G.R. No. L-29276 May
18, 1978
Laws Applicable: Sec. 3,
Rule 84, Secs. 1 and 7, Rule 85, Rules of Court
Lessons Applicable:
allowable administration expenses
FACTS:
- The late Felix J. de Guzman was survived by 8 children. Letters of administration were issued to his son, Doctor Victorino G. de Guzman. One of the properties left by the decedent was a residential house located in the poblacion of which 8 children were given a 1/8 proindiviso share in the project of partition. 3 heirs Crispina de Guzmans-Carillo Honorata de Guzman-Mendiola and Arsenio de Guzman interposed objections to the administrator's disbursements in the total sum of P13,610.48.
o
Expense
for the improvement and renovation of the decedent's residential house
o
Living
expenses of Librada de Guzman while occupying the family home without paying
rent
o Other expenses: Lawyer's subsistence, Gratuity
pay in lieu of medical fee, stenographic notes, decedent's first death
anniversary, representation expenses
o Irrigation fee
- Lower court: allowed the expenses
ISSUE: W/N they were
allowable administration expenses
Held: Some yes and
some no. Affirmed with modification.
- An executor or administrator is allowed the necessary expenses in the care, management, and settlement of the estate. He is entitled to possess and manage the decedent's real and personal estate as long as it is necessary for the payment of the debts and the expenses of administration. He is accountable for the whole decedent's estate which has come into his possession, with all the interest, profit, and income thereof, and with the proceeds of so much of such estate as is sold by him, at the price at which it was sold (Sec. 3, Rule 84; Secs. 1 and 7, Rule 85, Rules of Court).
- One of the Conditions of the administrator's bond is that he should render a true and just account of his administration to the court
- A hearing is usually held before an administrator's account is approved, especially if an interested Party raises objections to certain items in the accounting report
- Expenses:
o Expense for the improvement and renovation of
the decedent's residential house – allowable
§ 5 out of 8 co-owners consented to the use of
the funds of the estate for repair and improvement of the family home. It is
obvious that the expenses in question were incurred to preserve the family home
and to maintain the family's social standing in the community.
o Living expenses of Librada de Guzman while
occupying the family home without paying rent – disallowed
o Other expenses:
§ Lawyer's subsistence – allowable
§ Gratuity pay in lieu of medical fee –
allowable
§ stenographic notes – disallowed
§ decedent's first death anniversary - disallowed
§ representation expenses - unexplained =
disallowed
- Irrigation fee – allowable since unquestioned though duplicate