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Rule 86 of The Rules of Court (Special Proceedings)
Rule 86 of The Rules of Court (Special Proceedings)
1. Issuance of Notice: Upon the court granting RULE 86 Section 2 sets forth the time frame for
letters testamentary or letters of administration, filing claims against the estate and outlines the
which designate an executor or administrator to process for requesting an extension of time for late-
manage the estate, the court is mandated to issue filed claims, providing a balance between the need
a notice. for finality in estate administration and the
2. Purpose of Notice: The notice serves as a formal interests of creditors who may have valid claims
communication to all individuals or entities who but missed the initial deadline for filing.
may have money claims against the deceased
individual's estate. This includes creditors who RULE 86 Section 3.
are owed debts by the decedent. -Outlines the requirements for the publication of the
3. Filing of Claims: The notice directs these notice to creditors issued by the court.
creditors to file their claims with the office of the
clerk of the court. By filing their claims, creditors 1. Responsibility of the Executor or
formally assert their rights to seek payment from Administrator: It is the duty of the executor or
the estate for the debts owed to them by the administrator of the estate to ensure that the
deceased. notice to creditors is published promptly after it
4. Immediate Action: The requirement for the is issued by the court.
court to issue the notice immediately after 2. Publication in Newspapers: The notice must be
granting letters testamentary or letters of published in a newspaper of general circulation
administration emphasizes the importance of in the province where the estate is being
promptly initiating the process for identifying administered. This publication must occur for
and addressing outstanding debts of the estate. three consecutive weeks to ensure widespread
dissemination of the information.
RULE 86 Section 1 ensures that creditors are 3. Posting in Public Places: In addition to
promptly informed of their opportunity to file publication in newspapers, the notice must also
claims against the estate by mandating the court to be posted in four public places within the
issue a notice immediately after the appointment of province where the estate is being administered.
an executor or administrator. This helps facilitate Furthermore, it must be posted in two public
the orderly administration of the estate and the places within the municipality where the
settlement of debts owed by the deceased. deceased individual last resided.
4. Duration of Publication and Posting: Both the
RULE 86 Section 2. publication in newspapers and the posting in
-Specifies the time frame within which creditors must public places must occur for the same three-week
file their claims against the estate after the court issues period. This duration ensures that the notice
the notice described in Section 1. remains visible and accessible to potential
creditors for an adequate amount of time.
1. Time Limit for Filing Claims: The court, as part 5. Purpose of Publication and Posting: The aim of
of the notice to creditors, must establish a publishing and posting the notice to creditors is
specific period during which creditors are to inform as many potential claimants as possible
permitted to file their claims against the estate. about the opportunity to file their claims against
This period is typically between six (6) and the estate. This promotes transparency in the
twelve (12) months after the date of the first estate administration process and allows
publication of the notice. creditors to assert their rights within the
2. Flexibility for Late Filings: If a creditor fails to specified time frame.
file their claim within the initially specified time
frame, they still have an opportunity to petition RULE 86 Section 3 ensures that the notice to
the court for permission to file their claim at a creditors is widely disseminated through both
later date. This request can be made at any time newspaper publication and posting in public
before an order of distribution is issued. places, thereby providing creditors with ample
3. Court Discretion: The decision to allow a late- opportunity to file their claims against the estate
filed claim is subject to the discretion of the court. within the designated time frame.
The court may consider factors such as the
reasons for the delay and the equitable treatment
RULE 86 Section 4 ensures that the executor or 1. Solidary Obligation: When the obligation of the
administrator takes the necessary steps to deceased is solidary with another debtor,
document and verify the publication and posting of meaning that both debtors are jointly and
the notice to creditors, providing assurance to the individually responsible for the entire debt, the
court that proper procedures have been followed in claim against the deceased should be filed as if
informing potential claimants about the they were the sole debtor. This means that the
opportunity to file their claims against the estate. creditor can pursue the entire debt from the
estate of the deceased without needing to involve
RULE 86 Section 5. the other debtor(s).
-Specifies the types of claims that must be filed within the 2. Right of the Estate to Recover Contribution:
time frame provided in the notice to creditors. Despite the creditor's ability to file the claim
against the deceased as if they were the sole
1. Types of Claims: The section outlines the debtor, the estate retains the right to seek
various types of claims that must be filed within contribution from the other debtor(s) who
the specified time limit. These include: shared the solidary obligation. This means that
• Claims for money owed to creditors the estate can recover a portion of the debt from
arising from contracts, whether they are the other debtor(s) based on their respective
express or implied. shares of the obligation.
• Claims for funeral expenses and 3. Joint Obligation: In contrast, if the obligation of
expenses related to the last sickness of the deceased was joint, meaning that the debt
the deceased. was divided among multiple debtors, the claim
• Judgments for money owed to creditors against the deceased should only cover the
by the deceased. portion of the debt that belonged to them. The
2. Time Limit: Claims falling under the categories creditor cannot pursue the entire debt from the
mentioned must be filed within the time period estate but is limited to the deceased's share of the
joint obligation.
RULE 86 Section 6 ensures that creditors are able 1. Notice Requirement: If the executor or
to pursue claims against the estate of the deceased administrator has a claim against the estate they
in accordance with the nature of the obligation they are managing, they are required to formally
had, whether it was solidary or joint, while also notify the court about this claim in writing.
preserving the estate's right to seek contribution 2. Appointment of Special Administrator: Upon
from other debtors in cases of solidary obligations. receiving notice of the executor's or
administrator's claim against the estate, the court
RULE 86 Section 7. will appoint a special administrator. This special
-Addresses the scenario where a creditor holds a claim administrator is tasked with handling the
against the deceased that is secured by a mortgage or adjustment and resolution of the executor's or
other collateral. administrator's claim.
3. Powers and Liability: The special administrator
1. Options for the Creditor: The section outlines appointed to handle the executor's or
two options available to a creditor holding a administrator's claim is granted the same powers
claim secured by a mortgage or collateral: and is subjected to the same liabilities as the
• The creditor may choose to abandon the general administrator or executor in the
security and pursue their claim through settlement of other claims against the estate. This
the regular process outlined in Rule 86. ensures that the resolution of the executor's or
By doing so, they become eligible to administrator's claim is conducted fairly and in
share in the general distribution of the accordance with legal procedures.
estate's assets. 4. Funding for Defense: The court has the
• Alternatively, the creditor may opt to authority to order the executor or administrator
foreclose on the mortgage or realize to provide necessary funds to the special
upon the collateral by initiating legal administrator to effectively defend the claim.
action in court. In such cases, the This provision ensures that the special
executor or administrator of the estate is administrator has the resources needed to
made a party defendant in the handle the claim appropriately.
foreclosure proceedings.
2. Deficiency Judgment: If there is a deficiency RULE 86 Section 8 establishes a mechanism for
after the sale of the mortgaged property or addressing situations where the executor or
collateral, the creditor may seek a deficiency administrator has a claim against the estate they
judgment against the estate. This means they can are managing, ensuring transparency, fairness, and
claim the shortfall between the proceeds from proper resolution of such claims within the probate
the sale and the outstanding debt owed. process.
3. Effect of Foreclosure on Creditor's Status: If
the creditor chooses to foreclose on the mortgage RULE 86 Section 9.
or collateral and does not seek a deficiency -Outlines the procedure for filing a claim against an estate,
judgment, they forfeit their status as a creditor of including the necessary contents of the claim and the
the estate. In such instances, they are not entitled required notice to the executor or administrator.
to a share in the distribution of the estate's other
assets. 1. Filing Procedure: A claim against the estate can
4. Redemption by the Executor or be filed by delivering it along with all necessary
Administrator: The section also permits the supporting documents (referred to as vouchers)
executor or administrator to redeem the to the clerk of court.
mortgaged or pledged property on behalf of the 2. Service of Claim: Additionally, a copy of the
estate. This redemption can be undertaken under claim must be served on the executor or
the direction of the court if it is deemed to be in administrator of the estate. This ensures that the
the best interest of the estate. executor or administrator is aware of the claim
and can respond accordingly.
RULE 86 Section 7 provides clarity on the options 3. Requirement for Instrument Claims: If the
available to a creditor with a secured claim against claim is based on a bond, bill, note, or any other
the estate and outlines the procedures for instrument, the original document does not need
foreclosure, deficiency judgments, and property to be filed. Instead, a copy of the instrument,
redemption, while also safeguarding the interests along with all endorsements, should be attached
of the estate and other creditors. to the claim.
4. Exhibition of Original: However, if the executor
RULE 86 Section 8. or administrator demands to see the original
-Pertains to situations where the executor or instrument, or if the court orders its exhibition,
administrator of an estate has a claim against the estate the claimant must provide it. If the original is lost
they are representing. or destroyed, the claimant must submit an
affidavit describing the instrument and
explaining its loss or destruction.
evidence before the court, and it provides for the and the claim is subsequently presented
possibility of appointing a commissioner to assist according to the procedures outlined in Rule 86,
in the process. the prevailing party (the party who succeeds in
the claim) is entitled to recover the costs incurred
RULE 86 Section 13. in the action up to the point of its discontinuance.
-Outlines the procedures and implications of judgments This ensures that the prevailing party is not
made by the court regarding claims against an estate. unfairly burdened with the costs of litigation that
occurred before the claim was presented under
1. Filing of Judgment: Any judgment made by the the rules governing claims against the estate.
court concerning the approval or disapproval of a
claim is documented and filed along with the RULE 86 Section 14 aims to incentivize reasonable
records of the administration proceedings. This settlement offers and provides guidance on the
ensures that the judgment is officially recorded allocation of costs in situations where claims
and accessible for future reference. against an estate are disputed or discontinued.
2. Notice to Both Parties: Both parties involved in
the claim dispute are notified of the judgment.
This ensures transparency and allows both
parties to be aware of the outcome of the claim.
3. Appeal Process: The judgment made by the
court is subject to appeal, similar to judgments in
ordinary cases. If either party disagrees with the
court's decision, they have the right to appeal to
a higher court for a review of the judgment.
4. Consequences of Judgment against Executor
or Administrator: If the judgment is against the
executor or administrator of the estate, it
mandates that they pay the determined amount
in due course of administration. Importantly, this
judgment does not create a lien on the property
of the estate nor does it grant the judgment
creditor any priority of payment over other
creditors. This means that the judgment creditor
does not gain a special legal claim over the
estate's assets or receive preferential treatment
in the distribution of assets.