RULE 91: ESCHEATESCHEAT 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….

Sheila G. Dolipas References: TABINGAN, Monroe, 2001 Special Proceeding, Pheonix Press, Inc., Quezon City, PhilippinesUST Reviewer, 2011 BAR-OPS, Remedial Law

Natural Person who has1. 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 residedb. 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.

ORDERfor a hearing (which should not be more than 6 mos. from entry)

PUBLICATIONof ORDER (for 6 successive weeks in a

newspaper of general

circulation in the area)

HEARING

NO OPPOSITION

Presentation of Contrary Evidence

OPPOSITION

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

ORDERfor hearingPUBLICATION

HEARING and PRESENTATION

of evidence

JUDGMENT

APPEALS

Heirs

1. Legitimate children or descendants

2. Illegitimate children or descendants

3. Legitimate parents and ascendants

4. Illegitimate parents 5. Widow or the widower6. Brothers and sisters, nephews

and niecesProperties Subject to Escheat

1. All properties, real or personal2. Any right of property of any

nature, including-a. Bank depositsb. Dividends on corporate

stocksc. Distributive shares of

stockholders on dissolution of a corporation

d. Unclaimed Funds of persons who were inmates of State Hospitals or soldiers’ and sailor’s homes;

e. Telegraphic transfersf. Unclaimed balance in banks

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;

2. At the instance of an interested party, or upon the court’s own motion, the court may order the establishment of a permanent trust so that only the income from the property shall be used.

Beneficiaries of Escheated Properties

1. 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 death-

a. Real and Personal Property- assigned to the cities and municipalities where the same is located.

Presentation of Jurisdictional

facts and evidence

Legal or Intestate Succession

1. There is no will, the will is void, or the will is revoked;

2. The will does not dispose all the property of the testator (partial intestacy); or

3. 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;

4. The instituted heir is incapacitated to succeed

JUDGMENT

APPEALS

Other instances of ESCHEAT

1. Reversion proceedings where sale of property is made in violation of the Constitutional provision; and

2. Dormant accounts for 10 years (Unclaimed Balance Act of Banking Laws).