The probate court erred in three ways: 1) It granted allowance from estate funds to the testator's grandchildren, when the law only allows allowance for widows and children. 2) It ordered release of property titles to heirs before paying all estate debts and obligations. 3) It granted possession of all estate properties to the executor before settling the estate and determining obligations. The Supreme Court ruled the executor has not yet earned full ownership and must submit an inventory and accounting before distributing assets.
The probate court erred in three ways: 1) It granted allowance from estate funds to the testator's grandchildren, when the law only allows allowance for widows and children. 2) It ordered release of property titles to heirs before paying all estate debts and obligations. 3) It granted possession of all estate properties to the executor before settling the estate and determining obligations. The Supreme Court ruled the executor has not yet earned full ownership and must submit an inventory and accounting before distributing assets.
The probate court erred in three ways: 1) It granted allowance from estate funds to the testator's grandchildren, when the law only allows allowance for widows and children. 2) It ordered release of property titles to heirs before paying all estate debts and obligations. 3) It granted possession of all estate properties to the executor before settling the estate and determining obligations. The Supreme Court ruled the executor has not yet earned full ownership and must submit an inventory and accounting before distributing assets.
The probate court erred in three ways: 1) It granted allowance from estate funds to the testator's grandchildren, when the law only allows allowance for widows and children. 2) It ordered release of property titles to heirs before paying all estate debts and obligations. 3) It granted possession of all estate properties to the executor before settling the estate and determining obligations. The Supreme Court ruled the executor has not yet earned full ownership and must submit an inventory and accounting before distributing assets.
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RULE 83
THE ESTATE OF HILARIO M. RUIZ
v. CA G.R. No. 118671, January 29, 1996 Facts of the case: On June 27, 1987, Hilario M. Ruiz executed a holographic will naming as his heirs his only son, Edmond Ruiz, his adopted daughter, private respondent Maria Pilar Ruiz Montes, and his three granddaughters, private respondents Maria Cathryn, Candice Albertine and Maria Angeline, all children of Edmond Ruiz. The testator bequeathed to his heirs substantial cash, personal and real properties and named Edmond Ruiz executor of his estate. On April 12, 1988, Hilario Ruiz died. Immediately thereafter, the cash component of his estate was distributed among Edmond Ruiz and private respondents in accordance with the decedent’s will. For unbeknown reasons, Edmond, the named executor, did not take any action for the probate of his father’s holographic will. Four years after the testator’s death, it was private respondent Maria Pilar Ruiz Montes who filed before the Regional Trial Court, Pasig, a petition for the probate and approval of Hilario Ruiz’s will and for the issuance of letters testamentary to Edmond Ruiz. Surprisingly, Edmond opposed the petition on the ground that the will was executed under undue influence. On November 2, 1992, one of the properties of the estate, which is the house and lot in Valle Verde, Pasig, which the testator bequeathed to his three granddaughters was leased out by Edmond Ruiz to third persons. Thereafter, the probate court ordered Edmond to deposit with the Branch Clerk of Court the rental deposit and payments totalling P540,000.00 representing the one-year lease of the Valle Verde property. Subsequently, in compliance, Edmond turned over the amount of P348,583.56, representing the balance of the rent after deducting P191,416.14 for repair and maintenance expenses on the estate. Then Edmond moved for the release of P50,000.00 to pay the real estate taxes on the real properties of the estate. The probate court approved the release of P7,722.00. Thereafter, Edmond withdrew his opposition to the probate of the will. Consequently, the probate court admitted the will to probate and ordered the issuance of letters testamentary to Edmond conditioned upon the filing of a bond in the amount of P50,000.00. Then the petitioner Testate Estate of Hilario Ruiz, with Edmond Ruiz as executor, filed an “Ex-Parte Motion for Release of Funds.” It prayed for the release of the rent payments deposited with the Branch Clerk of Court. Respondent, Montes, opposed and prayed that the release of rent payments be given to the three granddaughters and for the distribution of the testator’s properties, specifically the Valle Verde property and the Blue Ridge apartments, in accordance with the provisions of the holographic will. The probate court denied petitioner’s motion for release of funds but granted respondent Montes’ motion in view of petitioner’s lack of opposition. It thus ordered the release of the rent payments to the decedent’s three granddaughters. It further ordered the delivery of the titles to and possession of the properties bequeathed to the three granddaughters and respondent Montes upon the filing of a bond. Petitioner moved for reconsideration but the Court of Appeals sustained the probate court’s order. ISSUE: Whether or not the probate court, after admitting the will to probate but before payment of the estate’s debts and obligations, has the authority:
(1) to grant an allowance from the funds of the estate for the support of the testator’s grandchildren;
(2) to order the release of the titles to certain heirs; and
(3) to grant possession of all properties of the estate to the
executor of the will. RULING/HELD: 1.) On the matter of allowance, Section 3 of Rule 83 of the Revised Rules of Court provides:
“Sec. 3. Allowance to widow and family.—The widow and minor
or incapacitated children of a deceased person, during the settlement of the estate, shall receive therefrom under the direction of the court, such allowance as are provided by law.”
The provision expressly states “children” of the deceased which
excludes the latter’s grandchildren. Grandchildren are not entitled to provisional support from the funds of the decedent’s estate. The law clearly limits the allowance to “widow and children” and does not extend it to the deceased’s grandchildren, regardless of their minority or incapacity. 2.) Respondent courts also erred when they ordered the release of the titles of the bequeathed properties to private respondents six months after the date of first publication of notice to creditors. In settlement of estate proceedings, the distribution of the estate properties can only be made: (1) after all the debts, funeral charges, expenses of administration, allowance to the widow, and estate tax have been paid; or (2) before payment of said obligations only if the distributees or any of them gives a bond in a sum fixed by the court conditioned upon the payment of said obligations within such time as the court directs, or when provision is made to meet those obligations. 3.) The Supreme Court ruled that the petitioner must be reminded that his right of ownership over the properties of his father is merely inchoate as long as the estate has not been fully settled and partitioned. As executor, he is a mere trustee of his father’s estate. The funds of the estate in his hands are trust funds and he is held to the duties and responsibilities of a trustee of the highest order. Petitioner, as executor, cannot unilaterally assign to himself and possess all his parents’ properties and the fruits thereof without first submitting an inventory and appraisal of all real and personal properties of the deceased, rendering a true account of his administration, the expenses of administration, the amount of the obligations and estate tax, all of which are subject to a determination by the court as to their veracity, propriety and justness.