Asset inheritance

Dear Atty. Peachy,

My aunt passed away earlier this year without leaving a will. She was widowed and had no children of her own. After her death, several relatives began asserting claims over her estate, which includes a residential property, a parcel of farmland, and several investment accounts.

One of my relatives has already taken possession of the residential property and claims that, as the eldest niece, she has the authority to oversee and manage the estate until the inheritance issues are resolved. She has also been collecting lease payments from tenants who rent part of the farmland.

Other family members disagree and are demanding a full accounting of the money she has received from the property. Does being the eldest niece automatically give her legal authority to administer the estate? Is she entitled to keep the lease income while the heirs are still determining who has the right to inherit the property and assets?

Angel

Dear Angel,

Based on the facts you provided, the relative who has taken possession of the residential property does not automatically acquire authority over your aunt’s estate merely because she is the eldest niece. When a person dies, ownership of his or her property does not simply pass to whichever relative first takes possession of it. Rather, the determination of who inherits and in what proportion is governed by the rules on succession under Philippine law. Until the estate is properly settled, a relative who takes control of estate property does not obtain exclusive ownership merely by occupying the premises or administering the assets. If several persons have rights in the estate, acts affecting the property should be undertaken for the benefit of all those entitled thereto, not just one individual.

If your relative has been collecting rent from farmland or other property that forms part of the estate, the other interested parties may reasonably demand an accounting of the amounts received and how those funds were used. Estate income does not ordinarily become the personal property of the relative who happened to collect it. Collecting rent is not necessarily improper. Someone often has to attend to practical matters such as safeguarding property, paying taxes, arranging repairs, or dealing with tenants. The real issue is whether the person administering the property is acting transparently and for the benefit of the estate, rather than treating estate assets as her own.

If the relatives are unable to agree on the administration and distribution of the property, a formal settlement proceeding may be necessary. Such a process can identify the lawful heirs, determine their respective shares, and ensure proper accounting of estate assets and income.

Atty. Peachy Selda-Gregorio