dominion;• Investments of part of the estate;• Lease of property which will create a legal right (if more than 6

years, the same must be registered);• Sale of part of the estate;• Continuing business in which deceased was engaged at the time

of his death, as the administrator can wind up only the business.



RESRICTIONS TO THE POWER OF EXECUTOR OR ADMINISTRATOR:

• Cannot acquire by purchase or even at public or judicial auction, either in person or through mediation of another, the property under administration. [Art. 1491 (3), NCC, Naval v Enriquez, 3 Phil 669]

• Cannot borrow money without authority of the court even if the purpose would redound to the benefit of the estate. [Favie v Yulo, 24 Phil 240]

• Cannot speculate with the funds under administration [Phil Trust & Co v Webber, 56 Phil 522]

• Cannot continue business of the deceased, if not authorized by the court • Not to profit by increase or loss or decrease in value of the property

under administration.


Rule 83 and 84 Powerpoint

Documents

Transcript of Rule 83 and 84 Powerpoint