ACCOUNTABILITY AND COMPENSATION OF EXECUTORS AND ADMINISTRATORS

1. WINTERTemplateRULE 85
ACCOUNTABILITY
AND
COMPENSATION OF
EXECUTORS AND
ADMINISTRATORS
Special Proceedings

2. Special Proceedings
The executor or administrator
is accountable for the
WHOLE OF THE ESTATE of
the deceased which has
come into his possession but
not for the estate which he
has never possessed.

3. Special Proceedings
Exception to the exception:
If the administrator or
executor failed to recover
part of the estate which
came to his knowledge, he
is accountable for the
property so lost.

4. Special Proceedings
If the executor is in Manila
and the real property is in
Cebu, the executor can take
possession by an annotation
lis pendens on the TCT of
the real property.

5. Special Proceedings
Lis pendens- a written
notice concerning a dispute
over title and ownership
interest of real property and
is usually filed in the country
land records office where
the property is located.

6. Special Proceedings
What is the extent of accountability
of administrator or executor?
The administrator or executor
shall not profit by the increase
of the estate nor shall be held
liable for any decrease which
the estate without his fault
might have sustained.

7. Special Proceedings
What kinds of debts are
contemplated in Sec. 3, Rule 85?
The debts contemplated in this
section are confined to MONEY
CLAIMS.
The administrator or executor is
not accountable for the
uncollected debts without his fault.

8. Special Proceedings
Can an administrator be a lessee of
the estate he is administering?
YES. If the administrator was
the original lessee before he
was named as administrator.
but NOT during the pendency
of his administration for it
would amount to self-dealing.

9. Special Proceedings
What is the liability of an
administrator or executor who
neglects or delays to pay or raise
money?
 the value of the estate is thereby
lessened.
unnecessary cost or interest
accrues, or
persons interested suffers loss.

10. Special Proceedings
Expenses of Administration-
refers to those necessary for
the management of the
property, for protecting it
against destruction or
deterioration, and possibly for
the production of fruits.

11. Special Proceedings
What are expenses and fees allowed
to the administrator or executor?
• the necessary expenses in the care,
management and settlement of the
estate.
Attorney’s fees may be allowed as
expenses of administration when
attorney’s service have been rendered
to the executor to assist him in the
execution of his trust.

12. Special Proceedings
Is the administrator or executor be
entitled to compensation for his
service?
YES. The administrator or
executor is entitled to either per
diem or a commission but not
to both.

13. Special Proceedings
Administrator’s duty to render
accounting
Administrator or executor is
under obligation to a true and
just account of his
administration to the court.

14. Special Proceedings
Generally, every executor or
administrator shall render an
account of his administration
within 1 year from the time of
receiving letters testamentary
or letters of administration.

15. Special Proceedings
EXCEPTION:
The extension is allowed by the
court for presenting claims against,
or paying debts of the estate, or
disposing the estate; and he shall
render such further accounts as the
court may require until the estate is
wholly settled.

16. Special Proceedings
What can the probate court or lawyer
do to verify accounting done by the
executors or administrator?
The court may examine the
executor or administrator under
oath to verify the accounting
done. Same shall be extended to
the heirs, legatees, and creditors.

17. Special Proceedings
Notice may be sent to the
executor or administrator or to
the interested parties.

18. WINTERTemplate
END OF
PRESENTATION
Special Proceedings
KRISTINA C. DE VERA