ADVANCE

MERRY CHRISTMAS!
 Irrevocability of Acceptance or Repudiation

Art. 1056. The acceptance or repudiation of an

inheritance, once made, is irrevocable, and cannot be
impugned, except when it was made through any of
the causes that vitiate consent, or when an (997)
● unknown will appears.

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 Exceptions
General Rule (a) When the acceptance or
— Once an acceptance or repudiation was made thru any of
repudiation is made, it is
the causes that vitiate consent.
irrevocable.

Reason: (b) When an unknown will

To prevent confusion and appears. (Art. 1056).
instability of rights.
 Exceptions
(a) When the acceptance or repudiation was made thru any of the
causes that vitiate consent:

1) mistake (of substance or on the principal conditions)

2) violence
3) intimidation
4) undue influence
5) fraud. (Art. 1330).
 (b) When an unknown will appears.
(Art. 1056).
● 1) If the new will makes only insignificant changes
in the old one, the appearance of the unknown will should not allow
the impugning of the previous acceptance or repudiation made
concerning the old one.

This is so because the cause for impugning can not really be said to
be present.
2) If the new will makes substantial changes, the old
acceptance or repudiation may be impugned. (7 Manresa 398).

[NOTE:
 A threat to enforce one’s claim through competent authority, if the
claim is just or legal, does not vitiate consent. (Art. 1335, last par.).].

 If an heir instituted under a suspensive condition accepts, but the

condition is not fulfilled, the acceptance is naturally VOID.].
 PRESSUMED ACCEPTANCE

Art. 1057. Within thirty (30) days after the court has issued an
order for the distribution of the estate in accordance with the
Rules of Court, the heirs, devisees and legatees shall signify to
the court having jurisdiction whether they accept or repudiate
the inheritance.

If they do not do so within that time, they are deemed to have

accepted the inheritance. (n)
 When Acceptance or Repudiation Must Be Signified to the
Court
The old law did not expressly set the time within which
the inheritance should be accepted or repudiated by the heirs.

In lieu thereof, Arts. 1004 and 1005 of the old Civil Code mentioned the time
within which an action should be brought against the heirs to compel them to
accept or repudiate the inheritance.
The provisions of Art. 1057 of the New Civil Code render the actions
mentioned by the old Civil Code unnecessary and lead to an earlier
distribution of the estate. (Comment of the Code Commission).
 [NOTE:

(a) If there are no settlement or administration proceedings, it is obvious that this

Article cannot apply.

(b) Even, still this Article is not exclusive, that is there can be allowed the other forms
if there are settlement or administration proceedings of accepting or repudiating the
inheritance.
For example, the sale by an heir of his hereditary rights to a stranger
is a form of implied acceptance. (Art. 1050, par. 1).

(c) Notice that Art. 1057 provides a way for tacit or implied acceptance. Hence, if
there are administration or settlement proceedings, the heirs, etc., cannot repudiate
the inheritance after the lapse of thirty (30)days.].
 Need for Judicial Approval

Guy v. CA
502 SCRA 151 (2006)

FACTS: Petition for Letters of Administration for the settlement of Sima

Wei’s estate. (acknowledged illegitimate minor children)

ISSUE: May parents and guardians repudiate the inheritance of their

wards (and/or children)?

HELD: No, unless there is a judicial approval. Art. 1057

 Section 4
EXECUTORS AND ADMINISTRATORS

Art. 1058. All matters relating to the

appointment, powers and duties of executors and
administrators and concerning the
administration of estates of deceased persons
shall be governed by the Rules of Court. (n)
● EXECUTOR ● ADMINISTRATOR
is nominated ‘within’ the Will of a If there is no Will, an
deceased person to: Administrator is appointed by a
- oversee his estate; Court to:
- Preserve the estate; - manage or
- Pay debts/taxes - administer a decedent’s
estate.
EXECUTRIX (female) ADMINISTRATRIX (female)

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 (1) Executors and Administrators
(a) Rules 78-90, Rules of Court.

(b) administrator with a will annexed (cum testamento enexo).

- There is a will but the testator did not appoint anyone and there is need to appoint someone for
such purpose.

(c) An executor of a will cannot officially act as such before his appointment is confirmed by the
court. If he acts as one before said time, he is called an executor de son tort (“in his own wrong”).

(d) Lopez v. Lopez

One day before testator died, he designated his executor to take over and administer the property.
All actions done in connection with the property by this executor de son tort must be properly
accounted for him.. He may also be termed executor de facto.

(e) Sy Hong v. Sy Lioc Suy

No executor or administrator must be appointed till there is proof of the decedent’s death.
 (2) Administrator Pendente Lite

(a) An administrator pendente lite or special administrator is one who

is appointed in the meantime to take charge of the estate, where
there is a delay in the appointment of the regular executor or
administrator.

— a delay occasioned by certain causes such as an

‘appeal from the allowance or disallowance of a will.’
( Rule 80, Sec. 1, Rules of Court).
 Ocampo v. Santos
O.G. Oct. 18, 1941, p. 3268
FACTS: Two girls claimed to be the widow of the decedent and
as such desired to be appointed administrator. In the meantime,
while this issue is being decided, what should be done?

HELD: A special administrator must be appointed.

● A special administrator is allowed to sell part of the
property, approval by the court, but is NOT required or
allowed to pay the debts of the deceased.
(De Gala v. Gonzales; Rule 80, Sec. 2, RC).
 Pacific Commercial Co. v. Sotto
● If however no objection had been raised in the trial court,
an action to recover the debt can be had against the
special administrator, provided the estate has not been
prejudiced.
● The objection cannot indeed be raised for the first time on
appeal. However, it is not the special administrator who is
required to satisfy the judgment out of the estate but the
regular administrator or executor.
 Other Kinds of Special Administrators

(b) One known as an administrator durante

minore aetate
(a) One appointed even after — one appointed when the person who has
there is already a regular the right to become executor or
executor or administrator, administrator is still a minor. The
appointment continues until the end of such
when the latter seeks to minority.
recover his own credit or (Sec. 647, Act 190, Code of Civil Pro).
claim against the estate.
NOTE: Such a person has all the rights of a
(Rule 86, Sec. 8,RC).
regular executor or administrator.
● Regular Administrator Order of Preference for Appointment of Regular
Administrator
● Johannes v. Harvey
● If no person is named in the will or the executors are
In the appointment of a REGULAR incompetent, refuse the trust, or fail to give bond, or a
administrator, the surviving spouse is given first person dies intestate, administration shall be granted:
preference. (a) To the SURVIVING HUSBAND or WIFE, as the case may
(Rule 78, Sec. 6, Rules of Court;, 43 Phil. 175). be, or NEXT OF KIN or BOTH, in the discretion of the court, or
to such person as such surviving husband or wife or next of kin,
requests to have appointed, if competent and willing to serve;
[NOTE: Said surviving spouse must be:
(b) If such surviving husband or wife, as the case may be, or
(a) capable (not minors, not non-residents)
next of kin, or the person selected by them, be incompetent or
(b) not hostile to those interested in the estate. unwilling, or if the husband or widow, or next of kin, neglects for
(Arevalo v. Bustamante) thirty (30) days after the death (of the decedent) of the person
(c) solvent (because a bond is needed) to apply for administration or to request that administration be
(d) the legal spouse granted to some other person, it may be granted to one or more
of the principal CREDITORS, if competent and willing to serve;
Even if she marries again after having been (c) If there is no such creditor competent and willing to serve, it
appointed, her authority to act as administratrix may be granted to SUCH OTHER PERSON as the courtmay
continues.(Rule 78, Sec. 3,RC) select. (Rule 78, Sec. 6, RC).
 Eslei v. Tady
The order of preference set forth in the law may be disregarded by the probate court, provided
no abuse of discretion has been made.

Sison v. De Teodor
L-8039, Jan. 28, 1957
Joint or plural administrators may be appointed, particularly when the estate is large and there
are different interests to be represented.

Cruz and Co. v. Montemayor

63 Phil. 404
Authority as administrator ends with:
(a) the closing of the settlement, testate or intestate proceedings.
(b) death, resignation, or removal.].
 Estate of Amadeo Matute v. Judge Reyes
GR 29407, July 29, 1983
When the estate of a dead person is already the subject of testate or
intestate proceedings, the administrator cannot enter into any
transaction regarding the estate without the prior approval of the
probate court.
Who is liable for attorney’s fees due the
lawyer rendering
legal services in relation to estate
settlement?
QUESTION
Generally, It Is the Executor or Administrator Who Is Primarily
Liable for Attorney’s Fees Due the Lawyer Who Rendered Legal
Services for the Executor or Administrator

Salonga Hernandez & Allado v. Pascual,

488 SCRA 449 [2006]

This is in relation to the settlement of the estate, and where the

executor or administrator may seek reimbursement from the
estate for the sums paid in attorney’s fees if it can be shown that
the services of the lawyer redounded to the benefit of the estate.
 A: Salonga Hernandez & Allado v. Pimentel
488 SCRA 449 [2006]

As a general rule, it is the executor or administrator who is primarily liable for

attorney’s fees due the lawyer who rendered legal services for the executor or
administrator in relation to the settlement of the estate and the executor or may
seek reimbursement from the estate for the sum paid in attorney’s fees if it can be
shown that the services of the lawyer redounded to the benefit of the estate.

A claim for attorney’s fees partakes of the nature of an administration expense,

and the claim for reimbursement must be superior to the rights of the beneficiaries.
 Insolvency of the Estate

Art. 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. (n)
 Insolvency of the (a) The rules on preference and
Estate concurrence of credits are to be
applied in case of insolvency of
ASSETS must be more than the
LIABILITIES of the estate. the estate.
Otherwise, there will be insufficiency to pay
the debts. Thus, the heirs will not receive
anything. (b) Art. 2244 gives the ORDER OF
- Their inheritance will be used to pay the
debts. PREFERENCE.
 Pastor, Jr. v. Court of Appeals
GR 56340, June 24, 1983
The general rule is that a probate court cannot issue a writ of
execution, because its orders usually refer to the adjudication of
claims against the estate which the executor or administrator may
satisfy without the need of resorting to a writ of execution.
- The probate court as such does not render any judgment
enforceable by execution.

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 However, by way of exception, the probate court may
issue writs of execution in the following instances:
(1) to satisfy debts of the estate out of the contributive
shares of heirs, devisees and legatees in the possession of the
decedent’s estate;
(2) to enforce payment of the expenses of partition; and
(3) to satisfy the costs when a person is cited for examination
proceedings.

[NOTE: A legacy or a devise is not a debt of the estate hence the

same cannot be enforced by a writ of execution.]
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 COLLATION
Art. 1060. A corporation or association authorized to
conduct the business of a trust company in the Philippines may
be appointed as an executor, administrator, guardian of an
estate, or trustee, in like manner as an individual; but it shall not
be appointed guardian of the person of a ward. (n)

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 Can juridical persons be
appointed guardian of the
PROPERTY?
QUESTION

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 Juridical Entities Acting in a Fiduciary Capacity
YES
JURIDICAL PERSONS referred to can be appointed guardian of the
PROPERTY, but not the person of award (personal relationship).

- CORPORATIONS or ASSOCIATIONS whose charters authorize

them to conduct business of a TRUST, so they can be:
a. EXECUTORS in a will;
b. ADMINISTRATORS of estates;
c. GUARDIANS

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 COLLATION

(a) First, it means (b) Secondly, it means

“computing or adding certain “computing or adding certain
values to the estate, and values to the estate, and
charging the same to the charging the same to the FREE
LEGITIME.’’ PORTION.’’
(Arts. 1061, 1062, 1063, 1064). (Arts. 1062, 1063).

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 1) It should be computed or added, but it should
be charged to the
free portion (and not to the legitime).
Conversely, the
phrase
2) It should NOT even be computed or added to
“not collationable’’ the estate, for it is not part of the same. (Art.
can mean: 1067).

● [NOTE: There can be collation both in

testamentary and legal succession.].

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 MATHEMATICAL ACTUAL
PROCESS or IMPUTATION REDUCTION or
COMPUTATION ABATEMENT
• Imaginary • Donation inter • Actual reduction or
addition or vivos made to BRINGING BACK of
fictitious union of ‘compulsory heirs’ the property
donated by the
the property (Art 1071) testator during his
donated by the lifetime from his
testator inter • = ADVANCES TO estate, when the
vivos upon his THEIR donations are found
death (Art 908) LEGITIMES to be
INOFFICIOUS.
• (Art 1076)

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 A: COMPUTATION
Exercise: ESTATE: 1,000, 000
The decedent 1,000,000. during
Donation: + 100, 000
his lifetime, he made a donation Debts: - (200,000)
of 100,000 and his debts NHE = 900, 000
amounting to 200,000. How
much is the
- Donations made must be added up to the
Net Hereditary Estate?
estate in order to compute the legitime.

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 COMPUTATION
● A. NET HEREDITARY ESTATE ● B. NET HEREDITARY ESTATE

FORMULA: FORMULA:

Value at the time of death Value at the time of death

LESS: - (obligation) ADD: +Donation Inter Vivos
NHE= NHE=

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 A: IMPUTATION
Exercise:
HEIRS: 2 sons
ESTATE: 190, 000
Testator left 2 sons. The testator
left an estate of 190,000, the
legitime is 95,000 and the free Legitime FP
portion is 95,000.
95k 95k
How much each son will Son 1 – 47,500
receive? Son 2 – 47,500

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 A: IMPUTATION
Exercise:
HEIRS: 2 sons
Testator left 2 sons. The testator ESTATE: 190, 000
left an estate of 190,000, the
legitime is 95,000 and the free
Legitime FP
portion is 95,000. A donation of
20,000 was given to the 1st son. 95k
95kstrangers
How much each son will
receive?
Son 1 – 47,500 - (20k) = 27,000advances
Son 2 – 47,500
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 A: IMPUTATION
Exercise:
HEIRS: 3 sons
The testator has 3 heirs, A, B, & C. The ESTATE: 1,200, 000
testator left an estate of 1,200,000. A
donation of 100,000 was given to ‘A’.
During testator’s lifetime, he likewise
Legitime FP
made a 100,000 donation to a friend. 600k 600kstrangers

Determine the distribution of estate.

A – 200k - (100kDIV) = 100k distribution
distribution

B – 200k
C – 200k
Friend -
100Kcovered

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 A: REDUCTION or ABATEMENT
Exercise:
ESTATE left: 80, 000
Donation: + 20, 000
During the lifetime of the
+ 100,000
testator, he made a donation of Debts: - (10,000)
100,000 to a friend and a 190,000
donation of 20,000 his son.
Upon his death, he left 80,000 Legitime FP
and his debts worth 100,000. 95k 95k

Son 1 – 47,500 - (20k) advances

advances to
to his
his legitime
legitime
Determine the value of the Son 2 – 47,500
estate.
Friend - (1oo,000) ? inofficous

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 A: IMPUTATION
Exercise: ESTATE: 1,200, 000

The testator left an estate of 1,200,000.

He has 3 legitimate sons, A, B, & C and
Legitime FP
10 illegitimate children. 600k 600k

Determine the distribution of estate. A – 200k

B – 200k
C – 200k
10 Illegitimate Children : ½ of EACH legitimate child’s share

(200k /(divided by) 2 = 100k each x 10 = 1,000,000 ? Exceeds FP

600k/ 10 = 60k
each
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 A: IMPUTATION
Exercise: ESTATE: 1,200, 000

The testator left an estate of 1,200,000.

He has 3 legitimate sons, A, B, & C and
Legitime FP
10 illegitimate children. A donation of 600k 600k
100,000 was given to ‘A’.
During his lifetime, he likewise made a A – 200k - (100kDIV) = 100k distribution
distribution
100,000 donation to a friend. B – 200k
C – 200k
10 Illegitimate Children = 60k each
Determine the distribution of estate.

Friend - (1oo,000) ?
Inofficous

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RETURN
Thank you!