THE ESTATE OF HILARIO M. RUIZ, EDMOND RUIZ, Executor, petitioner, vs. THE COURT OF APPEALS (Former Special Sixth Division), MARIA PILAR RUIZ-MONTES, MARIA CATHRYN RUIZ, CANDICE ALBERTINE RUIZ, MARIA ANGELINE RUIZ and THE PRESIDING JUDGE OF THE REGIONAL TRIAL COURT OF PASIG, respondents. [G.R. No. 118671, January 29, 1996, 1996, PUNO, J .:] .:] FACTS: 1. Hilario Hilario Ruiz execute executed d a holographic holographic will will where where he named named the followin following g as his heirs heirs a. Edmo Edmond nd Ruiz Ruiz – onl only y son son b. Maria Maria Pila Pilarr Ruiz Ruiz – adopte adopted d daugh daughter ter c. Maria Maria Cathryn, Cathryn, Candice Candice Albertine Albertine and and Maria Angeline Angeline - 3 granddaug granddaughters hters,, all daughters daughters of Ruiz Ruiz 2. Testator Testator bequeathed bequeathed to his heirs heirs substantia substantiall cash, personal personal and real properties properties and and named Edmond Edmond Ruiz executor of his estate. 3. Hilario Hilario Ruiz died and the cash cash component component of his estate estate was immediatel immediately y distributed distributed among among Ruiz and respondents. 4. Edmond, Edmond, the named executo executor, r, did not take any any action for the the probate probate of his father's father's holographic holographic will. 5. 4 years after after – Pilar Pilar filed before before the RTC RTC a petition petition for the the probate probate and approval approval of the decease deceased’s d’s will and for the issuance of letters testamentary to Edmond Ruiz a. Edmond Edmond opposed opposed the petition petition on the ground ground that that the will was was executed executed under undue undue influence. influence. 6. The house house and lot in Valle Valle Verde, Verde, Pasig which which the testato testatorr bequeathed bequeathed to the the 3 granddaughte granddaughters rs was leased out by Edmond to third persons. 7. Probate Probate court ordered ordered Edmond Edmond to deposit deposit with the Branch Branch Clerk of Court Court the rental rental deposit deposit and payments totalling P540,000.00 representing the one-year lease of the Valle Verde property. 8. Edmond Edmond moved for the release release of P50,000 P50,000.00 .00 to pay the real estate estate taxes taxes on the real propertie properties s of the estate. a. The probate probate court court approv approved ed the the release release of P7,722 P7,722.00 .00 9. Edmond Edmond withdrew withdrew his his oppositio opposition n to the the probate probate of of the will will a. Probate Probate court admitte admitted d the will to probate probate and ordered ordered the issuance issuance of letters letters testament testamentary ary to Edmond conditioned upon the filing of a bond in the amount of P50,000.00 10. Testate Estate of Hilario Ruiz, with Edmond Ruiz as executor, executor, filed an "Ex-Parte Motion for Release of Funds a. Prayed Prayed for release release of the rent rent payments payments deposit deposited ed with the Branch Branch Clerk Clerk of Court Court b. Montes Montes opposed opposed and praying praying that that the release release of rent paymen payments ts be given to to the 3 granddaugh granddaughters ters c. Probate Probate court court denied the the release release of funds funds and granted granted the motion motion of Montes Montes due due to Edmond’s Edmond’s lack of opposition d. Probate Probate Court Court ordered ordered the release release of the funds funds to Edmond Edmond but only only "such amount amount as as may be necessary to cover the expenses of administration and allowances for support" of the testator's three granddaughters subject to collation and deductible from their share in the inheritance 11. CA sustained sustained probate probate court’s order. order. ISSUE: W/N 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 allowance from from the funds of the the estate for for the support support of the testator' testator's s grandchildren grandchildren - NO 2. to order order the the release release of the the titles titles to to certain certain heirs 3. to grant grant possession possession of all all properties properties of the the estate estate to the executor executor of the the will. HELD: 1. grandchildre grandchildren n are not entitled entitled to provisional provisional support support from from the funds of the the decedent's decedent's estate. estate. a. The law clearly clearly limits limits the allowanc allowance e to "widow "widow and children" children" and does does not extend extend it to the the deceased's grandchildren, regardless of their minority or incapacity b. Section Section 3 of Rule 83 83 of the the Revised Revised Rules Rules of of Court Court provides: provides: Sec. 3. Allowance 3. Allowance to widow and family 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. 2. In settlement settlement of estate estate proceedin proceedings, gs, the distribut distribution ion of the estate estate properties properties can only only be made: a. after after all the debts, debts, funeral funeral charges, expense expenses s of administrat administration, ion, allowance allowance to the widow, widow, and estate tax have been paid; or
b. 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. In the case at bar, the probate court ordered the release of the titles to the Valle Verde property and the Blue Ridge apartments to the private respondents after the lapse of six months from the date of first publication of the notice to creditors a. Hilario Ruiz allegedly left no debts when he died but the taxes on his estate had not hitherto been paid, much less ascertained. b. The estate tax is one of those obligations that must be paid before distribution of the estate. i. If not yet paid, the rule requires that the distributees post a bond or make such provisions as to meet the said tax obligation in proportion to their respective shares in the inheritance. ii. at the time the order was issued the properties of the estate had not yet been inventoried and appraised. 4. The probate of a will is conclusive as to its due execution and extrinsic validity and settles only the question of whether the testator, being of sound mind, freely executed it in accordance with the formalities prescribed by law a. Questions as to the intrinsic validity and efficacy of the provisions of the will, the legality of any devise or legacy may be raised even after the will has been authenticated i. The intrinsic validity of Hilario's holographic will was controverted by petitioner before the probate court in his Reply to Montes' Opposition to his motion for release of funds and his motion for reconsideration of the August 26, 1993 order of the said court. ii. Therein, petitioner assailed the distributive shares of the devisees and legatees inasmuch as his father's will included the estate of his mother and allegedly impaired his legitime as an intestate heir of his mother. iii. The Rules provide that if there is a controversy as to who are the lawful heirs of the decedent and their distributive shares in his estate, the probate court shall proceed to hear and decide the same as in ordinary cases. 5. The right of an executor or administrator to the possession and management of the real and personal properties of the deceased is not absolute and can only be exercised "so long as it is necessary for the payment of the debts and expenses of administration Sec. 3. Executor or administrator to retain whole estate to pay debts, and to administer estate not willed . — An executor or administrator shall have the right to the possession and management of the real as well as the personal estate of the deceased so long as it is necessary for the payment of the debts and expenses for administration. a. When petitioner moved for further release of the funds deposited with the clerk of court, he had been previously granted by the probate court certain amounts for repair and maintenance expenses on the properties of the estate, and payment of the real estate taxes thereon, but he moved again for the release of additional funds for the same reasons he previously cited i. It was correct for the probate court to require him to submit an accounting of the necessary expenses for administration before releasing any further money in his favour ii. petitioner had deposited with it only a portion of the one-year rental income from the Valle Verde property. iii. 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.
