Special Proceedings Rule 74 SUMMARY SETTLEMENT OF ESTATES

1. SPECIAL PROCEEDINGS
RULE 74
SUMMARY SETTLEMENT OF
ESTATES

2. SPECIAL PROCEEDINGS
WHAT ARE THE RULES WITH RESPECT TO THE ESTATE
LEFT BY A DECEDENT ?
the general rule is that when a person dies
leaving a property, the same should be judicially
administered and the court should appoint a
qualified administrator, in the order established in
section 6, rule 78, in case the deceased left no will, or
in case he had left one, should he fail to name an
executor there in.

3. SPECIAL PROCEEDINGS
EXTRAJUDICIAL SETTLEMENT BY AGREEMENT OF
HEIRS
SCENARIO 1
DECEDENT LEFT SEVERAL HEIRS
SCENARIO 2
DECEDENT HAS ONLY ONE HEIR

4. SPECIAL PROCEEDINGS
Decedent left several heirs
If the decedent left no will and no debts and the
heirs are of legal age, the party without securing
letters of administration may divide the estate
among themselves by means of public instrument or
by stipulation for partition and shall file it at the
registry of together with a bond equivalent to the
value of the property involved as certified to under
oath by the parties concerned.

5. SPECIAL PROCEEDINGS
REQUISITE OF VALID EXTRAJUDICIAL SETTLEMENT
•Decedent died intestate
•The estate has no outstanding debts at
the time of settlement
•The heirs are of all legal age, or the minor
are represented by judicial guardians or
legal representative

6. SPECIAL PROCEEDINGS
REQUISITE OF VALID EXTRAJUDICIAL SETTLEMENT
•Settlement is made in public instrument,
stipulation or affidavit duly filed in the
registry of deeds with a bond equivalent
to the amount of property
•The fact must be published in news paper
of general circulation once a week for
three consecutive weeks

7. SPECIAL PROCEEDINGS
Judicial Administration of the Estate
If the heirs cannot agree in the extra judicial
partition and apportionment of the estate, the heirs
can institute a special proceeding for administration
of the estate.

8. SPECIAL PROCEEDINGS
There must be a good reason to warrant
judicial administration but not including
the following reason:
Dispute among heirs
Multiplicity of suits
To have legal capacity to appear

9. SPECIAL PROCEEDINGS
DECEDENT LEFT ONLY ONE HEIR
Under the Rule if there is only one
heir, he may adjudicate to himself the
entire estate by means of an affidavit filed
in the office of registry of deeds.

10. SPECIAL PROCEEDINGS
AFFIDAVIT OF SELF ADJUDICATION
It is an affidavit require in Rule 74, Sec. 1 to be
executed by the sole heir of the deceased person in
adjudicating to himself the entire estate left by the
decedent. It is filed with the registry of deeds

11. SPECIAL PROCEEDINGS
The rule provides that the sole heir who adjudicates
the entire estate to himself by means of an affidavit
shall file simultaneously with and as a condition
precedent to the filing of the public instrument or
stipulation in the action for partition, or of the
affidavit in the registry of deeds, and a bond with the
said registry of deeds, in amount equivalent to the
value of the property involved as certified to under
oath by the parties concerned and conditioned upon
the payment of any just claim that may be filed under
Section 4 of this Rule.

12. SPECIAL PROCEEDINGS
SUMMARY OF ESTATE OF SMALL VALUE
It is a summary proceeding without need of an
appointment of an administrator or executor for the
settlement of the estate of a deceased person who
died testate or intestate. Where the gross value
thereof does not exceed P10,000.00

13. SPECIAL PROCEEDINGS
Summary of estate of small value
•Value of estate does not exceed P10,000.00
•Died testate or intestate
•RTC has jurisdiction over person in interest
•Published once a week for 3 consecutive week in
newspaper of general circulation in the province
•Hearing for not less than 1 month nor more than
3months
•Notice to the interested person
•The court direct may direct without executor or
administrator to settle the estate

14. SPECIAL PROCEEDINGS
Distinguished extrajudicial from settlement of small
value.
Requires court intervention Requires court intervention by
summary proceedings
Value of estate is immaterial Applicable where the gross value of
the estate is P10,000.00.
Allowed only in intestate
succession
Allowed in both testate and intestate
estates.
Proper when there are no
outstanding debts of the estate at
the time of settlement
Available even if there are debts.
Instituted by agreement of all heirs Instituted by any interested party and
even by the creditor of the estate,
without the consent of all the heirs

15. SPECIAL PROCEEDINGS
BOND TO BE FILED BY DISTIBUTEES
The court before allowing the partition may require
the distributees if the property other than real is to be
distributed , to file a bond in an amount to be fixed
by the court conditioned for the payment of any just
claims which may filed.

16. SPECIAL PROCEEDINGS
PRESUMPTION OF THAT THE DECEDENT LEFT NO
DEBTS
It shall be presumed that the decedent left no debts if
no creditor files a petition for letters of administration
within two (2) years after the death of the decedent.

17. SPECIAL PROCEEDINGS
The rule bars distributees or heirs from objecting the
partition after two years from such partition. Is the
rule applicable to persons who had no knowledge of
it?

18. SPECIAL PROCEEDINGS
The limitation are not applicable. The provision of
Sec. 4, barring the distributee or heirs from objecting
to an extra judicial partition is applicable only to :
1.Person who participated or taken part or had
notice of the extra judicial partition
2.When the provision of Sec.1 has been strictly
complied with.

19. SPECIAL PROCEEDINGS
PERIOD FOR THE MINOR OR AN INCAPACITATED
PERSON TO FILE CLAIM.
Section 5 provides that if on the date of the expiration
of the period of two years prescribed in preceding
section the person authorized to file claim is a minor
or mentally incapacitated , or is in prison or outside of
the Philippines he may present his claim within one
year after such disability is removed.

20. SPECIAL PROCEEDINGS
REMEDIES
Within 2 years: claims against bond or the real estate
or both
Rescission: incase of preterition of compulsary heir in
partition tainted with bad faith
Reconveyance of real property
Action to annul a deed of extra judicial settlement
Petition for relief
Action to annul settlement within two years

21. SPECIAL PROCEEDINGS
A died intestate, leaving several heirs and substantial
property here in the Philippines.
1.Assuming that A died without debts, as a counsel
for A heirs, what step would you suggest to settle A’s
estate in least expensive manner.
2.Assuming that A left only one heir and no debts, as
counsel for A’s lone heir what step would you
suggest?
3.Assuming that the value of A’s estate does not
exceed P10,000.00 what remedy is available to
obtain speedy settlement of his estate

22. SPECIAL PROCEEDINGS
As a counsel for the heir of A, I would suggest
that the estate be settled in a least expensive manner
by an extrajudicial settlement of estate by agreement
among heirs executed by means of public instrument
to be file to the registry of deeds together with a
bond in an amount equivalent to the value of the
property involved as certified under oath and
conditioned upon payment of any just claim that may
be filed within two years by an heir or other person
unduly deprived of participation in the estate.

23. SPECIAL PROCEEDINGS
A’s lone heir may adjudicate to himself the
entire estate by executing an affidavit of self
adjudication to be filed with the office of the registry
of deed upon submission of other documents.

24. SPECIAL PROCEEDINGS
To obtain speedy settlement of his estate the remedy
available is to proceed with the summary settlement
of estate of small value under adhering to the
provision of Section 2, Rule 74 of the rules of court

25. SPECIAL PROCEEDINGS
Nico claim to be an illegitimate child of the
deceased Charis, instituted an intestate proceeding to
settle the estate of the latter. He also prayed that he
be appointed administrator of the said estate. Caloy
the surviving spouse opposed to the petition and
Nico’s application to be appointed as administrator of
the said estate. Subsequently Caloy claiming to be the
sole heir of Charis executed an affidavit of
adjudication, adjudicating unto himself the entire
estate of the deceased wife. Afterwards Caloy sold
the entire estate to Tricia.

26. SPECIAL PROCEEDINGS
The action of Caloy in adjudicating the entire estate
his late wife to himself is not legal because under the
Rules of Court, an affidavit of self adjudication is
allowed only if the affiant is the sole heir of the
deceased. In this case , it appears that there is
someone who also claims to be an heir that there is a
pending judicial proceeding for the settlement of the
estate would suggest that there is a doubt to
whether he is the sole heir.

27. SPECIAL PROCEEDINGS
Q. If the person had no knowledge or had not
participated in the extrajudicial settlement, is he
bound thereby by reason of constructive notice of
publication.

28. SPECIAL PROCEEDINGS
Answer:
No, publication in this case does not constitute
constructive notice. Extrajudicial Settlement of Estate
under Sec.1 of Rule 74 is an ex-parte proceeding, and
the rule plainly states that person who does
participate or had no notice of an extra judicial
settlement will not be bound thereby and
contemplate a notice that has has sent out or issued
before any deed of settlement or partition is agreed
upon, and not after such an agreement has been
executed.

29. SPECIAL PROCEEDINGS
The publication of the settlement does not
constitute constructive notice of the heirs who had no
knowledge or did not take part in it because the same
was notice after the fact of execution; the
requirement of publication is geared for the
protection of the creditor and was never intended to
deprived heirs of their lawful participation in the
decedent estate.

30. SPECIAL PROCEEDINGS
CASE:
UTOLO VS PASCION VDA DE GARCIA,
66 PHIL 303

31. SPECIAL PROCEEDINGS