SPECIAL PROCEEDINGS – Rule 86 of the Rules of Court

Notes by Rafael Chan (Provisions Only)

SPECIAL PROCEEDINGS – RULE 86 of all parties involved in determining whether to

Claims Against Estate grant such a request.
4. Extension Period: If the court approves the
RULE 86 Section 1. application for a late-filed claim, it may specify a
-Outlines the requirement for the court to issue a notice new deadline for the filing of the claim, which
to creditors immediately after granting letters should not exceed one (1) month from the date of
testamentary or letters of administration. approval.

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

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 SPECIAL PROCEEDINGS – Rule 86 of the Rules of Court
Notes by Rafael Chan (Provisions Only)

RULE 86 Section 4. specified in the notice to creditors. Failure to file

-Pertains to the filing requirements after the notice to within this time frame can result in the claims
creditors has been published and posted as mandated in being barred forever.
Section 3. 3. Exceptions: However, there are exceptions to the
time limit. If a claim is not filed within the
1. Filing Requirement: Within ten (10) days after specified time frame, it may still be allowed if it is
the notice has been published and posted, the set forth as a counterclaim in any action initiated
executor or administrator of the estate is by the executor or administrator against the
required to file a printed copy of the notice with claimant. This provision allows for the possibility
the court. of offsetting mutual claims against each other in
2. Accompanying Affidavit: Along with the printed legal proceedings.
copy of the notice, the executor or administrator 4. Approval of Claims: Claims that are not yet due
must submit an affidavit. This affidavit should or contingent may still be approved at their
contain specific details regarding the publication present value. This provision allows for the
of the notice, including the dates of the first and consideration of claims that may not be
last publication, as well as the name of the immediately payable but have a certain value at
newspaper in which the notice was printed. the time of filing.
3. Verification of Publication: The purpose of 5. Finality of Judgment: If a final judgment is
filing the printed notice and accompanying rendered in favor of the defendant in a legal
affidavit is to provide verification to the court action initiated by the executor or administrator,
that the notice to creditors has been published the amount determined in that judgment is
and posted in accordance with the requirements considered the true balance against the estate.
outlined in Section 3. This ensures that the estate is only liable for valid
4. Compliance Deadline: The executor or claims that have been adjudicated through
administrator must ensure that both the printed proper legal processes.
notice and the affidavit are filed within the
specified timeframe of ten days after the RULE 86 Section 5 emphasizes the importance of
completion of the publication and posting timely filing of specific types of claims against the
process. estate, while also providing some flexibility and
5. Legal Documentation: Filing the printed notice exceptions to ensure fairness in the resolution of
and affidavit serves as legal documentation of claims through legal proceedings.
compliance with the publication and posting
requirements set forth by the court. It helps RULE 86 Section 6.
ensure transparency and accountability in the -Deals with situations where the deceased individual had
estate administration process. obligations (debts) with others, either jointly or solidarily.

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.

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 SPECIAL PROCEEDINGS – Rule 86 of the Rules of Court
Notes by Rafael Chan (Provisions Only)

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.

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 SPECIAL PROCEEDINGS – Rule 86 of the Rules of Court
Notes by Rafael Chan (Provisions Only)

5. Supporting Affidavits: If the claim is due, the

claimant must support it with an affidavit stating 1. Submission to the Court: Once a claim is
the amount owed, any payments made, and entirely admitted by the executor or
confirming that there are no offsets. If the claim administrator, it is promptly submitted to the
is not yet due or contingent, additional affidavits court by the clerk.
stating the particulars of the claim are required. 2. Approval without Hearing: The court has the
6. Affidavit by Third Party: If the affidavit is made authority to approve the claim without
by someone other than the claimant, they must conducting a hearing if it deems appropriate.
explain why the claimant did not make the This means that if the claim is straightforward
affidavit themselves. and uncontested, the court may approve it based
7. Attachment of Claim to Record: Once filed, the on the admission by the executor or
claim becomes part of the record of the case in administrator alone.
which the letters testamentary or of 3. Possible Notification of Interested Parties:
administration were issued. The court may However, the court has discretion in deciding
choose to collect all claims in a separate folder for whether to notify known heirs, legatees, or
convenience, but they are typically attached to devisees of the estate about the admitted claim.
the main record. This notification allows these interested parties
to be informed about the claim and potentially
RULE 86 Section 9 ensures that claims against an raise any objections they might have.
estate are properly documented, supported, and 4. Opposition by Interested Parties: If an heir,
communicated to the executor or administrator, legatee, or devisee opposes the admitted claim
facilitating the fair adjudication and settlement of after being notified, the court may allow them
such claims within the probate process. fifteen (15) days to file an answer to the claim.
This allows these parties an opportunity to
RULE 86 Section 10. contest the claim if they believe there are
-Governs the response of the executor or administrator of grounds for doing so.
an estate to a filed claim.
RULE 86 Section 11 ensures that admitted claims
1. Filing of Answer: Upon being served with a copy are handled efficiently by allowing for their
of the claim, the executor or administrator has approval without a hearing if uncontested, while
fifteen (15) days to file a response, known as an also providing a mechanism for interested parties
"answer." This answer must explicitly admit or to voice objections if necessary.
deny the claim with specificity.
2. Statement of Lack of Knowledge: If the RULE 86 Section 12.
executor or administrator lacks sufficient -Pertains to the trial process for contested claims in an
knowledge to admit or deny the claim specifically, estate.
they must state this in their answer.
3. Allegation of Offsets: In their answer, the 1. Setting the Claim for Trial: When an answer to
executor or administrator is required to assert a claim is filed, or if the deadline for filing an
any claims or offsets that the deceased had answer passes without action, the clerk of court
against the claimant before their death. Failure to schedules the claim for trial. This scheduling
do so within the answer will result in the claim ensures that the claim is brought before the court
being barred permanently. for adjudication.
4. Service of Answer: After filing the answer, the 2. Notice to Both Parties: Both parties involved in
executor or administrator must serve a copy of it the dispute are notified of the scheduled trial.
on the claimant, ensuring that they are informed This notification ensures that both the claimant
of the executor's or administrator's response. and the executor or administrator are aware of
5. Extension of Time: The court has the discretion the trial date and can prepare accordingly.
to extend the deadline for filing the answer if 3. Referral to a Commissioner: The court has the
circumstances warrant it. authority to refer the claim to a commissioner. A
commissioner is an individual appointed by the
RULE 86 Section 10 ensures that the executor or court to assist in specific legal matters. In this
administrator has an opportunity to review and context, the commissioner may be tasked with
respond to any claims filed against the estate in a gathering evidence, conducting interviews, or
timely and specific manner. It also provides a performing other duties related to resolving the
mechanism for the assertion of any counterclaims contested claim.
or offsets the estate may have against the claimant.
RULE 86 Section 12 outlines the procedural steps
RULE 86 Section 11. involved in resolving contested claims within an
-Outlines the process for handling claims that are entirely estate. It ensures that both parties have an
admitted by the executor or administrator of an estate. opportunity to present their arguments and

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 SPECIAL PROCEEDINGS – Rule 86 of the Rules of Court
Notes by Rafael Chan (Provisions Only)

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.

RULE 86 Section 13 ensures that judgments

regarding claims against an estate are properly
documented, allows for an appeal process to
address disputes, and clarifies the implications of
judgments against the executor or administrator.

RULE 86 Section 14.

-Deals with the allocation of costs in situations where the
executor or administrator and the claimant cannot reach
an agreement on the settlement of a claim.

1. Offer and Refusal: If the executor or

administrator admits to part of a claim and offers
to pay that portion, but the claimant refuses to
accept the offered amount and later fails to obtain
a more favorable judgment, the claimant is not
entitled to recover costs. Instead, they must bear
the costs incurred by the executor or
administrator from the time of the offer. This
provision encourages claimants to consider
reasonable settlement offers made by the
executor or administrator, as refusing such offers
could result in financial consequences.
2. Discontinued Action: If an action initiated
against the deceased for money is discontinued,

SPECIAL PROCEEDINGS – Rule 86 - Page 5 of 5