Rule 86

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RULE 86

Claims Against Estate

Section 1. Notice to creditors to be issued by court. — Immediately after granting letters


testamentary or of administration, the court shall issue a notice requiring all persons having money
claims against the decedent to file them in the office of the clerk of said court.

Section 2. Time within which claims shall be filed. — In the notice provided in the preceding section,
the court shall estate the time for the filing of claims against the estate, which shall not be more than
twelve (12) not less than six (6) months after the date of the first publication of the notice. However,
at any time before an order of distribution is entered, on application of a creditor who has failed to file
his claim within the previously limited, the court may, for cause shown and on such terms as are
equitable, allow such claim to be filed within a time not exceeding one (1) month.

Section 3. Publication of notice to creditors. — Every executor or administrator shall, immediately


after the notice to creditors is issued, cause the same to be published three (3) weeks successively
in a newspaper of general circulation in the province, and to be posted for the same period in four
public places in the province and in two public places in the municipality where the decedent last
resided.

Section 4. Filing of copy of printed notice. — Within ten (10) days after the notice has been
published and posted in accordance with the preceding section, the executor or administrator shall
file or cause to be filed in the court a printed copy of the notice accompanied with an affidavit setting
forth the dates of the first and last publication thereof and the name of the newspaper in which the
same is printed.

Section 5. Claims which must be filed under the notice. If not filed, barred; exceptions. — All claims
for money against the decent, arising from contract, express or implied, whether the same be due,
not due, or contingent, all claims for funeral expenses and expense for the last sickness of the
decedent, and judgment for money against the decent, must be filed within the time limited in the
notice; otherwise they are barred forever, except that they may be set forth as counterclaims in any
action that the executor or administrator may bring against the claimants. Where an executor or
administrator commences an action, or prosecutes an action already commenced by the deceased
in his lifetime, the debtor may set forth by answer the claims he has against the decedent, instead of
presenting them independently to the court as herein provided, and mutual claims may be set off
against each other in such action; and if final judgment is rendered in favor of the defendant, the
amount so determined shall be considered the true balance against the estate, as though the claim
had been presented directly before the court in the administration proceedings. Claims not yet due,
or contingent, may be approved at their present value.

Section 6. Solidary obligation of decedent. — Where the obligation of the decedent is solidary with
another debtor, the claim shall be filed against the decedent as if he were the only debtor, without
prejudice to the right of the estate to recover contribution from the debtor. In a joint obligation of the
decedent, the claim shall be confined to the portion belonging to him.

Section 7. Mortgage debt due from estate. — A creditor holding a claim against the deceased
secured by mortgage or other colateral security, may abandon the security and prosecute his claim
in the manner provided in this rule, and share in the general distribution of the assets of the estate;
or he may foreclose his mortgage or realize upon his security, by action in court, making the
executor or administrator a party defendant, and if there is a judgment for a deficiency, after the sale
of the mortgaged premises, or the property pledged, in the foreclosure or other proceeding to realize
upon the security, he may claim his deficiency judgment in the manner provided in the preceding
section or he may rely upon his mortgage or other security alone, and foreclosure the same at any
time within the period of the statute of limitations, and in that event he shall not be admitted as a
creditor, and shall receive no share in the distribution of the other assets of estate; but nothing
herein contained shall prohibit the executor or administrator from redeeming the property mortgaged
or pledged, by paying the debt for which it is held as security, under the direction of the court, if the
court shall adjudge it to be for the best interest of the estate that such redemption shall be made.

Section 8. Claim of executor or administrator against an estate. — If the executor or administrator


has a claim against the estate he represents, he shall give notice thereof, in writing, to the court, and
the court shall appoint a special administrator, who shall, in the adjustment of such claim, have the
same power and be subject to the same liability as the general administrator or executor in the
settlement of other claims. The court may order the executor or administrator to pay to the special
administrator necessary funds to defend such claim.

Section 9. How to file a claim. Contents thereof. Notice to executor or administrator. — A claim may
be filed by delivering the same with the necessary vouchers to the clerk of court and by serving a
copy thereof on the executor or administrator. If the claim be founded on a bond, bill, note, or any
other instrument, the original need not be filed, but a copy thereof with all indorsements shall be
attached to the claim and filed therewith. On demand, however, of the executor or administrator, or
by order of the court or judge, the original shall be exhibited, unless it be list or destroyed, in which
case the claimant must accompany his claim with affidavit or affidavits containing a copy or
particular description of the instrument and stating its loss or destruction. When the claim is due, it
must be supported by affidavit stating the amount justly due, that no payments have been made
thereon which are not credited, and that there are no offsets to the same, to the knowledge of the
affiant. If the claim is not due, or is contingent, when filed, it must also be supported by affidavits
stating the particulars thereof. When the affidavit is made by a person other than the claimant, he
must set forth therein the reason why it is not made by the claimant. The claim once filed shall be
attached to the record of the case in which the letters testamentary or of administration were issued,
although the court, in its discretion, and as a matter of convenience, may order all the claims to be
collected in a separate folder.

Section 10. Answer of executor or administrator. Offsets —Within fifteen (15) days after service of a


copy of the claim on the executor or administrator, he shall file his answer admitting or denying the
claim specifically, and setting forth the admission or denial. If he has no knowledge sufficient to
enable him to admit or deny specifically, he shall state such want of knowledge. The executor or
administrator in his answer shall allege in offset any claim which the decedent before death had
against the claimant, and his failure to do so shall bar the claim forever. A copy of the answer shall
be served by the executor or administrator on the claimant. The court in its discretion may extend
the time for filing such answer.

Section 11. Disposition of admitted claim. — Any claim admitted entirely by the executor or
administrator shall immediately be submitted by the clerk to the court who may approve the same
without hearing; but the court, in its discretion, before approving the claim, may order that known
heirs, legatees, or devisees be notified and heard. If upon hearing, an heir, legatees, or devisee
opposes the claim, the court may, in its discretion, allow him fifteen (15) days to file an answer to the
claim in the manner prescribed in the preceding section.

Section 12. Trial of contested claim. — Upon the filing of an answer to a claim, or upon the
expiration of the time for such filing, the clerk of court shall set the claim for trial with notice to both
parties. The court may refer the claim to a commissioner.
Section 13. Judgment appealable. — The judgment of the court approving or disapproving a claim,
shall be filed with the record of the administration proceedings with notice to both parties, and is
appealable as in ordinary cases. A judgment against the executor or administrator shall be that he
pay, in due course of administration, the amount ascertained to be due, and it shall not create any
lien upon the property of the estate, or give to the judgment creditor any priority of payment.

Section 14. Costs. — When the executor or administrator, in his answer, admits and offers to pay
part of a claim, and the claimant refuses to accept the amount offered in satisfaction of his claim, if
he fails to obtain a more favorable judgment, he cannot recover costs, but must pay to the executor
or administrator costs from the time of the offer. Where an action commenced against the deceased
for money has been discontinued and the claim embraced therein presented as in this rule provided,
the prevailing party shall be allowed the costs of his action up to the time of its discontinuance.

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