RULE 91:

ESCHEAT

ESCHEAT also referred to as ACTION FOR REVERSION (Sec.5, Rule 91) is a special proceeding whereby the real and personal property of a person
who dies without any will or any legal heir (except the ESTATE) becomes the property of the STATE upon his death (Sec.1, Rule 91; Mun. of San Pedro v. Collegio de San Jose, 65 Phil 318). Under Art 1011 of the NCC, it refers to ESCHEAT as the succession by the State, in default of persons entitled to succeed.

Natural Person who has 1. Properties in the Phil. 2. No heirs

Dies (natural or judicial) intestate

Solicitor General or authorized representative files PETITION for ESCHEAT

REGIONAL TRIAL COURT; a. Where deceased last resided b. Where the property is located, in whole or in part, if he was a non-resident. c. For, unclaimed deposits (for 10 years), city/ province where the bank is located.

ORDER for a hearing (which should not be more than 6 mos. from entry) PUBLICATION of ORDER (for 6 successive weeks in a newspaper of general circulation in the area) HEARING

Other instances of ESCHEAT 1. Reversion proceedings where sale of property is made in violation of the Constitutional provision; and Dormant accounts for 10 years (Unclaimed Balance Act of Banking Laws). Properties Subject to Escheat
1. 2. All properties, real or personal Any right of property of any nature, includinga. Bank deposits b. Dividends on corporate stocks c. Distributive shares of stockholders on dissolution of a corporation d. Unclaimed Funds of persons who were inmates of State Hospitals or soldiers and sailors homes; e. Telegraphic transfers f. Unclaimed balance in banks 1. 2. 3. 4. 5. 6. 7. 8.

Heirs
Legitimate children or descendants Illegitimate children or descendants Legitimate parents and ascendants Illegitimate parents Widow or the widower Brothers and sisters, nephews and nieces Collateral relatives within the 5th civil degree The State 1.

Beneficiaries of Escheated Properties

If the deceased was a resident of the Philippines at the time of his death; a. Personal estate assigned to the municipality where the deceased last resided b. Real Estate assigned to the city or municipality in which the same is situated 2. If the decedent was a non- resident at the time of his deatha. Real and Personal Property- assigned to the cities and municipalities where the same is located.

2.

OPPOSITION NO OPPOSITION

Legal or Intestate Succession

1. 2. 3. There is no will, the will is void, or the will is revoked; The will does not dispose all the property of the testator (partial intestacy); or the suspensive condition attached to the instituted is not fulfilled, the heir predeceased the testator or repudiates the inheritance and no substitution or no right of accretion take place; The instituted heir is incapacitated to succeed

Use of Escheated Properties ( Art 1013,NCC)

1. These shall be used for the benefit of public schools, public charitable institutions and centers in the city or municipality who are the beneficiaries; At the instance of an interested party, or upon the courts own motion, the court may order the establishment of a permanent trust so that only the income from the property shall be used.

Presentation of Contrary Evidence Presentation of Jurisdictional facts and evidence

2.

4.

JUDGMENT

APPEALS

HEARING and PRESENTATION of evidence

PUBLICATION

ORDER for hearing

CLAIMS filed within 5 years from delivery of property to the State

JUDGMENT

APPEALS

Sheila G. Dolipas

References: TABINGAN, Monroe, 2001 Special Proceeding, Pheonix Press, Inc., Quezon City, Philippines UST Reviewer, 2011 BAR-OPS, Remedial Law