17)
FACTS:
Hilario Ruiz executed a holographic will where he named as heirs: Edmond Ruiz (only son); Maria Pilar
(adopted daughter); Maria Cathryn, Candice Albertine and Maria Angeline (three granddaughters). The
testator bequeathed to his heirs substantial cash, personal and real properties and named Edmond Ruiz
as executor of his estate. Hilario Ruiz died and the cash component of his estate was immediately
distributed among Ruiz and respondents. Edmond, the named executor, did not take any action for the
probate of his fathers holographic will. Four years later, Pilar filed before the Regional Trial Court a
petition for probate and approval of the deceaseds will and for the issuance of letters testamentary to
Edmond Ruiz. Edmond opposed on the ground that the will was executed under undue influence. The
house and lot in Valle Verde, Pasig which the testator bequeathed to the three granddaughters was
leased out by Edmond to third persons. The probate court ordered Edmond to deposit with the branch
clerk of court the rental deposit and payments totaling P540,000 representing the one-year lease of the
Valle Verde property. Edmond moved for the release of P50,000 to pay the real estate taxes on the real
properties of the estate. The probate court approved the release of P7,722,009. Edmond withdrew his
opposition then the probate court admitted the will to probate and ordered the issuance of letters
testamentary to Edmond conditioned upon the filing of a bond in the amount of P50,000. The testate
estate of Hilario Ruiz, with Edmond Ruiz as executor, filed an Ex-Parte Motion for Release of Funds,
praying for release of rent payments be given to the three granddaughters. The probate court denied
the motion for release of funds and granted the motion of Montes due to Edmonds lack of opposition.
The court ordered release of the funds to Edmond but only such amount as may be necessary to cover
the expenses of administration and allowances for support of the testators three granddaughters
subject to collation and deductible from their share in the inheritance. The Court of Appeals sustained
the order of the probate court.
ISSUE:
Whether the probate court, after admitting the will to probate but before payment of the estates debts
and obligations, has the authority to order the release of the titles to the Valle Verde property and the
Blue Ridge Apartments to private respondents
RULING:
The probate court ordered the release of the titles to the Valle Verde property and the Blue Ridge
Apartments to the private respondents after the lapse of six months from the date of the first
publication of the notice to creditors. The questioned order speaks of notice to creditors, not payment
of debts and obligations. Hilario Ruiz allegedly left no debts when he died but the taxes on his estate had
not hitherto been paid, much less ascertained. The estate tax is one of the obligations that must be paid
before distribution of the estate. If not yet paid, the rule requires that the distributes post a bond or
make such provisions as to meet the said tax obligation in proportion to their respective shares in the
inheritance. Notably, at the time the order was issued the properties of the estate had not yet been
inventoried and appraised.