Escheat Proceedings

NOTES ON RULE 91: ESCHEAT
especially the actual occupant and the adjacent lot owners shall be personally notified of
Rule 91: Escheat
the proceedings and given the opportunity to present their valid claims; otherwise the
Escheat defined: "Escheat is a proceeding whereby the real and personal property of a
property will be reverted to the State (Tan vs. City of Davao, G.R. No. L-44347,
deceased person in the Philippines, who died without leaving any will or legal heirs,
September 26, 1988).
become the property of the state upon his death."
Notice and Publication (Sec. 2, Rule 91)

Nature of Escheat Proceedings
[1] Date of hearing not more than 6 months after entry of order.
An escheat proceeding rests on the principle of ultimate ownership by the state of all
[2] Publication of order at least once a week for 6 consecutive weeks in newspaper of
property within its jurisdiction.
general circulation in the province.
Parties in Escheat Proceedings

Publication Jurisdictional
An escheat proceeding is initiated by the government through the Solicitor General. All
Publication of the notice of hearing is a jurisdictional requisite, non-compliance with
interested parties, especially the actual occupants and adjacent lot owners shall be
which affects the validity of the proceedings (Divino v. Hilario, 62 Phil. 926).
personally notified of the proceeding and given opportunity to present their valid
Escheat of Unclaimed Balances
claims; otherwise, it will be reverted to the state.
Unclaimed balances which include credits or deposits of money, bullion, security or
other evidence of indebtedness of any kind, and interest thereon with banks in favor of
Requisites for Filing the Petition
any person unheard from for a period of ten (10) years of more, together with the
[1] A person has died intestate.
interest and proceeds thereof shall be deposited with the Insular Government of the
[2] He has left properties in the Philippines.
Philippines as the Philippine Legislature may direct (Act No. 3936, Unclaimed Balances
[3] He has left no heirs or persons entitled to the same.
Act, Sec. 1).
Where to File
Action to recover unclaimed balances shall be commenced by the Solicitor General in an
Regional Trial Court of the place where the deceased was resident, or in which he had
action for escheat in the name of the People of the Philippines in the Regional Trial
estste, if he was a nonresident.
Court of the province where the bank is located, in which shall be joined as parties the
bank and such creditors or depositors. All or any member of such creditors or depositors
Parties in a Petition for Escheat
or banks, may be included in one action. (Id., Sec. 3; Republic vs. Court of First Instance
Escheat proceedings must be initiated by the Solicitor General. All interested parties,
of Manila and Pres.. Roxas Rural Bank, Inc., G.R. No. L-30381, August 30, 1988)
Remedy of Respondent against Petition
Motion to dismiss for failure to state a cause of action. where petition for escheat does
not state facts which entitle petitioner to the remedy prayed for (Go Poco Grocery vs.
Pacific Biscuit Co., 65 Phil. 443; Rep. vs, PNB, G.R. No. L-16016, Dec. 30, 1961); or
other grounds for dismissal under the rules (Municipal Council of San Pedro, Laguna vs.
Colegio de San Jose, 65 Phil. 318).
Filing of Claim to Estate (Sec. 4, Rule 91)

Devisees, legatees, widows, widowers or other persons entitled to such estate who
appear and file claim thereto within 5 years from date of judgment (Note: 5-year
period is prescribed to encourage would-be claimants to be punctilious in
asserting their claims, otherwise they may lose them forever in a final
judgment.) shall have possession and title thereto or if sold, municipality or city
accountable to him for proceeds, after deducting reasonable charges of care of estate.
Claims not made within said time are barred forever.
RULE 91 where the same is located. Shall estate shall be for the benefit of public
schools, and public charitable institutions and centers in said
Escheats municipalities or cities.
Section 1. When an by whom petition filed. — When a person dies The court, at the instance of an interested party, or on its own motion,
intestate, seized of real property in the Philippines, leaving no heir or may order the establishment of a permanent trust, so that the only
person by law entitled to the same, the Solicitor General or his income from the property shall be used.
representative in behalf of the Republic of the Philippines, may file a
petition in the Court of First Instance of the province where the Section 4. When and by whom claim to estate filed. — If a devisee,
deceased last resided or in which he had estate, if he resided out of legatee, heir, widow, widower, or other person entitled to such estate
the Philippines, setting forth the facts, and praying that the estate of the appears and files a claim thereto with the court within five (5) years
deceased be declared escheated. from the date of such judgment, such person shall have possession of
and title to the same, or if sold, the municipality or city shall be
Section 2. Order for hearing. — If the petition is sufficient in form and accountable to him for the proceeds after deducting reasonable
substance, the court, by an order reciting the purpose of the petition, charges for the care of the estate; but a claim not made within the said
shall fix a date and place for the hearing thereof, which date shall be time shall be forever barred.
not more than six (6) months after the entry of the order, and shall
direct that a copy of the order be published before the hearing at least Section 5. Other actions for escheat. — Until otherwise provided by
once a week for six (6) successive weeks in some newspaper of law, actions reversion or escheat of properties alienated in violation of
general circulation published in the province, as the court shall be the Constitution or of any statute shall be governed by this rule, except
deem best. that the action shall be instituted in the province where the land lies in
whole or in part.
Section 3. Hearing and judgment. — Upon satisfactory proof in open
court on the date fixed in the order that such order has been published
as directed and that the person died intestate, seized of real or
personal property in the Philippines, leaving no heir or person entitled
to the same, and no sufficient cause being shown to the contrary, the
court shall adjudge that the estate of the estate of the deceased in the
Philippines, after the payment of just debts and charges, shall escheat;
and shall, pursuant to law, assign the personal estate to the
municipality or city where he last resided in the Philippines, and the
real estate to the municipalities or cities, respectively, in which the
same is situated. If the deceased never resided in the Philippines, the
whole estate may be assigned to the respective municipalities or cities

Escheat Proceedings

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NOTES ON RULE 91: ESCHEAT

Notice and Publication (Sec. 2, Rule 91)

Parties in Escheat Proceedings

Filing of Claim to Estate (Sec. 4, Rule 91)

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