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Question

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

Mr. Santiago passed away and left a sizable estate. As the appointed administrator of his estate, Atty. Gomez needs to ensure the proper settlement of the estate, including the disposition of the properties. With specific focus on the topic of Sales, Mortgages, and other Encumbrances of Property of Decedent under Rule 89, please answer the following practical questions:

1. Mr. Santiago's estate includes a prime residential property that is being claimed by two individuals who both present valid deeds of sale. One deed of sale was executed prior to the death of Mr. Santiago, while the other was executed after his death. According to Rule 89, which deed of sale should prevail in the disposition of the property? Explain your answer with reference to the relevant provisions of the law.
2. One of the assets of Mr. Santiago's estate is a commercial building that has an existing mortgage. The mortgagee claims that their right over the property is superior to the claims of other creditors. Analyze the effect of the mortgage on the settlement of the estate and the priority of claims. Support your analysis by citing the relevant provisions of Rule 89.
3. During the course of settling the estate, Atty. Gomez discovers that Mr. Santiago had transferred some of his properties to a close friend a few months before his death. Atty. Gomez suspects that this transfer was made to defraud the creditors of the estate. Discuss the possible actions that Atty. Gomez can take based on Rule 89 to challenge the validity of the transfer and protect the interests of the estate's creditors.

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Answer