B. Escheat (Rule 91)

Escheat (Rule 91)

Concept

Escheat is a special proceeding under Rule 91 concerning property left by a person who died intestate without an heir or other person legally entitled to it. Rule 72 expressly lists escheat among special proceedings. (Rule 91, Rules of Court)¹ (Rule 72, Sec. 1, Rules of Court)²

Governing provisions

Rule 91 governs the petition and adjudication of escheat. In the absence of a special provision, the rules for ordinary actions apply to special proceedings as far as practicable. Rule 91 also governs, until otherwise provided by law, actions for reversion or escheat of property alienated in violation of the Constitution or a statute. (Rule 91, Sec. 1, Rules of Court)³ (Rule 91, Sec. 3, Rules of Court)⁴ (Rule 91, Sec. 5, Rules of Court)⁵ (Rule 72, Sec. 2, Rules of Court)⁶

Requisites / Rules

• Petition. When a person dies intestate, seized of real property in the Philippines, and leaves no heir or person entitled to it by law, the Solicitor General or his representative may petition on behalf of the Republic to have the estate declared escheated. (Rule 91, Sec. 1, Rules of Court)³
• Place of filing. The petition is filed in the Court of First Instance of the province where the deceased last resided or, if the deceased resided outside the Philippines, where the deceased had an estate. (Rule 91, Sec. 1, Rules of Court)³
• Proof and adjudication. On the date fixed in the order, the court must be satisfied in open court that the order was published as directed, that the deceased died intestate seized of real or personal property in the Philippines, and that no heir or other entitled person exists. If no sufficient cause is shown to the contrary, the court adjudges the Philippine estate escheated after payment of just debts and charges. (Rule 91, Sec. 3, Rules of Court)⁴
• Assignment. Personal property goes to the municipality or city of the deceased’s last Philippine residence; real property goes to the respective municipalities or cities where it is situated. The property is for the benefit of public schools and public charitable institutions and centers in those localities. (Rule 91, Sec. 3, Rules of Court)⁴

Distinctions

Distinguish the ordinary petition based on an intestate death from an action involving property alienated in violation of the Constitution or a statute. Rule 91 governs the latter until otherwise provided by law, but that action must be instituted in the province where the land lies in whole or in part. (Rule 91, Sec. 1, Rules of Court)³ (Rule 91, Sec. 5, Rules of Court)⁵

Key doctrines

Escheat proceedings are actions in rem: jurisdiction is over the property, not dependent on personal service upon individual claimants. In an escheat case involving dormant bank accounts, the Court held that lack of personal service on depositors did not void the proceedings. It also stated that banks must notify account owners before filing sworn statements with the Treasurer so that only truly abandoned balances are escheated. (Corporation v. Bakunawa, G.R. No. 192413, 13 June 2012)⁷

Exceptions

If the deceased never resided in the Philippines, the whole estate may be assigned to the respective municipalities or cities where it is located. The court may also, on an interested party’s request or on its own motion, establish a permanent trust so that only income from the property is used. (Rule 91, Sec. 3, Rules of Court)⁴

Bar tip

For a Rule 91 problem, check who files, the deceased’s residence or estate location, proof of publication and absence of heirs, payment of debts, and the destination of each type of property. Do not treat personal service on every claimant as a jurisdictional requirement. (Rule 91, Sec. 1, Rules of Court)³ (Rule 91, Sec. 3, Rules of Court)⁴ (Corporation v. Bakunawa)⁷