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SPECIAL PROCEEDINGS

RULE 72

Subject Matter and Applicability of General Rules

Section 1. Subject matter of special proceedings . Rules of special proceedings are provided for in the following cases:

(a) Settlement of estate of deceased persons;

(b) Escheat;

(c) Guardianship and custody of children;

(d) Trustees;

(e) Adoption;

(f) Rescission and revocation of adoption;

(g) Hospitalization of insane persons;

(h) Habeas corpus;

(i) Change of name;

(j) Voluntary dissolution of corporations;

(k) Judicial approval of voluntary recognition of minor naturalchildren;

(l) Constitution of family home;

(m) Declaration of absence and death;

(n) Cancellation of correction of entries in the civil registry.

Section 2. Applicability of rules of civil actions . In the absence of special provisions, the rules provided for in ordinaryactions shall be, as far as practicable, applicable in special proceedings.

Settlement Of Estate Of Deceased Persons

RULE 73

Venue and Process

Section 1. Where estate of deceased persons settled . If the decedents is an inhabitant of the Philippines at the time of his death,whether a citizen or an alien, his will shall be proved, or letters ofadministration granted, and his estate settled, in the Court of First Instancein the province in which he resides at the time of his death, and if he is aninhabitant of a foreign country, the Court of First Instance of any province inwhich he had estate. The court first taking cognizance of the settlement of theestate of a decedent, shall exercise jurisdiction to the exclusion of all othercourts. The jurisdiction assumed by a court, so far as it depends on the placeof residence of the decedent, or of the location of his estate, shall not becontested in a suit or proceeding, except in an appeal from that court, in theoriginal case, or when the want of jurisdiction appears on the record.

Section 2. Where estate settled upon dissolution of marriage . When the marriage is dissolved by the death of the husband or wife, thecommunity property shall be inventoried, administered, and liquidated, and thedebts thereof paid, in the testate or intestate proceedings of the deceasedspouse. If both spouses have died, the conjugal partnership shall be liquidatedin the testate or intestate proceedings of either.

Section 3. Process . In the exercise of probatejurisdiction, Courts of First Instance may issue warrants and process necessaryto compel the attendance of witnesses or to carry into effect theirs orders andjudgments, and all other powers granted them by law. If a person does notperform an order or judgment rendered by a court in the exercise of its probatejurisdiction, it may issue a warrant for the apprehension and imprisonment ofsuch person until he performs such order or judgment, or is released.

Section 4. Presumption of death . For purposes ofsettlement of his estate, a person shall be presumed dead if absent and unheardfrom for the periods fixed in the Civil Code. But if such person proves to bealive, he shall be entitled to the balance of his estate after payment of allhis debts. The balance may be recovered by motion in the same proceeding.

RULE 74

Summary Settlement of Estate

Section 1. Extrajudicial settlement by agreement betweenheirs . If the decedent left no will and no debts and the heirs areall of age, or the minors are represented by their judicial or legalrepresentatives duly authorized for the purpose, the parties may withoutsecuring letters of administration, divide the estate among themselves as theysee fit by means of a public instrument filed in the office of the register ofdeeds, and should they disagree, they may do so in an ordinary action ofpartition. If there is only one heir, he may adjudicate to himself the entireestate by means of an affidavit filled in the office of the register of deeds.The parties to an extrajudicial settlement, whether by public instrument or bystipulation in a pending action for partition, or the sole heir who adjudicatesthe entire estate to himself by means of an affidavit shall file,simultaneously with and as a condition precedent to the filing of the publicinstrument, or stipulation in the action for partition, or of the affidavit inthe office of the register of deeds, a bond with the said register of deeds, inan amount equivalent to the value of the personal property involved ascertified to under oath by the parties concerned and conditioned upon thepayment of any just claim that may be filed under section 4 of this rule. Itshall be presumed that the decedent left no debts if no creditor files apetition for letters of administration within two (2) years after the death ofthe decedent.

The fact ofthe extrajudicial settlement or administration shall be published in anewspaper of general circulation in the manner provided in the nest succeedingsection; but no extrajudicial settlement shall be binding upon any person whohas not participated therein or had no notice thereof.

Section 2. Summary settlement of estate of small value . Whenever the gross value of the estate of a deceased person, whether he diedtestate or intestate, does not exceed ten thousand pesos, and that fact is madeto appear to the Court of First Instance having jurisdiction of the estate bythe petition of an interested person and upon hearing, which shall be held notless than one (1) month nor more than three (3) months from the date of thelast publication of a notice which shall be published once a week for three (3)consecutive weeks in a newspaper of general circulation in the province, andafter such other notice to interest persons as the court may direct, the courtmay proceed summarily, without the appointment of an executor or administrator,and without delay, to grant, if proper, allowance of the will, if any there be,to determine who are the persons legally entitled to participate in the estate,and to apportion and divide it among them after the payment of such debts ofthe estate as the court shall then find to be due; and such persons, in theirown right, if they are of lawful age and legal capacity, or by their

guardians or trustees legally appointed and qualified, if otherwise, shallthereupon be entitled to receive and enter into the possession of the portionsof the estate so awarded to them respectively. The court shall make such orderas may be just respecting the costs of the proceedings, and all orders and judgmentsmade or rendered in the course thereof shall be recorded in the office of theclerk, and the order of partition or award, if it involves real estate, shallbe recorded in the proper register's office.

Section 3. Bond to be filed by distributees . Thecourt, before allowing a partition in accordance with the provisions of thepreceding section, my require the distributees, if property other than real isto be distributed, to file a bond in an amount to be fixed by court,conditioned for the payment of any just claim which may be filed under the nextsucceeding section.

Section 4. Liability of distributees and estate . If it shall appear at any time within two (2) years after the settlement anddistribution of an estate in accordance with the provisions of either of thefirst two sections of this rule, that an heir or other person has been undulydeprived of his lawful participation in the estate, such heir or such otherperson may compel the settlement of the estate in the courts in the mannerhereinafter provided for the purpose of satisfying such lawful participation.And if within the same time of two (2) years, it shall appear that there aredebts outstanding against the estate which have not been paid, or that an heiror other person has been unduly deprived of his lawful participation payable inmoney, the court having jurisdiction of the estate may, by order for thatpurpose, after hearing, settle the amount of such debts or lawful participationand order how much and in what manner each distributee shall contribute in thepayment thereof, and may issue execution, if circumstances require, against thebond provided in the preceding section or against the real estate belonging tothe deceased, or both. Such bond and such real estate shall remain charged witha liability to creditors, heirs, or other persons for the full period of two(2) years after such distribution, notwithstanding any transfers of real estatethat may have been made.

Section 5. Period for claim of minor or incapacitated person . If on the date of the expiration of the period of two (2) years prescribed inthe preceding section the person authorized to file a claim is a minor ormentally incapacitated, or is in prison or outside the Philippines, he maypresent his claim within one (1) year after such disability is removed.

RULE 75

Production of Will / Allowance of Will Necessary

Section 1. Allowance necessary . Conclusiveas to execution . No will shall pass either real or personal estateunless it is proved and allowed in the proper court. Subject to the right ofappeal, such allowance of the will shall be conclusive as to its due execution.

Section 2. Custodian of will to deliver . Theperson who has custody of a will shall, within twenty (20) days after he knowsof the death of the testator, deliver the will to the court havingjurisdiction, or to the executor named in the will.

Section 3. Executor to present will and accept or refusetrust . A person named as executor in a will shall, within twenty(20) days after he knows of the death of the testate, or within twenty (20)days after he knows that he is named executor if he obtained such knowledgeafter the death of the testator, present such will to the court havingjurisdiction, unless the will has reached the court in any other manner, andshall, within such period, signify to the court in writing his acceptance ofthe trust or his refusal to accept it.

Section 4. Custodian and executor subject to fine for neglect . A person who neglects any of the duties required in the two last precedingsections without excused satisfactory to the court shall be fined not exceedingtwo thousand pesos.

Section 5. Person retaining will may be committed . A person havingcustody of a will after the death of the testator who neglects without reasonablecause to deliver the same, when ordered so to do, to the court havingjurisdiction, may be committed to prison and there kept until he delivers thewill.

RULE 76

Allowance or Disallowance of Will

Section 1. Who may petition for the allowance of will. Any executor, devisee, orlegatee named in a will, or any other person interested in the estate, may, atany time after the death of the testator, petition the court havingjurisdiction to have the will allowed, whether the same be in his possession ornot, or is lost or destroyed.

The testatorhimself may, during his lifetime, petition the court for the allowance of hiswill.

Section 2. Contents of petition . A petition forthe allowance of a will must show, so far as known to the petitioner:

(a) The jurisdictional facts;

(b) The names, ages, and residences of the heirs, legatees, and deviseesof the testator or decedent;

(c) The probable value and character of the property of the estate;

(d) The name of the person for whom letters are prayed;

(e) If the will has not been delivered to the court, the name of theperson having custody of it.

But nodefect in the petition shall render void the allowance of the will, or theissuance of letters testamentary or of administration with the will annexed.

Section 3. Court to appoint time for proving will. Notice thereof to bepublished . When a will is delivered to, or a petition for the allowanceof a will is filed in, the court having jurisdiction, such court shall fix atime and place for proving the will when all concerned may appear to contestthe allowance thereof, and shall cause notice of such time and place to bepublished three (3) weeks successively, previous to the time appointed, in anewspaper of general circulation in the province.

But nonewspaper publication shall be made where the petition for probate has beenfiled by the testator himself.

Section 4. Heirs, devisees, legatees, and executors to benotified by mail or personally . The court shall also cause copiesof the notice of the time and place fixed for proving the will to be addressedto the designated or other known heirs, legatees, and devisees of the testatorresident in the Philippines at their places of residence, and deposited in thepost office with the postage thereon prepaid at least twenty (20) days beforethe hearing, if such places of residence be known. A copy of the notice must inlike manner be mailed to the person named as executor, if he be not thepetitioner; also, to any person named as coexecutor not petitioning, if theirplaces of residence be known. Personal service of copies of the notice at lest(10) days before the day of hearing shall be equivalent to mailing.

If thetestator asks for the allowance of his own will, notice shall be sent only tohis compulsory heirs.

Section 5. Proof at hearing . What sufficient inabsence of contest . At the hearing compliance with the provisions of thelast two preceding sections must be shown before the introduction of testimonyin support of the will. All such testimony shall be taken under oath andreduced to writing. It no person appears to contest the allowance of the will,the court may grant allowance thereof on the testimony of one of thesubscribing witnesses only, if such witness testify that the will was executed as is required by law.

In the caseof a holographic will, it shall be necessary that at least one witness whoknows the handwriting and signature of the testator explicitly declare that thewill and the signature are in the handwriting of the testator. In the absenceof any such competent witness, and if the court deem it necessary, experttestimony may be resorted to.

Section 6. Proof of lost or destroyed will. Certificatethereupon. No will shall beproved as a lost or destroyed will unless the execution and validity of thesame be established, and the will is proved to have been in existence at thetime of the death of the testator, or is shown to have been fraudulently oraccidentally destroyed in the lifetime of the testator without his knowledge,nor unless its provisions are clearly and distinctly proved by at least two (2)credible witnesses. When a lost will is proved, the provisions thereof must bedistinctly stated and certified by the judge, under the seal of the court, andthe certificate must be filed and recorded as other wills are filed andrecorded.

Section 7. Proof when witnesses do not reside in province . If it appearsat the time fixed for the hearing that none of the subscribing witnessesresides in the province, but that the deposition of one or more of them can betaken elsewhere, the court may, on motion, direct it to be taken, and mayauthorize a photographic copy of the will to be made and to be presented to thewitness on his examination, who may be asked the same questions with respect toit, and to the handwriting of the testator and others, as would be pertinentand competent if the original will were present.

Section 8. Proof when witnesses dead or insane or do not reside in thePhilippines . If the appears at the time fixed for the hearing that thesubscribing witnesses are dead or insane, or that

none of them resides in the Philippines, the court may admit the testimonyof other witnesses to prove the sanity of the testator, and the due executionof the will; and as evidence of the execution of the will, it may admit proofof the handwriting of the testator and of the subscribing witnesses, or of anyof them.

Section 9. Grounds for disallowing will . The will shall be disallowed inany of the following cases:

(a) If not executed and attested as required by law;

(b) If the testator was insane, or otherwise mentally incapable to makea will, at the time of its execution;

(c) If it was executed under duress, or the influence of fear, orthreats;

(d) If it was procured by undue and improper pressure and influence, onthe part of the beneficiary, or of some other person for his benefit;

(e) If the signature of the testator was procured by fraud or trick, andhe did not intend that the instrument should be his will at the time of fixinghis signature thereto.

Section 10. Contestant to file grounds of contest . Anyone appearing to contest the will must state in writing his grounds foropposing its allowance, and serve a copy thereof on the petitioner and otherparties interested in the estate.

Section 11. Subscribing witnesses produced or accounted for where will contested . If the will is contested, all the subscribing witnesses, and the notary inthe case of wills executed under the Civil Code of the Philippines, if presentin the Philippines and not insane, must be produced and examined, and thedeath, absence, or insanity of any of them must be satisfactorily shown to thecourt. If all or some of such witnesses are present in thePhilippines but outside the province where the will has been filed, theirdeposition must be taken. If any or all of them testify against the dueexecution of the will, or do not remember having attested to it, or areotherwise of doubtful credibility, the will may nevertheless, be allowed if thecourt is satisfied from the testimony of other witnesses and from all theevidence presented that the will was executed and attested in the mannerrequired by law.

If a holographicwill is contested, the same shall be allowed if at least three (3) witnesseswho know the handwriting of the testator explicitly declare that the will andthe signature are in the handwriting of the testator; in the absence of anycompetent witnesses, and if the court deem it necessary, expert testimony maybe resorted to.

Section 12. Proof where testator petitions for allowance of holographic will . Where the testator himself petitions for the probate of his holographic willand no contest is filed, the fact that the affirms that the holographic will and the signature are in his own handwriting, shallbe sufficient evidence of the genuineness and due execution thereof. If theholographic will is contested, the burden of disproving the genuineness and dueexecution thereof shall be on the contestant. The testator torebut the evidence for the contestant.

Section 13. Certificate of allowance attached to prove will. To be recorded inthe Office of Register of Deeds . If the court is satisfied, upon prooftaken and filed, that the will was duly executed, and that the testator at thetime of its execution was of sound and disposing mind, and not acting underduress, menace, and undue influence, or fraud, a certificate of its allowance,signed by the judge, and attested by the seal of the court shall be attached tothe will and the will and certificate filed and recorded by the clerk. Attestedcopies of the will devising real estate and of certificate of allowancethereof, shall be recorded in the register of deeds of the province in whichthe lands lie.

RULE 77

Allowance of Will Proved Outside of Philippines

and Administration of Estate Thereunder

Section 1. Will proved outside Philippines may be allowed here . Willsproved and allowed in a foreign country, according to the laws of such country,may be allowed, filed, and recorded by the proper Court of First Instance inthe Philippines.

Section 2. Notice of hearing for allowance . Whena copy of such will and of the order or decree of the allowance thereof, bothduly authenticated, are filed with a petition for allowance in the Philippines,by the executor or other person interested, in the court having jurisdiction,such court shall fix a time and place for the hearing, and cause notice thereofto be given as in case of an original will presented for allowance.

Section 3. When will allowed, and effect thereof. If it appears at thehearing that the will should be allowed in the Philippines, the shall so allowit, and a certificate of its allowance, signed by the judge, and attested bythe seal of the court, to which shall be attached a copy of the will, shall befiled and recorded by the clerk, and the will shall have the same effect as iforiginally proves and allowed in such court.

Section 4. Estate, how administered . When a will is thus allowed, thecourt shall grant letters testamentary, or letters ofadministration with the will annexed, and such letters testamentary or ofadministration, shall extend to all the estate of the testator in thePhilippines. Such estate, after the payment of just debts and expenses ofadministration, shall be disposed of according to such will, so far as suchwill may operate upon it; and the residue, if any shall be disposed of as isprovided by law in cases of estates in the Philippines belonging to persons whoare inhabitants of another state or country.

RULE 78

Letters Testamentary and of Administration, Whenand to Whom Issued

Section 1. Who are incompetent to serve as executors or administrators. No person in competent to serveas executor or administrator who:

(a) Is a minor;

(b) Is not a resident of the Philippines; and

(c) Is in the opinion of the court unfit to execute the duties of thetrust by reason of drunkenness, improvidence, or want of understanding orintegrity, or by reason of conviction of an offense involving moral turpitude.

Section 2. Executor of executor not to administer estate . The executor of an executor shall not, as such, administer the estate of thefirst testator.

Section 3. Married women may serve . A married woman may serve asexecutrix or administratrix, and the marriage of a single woman shall notaffect her authority so to serve under a previous appointment.

Section 4. Letters testamentary issued when will allowed . When a will has been proved and allowed, the court shall issue letterstestamentary thereon to the person named as executor therein, if he iscompetent, accepts the trust, and gives bond as required by these rules.

Section 5. Where some coexecutors disqualified others may act . When allof the executors named in a will cannot act because of incompetency, refusal toaccept the trust, or failure to give bond, on the part of one or more of them,letters testamentary may issue to such of them as are competent, accept andgive bond, and they may perform the duties and discharge the trust required bythe will.

Section 6. When and to whom letters of administration granted . If no executor is named in the will, or the executor or executors areincompetent, refuse the trust, or fail to give bond, or a person diesintestate, administration shall be granted:

(a) To the surviving husband or wife, as the case may be, or next ofkin, or both, in the discretion of the court, or to such person as suchsurviving husband or wife, or next of kin, requests to have appointed, ifcompetent and willing to serve;

(b) If such surviving husband or wife, as the case may be, or next ofkin, or the person selected by them, be incompetent or unwilling, or if thehusband or widow, or next of kin, neglects for thirty (30) days after the deathof the person to apply for administration or to request that administration begranted to some other person, it may be granted to one or more of the principalcreditors, if may be granted to one or more of the principal creditors, ifcompetent and willing to serve;

(c) If there is no such creditor competent and willing to serve, it maybe granted to such other person as the court may select.

RULE 79

Opposing Issuance Of Letters Testamentary

Petition And Contest ForLetters Of Administration

Section 1. Opposition to issuance of letters testamentary. Simultaneous petition for administration. Any person interested in a willmay state in writing the grounds why letters testamentary should not issue tothe persons named therein as executors, or any of them, and the court, afterhearing upon notice, shall pass upon the sufficiency of such grounds. Apetition may, at the time, be filed for letters of administration with the willannexed.

Section 2. Contents of petition for letters of administration . A petition for letters of administration must be filed by an interestedperson and must show, so far as known to the petitioner:

(a) The jurisdictional facts;

(b) The names, ages, and residences of the heirs, and the names andresidences of the creditors, of the decedent;

(c) The probable value and character of the property of the estate;

(d) The name of the person for whom letters of administration areprayed.

But nodefect in the petition shall render void the issuance of letters ofadministration.

Section 3. Court to set time for hearing. Notice thereof. When a petition for letters of administration is filed in the courthaving jurisdiction, such court shall fix a time and place for hearing thepetition, and shall cause notice thereof to be given to the known heirs andcreditors of the decedent, and to any other persons believed to have aninterest in the estate, in the manner provided in sections 3 and 4 of Rule 76.

Section 4. Opposition to petition for administration . Any interested person may, by filing a written opposition, contest thepetition on the ground of the incompetency of the person for whom letters areprayed therein, or on the ground of the contestant's own right to theadministration, and may pray that letters issue to himself, or to any competentperson or person named in the opposition.

Section 5. Hearing and order for letters to issue . At the hearing of thepetition, it must first be shown that notice has been given as hereinaboverequired, and thereafter the court shall hear the proofs of the parties insupport of their respective allegations, and if satisfied that the decedentleft no will, or that there is no competent and willing executor, it shallorder the issuance of letters of administration to the party best entitledthereto.

Section 6. When letters of administration granted to anyapplicant . Letters of administration may be granted to anyqualified applicant, though it appears that there are other competent personshaving better right to the administration, if such persons fail to appear whennotified and claim the issuance of letters to themselves.

RULE 80

Special Administrator

Section 1. Appointment of special administrator . When there is delay in granting letters testamentary or of administration byany cause including an appeal from the allowance or disallowance of a will, thecourt may appoint a special administrator to take possession and charge of theestate of the deceased until the questions causing the delay are decided andexecutors or administrators appointed.

Section 2. Powers and duties of special administrator . Such special administrator shall take possession and charge of the goods,chattels, rights, credits, and estate of the deceased and preserve the same forthe executors or administrator afterwards appointed, and for that purpose maycommence and maintain suits as administrator. He may sell only such perishableand other property as the court orders sold. A special administrator shall notbe liable to pay any debts of the deceased unless so ordered by the court.

Section 3. When powers of special administrator cease . Transfer of effects . Pending suits. When letters testamentary or ofadministration are granted on the estate of the deceased, the powers of thespecial administrator shall cease, and he shall forthwith deliver to theexecutor or administrator the goods, chattels, money, and estate of thedeceased in his hands. The executor or administrator may prosecute to finaljudgment suits commenced by such special administrator.

RULE 81

Bond of Executors and Administrators

Section 1. Bond to be given issuance of letters . Amount. Conditions. Before an executor or administrator enters upon the execution of his trust, andletters testamentary or administration issue, he shall give a bond, in such sumas the court directs, conditioned as follows:

(a) To make and return to the court, within three (3) months, a true andcomplete inventory of all goods, chattels, rights, credits, and estate of thedeceased which shall come to his possession or knowledge or to the possessionof any other person for him;

(b) To administer according to these rules, and, if an executor,according to the will of the testator, all goods, chattels, rights, credits,and estate which shall at any time come to his possession or to the possessionof any other person for him, and from the proceeds to pay and discharge alldebts, legacies, and charges on the same, or such dividends thereon as shall bedecreed by the court;

(c) To render a true and just account of his administration to the courtwithin one (1) years, and at any other time when required by the court;

(d) To perform all orders of the court by him to be performed.

Section 2. Bond of executor where directed in will . Whenfurther bond required. Ifthe testator in his will directs that the executors serve without bond, or withonly his individual bond, he may be allowed by the court to give bond in suchsum and with such surety as the court approves conditioned only to pay thedebts of the testator; but the court may require of the executor a further bondin case of a change in his circumstance, or for other sufficient case, with theconditions named in the last preceding section.

Section 3. Bonds of joint executors and administrators . When two or more persons are appointed executors or administrators the courtmay take a separate bond from each, or a joint bond from all.

Section 4. Bond of special administrator . Aspecial administrator before entering upon the duties of his trust shall give abond, in such sum as the court directs, conditioned that he will make andreturn a true inventory of the goods, chattels, rights, credits, and estate ofthe deceased which come to his possession or knowledge, and that he will trulyaccount for such as are received by him when required by the court, and willdeliver the same to the person appointed executor or administrator, or to suchother person as may be authorized to receive them.

RULE 82

Revocation of Administration, Death, Resignation,

and Removal of Executors or Administrators

Section 1. Administration revoked if will discovered .Proceedings thereupon. If after letters of administration have been granted on the estate of adecedent as if he had died intestate, his will is proved and allowed by thecourt, the letters of administration shall be revoked and all powers thereundercease, and the administrator shall forthwith surrender the letters to thecourt, and render his account with such time as the court directs. Proceedingfor the issuance of letters testamentary or of administration under the willshall be as hereinbefore provided.

Section 2. Court may be remove or accept resignationof executor or administrator. Proceeding upon death,resignation, or removal. Ifan executor or administrator neglects to render his account and settle theestate according to law, or to perform an order or judgment of the court, or aduty expressly provided by these rules, or absconds, or becomes insane, orotherwise incapable or unsuitable to discharge the trust, the court may removehim, or in its discretion, may permit him to resign. When an executor oradministrator dies, resign, or is removed the remaining executor oradministrator may administer the trust alone, unless the court grants lettersto someone to act with him. If there is no remaining executor or administrator,administration may be to any suitable person.

Section 3. Acts before revocation, resignation, or removal tobe valid . The lawful acts of an executor or administrator beforethe revocation of his letters testamentary or of administration, or before hisresignation or removal, shall have the like validity as if there had been nosuch revocation, resignation, or removal.

Section 4. Powers of new executor or administrator. Renewal of license to sell real estate. The person to whom letters testamentary or ofadministration are granted after the revocation of former letters, or thedeath, resignation, or removal of a former executor or administrator, shallhave the like powers to collect and settle the estate not administered that theformer executor or administrator had, and may prosecute or defend actionscommenced by or against the former executor or administrator, and haveexecution on judgments recovered in the name of such former executor oradministrator. An authority granted by the court to the former executor oradministrator for the sale or mortgage of real estate may be renewed in favorof such person without further notice or hearing.

RULE 83

Inventory and Appraisal / Provision for Support ofFamily

Section 1. Inventory and appraisal to be returned withinthree months . Within three (3) months after his appointment everyexecutor or administrator shall return to the court a true inventory andappraisal of all real and personal estate of the deceased which has come intohis possession or knowledge. In the appraisement of such estate, the court mayorder one or more of the inheritance tax appraisers to give his or theirassistance.

Section 2. Certain article not to be inventoried . The wearing apparel of the surviving husband or wife and minor children., themarriage bed and bedding, and such provisions and other articles as willnecessarily be consumed in the substinence of the family of the deceased, underthe direction of the court, shall not be considered as assets, nor administeredas such, and shall not be included in the inventory.

Section 3. Allowance to widow and family . Thewidow and minor or incapacitated children of a deceased person, during thesettlement of the estate, shall receive therefrom, under the direction of thecourt, such allowance as are provided by law.

RULE 84

General Powers and Duties of Executors andAdministrators

Section 1. Executor or administrator to have access topartnership books and property. How rightenforced. The executor oradministrator of the estate of a deceased partner shall at all times haveaccess to, and may examine and take copies of, books and papers relating to thepartnership business, and make examine and make invoices of the propertybelonging to such partnership; and the surviving partner or partners, onrequest, shall exhibit to him all such books, papers, and property in theirhands or control. On the written application of such executor or administrator,the court having jurisdiction of the estate may order any such survivingpartner or partners to freely permit the exercise of the rights, and to exhibitthe books, papers, and property, as in this section provided, and may punishany partner failing to do so for contempt.

Section 2. Executor or administrator to keep buildings inrepair . An executor or administrator shall maintain in tenanblerepair the houses and other structures and fences belonging to the estate, anddeliver the same in such repair to the heirs or devisees when directed so to doby the court.

Section 3. Executor or administrator to retain whole estate to pay debts, and toadminister estate not willed . An executor or administrator shall have theright to the possession and management of the real as well as the personalestate of the deceased so long as it is necessary for the payment of the debtsand the expenses of administration.

RULE 85

Accountability and Compensation of Executors andAdministrators

Section 1. Executor or administrator chargeable with allestate and income . Except as otherwise expressly provided in thefollowing sections, every executor or administrator is chargeable in hisaccount with the whole of the estate of the deceased which has come into hispossession, at the value of the appraisement contained in the inventory; withall the interest, profit, and income of such estate; and with the proceeds ofso much of the estate as is sold by him, at the price at which it was sold.

Section 2. Not to profit by increase or lose by decrease in value . Noexecutor or administrator shall profit by the increase, or suffer loss by thedecrease or destruction, without his fault, of any part of the estate. He mustaccount for the excess when he sells any part of the estate for more than theappraisement, and if any is sold for the less than the appraisement, he is notresponsible for the loss, if the sale has justly made. If he settles any claimagainst the estate for less than its nominal value, he is entitled to charge inhis account only the amount he actually paid on the settlement.

Section 3. When not accountable for debts due estate . No executor or administrator shall be accountable for debts due the deceasedwhich remain uncollected without his fault.

Section 4. Accountable for income from realty used by him . If the executor or administrator uses or occupies any part of the real estatehimself, he shall account for it as may be agreed upon between him and theparties interested, or adjusted by the court with their assent; and if theparties do not agree upon the sum to be allowed, the same may be ascertained bythe court, whose determination in this respect shall be final.

Section 5. Accountable if he neglects or delays to raise orpay money . When an executor or administrator neglects orunreasonably delays to raise money, by collecting the debts or selling the realor personal estate of the deceased, or neglects to pay over the money he has inhis hands, and the value of the estate is thereby lessened or unnecessary costor interest accrues, or the persons interested suffer loss, the same shall bedeemed waste and the damage sustained may be charged and allowed against him inhis account, and he shall be liable therefor on his bond.

Section 6. When allowed money paid as cost . The amount paid by anexecutor or administrator for costs awarded against him shall be allowed in hisadministration account, unless it appears that theaction or proceeding in which the costs are taxed was prosecuted or resistedwithout just cause, and not in good faith.

Section 7. What expenses and fees allowed executor or administrator. Not to charge for services asattorney . Compensation provided by will controls unless renounced . An executor or administrator shall be allowed thenecessary expenses the care, management, and settlement of the estate, and forhis services, four pesos per day for the time actually and necessarilyemployed, or a commission upon the value of so much of the estate as comes intohis possession and is finally disposed of by him in the payment of debts,expenses, legacies, or distributive shares, or by delivery to heirs ordevisees, of two per centum of the first five thousand pesos of suchvalue, one per centum of so much of such value as exceeds five thousandpesos and does not exceed thirty thousand pesos, one-half per centum ofso much of such value as exceed one hundred thousand pesos. But in any specialcase, where the estate is large, and the settlement has been attended withgreat difficulty, and has required a high degree of capacity on the part of theexecutor or administrator, a greater sum may be allowed. If objection to thefees allowed be taken, the allowance may be re-examined on appeal.

If there are two or more executors or administrators, the compensationshall be apportioned among them by the court according to the services actuallyrendered by them respectively.

When the executors or administrator is an attorney, he shall not chargeagainst the estate any professional fees for legal services rendered by him.

When the deceased by will makes some other provision for thecompensation of his executor, that provision shall be a full satisfaction forhis services unless by a written instrument filed in the court he renounces allclaim to the compensation provided by the will.

Section 8. When executor or administrator to render account . Every executoror administrator shall render an account of his administration within one (1)year from the time of receiving letters testamentary or of administration,unless the court otherwise directs because of extensions of time for presentingclaims against, or paying the debts of, the estate, or for disposing of theestate; and he shall render such further accounts as the court may requireuntil the estate is wholly settled.

Section 9. Examinations on oath with respect to account The court mayexamine the executor or administrator upon oath with respect to every matterrelating to any account rendered by him, and shall so examine him as to thecorrectness of his account before the same is allowed, except when no objectionis made to the allowance of the account and its correctness is satisfactorilyestablished by competent proof. The heirs, legatees, distributees, andcreditors of the estate shall have the same privilege as the executor oradministrator of being examined on oath on any matter relating to anadministration account.

Section 10. Account to be settled on notice . Before the account of anexecutor or administrator is allowed, notice shall be given to personsinterested of the time and place of examining and allowing the same; and suchnotice may be given personally to such persons interested or by advertisementin a newspaper or newspapers, or both, as the court directs.

Section 11. Surety on bond may be party to accounting . Upon the settlementof the account of an executor or administrator, a person liable as surety inrespect to such account may, upon application, be admitted as party to suchaccounting.

RULE 86

Claims Against Estate

Section 1. Notice to creditors to be issued by court . Immediately aftergranting letters testamentary or of administration, the court shall issue anotice requiring all persons having money claims against the decedent to filethem in the office of the clerk of said court.

Section 2. Time within which claims shall be filed . In the notice provided in the preceding section, the court shall estate thetime for the filing of claims against the estate, which shall not be more thantwelve (12) not less than six (6) months after the date of the firstpublication of the notice. However, at any time before an order of distributionis entered, on application of a creditor who has failed to file his claimwithin the previously limited, the court may, for cause shown and on such termsas are equitable, allow such claim to be filed within a time not exceeding one(1) month.

Section 3. Publication of notice to creditors . Every executor or administrator shall, immediately after the notice tocreditors is issued, cause the same to be published three (3) weekssuccessively in a newspaper of general circulation in the province, and to beposted for the same period in four public places in the province and in twopublic places in the municipality where the decedent last resided.

Section 4. Filing of copy of printed notice . Within ten (10) days after the notice has been published and posted inaccordance with the preceding section, the executor or administrator shall fileor cause to be filed in the court a printed copy of the notice accompanied withan affidavit setting forth the dates of the first and last publication thereofand the name of the newspaper in which the same is printed.

Section 5. Claims which must be filed under the notice . If not filed , barred ; exceptions . All claims for money against the decent, arising from contract, express orimplied, whether the same be due, not due, or contingent, all claims forfuneral expenses and expense for the last sickness of the decedent, andjudgment for money against the decent, must be filed within the time limited inthe notice; otherwise they are barred forever, except that they may be setforth as counterclaims in any action that the executor or administrator maybring against the claimants. Where an executor or administrator commences anaction, or prosecutes an action already commenced by the deceased in hislifetime, the debtor may set forth by answer the claims he has against thedecedent, instead of presenting them independently to the court as hereinprovided, and mutual claims may be set off against each other in such action;and if final judgment is rendered in favor of the defendant, the amount sodetermined shall be considered the true balance against the estate, as thoughthe claim had been presented directly before the court in the administrationproceedings. Claims not yet due, or contingent, may be approved at their presentvalue.

Section 6. Solidary obligation of decedent . Where the obligation of the decedent is solidary with another debtor, the claimshall be filed against the decedent as if he were the only debtor, withoutprejudice to the right of the estate to recover contribution from the debtor.In a joint obligation of the decedent, the claim shall be confined to theportion belonging to him.

Section 7. Mortgage debt due from estate . Acreditor holding a claim against the deceased secured by mortgage or other collateralsecurity, may abandon the security and prosecute his claim in the mannerprovided in this rule, and share in the general distribution of the assets ofthe estate; or he may foreclose his mortgage or realize upon his security, byaction in court, making the executor or administrator a party defendant, and ifthere is a judgment for a deficiency, after the sale of the mortgaged premises,or the property pledged, in the foreclosure or other proceeding to realize uponthe security, he may claim his deficiency judgment in the manner provided inthe preceding section or he may rely upon his mortgage or other security alone,and foreclosure the same at any time within the period of the statute oflimitations, and in that event he shall not be admitted as a creditor, andshall receive no share in the distribution of the other assets of estate; butnothing herein contained shall prohibit the executor or administrator fromredeeming the property mortgaged or pledged, by paying the debt for which it isheld as security, under the direction of the court, if the court shall adjudgeit to be for the best interest of the estate that such redemption shall bemade.

Section 8. Claim of executor or administrator against an estate . If theexecutor or administrator has a claim against the estate he represents, heshall give notice thereof, in writing, to the court, and the court shallappoint a special administrator, who shall, in the adjustment of such claim,have the same power and be subject to the same liability as the generaladministrator or executor in the settlement of other claims. The court mayorder the executor or administrator to pay to the special administratornecessary funds to defend such claim.

Section 9. How to file a claim . Contentsthereof. Notice to executor or administrator . A claim maybe filed by delivering the same with the necessary vouchers to the clerk ofcourt and by serving a copy thereof on the executor or administrator. If theclaim be founded on a bond, bill, note, or any other instrument, the originalneed not be filed, but a copy thereof with all indorsements shall be attachedto the claim and filed therewith. On demand, however, of the executor oradministrator, or by order of the court or judge, the original shall be exhibited,unless it be list or destroyed, in which case the claimant must accompany hisclaim with affidavit or affidavits containing a copy or particular descriptionof the instrument and stating its loss or destruction. When the claim is due,it must be supported by affidavit stating the amount justly due, that nopayments have been made thereon which are not credited, and that there are nooffsets to the same, to the knowledge of the affiant. If the claim is not due,or is contingent, when filed, it must also be supported by affidavits statingthe particulars thereof. When the affidavit is made by a person other than theclaimant, he must set forth therein the reason why it is not made by theclaimant. The claim once filed shall be attached to the record of the case inwhich the letters testamentary or of administration were issued, although thecourt, in its discretion, and as a matter of convenience, may order all theclaims to be collected in a separate folder.

Section 10. Answer of executor or administrator . Offsets Within fifteen (15) days after service of a copy of theclaim on the executor or administrator, he shall file his answer admitting ordenying the claim specifically, and setting forth the admission or denial. Ifhe has no knowledge sufficient to enable him to admit or deny specifically, heshall state such want of knowledge. The executor or administrator in his answershall allege in offset any claim which the decedent before death had againstthe claimant, and his failure to do so shall bar the claim forever. A copy ofthe answer shall be served by the executor or administrator on the claimant.The court in its discretion may extend the time for filing such answer.

Section 11. Disposition of admitted claim . Anyclaim admitted entirely by the executor or administrator shall immediately besubmitted by the clerk to the court who may approve the same without hearing;but the court, in its discretion, before approving the claim, may order thatknown heirs, legatees, or devisees be notified and heard. If upon hearing, anheir, legatees, or devisee opposes the claim, the court may, in its discretion,allow him fifteen (15) days to file an answer to the claim in the mannerprescribed in the preceding section.

Section 12. Trial of contested claim . Upon thefiling of an answer to a claim, or upon the expiration of the time for suchfiling, the clerk of court shall set the claim for trial with notice to bothparties. The court may refer the claim to a commissioner.

Section 13. Judgment appealable . The judgment ofthe court approving or disapproving a claim, shall be filed with the record ofthe administration proceedings with notice to both parties, and is appealableas in ordinary cases. A judgment against the executor or administrator shall bethat he pay , in due course of administration, theamount ascertained to be due, and it shall not create any lien upon theproperty of the estate, or give to the judgment creditor any priority ofpayment.

Section 14. Costs . When the executor oradministrator, in his answer, admits and offers to pay part of a claim, and theclaimant refuses to accept the amount offered in satisfaction of his claim, ifhe fails to obtain a more favorable judgment, he cannot recover costs, but mustpay to the executor or administrator costs from the time of the offer. Where anaction commenced against the deceased for money has been discontinued and theclaim embraced therein presented as in this rule provided, the prevailing partyshall be allowed the costs of his action up to the time of its discontinuance.

RULE 87

Actions By and Against Executors and Administrators

Section 1. Actions which may and which may not be broughtagainst executor or administrator . No action upon a claim for therecovery of money or debt or interest thereon shall be commenced against theexecutor or administrator; but to recover real or personal property, or aninterest therein, from the estate, or to enforce a lien thereon, and actions torecover damages for an injury to person or property, real or personal, may becommenced against him.

Section 2. Executor or administrator may bring or defend actions which survive . For the recovery or protection of the property or rights of the deceased, anexecutor or administrator may bring or defend, in the right of deceased,actions for causes which survive.

Section 3. Heir may not sue until shall assigned When an executor oradministrator is appointed and assumes the trust, no action to recover thetitle or possession of lands or for damages done to such lands shall bemaintained against him by an heir or devisee until there is an order of thecourt assigning such lands to such heir or devisee or until the time allowedfor paying debts has expired.

Section 4. Executor or administrator may compound with debtor . Within theapproval of the court, an executor or administrator may compound with thedebtor of the deceased for a debt due, and may give a discharge of such debt onreceiving a just dividend of the estate of the debtor.

Section 5. Mortgage due estate may be foreclosed . A mortgage belonging tothe estate of a deceased person, as mortgagee or assignee of the right or a mortgage, may be foreclosed by the executor oradministrator.

Section 6. Proceedings when property concealed, embezzled, or fraudulentlyconveyed . If an executor or administrator, heir, legatee, creditor orother individual interested in the estate of the deceased, complains to thecourt having jurisdiction of the estate that a person is suspected of havingconcealed, embezzled, or conveyed away any of the money, goods, or chattels ofthe deceased, or that such person has in his possession or has knowledge of anydeed, conveyance, bond, contract, or other writing which contains evidence ofor tends or discloses the right, title, interest, or claim of the deceased, thecourt may cite such suspected person to appear before it any may examine him onoath on the matter of such complaint; and if the person so cited refuses toappear, or to answer on such examination or such interrogatories as are put tohim, the court may punish him for contempt, and may commit him to prison untilhe submits to the order of the court. The interrogatories put any such person,and his answers thereto, shall be in writing and shall be filed in the clerk'soffice.

Section 7. Person entrusted with estate compelled to render account . Thecourt, on complaint of an executor or administrator, may cite a personentrusted by an executor or administrator with any part of the estate of thedeceased to appear before it, and may require such person to render a fullaccount, on oath, of the money, goods, chattels, bonds, account, or otherpapers belonging to such estate as came to his possession in trust for suchexecutor or administrator, and of his proceedings thereon; and if the person socited refuses to appear to render such account, the court may punish him forcontempt as having disobeyed a lawful order of the court.

Section 8. Embezzlement before letters issued If a person, before thegranting of letters testamentary or of administration on the estate of thedeceased, embezzles or alienates any of the money, goods, chattels, or effectsof such deceased, such person shall be liable to an action in favor of theexecutor or administrator of the estate for double the value of the propertysold, embezzled, or alienated, to be recovered for the benefit of such estate.

Section 9. Property fraudulently conveyed by deceased may be recovered. When executor or administrator must bring action. When there is a deficiency ofassets in the hands of an executor or administrator for the payment of debtsand expenses of administration, and the deceased in his lifetime had conveyedreal or personal property, or a right or interest therein, or an debt orcredit, with intent to defraud his creditors or to avoid any right, debt, orduty; or had so conveyed such property, right, interest, debt or credit that bylaw the conveyance would be void as against his creditors, and the subject ofthe attempted conveyance would be liable to attachment by any of them in hislifetime, the executor or administrator may commence and prosecute to finaljudgment an action for the recovery of such property, right, interest, debt, orcredit for the benefit of the creditors; but he shall not be bound to commencethe action unless on application of the creditors of the deceased, not unlessthe creditors making the application pay such part of the costs and expenses,or give security therefor to the executor or administrator, as the court deemsequitable.

Section 10. When creditor may bring action . Lien for costs. When there is such a deficiency of assets, and the deceased in his lifetime hadmade or attempted such a conveyance, as is stated in the last precedingsection, and the executor or administrator has not commenced the action thereinprovided for, any creditor of the estate may, with the permission of the court,commence and prosecute to final judgment, in the name of the executor oradministrator, a like action for the recovery of the subject of the conveyanceor attempted conveyance for the benefit of the creditors. But the action shallnot be commenced until the creditor has filed in a court a bond executed to theexecutor or administrator, in an amount approved by the judge, conditioned toindemnify the executor or administrator against the costs and expenses incurredby reason of such action. Such creditor shall have a lien upon any judgmentrecovered by him in the action for such costs and other expenses incurredtherein as the court deems equitable. Where the conveyance or attemptedconveyance had been made by the deceased in his lifetime in favor of theexecutor or administrator, the action which a credit may bring shall be in thename of all the creditors, and permission of the court and filing of bond as aboveprescribed, are not necessary.

RULE 88

Payment of the Debts of the Estate

Section 1. Debts paid in full if estate sufficient . If, after hearing allthe money claims against the estate, and after ascertaining the amount of suchclaims, it appears that there are sufficient assets to pay the debts, theexecutor or administrator pay the same within the time limited for thatpurpose.

Section 2. Part of estate from which debt paid when provision made by will . If the testator makes provision by his will, or designates the estate to beappropriated for the payment of his debts, the expenses of administration, orthe family expenses, they shall be paid according to the provisions of thewill; but if the provision made by the will or the estate appropriated, is notsufficient for that purpose, such part of the estate of the testator, real orpersonal, as is not disposed of by will, if any shall be appropriated for thatpurpose.

Section 3. Personalty first chargeable for debts, then realty . The personal estate of the deceased not disposed of by will shall be firstchargeable with the payment of debts and expenses; and if said personal estateis not sufficient for tat purpose, or its sale would redound to the detrimentof the participants for the estate, the whole of the real estate not dispose ofby will, or so much thereof as is necessary, may be sold, mortgaged, orotherwise encumbered for that purpose by the executor or administrator, afterobtaining the authority of the court therefor. Any deficiency shall be met bycontributions in accordance with the provisions of section 6 of this rule.

Section 4. Estate to be retained to meet contingent claims . If the courtis satisfied that a contingent claim duly filed is valid, it may order theexecutor or administrator to retain in his hands sufficient estate to pay suchcontingent claim when the same becomes absolute, or if the estate is insolvent,sufficient to pay a portion equal to the dividend of the other creditors.

Section 5. How contingent claim becoming absolute in two years allowed and paid .Action against distributees later . If suchcontingent claim becomes absolute and is presented to the court, or to theexecutor or administrator, within two (2) years from the time limited for othercreditors to present their claims, it may be allowed by the court if notdisputed by the executor or administrator and, if disputed, it may be provedand allowed or disallowed by the court as the facts may warrant. If thecontingent claim is allowed, the creditor shall receive payment to the sameextent as the other creditors if the estate retained by the executor oradministrator is sufficient. But if the claim is not so presented, after havingbecome absolute, within said two (2) years, and allowed, the assets retained inthe hands of the executor or administrator, not exhausted in the payment ofclaims, shall be disturbed by the order of the court to the persons entitled tothe same; but the assets so distributed may still be applied to the payment ofthe claim when established, and the creditor may maintain an action against thedistributees to recover the debt, and such distributees and their estates shallbe liable for the debt in proportion to the estate they have respectivelyreceived from the property of the deceased.

Section 6. Court to fix contributive shares where devisees, legalitees, orheirs have been possession . Where devisees, legalitees, or heirs haveentered into possession of portions of the estate before the debts and expenseshave been settled and paid, and have become liable to contribute for thepayment of such debts and expenses, the court having jurisdiction of the estatemay, by order for that purpose, after hearing, settle the amount of theirseveral liabilities, and order how much and in what manner each person shallcontribute, and may issue execution as circumstances require.

Section 7. Order of payment if estate insolvent If the assets which canbe appropriated for the payment of debts are not sufficient for that purpose,the executor or administrator shall pay the debts against the estate, observingthe provisions of Articles 1059 and 2239 to 2251 of the Civil Code.

Section 8. Dividends to be paid in proportion to claims . If there are no assets sufficient to pay the credits of any once class ofcreditors after paying the credits entitled to preference over it, eachcreditor within such class shall be paid a dividend in proportion to his claim.No creditor of any one class shall receive any payment until those of thepreceding class are paid.

Section 9. Estate of insolvent non-resident, how disposed of. In caseadministration is taken in the Philippine of the estate of a person who was atthe time of his death an inhabitant of another country, and who died insolvent,hi estate found in the Philippines shall, as far as practicable, be so disposedof that his creditors here and elsewhere may receive each an equal share, inproportion to their respective credits.

Section 10. When and how claim proved outside the Philippines against insolventresident's estate paid . If it appears to the court having jurisdictionthat claims have been duly proven in another country against the estate of aninsolvent who was at the time of his death an inhabitant of the Philippines,and that the executor or administrator in the Philippines had knowledge of thepresentation of such claims in such country and an opportunity to contest theirallowance, the court shall receive a certified list of such claims, whenperfected in such country, and add the same to the list of claims provedagainst the deceased person in the Philippines so that a just distribution ofthe whole estate may be made equally among all its creditors according to theirrespective claims; but the benefit of this and the preceding sections shall notbe extended to the creditors in another country if the property of suchdeceased person there found is not equally apportioned to the creditorsresiding in the Philippines and the other creditor, according to theirrespective claims.

Section 11. Order for payment of debts . Beforethe expiration of the time limited for the payment of the debts, the courtshall order the payment thereof, and the distribution of the assets received bythe executor or administrator for that purpose among the creditors, as thecircumstances of the estate require and in accordance with the provisions ofthis rule.

Section 12. Orders relating to payment of debts where appealis taken . If an appeal has been taken from a decision of the courtconcerning a claim, the court may suspend the order for the payment of thedebts or may order the distributions among the creditors whose claims aredefinitely allowed, leaving in the hands of the executor or administratorsufficient assets to pay the claim disputed and appealed. When a disputed claimis finally settled the court having jurisdiction of the estate shall order thesame to be paid out of the assets retained to the same extent and in the sameproportion with the claims of other creditors.

Section 13. When subsequent distribution of assets ordered . If the whole of the debts are not paid on the first distribution, and if thewhole assets are not distributed, or other assetsafterwards come to the hands of the executor or administrator, the court mayfrom time to time make further orders for the distributions of assets.

Section 14. Creditors to be paid in accordance with terms oforder . When an order is made for the distribution of assets amongthe creditors, the executor or administration shall, as soon as the time ofpayment arrives, pay the creditors the amounts of their claims, or the dividendthereon, in accordance with the terms of such order.

Section 15. Time for paying debts and legacies fixed , or extended afternotice , within what periods . On granting letters testamentary oradministration the court shall allow to the executor or administrator a timefor disposing of the estate and paying the debts and legacies of the deceased,which shall not, in the first instance, exceed one (1) year; but the court may,on application of the executor or administrator and after hearing on such noticeof the time and place therefor given to all persons interested as it shalldirect, extend the time as the circumstances of the estate require notexceeding six (6) months for a single extension not so that the whole periodallowed to the original executor or administrator shall exceed two (2) years.

Section 16. Successor of dead executor or administrator may have time extendedon notice within certain period . When an executor or administrator dies,and a new administrator of the same estate is appointed, the court may extendthe time allowed for the payment of the debts or legacies beyond the timeallowed to the original executor or administrator, not exceeding six (6) monthsat a time and not exceeding six (6) months beyond the time which the court mighthave allowed to such original executor or administrator; and notice shall begiven of the time and place for hearing such application, as required in thelast preceding section.

RULE 89

Sales, Mortgages, and Other Encumbrances ofProperty of Decedent

Section 1. Order of sale of personalty . Upon theapplication of the executor or administrator, and on written notice to theheirs and other persons interested, the court may order the whole or a part ofthe personal estate to be sold, if it appears necessary for the purpose ofpaying debts, expenses of administration, or legacies, or for the preservationof the property.

Section 2. When court may authorize sale, mortgage, or other encumbrance ofrealty to pay debts and legacies through personalty not exhausted . Whenthe personal estate of the deceased is not sufficient to pay the debts,expenses of administration, and legacies, or where the sale of such personalestate may injure the business or other interests of those interested in theestate, and where a testator has not otherwise made sufficient provision forthe payment of such debts, expenses, and legacies, the court, on theapplication of the executor or administrator and on written notice of theheirs, devisees, and legatees residing in the Philippines, may authorize theexecutor or administrator to sell, mortgage, or otherwise encumber so much asmay be necessary of the real estate, in lieu of personal estate, for thepurpose of paying such debts, expenses, and legacies, if it clearly appearsthat such sale, mortgage, or encumbrance would be beneficial to the personsinterested; and if a part cannot be sold, mortgaged, or otherwise encumberedwithout injury to those interested in the remainder, the authority may be forthe sale, mortgage, or other encumbrance of the whole of such real estate, orso much thereof as is necessary or beneficial under the circumstances.

Section 3. Persons interested may prevent such sale , etc. , bygiving bond . No such authority to sell, mortgage, or otherwise encumberreal or personal estate shall be granted if any person interested in the estategives a bond, in a sum to be fixed by the court, conditioned to pay the debts,expenses of administration, and legacies within such time as the court directs;and such bond shall be for the security of the creditors, as well as of theexecutor or administrator, and may be prosecuted for the benefit of either.

Section 4. When court may authorize sale of estate asbeneficial to interested persons . Disposal ofproceeds . When it appears that the sale of the whole or a part ofthe real or personal estate, will be beneficial to the heirs, devisees,legatees, and other interested persons, the court may, upon application of theexecutor or administrator and on written notice to the heirs, devisees, andlegatees who are interested in the estate to be sold, authorize the executor oradministrator to sell the whole or a part of said estate, although notnecessary to pay debts, legacies, or expenses of administration; but suchauthority shall not be granted if inconsistent with the provisions of a will.In case of such sale, the proceeds shall be assigned to the persons entitled tothe estate in the proper proportions.

Section 5. When court may authorize sale, mortgage, or otherencumbrance of estate to pay debts and legacies in other countries . When the sale of personal estate, or the sale, mortgage, or other encumbranceof real estate is not necessary to pay the debts, expenses of administration,or legacies in the Philippines, but it appears from records and proceedings ofa probate court in another country that the estate of the deceased in suchother country is not sufficient to pay the debts, expenses of administration,and legacies there, the court here may authorize the executor or administratorto sell the personal estate or to sell, mortgage, or otherwise encumber thereal estate for the payment of debts or legacies in the other country, in samemanner as for the payment of debts or legacies in the Philippines.

Section 6. When court may authorize sale, mortgage, or other encumbrance ofrealty acquired on execution or foreclosure . The court may authorize anexecutor or administrator to sell mortgage, or otherwise encumber real estateacquired by him on execution or foreclosure sale, under the same circumstancesand under the same regulations as prescribed in this rule for the sale,mortgage, or other encumbrance of other real estate.

Section 7. Regulation for granting authority to sell,mortgage, or otherwise encumber estate . The court havingjurisdiction of the estate of the deceased may authorize the executor oradministrator to sell personal estate, or to sell, mortgage, or otherwiseencumber real estate, in cases provided by these rules and when it appearsnecessary or beneficial under the following regulations.

(a) The executor or administrator shall file a written petition settingforth the debts due from the deceased, the expenses of administration, thelegacies, the value of the personal estate, the situation of the estate to besold, mortgaged, or otherwise encumbered, and such other facts as show that thesale, mortgage, or other encumbrance is necessary or beneficial.

(b) The court shall thereupon fix a time and place for hearing suchpetition, and cause notice stating the nature of the petition, the reasons forthe same, and the time and place of hearing, to be given personally or by mailto the persons interested, and may cause such further notice to be given, bypublication or otherwise, as it shall deem proper;

(c) If the court requires it, the executor or administrator shall givean additional bond, in such sum as the court directs, conditioned that suchexecutor or administrator will account for the proceeds of the sale, mortgage,or other encumbrance;

(d) If the requirements in the preceding subdivisions of this sectionhave been complied with, the court, by order stating such compliance, mayauthorize the executor or administrator to sell, mortgage, or otherwiseencumber, in proper cases, such part of the estate as is deemed necessary, andin case of sale the court may authorize it to be public or private, as would bemost beneficial to all parties concerned. The executor or administrator shallbe furnished with a certified copy of such order;

(e) If the estate is to be sold at auction, the mode of giving notice ofthe time and place of the sale shall be governed by the provisions concerningnotice of execution sale;

(f) There shall be recorded in the registry of deeds of the province inwhich the real estate thus sold, mortgage, or otherwise encumbered is situated,a certified copy of the order of the court, together with the deed of theexecutor or administrator for such real estate, which shall be as valid as ifthe deed had been executed by the deceased in his lifetime.

Section 8. When court may authorize conveyance of realty which deceasedcontracted to convey . Notice. Effect of deed. Where the deceased was in his lifetime undercontract, binding in law, to deed real property, or an interest therein, thecourt having jurisdiction of the estate may, on application for that purpose,authorize the executor or administrator to convey such property according tosuch contract, or with such modifications as are agreed upon by the parties andapproved by the court; and if the contract is to convey real property to theexecutor or administrator, the clerk of court shall execute the deed. The deedexecuted by such executor, administrator, or clerk of court shall be asaffectual to convey the property as if executed by the deceased in hislifetime; but no such conveyance shall be authorized until notice of theapplication for that purpose has been given personally or by mail to allpersons interested, and such further notice has been given, by publication orotherwise, as the court deems proper; nor if the assets in the hands of theexecutor or administrator will thereby be reduced so as to prevent a creditorfrom receiving his full debt or diminish his dividend.

Section 9. When court may authorize conveyance of lands whichdeceased held in trust . Where the deceased in his lifetime heldreal property in trust for another person, the court may after notice given asrequired in the last preceding section, authorize the executor or administratorto deed such property to the person, or his executor or administrator, forwhose use and benefit it was so held; and the court may order the execution ofsuch trust, whether created by deed or by law.

RULE 90

Distribution and Partition of the Estate

Section 1. When order for distribution of reside made . When the debts, funeral charges, and expenses of administration, theallowance to the widow, and inheritance tax, if any, chargeable to the estatein accordance with law, have been paid, the court, on the application of theexecutor or administrator, or of a person interested in the estate, and afterhearing upon notice, shall assign the residue of the estate to the personsentitled to the same, naming them and the proportions, or parts, to which eachis entitled, and such persons may demand and recover their respective sharesfrom the executor or administrator, or any other person having the same in hispossession. If there is a controversy before the court as to who are the lawfulheirs of the deceased person or as the distributive shares to which each personis entitled under the law, the controversy shall be heard and decided as inordinary cases.

Nodistribution shall be allowed until the payment of the obligations abovementioned has been made or provided for, unless the distributees, or any ofthem, give a bond, in a sum to be fixed by the court, conditioned for thepayment of said obligations within such time as the court directs.

Section 2. Questions as to advancement to be determined . Questions as to advancement made, or alleged to have been made, by thedeceased to any heir may be heard and determined by the court havingjurisdiction of the estate proceedings; and the final order of the courtthereon shall be binding on the person raising the questions and on the heir.

Section 3. By whom expenses of partition paid . If at the time ofdistribution the executor or administrator has retained sufficient effects inhis hands which may lawfully be applied for the expenses of partition of theproperties distributed, such expenses of partition may be paid by such executoror administrator when it appears equitable to the court and not inconsistentwith the intention of the testator; otherwise, they shall be paid by theparties in proportion to their respective shares or interest in the premises,and the apportionment shall be settled and allowed by the court, and, if anyperson interested in the partition does not pay his proportion or share, thecourt may issue an execution in the name of the executor or administratoragainst the party not paying the sum assessed.

Section 4. Recording the order of partition of estate . Certified copies of final orders and judgments of the court relating to thereal estate or the partition thereof shall be recorded in the registry of deedsof the province where the property is situated.

RULE 91

Escheats

Section 1. When an by whom petition filed . Whena person dies intestate, seized of real property in the Philippines, leaving noheir or person by law entitled to the same, the Solicitor General or hisrepresentative in behalf of the Republic of the Philippines, may file apetition in the Court of First Instance of the province where the deceased lastresided or in which he had estate, if he resided out of the Philippines,setting forth the facts, and praying that the estate of the deceased bedeclared escheated.

Section 2. Order for hearing . If the petition issufficient in form and substance, the court, by an order reciting the purposeof the petition, shall fix a date and place for the hearing thereof, which dateshall be not more than six (6) months after the entry of the order, and shalldirect that a copy of the order be published before the hearing at least once aweek for six (6) successive weeks in some newspaper of general circulationpublished in the province, as the court shall be deem best.

Section 3. Hearing and judgment . Uponsatisfactory proof in open court on the date fixed in the order that such orderhas been published as directed and that the person died intestate, seized ofreal or personal property in the Philippines, leaving no heir or personentitled to the same, and no sufficient cause being shown to the contrary, thecourt shall adjudge that the estate of the estate of the deceased in thePhilippines, after the payment of just debts and charges, shall escheat; andshall, pursuant to law, assign the personal estate to the municipality or citywhere he last resided in the Philippines, and the real estate to themunicipalities or cities, respectively, in which the same is situated. If the deceasednever resided in the Philippines, the whole estate may be assigned to therespective municipalities or cities where the same is located. Shall estateshall be for the benefit of public schools, and public charitable institutionsand centers in said municipalities or cities.

The court,at the instance of an interested party, or on its own motion, may order theestablishment of a permanent trust, so that the only income from the propertyshall be used.

Section 4. When and by whom claim to estate filed . If a devisee, legatee, heir, widow, widower, or other person entitled to suchestate appears and files a claim thereto with the court within five (5) yearsfrom the date of such judgment, such person shall have possession of and titleto the same, or if sold, the municipality or city shall be accountable to himfor the proceeds after deducting reasonable charges for the care of the estate;but a claim not made within the said time shall be forever barred.

Section 5. Other actions for escheat . Until otherwiseprovided by law, actions reversion or escheat of properties alienated inviolation of the Constitution or of any statute shall be governed by this rule,except that the action shall be instituted in the province where the land liesin whole or in part.

General Guardians and Guardianship

RULE 92

Venue

Section 1. Where to institute proceedings . Guardianship of a person or estate of a minor or incompetent may be institutedin the Court of First Instance of the province, or in the justice of the peacecourt of the municipality, or in the municipal court chartered city where theminor or incompetent persons resides, and if he resides in a foreign country,in the Court of First Instance of the province wherein his property or theparty thereof is situated; provided, however , that where the value ofthe property of such minor or incompetent exceeds that jurisdiction of thejustice of the peace or municipal court, the proceedings shall be instituted inthe Court of First Instance.

In the Cityof Manila the proceedings shall be instituted in the Juvenile and DomesticRelations Court.

Section 2. Meaning of word "incompetent." Under this rule, the word "incompetent" includes persons sufferingthe penalty of civil interdiction or who are hospitalized lepers, prodigals,deaf and dumb who are unable to read and write, those who are of unsound mind,even though they have lucid intervals, and persons not being of unsound mind,but by reason of age, disease, weak mind, and other similar causes, cannot,without outside aid, take care of themselves and manage their property,becoming thereby an easy prey for deceit and exploitation.

Section 3. Transfer of venue . The court taking cognizance of aguardianship proceeding, may transfer the same to the court of another provinceor municipality wherein the ward has acquired real property, if he hastransferred thereto his bona-fide residence, and the latter court shallhave full jurisdiction to continue the proceedings, without requiring paymentof additional court fees.

RULE 93

Appointment of Guardians

Section 1. Who may petition for appointment of guardian for resident. Any relative, friend, or otherperson on behalf of a resident minor or incompetent who has no parent or lawfulguardian, or the minor himself if fourteen years of age or over, may petitionthe court having jurisdiction for the appointment of a general guardian for theperson or estate, or both, of such minor or incompetent. An officer of theFederal Administration of the United States in the Philippines may also file apetition in favor of a ward thereof, and the Director of Health, in favor of aninsane person who should be hospitalized, or in favor of an isolated leper.

Section 2. Contents of petition . A petition forthe appointment of a general guardian must show, so far as known to thepetitioner:

(a) The jurisdiction facts;

(b) The minority or incompetency rendering the appointment necessary orconvenient;

(c) The names, ages, and residence of the relatives of the minor orincompetent, and of the person having him in their care;

(d) The probable value and character of his estate;

(e) The name of the person for whom letters ofguardianship.

The petitionshall be verified; but no defect in the petition or verification shall rendervoid the issuance of letters of guardianship.

Section 3. Court to set time for hearing. Notice thereof. When a petition for the appointment of a general guardian is filed, thecourt shall fix a time and place for hearing the same, and shall causereasonable notice thereof to be given to the persons mentioned in the petitionresiding in the province, including the minor if above 14 years of age or theincompetent himself, and may direct other general or special notice thereof tobe given.

Section 4. Opposition to petition . Anyinterested person may, by filing a written opposition, contest the petition onthe ground of majority of the alleged minor, competency of the allegedincompetent, or the unsuitability of the person for whom letters are prayed,and may pray that the petition be dismissed, or that letters of guardianshipissue to himself, or to any suitable person named in the opposition.

Section 5. Hearing and order for letters to issue . At the hearing of thepetition the alleged in competent must be present if able to attend, and itmust be shown that the required notice has been given. Thereupon the courtsshall hear the evidence of the parties in support of their respectiveallegations, and, if the person in question is a minor, or incompetent it shallbe appoint a suitable guardian of his person or estate, or both, with thepowers and duties hereinafter specified.

Section 6. When and how guardian for non-resident appointed. Notice. When a person liable to be put under guardianship resides without thePhilippines but the estate therein, any relative or friend of such person, orany one interested in his estate, in expectancy or otherwise, may petition acourt having jurisdiction for the appointment of a guardian for the estate, andif, after notice given to such person and in such manner as the court deemsproper, by publication or otherwise, and hearing, the court is satisfied that suchnon-resident is a minor or incompetent rendering a guardian necessary orconvenient, it may appoint a guardian for such estate.

Section 7. Parents as guardians . When theproperty of the child under parental authority is worth two thousand pesos orless, the father of the mother, without the necessity of court appointment,shall be his legal guardian. When the property of the child is worth more thantwo thousand pesos, the father or the mother shall be considered guardian ofthe child's property, with the duties and obligations of guardians under thisrules, and shall file the petition required by section 2 hereof. For goodreasons the court may, however, appoint another suitable person.

Section 8. Service of judgment . Final orders orjudgments under this rule shall be served upon the civil registrar of themunicipality or city where the minor or incompetent person resides or where hisproperty or part thereof is situated.

RULE 94

Bonds of Guardians

Section 1. Bond to be given before issuance of letters. Amount. Condition. Before a guardian appointedenters upon the execution of his trust, or letters of guardianship issue, heshall give a bond, in such sum as the court directs, conditioned as follows:

(a) To make and return to the court, within three (3) months, a true andcomplete inventory of all the estate, real and personal, of his ward whichshall come to his possession or knowledge of any other person for him;

(b) To faithfully execute the duties of his trust, to manage and disposeof the estate according to these rules for the best interests of the ward, andto provide for the proper care, custody, and education of the ward;

(c) To render a true and just account of all the estate of the ward inhis hands, and of all proceeds or interest derived therefrom, and of themanagement and disposition of the same, at the time designated by these rulesand such other times as the courts directs, and at the expiration of his trustto settle his accounts with the court and deliver and pay over all the estate,effects, and moneys remaining in his hands, or due from him on such settlement,to the person lawfully entitled thereto;

(d) To perform all orders of the court by him to be performed.

Section 2. When new bond may be required and old sureties discharged . Whenever it is deemed necessary, the court may require a new bond to be givenby the guardian, and may discharge the sureties on the old bond from furtherliability, after due notice to interested persons, when no injury can resulttherefrom to those interested in the estate.

Section 3. Bonds to be filed. Actions thereon. Every bond given by a guardian shall be filed in the office of the clerk ofthe court, and, in case of the breach of a condition thereof, may be prosecutedin the same proceeding or in a separate action for the use and benefit of theward or of any other person legally interested in the estate.

RULE 95

Selling and Encumbering Property of Ward

Section 1. Petition of guardian for leave to sell or encumberestate . When the income of the estate under guardianship isinsufficient to maintain the ward and his family, or to maintain and educatethe ward when a minor, or when it appears that it is for the benefit of theward that his real estate or some part thereof be sold, or mortgaged or otherwiseencumbered, and the proceeds thereof put out at interest, or invested in someproductive security, or in the improvement or security or other real estate ofthe ward, the guardian may present a verified petition to the court by which hewas appointed setting forth such facts, and praying that an order issueauthorizing the sale or encumbrance.

Section 2. Order to show cause thereupon . If itseems probable that such sale or encumbrance is necessary, or would bebeneficial to the ward, the court shall make an order directing the next of kinof the ward, and all persons interested in the estate, to appear at areasonable time and place therein specified to show cause why the prayer of thepetition should not be granted.

Section 3. Hearing on return of order. Costs. At thetime and place designated in the order to show cause, the court shall hear theproofs and allegations of the petitioner and next of kin, and other personsinterested, together with their witnesses, and grant and refuse the prayer of thepetition as the best interest of the ward require. The court shall make suchorder as to cost of the hearing as may be just.

Section 4. Contents of order for sale or encumbrance, and howlong effective. Bond . If, after full examination, itappears that it is necessary, or would be beneficial to the ward, to sell orencumber the estate, or some portion of it, the court shall order such sale orencumbrance and that the proceeds thereof be expended for the maintenance ofthe ward and his family, or the education of the ward, if a minor, or for theputting of the same interest, or the investment of the same as thecircumstances may require. The order shall specify the causes why the sale orencumbrance is necessary or beneficial, and may direct that estate ordered soldbe disposed of at either public or private sale, subject to such conditions asto the time and manner of payment, and security where a part of the payment isdeferred as in the discretion of the court are deemed most beneficial to theward. The original bond of the guardian shall stand as security for the properappropriation of the proceeds of the sale, but the judge may, if deemedexpedient, require an additional bond as a condition for the granting of theorder of sale. No order of sale granted in pursuance of this section shallcontinue in force more than one (1) year after granting the same, without asale being had.

Section 5. Court may order investment of proceeds and direct management ofestate . The court may authorize and require the guardian to invest theproceeds of sales or encumbrances, and any other of his ward's money in hishands, in real estate or otherwise, as shall be for the best interest of allconcerned, and may make such other orders for the management, investment, and dispositionof the estate and effects, as circumstances may require.

RULE 96

General Powers and Duties of Guardians

Section 1. To what guardianship shall extend . A guardian appointed shallhave the care and custody of the person of his ward, and the management of hisestate, or the management of the estate only, as the case may be. The guardianof the estate of a non-resident shall have the management of all the estate ofthe ward within the Philippines, and no court other than that in which suchguardian was appointed shall have jurisdiction over the guardianship.

Section 2. Guardian to pay debts of ward . Everyguardian must pay the ward's just debts out of his personal estate and theincome of his real estate, if sufficient; if not, then out of his real estateupon obtaining an order for the sale or encumbrance thereof.

Section 3. Guardian to settle accounts, collect debts, and appear in actions for ward . A guardian must settle allaccounts of his ward, and demand, sue for, and receive all debts due him, ormay, with the approval of the court, compound for the same and give dischargesto the debtor, on receiving a fair and just dividend of the estate and effects;and he shall appear for and represent his ward in all actions and specialproceedings, unless another person be appointed for that purpose.

Section 4. Estate to be managed frugally, and proceedsapplied to maintenance of ward . A guardian must manage the estate of hisward frugally and without the waste, and apply the income and profits thereof,so far as may be necessary, to the comfortable and suitable maintenance of theward and his family, if there be any; and if such income and profits beinsufficient for that purpose, the guardian may sell or encumber the realestate, upon being authorized by order so to do, and apply to such of theproceeds as may be necessary to such maintenance.

Section 5. Guardian may be authorized to join in partition proceedings afterhearing . The court may authorized the guardian to join in an assent to apartition of real or personal estate held by the ward jointly or in common withothers, but such authority shall only be granted after hearing, upon suchnotice to relatives of the ward as the court may direct, and a carefulinvestigation as to the necessity and propriety of the proposed action.

Section 6. Proceedings when the person suspected of embezzling or concealingproperty of ward . Upon complaint of the guardian or ward, or of anyperson having actual or prospective interest in the estate of the ward ascreditor, heir, or otherwise, that anyone is suspected of having embezzled,concealed, or conveyed away any money, goods, or interest, or a writteninstrument, belonging to the ward or his estate, the court may cite thesuspected person to appear for examination touching such money, goods, interest,or instrument, and make such orders as will secure the estate against suchembezzlement, concealment or conveyance.

Section 7. Inventories and accounts of guardians, andappraisement of estates . A guardian must render to the court aninventory of the estate of his ward within three (3) months after hisappointment, and annually after such appointment an inventory and account, therendition of any of which may be compelled upon the application of aninterested person. Such inventories and accounts shall be sworn to by theguardian. All the estate of the ward described in the first inventory shall beappraised. In the appraisement the court may request the assistance of one ormore of the inheritance tax appraisers. And whenever any property of the ward notincluded in an inventory already rendered is discovered, or succeeded to, oracquired by the ward, like proceedings shall be had for securing an inventoryand appraisement thereof within three (3) months after such discovery,succession, or acquisition.

Section 8. When guardian's accounts presented for settlement. Expenses and compensation allowed . Upon the expiration of a year from thetime of his appointment, and as often thereafter as may be required, a guardianmust present his account to the court for settlement and allowance. In thesettlement of the account, the guardian, other than a parent, shall be allowedthe amount of his reasonable expenses incurred in the execution of his trustand also such compensation for his services as the court deems just, notexceeding fifteen per centum of the net income of the ward.

RULE 97

Termination of Guardianship

Section 1. Petition that competency of ward be adjudged, and proceedingsthereupon . A person who has been declared incompetentfor any reason, or his guardian, relative, or friend, may petition thecourt to have his present competency judicially determined. The petition shallbe verified by oath, and shall state that such person is then competent. Uponreceiving the petition, the court shall fix a time for hearing the questionsraised thereby, and cause reasonable notice thereof to be given to the guardianof the person so declared incompetent, and to the ward. On the trial, theguardian or relatives of the ward, and, in the discretion of the court, anyother person, may contest the right to the relief demanded, and witnesses maybe called and examined by the parties or by the court on its own motion. If itbe found that the person is no longer incompetent, his competency shall beadjudged and the guardianship shall cease.

Section 2. When the guardian removed or allowed to resign. Newappointment. When aguardian becomes insane or otherwise incapable of discharging his trust orunsuitable therefor, or has wasted or mismanaged the estate, or failed forthirty (30) days after it is due to render an account or make a return, thecourt may, upon reasonable notice to the guardian, remove him, and compel himto surrender the estate of the ward to the person found to be lawfully entitledthereto. A guardian may resign when it appears proper to allow the same; andupon his resignation or removal the court may appoint another in his place.

Section 3. Other termination of guardianship . The marriage or voluntary emancipation of a minor ward terminates the guardianshipof the person of the ward, and shall enable the minor to administer hisproperty as though he were of age, but he cannot borrow the money or alienateor encumber real property without the consent of his father or mother, orguardian. He can sue and be sued in court only with the assistance of hisfather, mother or guardian. The guardian of any person may be discharged by thecourt when it appears, upon the application of the ward or otherwise, that theguardianship is no longer necessary.

Section 4. Record to be kept by the justice of the peace or municipal judge . When a justice of the peace or municipal court takes cognizance of theproceedings in pursuance of the provisions of these rules, the record of theproceedings shall be kept as in the Court of First Instance.

Section 5. Service of judgment . Final orders ofjudgments under this rule shall be served upon the civil registrar of themunicipality or city where the minor or incompetent person resides or where hisproperty or part thereof is situated.

RULE 98

Trustees

Section 1. Where trustee appointed . A trusteenecessary to carry into effect the provisions of a will on written instrumentshall be appointed by the Court of First Instance in which the will wasallowed, if it be a will allowed in the Philippines, otherwise by the Court ofFirst Instance of the province in which the property, or some portion thereof,affected by the trust is situated.

Section 2. Appointment and powers of trustees under will. Executor of formertrustee need not administer trust . If a testator has omitted in his willto appoint a trustee in the Philippines, and if such appointment is necessaryto carry into effect the provisions of the will, the proper Court of FirstInstance may, after notice to all persons interested, appoint a trustee whoshall have the same rights, powers, and duties, and in whom the estate shallvest, as if he had been appointed by the testator. No person succeeding to atrust as executor or administrator of a former trustee shall be required toaccept such trust.

Section 3. Appointment and powers of new trustee underwritten instrument . When a trustee under a written instrumentdeclines, resigns, dies or removed before the objects of the trust areaccomplished, and no adequate provision is made in such instrument forsupplying the vacancy, the proper Court of First Instance may, after due noticeto all persons interested, appoint a new trustee to act alone or jointly withthe others, as the case may be. Such new trustee shall have and exercise thesame powers, right, and duties as if he had been originally appointed, and thetrust estate shall vest in him in like manner as it had vested or would havevested, in the trustee in whose place he is substituted and the court may ordersuch conveyance to be made by the former trustee or his representatives, or bythe other remaining trustees, as may be necessary or proper to vest the trustestate in the new trustee, either or jointly with the others.

Section 4. Proceedings where trustee appointed abroad . When land in the Philippines is held in trust for persons resident here by atrustee who derives his authority from without the Philippines, such trusteeshall, on petition filed in the Court of First Instance of the province wherethe land is situated, and after due notice to all persons interested, beordered to apply to the court for appointment as trustee; and upon his neglector refusal to comply with such order, the court shall declare such trustvacant, and shall appoint a new trustee in whom the trust estate shall vest inlike manner as if he had been originally appointed by such court.

Section 5. Trustee must file bond . Before entering on the duties of histrust, a trustee shall file with the clerk of the court having jurisdiction ofthe trust a bond in the amount fixed by the judge of said court, payable to theGovernment of the Philippines and sufficient and available for the protectionof any party in interest, and a trustee who neglects to file such bond shall beconsidered to have declined or resigned the trust; but the court may untilfurther order exempt a trustee under a will from giving a bond when thetestator has directed or requested such exemption and may so exempt any trusteewhen all persons beneficially interested in the trust, being of full age,request the exemption. Such exemption may be cancelled by the court at any timeand the trustee required to forthwith file a bond.

Section 6. Conditions included in bond . The following conditions shall bedeemed to be part of the bond whether written therein or not;

(a) That the trustee will make and return to the court, at such time asit may order, a true inventory of all the real and personal estate belonging tohim as trustee, which at the time of the making of such inventory shall havecome to his possession or knowledge;

(b) That he will manage and dispose of all such estate, and faithfullydischarge his trust in relation thereto, according to law and the will of thetestator or the provisions of the instrument or order under which he isappointed;

(c) That he will render upon oath at least once a year until his trustis fulfilled, unless he is excused therefrom in any year by the court, a trueaccount of the property in his hands and the management and dispositionthereof, and will render such other accounts as the court may order;

(d) That at the expiration of his trust he will settle his account incourt and pay over and deliver all the estate remaining in his hands, or duefrom him on such settlement, to the person or persons entitled to thereto.

But when thetrustee is appointed as a successor to a prior trustee, the court may dispensewith the making and return of an inventory, if one has already been filed, andin such case the condition of the bond shall be deemed to be alteredaccordingly.

Section 7. Appraisal. Compensationof trustee. When aninventory is required to be returned by a trustee, the estate and effectsbelonging to the trust shall be appraised and the court may order one or moreinheritance tax appraisers to assist in the appraisement. The compensation ofthe trustee shall be fixed by the court, if it be not determined in theinstrument creating the trust.

Section 8. Removal or resignation of trustee . The proper Court of First Instance may, upon petition of the partiesbeneficially interested and after due notice to the trustee and hearing, remove a trustee if such removal appears essentialin the interest of the petitioner. The court may also, after due notice to allpersons interested, remove a trustee who is insane or otherwise incapable ofdischarging his trust or evidently unsuitable therefor. A trustee, whetherappointed by the court or under a written instrument, may resign his trust ifit appears to the court proper to allow such resignation.

Section 9. Proceedings for sale or encumbrance of trustestate . When the sale or encumbrance of any real or personalestate held in trust is necessary or expedient, the court having jurisdictionof the trust may, on petition and after due notice and hearing, order such saleor encumbrance to be made, and the re-investment and application of theproceeds thereof in such manner as will best effect the objects of the trust.The petition, notice, hearing, order of sale or encumbrance, and record ofproceedings, shall conform as nearly as may be to the provisions concerning thesale or encumbrance by guardians of the property of minors or other wards.

RULE 99

Adoption and Custody of Minors

Section 1. Venue . A person desiring to adoptanother or have the custody of a minor shall present his petition to the Courtof First Instance of the province, or the municipal or justice of the peacecourt of the city or municipality in which he resides.

In the City of Manila, the proceedings shall beinstituted in the Juvenile and Domestic Relations Court.

Section 2. Contents of petition . The petitionfor adoption shall contain the same allegations required in a petition forguardianship, to wit:

(a) The jurisdictional facts;

(b) The qualification of theadopter;

(c) That the adopter is notdisqualified by law;

(d) The name, age, and residenceof the person to be adopted and of his relatives of the persons who have himunder their care;

(e) The probable value andcharacter of the estate of the person to be adopted.

Section 3. Consent of adoption . There shall befiled with the petition a written consent to the adoption signed by the child,if fourteen years of age or over and not incompetent, and by the child'sspouse, if any, and by each of its known living parents who is not insane orhopelessly intemperate or has not abandoned such child, or if there is no suchparents by the general guardian or guardian ad litem of the child, or ifthe child is in the custody of an orphan asylum, children's home, or benevolentsociety or person, by the proper officer of such asylum, home, or society, orby such person; but if the child is illegitimate and has not been recognized,the consent of its father to the adoption shall not be required.

If the person to be adopted is of age, only his orher consent and that of the spouse, if any, shall be required.

Section 4. Order for hearing . If the petitionand consent filed are sufficient in form and substance, the court, by an orderreciting the purpose of the petition, shall fix a date and place for thehearing thereof, which shall not be more than six (6) months after the entry ofthe order, and shall direct that a copy of the order be published before thehearing at least once a week for three (3) successive weeks in some newspaperof general circulation published in the province, as the court shall deem best.

Section 5. Hearing and judgment . Uponsatisfactory proof in open court on the date fixed in the order that such orderhas been published as directed, that the allegations of petition are true, andthat it is a proper case for adoption and the petitioner or petitioners areable to bring up and educate the child properly, the court shall adjudge thatthenceforth the child is free from all legal obligations of obedience andmaintenance with respect to its natural parents, except the mother when thechild is adopted by her husband, and is, to all legal intents and purposes, thechild of the petitioner or petitioners, and that its surname is changed to thatthe petitioner or petitioners. The adopted person or child shall thereuponbecome the legal heir of his parents by adoption and shall also remain thelegal heir of his natural parents. In case of the death of the adopted personor child, his parents and relatives by nature, and not by adoption, shall behis legal heirs.

Section 6. Proceedings as to the child whose parents areseparated. Appeal. When husband and wife are divorce or living separately and apart from eachother, and the question as to the care, custody, and control of a child orchildren of their marriage is brought before a Court of First Instance bypetition or as an incident to any other proceeding, the court, upon hearing thetestimony as may be pertinent, shall award the care, custody, and control ofeach such child as will be for its best interest, permitting the child tochoose which parent it prefers to live with if it be over ten years of age,unless the parent so chosen be unfit to take charge of the child by the reasonof moral depravity, habitual drunkenness, incapacity, or poverty. If, upon suchhearing, it appears that both parents are improper persons to have the care,custody, and control of the child, the court may either designate the paternalor maternal grandparent of the child, or his oldest brother or sister, or somereputable and discreet person to take charge of such child, or commit it to anysuitable asylum, children's home, or benevolent society. The court may inconformity with the provisions of the Civil Code order either or both parentsto support or help support said child, irrespective of who may be itscustodian, and may make any order that is just and reasonable permitting theparent who is deprived of its care and custody to visit the child or havetemporary custody thereof. Either parent may appeal from an order made inaccordance with the provisions of this section. No child under seven years ofage shall be separated from its mother, unless the court finds there arecompelling reasons thereof.

Section 7. Proceedings as to vagrant or abused child . When the parents of any minor child are dead, or by reason of long absence orlegal or physical disability have abandoned it, or cannot support it throughvagrancy, negligence, or misconduct, or neglect or refuse to support it, ortreat it with excessive harshness or give it corrupting orders, counsels, orexamples, or cause or allow it to engage in begging, or to commit offensesagainst the law, the proper Court of First Instance, upon petition filed bysome reputable resident of the province setting forth the facts, may issue anorder requiring such parents to show cause, or, if the parents are dead orcannot be found, requiring the fiscal of the province to show cause, at a timeand place fixed in the order, why the child should not be taken from its parents,if living; and if upon the hearing it appears that the allegations of thepetition are true, and that it is order taking it from its parents, if living;and committing it to any suitable orphan asylum, children's home, or benevolentsociety or person to be ultimately placed, by adoption or otherwise, in a homefound for it by such asylum, children's home, society, or person.

Section 8. Service of judgment . Final orders orjudgments under this rule shall be served by the clerk upon the civil registrarof the city or municipality wherein the court issuing the same is situated.

RULE 100

Rescission and Revocation of Adoption

Section 1. Who may file petition; grounds . A minor or other incapacitatedperson may, through a guardian or guardian ad litem , petition for therescission or revocation of his or her adoption for the same causes thatauthorize the deprivation of parental authority.

The adoptermay, likewise, petition the court for the rescission of revocation of theadoption in any of these cases:

(a ) If the adopted person has attempted againstthe file of the adopter;

(b) When the adopted minor has abandoned the home of the adopter formore than three (3) years;

(c) When by other acts the adopted person has repudiated the adoption.

Section 2. Order to answer . The court in whichthe petition is filed shall issue an order requiring the adverse party toanswer the petition within fifteen (15) days from receipt of a copy thereof.The order and a copy of the petition shall be served on the adverse party insuch manner as the court may direct

Section 3. Judgment . If upon trial, on the dayset therefor, the court finds that the allegations of the petition are true, itshall render judgment ordering the rescission or revocation of the adoption,with or without costs, as justice requires.

Section 4. Service of Judgment . A certified copyof the judgment rendered in accordance with the next preceding section shall beserved upon the civil registrar concerned, within thirty (30) days fromrendition thereof, who shall forthwith enter the action taken by the court inthe register.

Section 5. Time within which to file petition . Aminor or other incapacitated person must file the petition for rescission orrevocation of adoption within the five (5) years following his majority, or ifhe was incompetent at the time of the adoption, within the five (5) yearsfollowing the recovery from such incompetency.

The adoptermust also file the petition to set aside the adoption within five (5) yearsfrom the time the cause or causes giving rise to the rescission or revocationof the same took place.

RULE 101

Proceedings for Hospitalization of Insane Persons

Section 1. Venue, Petition for commitment . Apetition for the commitment of a person to a hospital or other place for theinsane may be filed with the Court of First Instance of the province where theperson alleged to be insane is found. The petition shall be filed by theDirector of Health in all cases where, in his opinion, such commitment is forthe public welfare, or for the welfare of said person who, in his judgment, isinsane and such person or the one having charge of him is opposed to his beingtaken to a hospital or other place for the insane.

Section 2. Order for hearing . If the petitionfiled is sufficient in form and substance, the court, by an order reciting thepurpose of the petition, shall fix a date for the hearing thereof, and copy ofsuch order shall be served on the person alleged to be insane, and to the one havingcharge him, or on such of his relatives residing in the province or city as thejudge may deem proper. The court shall furthermore order the sheriff to producethe alleged insane person, if possible, on the date of the hearing.

Section 3. Hearing and judgment . Uponsatisfactory proof, in open court on the date fixed in the order, that thecommitment applied for is for the public welfare or for the welfare of theinsane person, and that his relatives are unable for any reason to take propercustody and care of him, the court shall order his commitment to such hospitalor other place for the insane as may be recommended by the Director of Health.The court shall make proper provisions for the custody of property or moneybelonging to the insane until a guardian be properly appointed.

Section 4. Discharge of insane . When, in the opinion of the Director ofHealth, the person ordered to be committed to a hospital or other place for theinsane is temporarily or permanently cured, or may be released without dangerhe may file the proper petition with the Court of First Instance which orderedthe commitment.

Section 5. Assistance of fiscal in the proceeding . It shall be the duty of the provincial fiscal or in the City of Manila thefiscal of the city, to prepare the petition for the Director of Health andrepresent him in court in all proceedings arising under the provisions of thisrule.

 

RULE 102

Habeas Corpus

Section 1. To what habeas corpus extends . Except as otherwise expresslyprovided by law, the writ of habeas corpus shall extend to all cases ofillegal confinement or detention by which any person is deprived of hisliberty, or by which the rightful custody of any person is withheld from theperson entitled thereto.

Section 2. Who may grant the writ. The writ of habeas corpus may be grantedby the Supreme Court, or any member thereof in the instances authorized by law,and if so granted it shall be enforceable anywhere in the Philippines, and maybe made returnable before the court or any member thereof, or before a Court ofFirst Instance, or any judge thereof for the hearing and decision on themerits. It may also be granted by a Court of First Instance, or a judgethereof, on any day and at any time, and returnable before himself, enforceableonly within his judicial district.

Section 3. Requisites of application therefor . Application for the writ shall be by petition signed and verified either by theparty for whose relief it is intended, or by some person on his behalf, andshall set forth:

(a) That the person in whose behalf the application is made isimprisoned or restrained on his liberty;

(b) The officer or name of the person by whom he is so imprisoned orrestrained; or, if both are unknown or uncertain, such officer or person may bedescribed by an assumed appellation, and the person who is served with the writshall be deemed the person intended;

(c) The place where he is so imprisoned or restrained, if known;

(d) A copy of the commitment or cause of detention of such person, if itcan be procured without impairing the efficiency of the remedy; or, if theimprisonment or restraint is without any legal authority, such fact shallappear.

Section 4. When writ not allowed or discharge authorized . If it appearsthat the person alleged to be restrained of his liberty is in the custody of anofficer under process issued by a court or judge or by virtue of a judgment ororder of a court of record, and that the court or judge had jurisdiction toissue the process, render the judgment, or make the order, the writ shall notbe allowed; or if the jurisdiction appears after the writ is allowed, theperson shall not be discharged by reason of any informality or defect in theprocess, judgment, or order. Not shall anything in this rule be held to authorizethe discharge of a person charged with or convicted of an offense in thePhilippines, or of a person suffering imprisonment under lawful judgment.

Section 5. When the writ must be granted and issued . A court or judgeauthorized to grant the writ must, when a petition therefor is presented and itappears that the writ ought to issue, grant the same forthwith, and immediatelythereupon the clerk of the court shall issue the writ under the seal of thecourt; or in case of emergency, the judge may issue the writ under his ownhand, and may depute any officer or person to serve it.

Section 6. To whom writ directed, and what to require . In case of imprisonment or restraint by an officer, the writ shall bedirected to him, and shall command him to have the body of the personrestrained of his liberty before the court or judge designated in the writ atthe time and place therein specified. In case of imprisonment or restraint by aperson not an officer, the writ shall be directed to an officer, and shall commandhim to take and have the body of the person restrained of his liberty beforethe court or judge designated in the writ at the time and place thereinspecified, and to summon the person by whom he is restrained then and there toappear before said court or judge to show the cause of the imprisonment orrestraint.

Section 7. How prisoner designated and writ served . The person to beproduced should be designated in the writ by his name, if known, but if hisname is not known he may be otherwise described or identified. The writ may beserved in any province by the sheriff or other proper officer, or by a persondeputed by the court or judge. Service of the writ shall be made by leaving theoriginal with the person to whom it is directed and preserving a copy on whichto make return or service. If that person cannot be found, or has not theprisoner in his custody, then the service shall be made on any other personhaving or exercising such custody.

Section 8. How writ executed and returned . The officer to whom the writis directed shall convey the person so imprisoned or restrained, and named inthe writ, before the judge allowing the writ, or in case of his absence ordisability, before some other judge of the same court, on the day specified inthe writ, unless, from sickness or infirmity of the person directed to beproduced, such person cannot, without danger, be bought before the court orjudge; and the officer shall make due return of the writ, together with the dayand the cause of the caption and restraint of such person according to thecommand thereof.

Section 9. Defect of form . No writ of habeas corpus can bedisobeyed for defect of form, if it sufficiently appears therefrom in whosecustody or under whose restraint the party imprisoned or restrained is held andthe court or judge before whom he is to be bought.

Section 10. Contents of return . When the personto be produced is imprisoned or restrained by an officer, the person who makesthe return shall state therein, and in other cases the person in whose custodythe prisoner is found shall state, in writing to the court or judge before whomthe writ is returnable, plainly and unequivocably:

(a) Whether he has or has not the party in his custody or power, orunder restraint;

(b) If he has the party in his custody or power, or under restraint, theauthority and the true and whole cause thereof, set forth at large, with a copyof the writ, order execution, or other process, if any, upon which the party isheld;

(c) If the party is in his custody or power or is restrained by him, andis not produced, particularly the nature and gravity of the sickness orinfirmity of such party by reason of which he cannot, without danger, be boughtbefore the court or judge;

(d) If he has had the party in his custody or power, or under restraint,and has transferred such custody or restraint to another, particularly to whom,at what time, for what cause, and by what authority such transfer was made.

Section 11. Return to be signed and sworn to . The return or statementshall be signed by the person who makes it; and shall also be sworn by him ifthe prisoner is not produced, and in all other cases unless the return is madeand signed by a sworn public officer in his official capacity.

Section 12. Hearing on return . Adjournments. When the writ is returned before one judge, at a time when the court is insession, he may forthwith adjourn the case into the court, there to be heardand determined. The court or judge before whom the writ is returned oradjourned must immediately proceed to hear and examine the return, and suchother matters as are properly submitted for consideration, unless for goodcause shown the hearing is adjourned, in which event the court or judge shallmake such order for the safekeeping of the person imprisoned or restrained asthe nature of the case requires. If the person imprisoned or restrained is notproduced because of his alleged sickness or infirmity, the court or judge mustbe satisfied that it is so grave that such person cannot be produced withoutdanger, before proceeding to hear and dispose of the matter. On the hearing thecourt or judge shall disregard matters of form and technicalities in respect toany warrant or order of commitment of a court or officer authorized to commit bylaw.

Section 13. When the return evidence, and when only a plea . If it appearsthat the prisoner is in custody under a warrant of commitment in pursuance oflaw, the return shall be considered prima facie evidence of the cause ofrestraint, but if he is restrained of his liberty by any alleged privateauthority, the return shall be considered only as a plea of the facts thereinset forth, and the party claiming the custody must prove such facts.

Section 14. When person lawfully imprisoned recommitted, and when let to bail . If it appears that the prisoner was lawfully committed, and is plainlyand specifically charged in the warrant of commitment with an offensepunishable by death, he shall not be released, discharged, or bailed. If he islawfully imprisoned or restrained on a charge of having committed an offensenot so punishable, he may be recommitted to imprisonment or admitted to bail inthe discretion of the court or judge. If he be admitted to bail, he shallforthwith file a bond in such sum as the court or judge deems reasonable,considering the circumstances of the prisoner and the nature of the offensecharged, conditioned for his appearance before the court where the offense isproperly cognizable to abide its order of judgment; and the court or judgeshall certify the proceedings, together with the bond, forthwith to the propercourt. If such bond is not so filed, the prisoner shall be recommitted toconfinement.

Section 15. When prisoner discharged if no appeal . When the court or judge has examined into the cause of caption and restraintof the prisoner, and is satisfied that he is unlawfully imprisoned orrestrained, he shall forthwith order his discharge from confinement, but suchdischarge shall not be effective until a copy of the order has been served onthe officer or person detaining the prisoner. If the officer or persondetaining the prisoner does not desire to appeal, the prisoner shall beforthwith released.

Section 16. Penalty for refusing to issue writ, or fordisobeying the same . A clerk of a court who refuses to issue thewrit after allowance thereof and demand therefor, or a person to whom a writ isdirected, who neglects or refuses to obey or make return of the same accordingto the command thereof, or makes false return thereof, or who, upon demand madeby or on behalf of the prisoner, refuses to deliver to the person demanding,within six (6) hours after the demand therefor, a true copy of the warrant ororder of commitment, shall forfeit to the party aggrieved the sum of onethousand pesos, to be recorded in a proper action, and may also be punished bythe court or judge as for contempt.

Section 17. Person discharged not to be again imprisoned . A person who isset at liberty upon a writ of habeas corpus shall not be againimprisoned for the same offense unless by the lawful order or process of acourt having jurisdiction of the cause or offense; and a person who knowingly,contrary to the provisions of this rule, recommits or imprisons, or causes tobe committed or imprisoned, for the same offense, or pretended offense, anyperson so set at liberty, or knowingly aids or assists therein, shall forfeitto the party aggrieved the sum of one thousand pesos, to be recovered in aproper action, notwithstanding any colorable pretense or variation in thewarrant of commitment, and may also be punished by the court or judge grantingthe writ as for contempt.

Section 18. When prisoner may be removed from one custody to another . A person committed to prison, or in custody of an officer,for any criminal matter, shall not be removed therefrom into the custody ofanother unless by legal process, or the prisoner be delivered to an inferiorofficer to carry to jail, or, by order of the proper court or judge, be removedfrom one place to another within the Philippines for trial, or in case of fireepidemic, insurrection, or other necessity or public calamity; and a personwho, after such commitment, makes signs, or counter-signs any order for suchremoval contrary to this section, shall forfeit to the party aggrieved the sumof one thousand pesos, to be recovered in a proper action.

Section 19. Record of writ, fees and costs . Theproceedings upon a writ of habeas corpus shall be recorded by the clerkof the court, and upon the final disposition of such proceedings the court orjudge shall make such order as to costs as the case requires. The fees ofofficers and witnesses shall be included in the costs taxed, but no officer orperson shall have the right to demand payment in advance of any fees to whichhe is entitled by virtue of the proceedings. When a person confined under colorof proceedings in a criminal case is discharged, the costs shall be taxedagainst the Republic of the Philippines, and paid out of its Treasury; when aperson in custody by virtue or under color of proceedings in a civil case isdischarged, the costs shall be taxed against him, or against the person whosigned the application for the writ, or both, as the court shall direct.

RULE 103

Change of Name

Section 1. Venue . A person desiring to changehis name shall present the petition to the Court of First Instance of theprovince in which he resides, or, in the City of Manila, to the Juvenile andDomestic Relations Court.

Section 2. Contents of petition . A petition forchange of name shall be signed and verified by the person desiring his namechanged, or some other person on his behalf, and shall set forth:

(a) That the petitioner has been a bona fide resident of theprovince where the petition is filed for at least three (3) years prior to thedate of such filing;

(b) The cause for which the change of the petitioner's name is sought;

(c) The name asked for.

Section 3. Order for hearing . If the petitionfiled is sufficient in form and substance, the court, by an order reciting thepurpose of the petition, shall fix a date and place for the hearing thereof,and shall direct that a copy of the order be published before the hearing atleast once a week for three (3) successive weeks in some newspaper of general circulationpublished in the province, as the court shall deem best. The date set for thehearing shall not be within thirty (30) days prior to an election nor withinfour (4) month after the last publication of the notice.

Section 4. Hearing . Any interested person mayappear at the hearing and oppose the petition. The Solicitor General or theproper provincial or city fiscal shall appear on behalf of the Government ofthe Republic.

Section 5. Judgment . Upon satisfactory proof inopen court on the date fixed in the order that such order has been published asdirected and that the allegations of the petition are true, the court shall, ifproper and reasonable cause appears for changing the name of the petitioner,adjudge that such name be changed in accordance with the prayer of thepetition.

Section 6. Service of judgment . Judgments ororders rendered in connection with this rule shall be furnished the civilregistrar of the municipality or city where the court issuing the same issituated, who shall forthwith enter the same in the civil register.

RULE 104

Voluntary Dissolution of Corporations

Section 1. Where, by whom and on what showing applicationmade . A petition for dissolution of a corporation shall be filedin the Court of First Instance of the province where the principal office of acorporation is situated. The petition shall be signed by a majority of itsboard of directors or other officers having the management of its affairs,verified by its president or secretary or one of its directors, and shall setforth all claims and demands against it, and that its dissolution was resolvedupon by a majority of the members, or, if a stock corporation, by theaffirmative vote of the stockholders holding and representing two-thirds of allshares of stock issued or subscribed, at a meeting of its members orstockholders called for that purpose.

Section 2. Order thereupon for filing objections . If the petition is sufficient in form and substance, the court by an orderreciting the purpose of the petition, shall fix a date on or before whichobjections thereto may be filed by any person , whichdate shall not be less than thirty (30) nor more than sixty (60) days after theentry of the order. Before such date a copy of the order shall be published atleast once a week for four (4) successive weeks in some newspaper of generalcirculation published in the municipality or city where the principal office ofthe corporation is situated, or, if there be no such newspaper, then in somenewspaper of general circulation in the Philippines, and a similar copy shallbe posted for four (4) weeks in three public places in such municipality orcity.

Section 3. Hearing, dissolution, and disposition of assets. Receiver. Upon five (5) days notice given after the date on which the right to fileobjections as fixed in the order expired, the court shall proceed to hear thepetition and try any issue made by objections filed; and if no such objectionis sufficient, and the material allegations of the petition are true, it shallrender judgment dissolving the corporation and directing such disposition ofits assets as justice requires, and may appoint a receiver to collect suchassets and pay the debts of the corporation.

Section 4. What shall constitute record. The petition, orders, proof ofpublication and posting, objections filed, declaration of dissolution, and anyevidence taken, shall constitute the record in the case.

RULE 105

Judicial Approval of Voluntary Recognition of MinorNatural Children

Section 1. Venue . Where judicial approval of a voluntary recognition of a minornatural child is required, such child or his parents shall obtain the same byfiling a petition to that effect with the Court of First Instance of theprovince in which the child resides. In the City of Manila, the petition shallbe filed in the Juvenile and Domestic Relations Court.

Section 2. Contents of petition . The petition for judicial approvalof a voluntary recognition of a minor natural child shall contain the followingallegations:

(a) The jurisdictional facts;

(b) The names and residences of the parents who acknowledged the child,or of either of them, and their compulsory heirs, and the person or personswith whom the child lives;

(c) The fact that the recognition made by the parent or parents tookplace in a statement before a court of record or in an authentic writing, copyof the statement or writing being attached to the petition.

Section 3. Order for hearing . Upon the filing ofthe petition, the court, by an order reciting the purpose of the same, shallfix the date and place for the hearing thereof, which date shall not be morethan six (6) months after the entry of the order, and shall, moreover, cause acopy of the order to be served personally or by mail upon the interestedparties, and published once a week for three (3) consecutive weeks, in anewspaper or newspaper of general circulation in the province.

Section 4. Opposition . Any interested partymust, within fifteen (15) days from the service, or from the last date ofpublication, of the order referred to in the next preceding section, file his opposition to the petition, stating the grounds or reasons therefor.

Section 5. Judgment . If, from the evidencepresented during the hearing, the court is satisfied that the recognition ofthe minor natural child was willingly and voluntarily made by he parent orparents concerned, and that the recognition is for the best interest of thechild, it shall render judgment granting judicial approval of such recognition.

Section 6. Service of judgment upon civil registrar . A copy of the judgment rendered in accordance with the preceding sectionshall be served upon the civil registrar whose duty it shall be to enter thesame in the register.

RULE 106

Constitution of Family Home

Section 1. Who may constitute . The head of a family owning a house andthe land on which it is situated may constitute the same into a family home byfiling a verified petition to that effect with the Court of First Instance of theprovince or city where the property is located. In the City of Manila, thepetition shall be filed in the Juvenile and Domestic Relations Court.

When thereis danger that a person obliged to give support may lose his or her fortunebecause of grave mismanagement or on account of riotous living, his or herspouse, if any, and a majority of those entitled to be supported by him or byher may petition the Court of First Instance for the creation of the familyhome.

Section 2. Contents of petition . The petitionshall contain the following particulars:

(a) Description of the property;

(b) An estimate of its actual value;

(c) A statement that the petitioner is actually residing in thepremises;

(d) The encumbrances thereon;

(e) The names and addresses of all the creditors of the petitioner orhead of the family and of all mortgages and other persons who have an interestin the property;

(f) The names of all the beneficiaries of the family home.

Section 3. Notice and publication . The courtshall notify the creditors, mortgagees and all other persons who have aninterest in the estate, of the filing of the petition, causing copies thereofto be served upon them, and published once a week for three (3) consecutiveweeks in a newspaper of general circulation. The petition shall, moreover, becaused to be posted in a conspicuous place in the parcel of land mentionedtherein, and also in a conspicuous place of the municipal building of themunicipality or city in which the land is situated, for at least fourteen (14)days prior to the day of the hearing.

Section 4. Objection and date of hearing . In thenotice and publication required in the preceding section, the court shallrequire the interested parties to file their objection to the petition within aperiod of not less than thirty (30) days from receipt of notice or from thedate of last publication, and shall fix the date and time of the hearing of thepetition.

Section 5. Order . After hearing, if the courtfinds that the actual value of the proposed family home does not exceed twentythousand pesos, or thirty thousand pesos in chartered cities, and that no thirdperson is prejudiced thereby, or that creditors have given sufficient securityfor their credits, the petition shall be approved.

Section 6. Registration of order . A certifiedcopy of the order of the court approving the establishment of the family homeshall be furnished the register of deeds who shall record the same in theregistry of property.

RULE 107

Absentees

Section 1. Appointment of representative . When aperson disappears from his domicile, his whereabouts being unknown, and withouthaving left an agent to administer his property, or the power conferred uponthe agent has expired, any interested party, relative or friend may petitionthe Court of First Instance of the place where the absentee resided before hisdis-appearance, for the appointment of a person to represent him provisionallyin all that may be necessary. In the City of Manila, the petition shall befiled in the Juvenile and Domestic Relations Court.

Section 2. Declaration of absence; who may petition . After the lapse of two (2) years from his disappearance and without any newsabout the absentee or since the receipt of the last news, or of five (5) yearsin case the absentee has left a person in charge of the administration of hisproperty, the declaration of his absence and appointment of a trustee oradministrative may be applied for by any of the following:

(a) The spouse present;

(b) The heirs instituted in a will, who may presentan authentic copy of the same .

(c) The relatives who would succeed by the law of intestacy; and

(d) Those who have over the property of theabsentee some right subordinated to the condition of his death.

Section 3. Contents of petition . The petitionfor the appointment of a representative, or for the declaration of absence andthe appointment of a trustee or an administrator, must show the following:

(a) The jurisdictional facts;

(b) The names, ages, and residences of the heirs instituted in the will,copy of which shall be presented, and of the relatives who would succeed by thelaw of intestacy;

(c) The names and residences of creditors and others who may have anyadverse interest over the property of the absentee;

(d) The probable value, location and character of the property belongingto the absentee.

Section 4. Time of hearing; notice and publication thereof. When a petition for the appointment of a representative, or for thedeclaration of absence and the appointment of a trustee or administrator, isfiled, the court shall fix a date and place for the hearing thereof where allconcerned may appear to contest the petition.

Copies ofthe notice of the time and place fixed for the hearing shall be served upon theknown heirs, legatees, devisees, creditors and other interested persons, atleast ten (10) days before the day of the hearing, and shall be published oncea week for three (3) consecutive weeks prior to the time designated for thehearing, in a newspaper of general circulation in the province or city wherethe absentee resides, as the court shall deem best.

Section 5. Opposition . Anyone appearing tocontest the petition shall state in writing his grounds therefor, and serve acopy thereof on the petitioner and other interested parties on or before thedate designated for the hearing.

Section 6. Proof at hearing; order . At the hearing, compliance with theprovisions of section 4 of this rule must first be shown. Upon satisfactoryproof of the allegations in the petition, the court shall issue an ordergranting the same and appointing the representative, trustee or administratorfor the absentee. The judge shall take the necessary measures to safeguard therights and interests of the absentee and shall specify the powers, obligations andremuneration of his representative, trustee or administrator, regulating themby the rules concerning guardians.

In case ofdeclaration of absence, the same shall not take effect until six (6) monthsafter its publication in a newspaper of general circulation designated by thecourt and in the Official Gazette.

Section 7. Who may be appointed. In the appointment of a representative, the spouse present shall be preferredwhen there is no legal separation. If the absentee left no spouse, or if thespouse present is a minor or otherwise incompetent, any competent person may beappointed by the court.

In case ofdeclaration of absence, the trustee or administrator of the absentee's propertyshall be appointed in accordance with the preceding paragraph.

Section 8. Termination of administration . Thetrusteeship or administration of the property of the absentee shall cease uponorder of the court in any of the following cases:

(a) When the absentee appears personally or by means of an agent;

(b) When the death of the absentee is proved and his testate orintestate heirs appear;

(c) When a third person appears, showing by a proper document that hehas acquired the absentee's property by purchase or other title.

In thesecases the trustee or administrator shall cease in the performance of hisoffice, and the property shall be placed at the disposal of whose may have aright thereto.

RULE 108

Cancellation Or CorrectionOf Entries In The Civil Registry

Section 1. Who may file petition . Any person interested in any act,event, order or decree concerning the civil status of persons which has beenrecorded in the civil register, may file a verified petition for thecancellation or correction of any entry relating thereto, with the Court ofFirst Instance of the province where the corresponding civil registry islocated.

Section 2. Entries subject to cancellation or correction . Upon good and valid grounds, the following entries in the civil register maybe cancelled or corrected: (a) births: (b) marriage; (c) deaths; (d) legalseparations; (e) judgments of annulments of marriage; (f) judgments declaringmarriages void from the beginning; (g) legitimations; (h) adoptions; (i)acknowledgments of natural children; (j) naturalization; (k) election, loss orrecovery of citizenship; (l) civil interdiction; (m) judicial determination offiliation; (n) voluntary emancipation of a minor; and (o) changes of name.

Section 3. Parties . When cancellation orcorrection of an entry in the civil register is sought, the civil registrar andall persons who have or claim any interest which would be affected therebyshall be made parties to the proceeding.

Section 4. Notice and publication . Upon thefiling of the petition, the court shall, by an order, fix the time and placefor the hearing of the same, and cause reasonable notice thereof to be given tothe persons named in the petition. The court shall also cause the order to bepublished once a week for three (3) consecutive weeks in a newspaper of generalcirculation in the province.

Section 5. Opposition . The civil registrar andany person having or claiming any interest under the entry whose cancellationor correction is sought may, within fifteen (15) days from notice of thepetition, or from the last date of publication of such notice, file hisopposition thereto.

Section 6. Expediting proceedings . The court inwhich the proceeding is brought may make orders expediting the proceedings, andmay also grant preliminary injunction for the preservation of the rights of theparties pending such proceedings.

Section 7. Order . After hearing, the court mayeither dismiss the petition or issue an order granting the cancellation orcorrection prayed for. In either case, a certified copy of the judgment shallbe served upon the civil registrar concerned who shall annotated the same in his record.

RULE 109

Appeals in Special Proceedings

Section 1. Orders or judgments from which appeals may betaken . An interested person may appeal in special proceedings froman order or judgment rendered by a Court of First Instance or a Juvenile andDomestic Relations Court, where such order or judgment:

(a) Allows or disallows a will;

(b ) Determines who are the lawful heirs of adeceased person, or the distributive share of the estate to which such personis entitled;

(c) Allows or disallows, in whole or in part, any claim against theestate of a deceased person, or any claim presented on behalf of the estate inoffset to a claim against it;

(d ) Settles the account of an executor,administrator, trustee or guardian;

(e) Constitutes, in proceedings relating to the settlement of the estateof a deceased person, or the administration of a trustee or guardian, a finaldetermination in the lower court of the rights of the party appealing, exceptthat no appeal shall be allowed from the appointment of a specialadministrator; and

(f) Is the final order or judgment rendered in the case, and affects thesubstantial rights of the person appealing unless it be an order granting or denying a motion for a new trial or for reconsideration.

Section 2. Advance distribution in special proceedings . Notwithstanding apending controversy or appeal in proceedings to settle the estate of adecedent, the court may, in its discretion and upon such terms as it may deemproper and just, permit that such part of the estate may not be affected by thecontroversy or appeal be distributed among the heirs or legatees, uponcompliance with the conditions set forth in Rule 90 of this rules.

 

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