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Rule 73: The intestate case should be consolidated with

the testate proceeding and the judge assigned


SETTLEMENT OF ESTATE OF DECEASED to the testate proceeding should continue
PERSONS hearing the 2 cases.

Section 1. Where estate of deceased Revocation of letters of administrator last until


persons settled. If the decedents is an the Will has been proved and allowed.
inhabitant of the Philippines at the time of
his death, whether a citizen or an alien, his **Jurisdiction of Metropolitan Trial Courts,
will shall be proved, or letters of Municipal Trial Courts and Municipal Circuit
administration granted, and his estate Trial Courts in Civil Cases:
settled, in the Court of First Instance in the
province in which he resides at the time of RA 7691 Section 3:
his death, and if he is an inhabitant of a
foreign country, the Court of First Instance Outside Metro Manila - Php100,000.00 Below,
of any province in which he had estate. The Metro manila - Php200,000.00 Below,
court first taking cognizance of the
settlement of the estate of a decedent, shall **VENUE AND JURISDICTION*( cuenco vs
exercise jurisdiction to the exclusion of all CA/ URIARTE VS CFI OF NEGROS OCC GR
other courts. The jurisdiction assumed by a L-21938-39):
court, so far as it depends on the place of
residence of the decedent, or of the
location of his estate, shall not be VENUE -
contested in a suit or proceeding, except in a) Citizen - residency at the time of his death
an appeal from that court, in the original b) Alien - RTC of any province in which he
case, or when the want of jurisdiction had estate
appears on the record.

Notes: Resides - should be viewed and understood in


its poplar sense, meaning, the personal, actual
In a special proceeding for the settlement of or physical habitation of a person, actual
estate, petitioner merely seek to establish a residence or place of abode. It signifies
status, a right or particular fact. The fact of physical presence in a place and actual stay
death, to be recognized as heirs of the thereat. No particular length of tie of residence
deceased so that they could validly exercise is required though; however, the residence
their right to participate in the settlement and must be more than temporary.
liquidation of the estate of the decedent
consistent with the limited and special In order to preclude different courts which may
jurisdiction of probate court. properly assume jurisdiction from doing so,
and prevent conflict among the different courts
which otherwise may properly assume
If in the course of intestate proceedings, it is jurisdiction from doing so, the Rule specifies
found out that the decedent had left a last will, that the court first taking cognizance of the
proceedings for the probate of the latter should settlement of the estate of a decedent shall
replace the intestate proceedings even if at exercise jurisdiction to the exclusions of all
that stage, an administrator had already been other courts.
appointed, the latter being required to render a
final account and turn over the estate in his PROBATE COURT; POWERS AND DUTIES:
possession to the executor subsequently
appointed (revocation in re: Rule 82 Sec. 1). The court orders the probate of the will of the
This, however, is understood to be without decedent, grant letters of administration,
prejudice that the proceeding shall continue as supervises and controls all acts of
an intestacy.( Uriarte vs CFI of negros administration, hears and approves claims
occidental ) against the estate of the deceased, orders
payment of lawful debts, authorizes sale,
mortgage or any encumbrance of real estate,
directs the delivery of the estate to those exclusion from the inventory of the
entitled thereto. property, can only be settled in a separate
action.*ongsingco vs Tan
Probate jurisdiction covers all matters relating b) A probate court is a tribunal of limited
to the settlement of estates and the probate of jurisdiction. It act on matters pertaining to
wills of deceased persons, including the the estate but never on rights to property
appointment and the removal of administrators arising from contract. It approves contracts
and executors. It also extends to matters entered into for and on behalf of the estate
incidental and collateral to the exercise of a or the heirs to it but this is fiat of the Rules
probate courts recognized powers such as of Court. In that case, judicial approval is
selling, mortgaging or otherwise encumbering necessary for the validity of such contracts.
realty belonging to the estate. It cannot, however, adjudicate the rights
and obligations of the parties thereto.
In re: Heirs of Sps. Remedios R. Sandejas v. Compliance with the terms and conditions
Alex A. Lina GR 141634 February 5, 2001 - thereof may be compelled by specific
Where the motion for approval of sale was performance, jurisdiction over which is
meant to settle the decedents obligation to vested in the RTC, acting as court of
respondent; hence, that obligation clearly falls general jurisdiction.
under the jurisdiction of the settlement court. c) In the Barreto case, the respondent had
bound himself under an agreement with
Jurisdiction of Probate Court Limited, the court separate and distinct from that
Special and Exclusive: which he had with the decedent. In other
words, what the (Probate) court had
Jurisdiction of the RTC as a probate or sought to enforce (in rescinding the
intestate court relates only to matters having to contract) was not the contract executed on
do with the settlement of the estate and behalf of the estate but the respondents
probate of will of deceased persons and the agreement with the court itself to obtain the
appointment and removal of administrators, best terms of the estate, and consequently,
executors, guardians and trustees but does his authority to enter into such a contract.
not extend tot he determination of question of But far from repealing the long-standing
ownership that arise during the rule that a probate court is one of limited
proceedings.*ramos vs ca 180 scra 635 jurisdiction, Pio Barretto, infact reinforced
it. The case of Pio Barretto vs CA* GR No.
The intestate court may pass upon the title to a L-62431, August 3, 1984, did not broaden
certain property for the purpose of determining the jurisdiction of a probate court. On the
whether the same should or should not be contrary, it underscored the limited
included in the inventory but such character of its jurisdiction (the limited
determination is not conclusive and is subject jurisdiction of a probate court prohibits it
to final decision in a separate action regarding from determining rights to property left by a
ownership which may be constituted by the decedent which depends on the contract).
parties.* Reyes vs mosqueda 187 scra 661 Since the probate court has no jurisdiction
1990 over the question of title and ownership of
the properties, the respondents may bring
ILLUSTRATIVE CASES: a separate action, if they wish to question
the petitioners titles and ownership.
a) When questions arise as to ownership of Though an order of the probate court
property alleged to be part of the estate of approving the sale of the decedents
a deceased person, but claimed by some property is final, the respondent may file a
other person to be his property, not by complaint in the proper court for the
virtue of any right of inheritance from the rescission of the sale. Likewise, the initial
deceased but by title adverse to that of the question of respondent regarding the
deceased to that of the deceased and his propriety of including the properties in
estate, such questions cannot be question in the inventory of the probate
determined in the courts of administration court as he claims ownership thereof may
proceedings. Questions of title or therein be finally and conclusive settled.
ownership, which results in inclusions or The respondent has ample protection of
his rights for the province of the probate be deprived of his leasehold summarily upon a
court remains merely the settlement of the simple motion. The court held that the act of
estate and may not be extended beyond. giving the property to a lessee is an act of
d) The approval of the probate court of the administration subject to the approval of the
conditional sale is not a conclusive court. If the probate court has the right to
determination of the intrinsic or extrinsic approve the lease, so also may it order its
validity of the conditional sale but a mere revocation, or the reduction of the subject of
recognition of the right of an heir to the lease.*timbol vs cano, 111 phil 923 926
dispose of her rights and interests over her
inheritance even before partition. The PROVISIONAL DETERMINATION OF
approval by the probate court of the OWNERSHIP:
conditional sale was without prejudice to
the filing of the proper action for a) Probate proceeding is restricted to the
consolidation of ownership prescription extrinsic validity of the will, i.e., whether the
and/or reformation of instrument in the testator, being of sound mind, freely
proper court within the statutory period of executed the will in accordance with the
limitation. formalities prescribed by law. As a rule, the
question of ownership is an extraneous
matter which the probate court cannot
For purpose of determining whether a certain resolve with finality.
property should or should not be included in b) The probate court has no jurisdiction to
the inventory of estate proceeding, the probate make pronouncement regarding the
court may pass upon the title thereto, but such existence or non-existence of
determination is provisional, not conclusive, encumbrances or to cancel a mortgage on
and is subject to the final decision in a real property in its order approving the sale
separate action to resolve title. However, the of the estate under administration. A
purchaser of the property under administration probate court cannot adjudicate or
is a forced intervenor in the intestate determine title to properties claimed to be
proceeding and should answer the amended part of the estate and which are equally
petition for the annulment of the sale. claimed to belong to 3rd parties.
c) The allegations concerning the signature
Lease subject to approval of court: on the real estate mortgage documents
were forged may be ventilated in a
An order of a probate court which has the separate proceeding, requiring the
effect of depriving a lessee of part of the estate presentation of clear and convincing
without the lease contract having been evidence.
terminated or annulled in a separate action d) Claims for title to, or right of possession of,
instituted for the purpose is null and void. The personal or real property, made by the
probate court cannot, without any legal ground heirs themselves, by title adverse to that of
and without proper proceedings for the the deceased, or made by the 3rd persons,
purpose, annul the lease. The allegation that cannot be entertained by the (probate)
the lease has been breached and should court.
therefore be declared terminated, is a question
that must be ventilated in a separate civil The exception to the rule that the probate court
action for that purpose, as the same is not has jurisdiction to resolve the issue of
within the competence of the court in the ownership when the parties interested are all
exercise of its probate jurisdiction.*llamas v heirs of the deceased and they submitted the
moscoso 95 phil 599 question of title to the property, without
prejudice to 3rd persons does not apply where
In a late case, the probate court authorized the the probate court allowed the introduction of
administrator to increase the area of the evidence on ownership for the sole purpose of
subdivision under administration. The lessee determining whether the subject properties
objected on the ground taht the enlargement of should be included in the inventory which is
the subdivision would reduce the land leased within the probate courts competence. **GR
to him, that he is in possession of a valid 139587
contract, under express authority and may not
Where the determination by the probate court Unless the claimant and all other parties
of the question of title to the property was having legal interest in the property consent,
merely provisional, it can not be the subject of expressly or impliedly, to the submission of the
execution, and where Torrens title to the question to the probate court for adjudication
property is not in the decedents name but in or the interests of 3rd persons are not thereby
others. prejudice, the reason for the exception being
that the question of whether or not a particular
Distinguish Collation from Order of Exclusion matter should be resolved by the court in the
from Inclusion in Inventory: An order of exercise of its general or limited jurisdiction as
collation before an order of distribution is a special court (e.g., probate, land registration,
merely and order to include the properties in etc.,), is in reality not a jurisdictional but in
the inventory and is merely interlocutory. essence of procedural one involving a mode of
Whether collation exists or not are issues to be practice which may be waived.
made determined later when an order for
distribution of the estate is to be made after Thus, the probate court may allow a complaint
determination of the net remained of the estate in intervention after obtaining the consent of all
is made.** De leon vs CA GR 128781 interested parties to its assumption of
jurisdiction over the question of title or
Since the determination by the Probate court ascertaining the absence of objection thereto.
of the question of title to the fishpond was
merely provisional, not binding on the property Small estates should be decided in summary
with any character of authority, definiteness or procedure dispensing with the appointment of
permanence, having been made only for an administrator together with the other
purposes of inclusion in the inventory and involved and cumbersome steps ordinarily
upon evidence adduced at the hearing of a required in the determination of the assets of
motion, it cannot be the subject of execution, the deceased and the persons entitled to
as against its possessor who has set up title in inherit therefrom and the payment of his
himself or adversely to the decedent and obligations. Definitely, the probate court is not
whose right to possess has not been ventilated the best forum for the resolution of the adverse
and adjudicated in an appropriate action. claims of ownership of any property ostensibly
belonging to the decedents estate. Such claim
Jurisprudence tells us that, in the exercise of should be ventilated in an independent action,
the RTCs general jurisdiction or its limited and the probate court should proceed to the
probate jurisdiction is not a jurisdictional issue distribution of the estate, if there are no other
but a mere question of procedure. In essence, legal obstacles to it, for after all such
it is a procedural question involving a mode of distribution must always be subject to the
practice which may be waived. results of the suit. For the protection of the
claimant, the appropriate step is to have the
Hence, although generally, a probate court proper annotation of his lis pendens entered.**
may not decide a question of title or ermac vs mendelo 64 scra 358, 359-360
ownership, yet if the interested parties are all
heirs, or the question is one of collation or Jurisdiction to determine heirs: A judicial
advancement, or the parties consent to the declaration that a certain person is the only
assumption of jurisdiction by the probate court heir of the decedent is exclusively within the
and the rights of 3rd parties are not impaired, range of the administration proceedings and
then the probate court is competent to decide cannot properly be made an independent
the question of ownership. When the parties action. A separate action for the declaration of
are all heirs of the decedent, it is optional upon heirs is not proper. ** litam vs espiritu
them to submit to the probate court the
question of title to the property. Questions of The probate court, in the exercise of its
title to any property apparently still belonging jurisdiction to make distribution, has the power
to estate of the deceased may be passed upon to determine the propeortion or parts to which
the probate court, with consent of all the each distributee is entitled.. The power to
parties, without prejudice to 3rd persons. determine the legality or illegality of the
testamentary provision is inherent in the
jurisdiction of the court making a just and legal
distribution of the inheritance.. To hold that a its supervisory authority over inferior
seaparate and independent action is courts.

necessary to that effect, would be contrary to


the general tendency of the jurisprudence of The conjugal partnership shall be
avoiding multiplicity of suits; and is further, liquidated in the proceedings for the
expensive, dilatory, and impractical.
settlement of the estate of the deceased
spouse or, if both have died, in the
Section 2. Where estate settled upon
dissolution of marriage. When the proceedings for either estate. If separate
marriage is dissolved by the death of the proceedings have been instituted for each
husband or wife, the community property estate, both proceedings may be
shall be inventoried, administered, and consolidated if they were filed in the same
liquidated, and the debts thereof paid, in court. The probate court has jurisdiction to
the testate or intestate proceedings of the determine whether the property is
deceased spouse. If both spouses have conjugal as it has to liquidate the conjugal
died, the conjugal partnership shall be partnership to determine the estate of the
liquidated in the testate or intestate decedent.

proceedings of either.
Upon the death of a spouse, no action can
**missing from the book
be maintained against the surviving
spouse for the recovery of a debt
Thus when the marriage is dissolved by the
death of the husband or wife, the community chargeable against the conjugal
property shall be inventoried administered and partnership, as of the estate of the
liquidated, and the debts thereof paid, in the deceased spouse. Neither may the
testatae or intestate proceedings of the surviving spouse, after the death of the
deceased spouse. In the settlement other, enter into an agreement novatory of
proceedings of the estate of the deceased a contract executed by both of them
spouse, the entire conjugal partnership during the lifetime of a deceased.

property of the marriage and not just the one-


half portion belonging to the deceased is under The estates of the deceased spouses may
administration. be settled in a single proceeding, but in all
other instances, even if the deceased
REGALADO NOTES:
persons are related as ascendants and
descendants, their separate estates must
Where the proceeding was commenced
be settled in dierent proceedings.
with a court of improper venue, as where
However, if in the determination of the
the decedent was neither a resident at the
conjugal nature of such property a
time of his death nor had estate therein,
question of title thereto is raised by a 3rd
and such objection was seasonably raised
person, the probate court has no
in the probate court, the petition should be
jurisdiction to determine the title to said
dismissed and the proceedings should be
property.

instituted in the proper court.

The probate court may pass upon the


The probate acquires jurisdiction over the
question of title to property only where:

proceeding from the moment the petition


for settlement is filed with said court. It
a) the interested parties who are all heirs
cannot be divested of such jurisdiction by
of the deceased consent thereto and the
the subsequent acts of the interested
interest of 3rd parties are not prejudiced
parties, as by entering into an extrajudicial
as where the parties are all heirs of the
partition of the estate or by filing another
deceased.

petition for settlement in a proper court of


concurrent venue. However, the Supreme
b) in a provisional manner, to determine
Court may order a change of venue under
whether the said property should be
included in or excluded form the inventory
without prejudice to the final
determination of title in a separate action.

Section 3. Process. In the exercise of


probate jurisdiction, Courts of First
Instance may issue warrants and process
necessary to compel the attendance of
witnesses or to carry into effect theirs
orders and judgments, and all other powers
granted them by law. If a person does not
perform an order or judgment rendered by
a court in the exercise of its probate
jurisdiction, it may issue a warrant for the
apprehension and imprisonment of such
person until he performs such order or
judgment, or is released.

Section 4. Presumption of death. For


purposes of settlement of his estate, a
person shall be presumed dead if absent
and unheard from for the periods fixed in
the Civil Code. But if such person proves to
be alive, he shall be entitled to the balance
of his estate after payment of all his debts.
The balance may be recovered by motion in
the same proceeding.

Note:

Art 390 civil code


Art 391 CC
Rule 74:
XP: When all the heirs are of lawful age and
SUMMARY SETTLEMENT OF ESTATES there are no debts due from the estate, they
may agree in writing to partition the property
Section 1. Extrajudicial settlement by without instituting the judicial administration or
agreement between heirs. If the applying for the appointment of an
decedent left no will and no debts and the administrator.
heirs are all of age, or the minors are
represented by their judicial or legal Different modes for the settlement of the
representatives duly authorized for the estate of a deceased person under RoC:
purpose, the parties may without securing
letters of administration, divide the estate 1. Extrajudicial settlement of Estate (Rule 71,
among themselves as they see fit by means sec 1)
of a public instrument filed in the office of 2. Partition (Rule 69)
the register of deeds, and should they 3. Summary Settlement of Estates of Small
disagree, they may do so in an ordinary Value (Rule 74, Sec 3)
action of partition. If there is only one heir, 4. Probate of Will (Rule 75 to 79)
he may adjudicate to himself the entire 5. Petition for letters of Administration in
estate by means of an affidavit filled in the cases of intestacy (Rule 79)
office of the register of deeds. The parties
to an extrajudicial settlement, whether by When a person dies without leaving pending
public instrument or by stipulation in a obligations to be paid, his heirs, whether of
pending action for partition, or the sole heir age or not, are not bound to submit the
who adjudicates the entire estate to himself property to a judicial administration. The
by means of an affidavit shall file, administrator has no right to intervene in any
simultaneously with and as a condition way whatsoever in the division of the estate
precedent to the filing of the public among the heirs when they are adults and
instrument, or stipulation in the action for when there are no debts against the estate.
partition, or of the affidavit in the office of
the register of deeds, a bond with the said It should be noted that recourse to an
register of deeds, in an amount equivalent administration proceeding even if the estate
to the value of the personal property has no debts is sanctioned only if the heirs
involved as certified to under oath by the have good reasons for not resorting to an
parties concerned and conditioned upon action for partition. Where partition is possible,
the payment of any just claim that may be either in or out of court, the estate should not
filed under section 4 of this rule. It shall be be burdened with an administration proceeding
presumed that the decedent left no debts if without good and compelling reasons.**pereira
no creditor files a petition for letters of vs ca
administration within two (2) years after the
death of the decedent. What constitutes good reason to warrant a
judicial administration of the estate of a
The fact of the extrajudicial settlement or deceased when the heirs are all of legal age
administration shall be published in a and there are no creditors will depend on the
newspaper of general circulation in the circumstances of each case.
manner provided in the nest succeeding
section; but no extrajudicial settlement a) dispute among heirs is not a good reason
shall be binding upon any person who has b) multiplicity of suits is not a good reason
not participated therein or had no notice c) to have legal capacity to appear is not a
thereof. good reason

NOTES and CASES: Validity of Oral Partition:

GR: when a person dies leaving property, the Partition although oral, is valid and binding. In
same should be judicially administered and the Hernandez vs Andal, the Court, interpreting
competent court should appoint a qualified Section 1 of Rule 74 of the Rules of Court,
administrator. held that the requirement that a partition be put
in a public document and registered has for its be, to determine who are the persons
purpose the protection of creditors and at the legally entitled to participate in the estate,
same time the protection of the heirs and to apportion and divide it among them
themselves against tardy claims. The object of after the payment of such debts of the
registration is to serve as constructive notice to estate as the court shall then find to be
others. It follows that the intrinsic validity of due; and such persons, in their own right, if
partition not executed with the prescribed they are of lawful age and legal capacity, or
formalities does not come into play when there by their guardians or trustees legally
are no creditors or the rights of creditors are appointed and qualified, if otherwise, shall
not affected. Where no such rights are thereupon be entitled to receive and enter
involved, it is competent for the heirs of an into the possession of the portions of the
estate to enter into an agreement for estate so awarded to them respectively.
distribution in a manner and upon a plan The court shall make such order as may be
different from those provided by law. just respecting the costs of the
proceedings, and all orders and judgments
In re Compromise Agreement: it has been held made or rendered in the course thereof
that where the compromise agreement entered shall be recorded in the office of the clerk,
into by and between the various heirs in their and the order of partition or award, if it
personal capacity, the same is binding upon involves real estate, shall be recorded in
them as individuals, upon the perfection of the the proper register's office.
contract, even without previous authority of the
Court to enter into such agreement.**Borja vs
Vda. de Borja, 46 scra 577. Jurisdiction of Metropolitan Trial Courts,
Municipal Trial Courts and Municipal Circuit
Heirs cannot Divest Court of its already Trial Courts in Civil Cases:
acquired Jurisdiction:** read further
RA 7691 Section 3:
The heirs of the deceased cannot divest the
court of its already acquired jurisdiction, viz., Outside Metro Manila - Php100,000.00 Below
the filing of the application for probate of the Metro manila - Php200,000.00 Below
will and publication thereof by the mere fact of
dividing and distributing extrajudicially the
estate of the deceased among themselves; Section 3. Bond to be filed by distributees.
The court, before allowing a partition in
accordance with the provisions of the
Section 2. Summary settlement of estate of preceding section, my require the
small value. Whenever the gross value distributees, if property other than real is to
of the estate of a deceased person, whether be distributed, to file a bond in an amount
he died testate or intestate, does not to be fixed by court, conditioned for the
exceed ten thousand pesos, and that fact is payment of any just claim which may be
made to appear to the Court of First filed under the next succeeding section.
Instance having jurisdiction of the estate
by the petition of an interested person and REGALADO NOTES:
upon hearing, which shall be held not less
than one (1) month nor more than three (3) Rule 74 provides for 2 exceptions to the
months from the date of the last requirement that the estate of the
publication of a notice which shall be decedent should be judicially administered
published once a week for three (3) through an administrator or executor, viz.:

consecutive weeks in a newspaper of


general circulation in the province, and
a) Extrajudicial settlement

after such other notice to interest persons


b) Summary settlement of estates of small
as the court may direct, the court may
proceed summarily, without the value

appointment of an executor or
administrator, and without delay, to grant, if Distinctions:

proper, allowance of the will, if any there


settlement is in a private instrument, it is
EJS: does not require court intervention
believed that the same is still valid and
SS: involves judicial adjudication although reformation of the instrument may be
in a summary proceeding
compelled.

EJS: the value of the estate is immaterial


While the Rule provides that the decedent
SS: applies only where the gross estate must not have left any debts, it is
does not exceed Php10,000.00. This sucient if any debts he may have left
amount is jurisdictional.
have been paid at the time the pjs is
entered into. It is presumed that the
EJS: allowed only in intestate succession
decedent left no debts if no creditor files a
SS: allowed in both testate and intestate petition for letters of administration within
estates
2 years after the death of the decedent.
Such presumption is rebuttable.

EJS: proper where there are no


outstanding debts of the estate at the time A bond is required only when personalty is
of the settlement
involved in the extrajudicial partition, as
SS: available even if there are debts, as the real estate is subject to a lien in favor
the court will make provisions for the of the creditors, heirs or other persons for
payment thereof.
the full period of 2 years from such
distribution and such lien cannot be
EJS: can be resorted to only at the substituted by a bond. The value of the
instance and by agreement of all the heirs
personal property which must be covered
SS: may be instituted by any interested by the bond is determined from the sworn
part and even by a creditor of the estate, declaration of the parties in the instrument
without the consent of all the heirs.
of settlement or adavit of adjudication or,
if not mentioned therein, in an adavit
Requisites of a valid EJS:
stating such valuation which the register
of deeds shall require them to execute.

a) decedent died intestate

b) no debts at the time of settlement


The amount of the bond filed by the
c) heirs are all of age, or the minors are distributes of personal property in
represented by their judicial guardians or summary settlement proceedings is
legal representatives
determined by the court, unlike that in ejs
d) settlement is made in public instrument, wherein the amount of the bond is equal
stipulation or adavit duly filed with the to the value of the personal property as
register of deeds
established by the instrument of
e) the fact of such extrajudicial settlement adjudication.

must be published in a newspaper of


general circulation in the province once a Although as a rule, the probate court
week for 3 consecutive weeks.
cannot pass upon the issue of title in
summary proceedings when one of the
EJS presupposes concurrence among all heirs asserts an adverse claim to the
the heirs to the partition of the estate as property involved therein, where it is clear
provided in the instrument. If they cannot that the property really belongs to the
agree on the manner of partition, they may decedent the probate court may
institute an action for partition unless the determine in a summary settlement who
same is prohibited by an agreement, by are the parties entitled thereto since in
the donor or testator, or by the law.
such a proceeding it is directed to act
summarily and without delay.

The present Rules require a public


instrument for purpose of ejs. If the
Section 4. Liability of distributees and It is only a bar against the parties who had
estate. If it shall appear at any time taken part in the extrajudicial proceedings, but
within two (2) years after the settlement not against 3rd persons not parties thereto.
and distribution of an estate in accordance
with the provisions of either of the first two Read briones v platon
sections of this rule, that an heir or other
person has been unduly deprived of his To annul an extrajudicial settlement on the
lawful participation in the estate, such heir ground of fraud, one should make a distinction
or such other person may compel the between an action to annul the extrajudicial
settlement of the estate in the courts in the partition based on fraud, from an action for
manner hereinafter provided for the reconveyance based on an implied or
purpose of satisfying such lawful constructive trust. The first prescribes in 4
participation. And if within the same time of years from the discovery of the fraud, the latter
two (2) years, it shall appear that there are prescribes in 10 years.
debts outstanding against the estate which
have not been paid, or that an heir or other GR: an Action for reconveyance based on
person has been unduly deprived of his implied or constructive trust prescribes in 10
lawful participation payable in money, the years from the alleged fraudulent registration
court having jurisdiction of the estate may, or date of issuance of the certificate of title
by order for that purpose, after hearing, over the property. Registration of real property
settle the amount of such debts or lawful is a constructive notice to all persons and,
participation and order how much and in thus, the 4-year period should be counted
what manner each distributee shall therefrom.** GSIS vs Santiago GR 155206
contribute in the payment thereof, and may
issue execution, if circumstances require, XP: Prescriptive period for the filing of the
against the bond provided in the preceding action for reconveyance based on implied trust
section or against the real estate belonging should be reckoned from the actual discovery
to the deceased, or both. Such bond and of the fraud where the registration where there
such real estate shall remain charged with was bad faith in securing the certificates of
a liability to creditors, heirs, or other titles, and, is therefore a holder of the said
persons for the full period of two (2) years certificate in bad faith. The Torrens title does
after such distribution, notwithstanding not furnish a shield for fraud.
any transfers of real estate that may have
been made. An action for rescission is also the proper
action in case of an alleged preterition of a
compulsory heir by reason of alleged bad faith
Notes and Cases: or fraud of the other persons interested. Art
1104.
1. Rule on Limitations Not Applicable to
Those who had no knowledge of the Exception to Prescription of Actions:
Settlement:
There is one instance when prescription
The provisions of Section 4 Rule 74, barring cannot be invoked in an action for
distributes or heirs from objecting to an extra- reconveyance. That is, when the plaintiff is in
judicial partition after the expiration of 2 years possession of the land to be reconveyed. In
from such extrajudicial partition is applicable those cases, the Court permitted the filing of
only; 1) to persons who have participated or an action for reconveyance despite the lapse
taken part or had notice of the extrajudicial of 10 years and declared that said action,
partition, and, in addition, 2) when the when based on fraud, is imprescriptible as
provisions of Section 1 of Rule 74 have been long as the land has not passed to an innocent
strictly complied with, i.e., that all the persons purchaser for value. The common factual
or heirs of the decedent have taken part in the backdrop in those cases was that the
extrajudicial settlement or are represented by registered owners were never in possession of
themselves or through guardians. the disputed property. Instead, it was the legal
owners of the land who had always been in
possession of the same. Thus, the Court
allowed the action for reconveyance to prosper
despite the lapse of 10 years from the An ejs, despite the publication thereof in a
issuance of title to the land. The exception was newspaper, shall not be binding on any
based on the theory that registration person who has not participated therein or
proceedings could not be used as a shield for who had no notice thereof. A summary
fraud enriching a person at the expense of the
settlement is likewise not binding upon
other.** GR 128254
heirs or creditors who were not parties
Section 5. Period for claim of minor or therein or had no knowledge thereof. Said
incapacitated person. If on the date of heirs or creditors may vindicate their rights
the expiration of the period of two (2) years either by proceeding against the estate,
prescribed in the preceding section the the distributes or against the bond within
person authorized to file a claim is a minor the 2 year period, or even thereafter but
or mentally incapacitated, or is in prison or within the statute of limitations, but, this
outside the Philippines, he may present his time, they can no longer proceed against
claim within one (1) year after such the bond.

disability is removed.
If special proceedings are pending or
there is a need to file one, for the
REGALADO NOTES:
determination of heirship, that issue
should be determined in said special
The 2 year lien upon the real property
proceedings.

distributed by pjs or summary settlement


shall be annotated on the title issued by
the distributes and, after the lapse of the
period, may be cancelled by the register
of deeds without the need of a court order.
Such lien cannot be discharged nor the
annotation cancelled within the 2 year
period even if the distributes oer to post
a bond to answer for the contingent
claims for which the lien is established.

The discovery of unpaid debts after the


pjs has been eected does not ipso facto
invalidate the partition. In such a case, the
creditor may ask for administration of
enough property of the estate sucient to
pay the debt, but the heirs can prevent
such administration by paying the
obligation; or the creditor can file an
ordinary action against the distributes for
his claim.

Where the estate has been summarily


settled, the unpaid creditor may, within the
2 year period, file a motion in the court
wherein such summary settlement was
had for the payment of his credit. After the
lapse of the 2 year period, an ordinary
action may be instituted against the
distributes within the statute of limitations,
but not against the bond.