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Question A: Settlement of Estate of Deceased Persons - Sales, Mortgages, and other Encumbrances of Property of Decedent - Rule 89

In the settlement of the estate of a deceased person, the executor or administrator may encounter various issues concerning the sales, mortgages, and other encumbrances of the decedent's properties. Consider the following scenarios and answer the questions that follow:

Scenario 1:

John, the executor of his late father's estate, wants to sell a titled property owned by the decedent to pay off the debts of the estate. The property is valued at Php 5 million. However, one of the legitimate heirs objects to the sale, claiming that it should be distributed to the heirs instead of being sold. What can John do to address this objection?

Scenario 2:

Mary, the administrator of her deceased aunt's estate, discovers that the decedent's residential property is subject to a mortgage of Php 2 million, which was used to secure a loan for the decedent's medical expenses before her demise. Can Mary sell the property even if it is still under mortgage? If yes, what are the steps she needs to take to proceed with the sale?

Scenario 3:

David, the executor of his late uncle's estate, is considering selling a parcel of land owned by the decedent. However, he is unsure if he has the authority to do so. What are the requirements and limitations for the executor or administrator to sell a property of the deceased?

Scenario 4:

Anna, the administrator of her deceased sister's estate, receives a proposal to lease a commercial building owned by the decedent for a term of 5 years. Can Anna enter into a lease agreement on behalf of the estate? If yes, what should be done to ensure the lease is valid and how will the rental income be treated in the estate's settlement?

Answer all the questions based on the provisions of Rule 89 of the Rules of Court on the Settlement of Estate of Deceased Persons.

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Answer