NEWS
Courts empowered to probe withdrawals from deceased clients’ bank accounts
Creditors, the court said, must file their claims before the probate court rather than independently taking estate assets to settle their claims.
The Supreme Court (SC) ruled that probate courts may require banks to explain withdrawals from a deceased person’s accounts to determine whether the funds belong to the estate.
In a decision released to the public recently, the SC Third Division upheld a Regional Trial Court (RTC) order requiring a bank to explain withdrawals from the accounts of the late Ignacio T. Arroyo and submit related email exchanges.
Estate administrators Bernardina Arroyo Tantoco and Alicia Rita Arroyo discovered that money had been withdrawn from Arroyo’s accounts after his death without the heirs’ knowledge.
They asked the court to require the bank to explain the transactions and submit records, including emails exchanged between bank officers and a certain Atty. Fe.
The RTC granted the request, and the Court of Appeals upheld the order. The bank challenged the ruling, arguing that the probate court had exceeded its authority and that the withdrawals were made under a survivorship agreement, partly to settle Arroyo’s obligations.
The SC rejected the bank’s arguments, explaining that probate courts may provisionally determine whether property belongs to an estate. Under Rule 87 of the Rules of Court, they may also require persons suspected of concealing or taking estate property to account for it.
The court said the RTC was determining how much money remained in Arroyo’s accounts when he died and whether the funds should be included in the estate.
It added that estate administrators must identify, account for and protect the deceased’s assets for the benefit of heirs and creditors.
The SC stressed that the probate court, not the bank, must determine whether funds covered by a survivorship agreement form part of the estate. It said the bank should not have applied Arroyo’s deposits to his alleged debts without court approval.
Creditors, the court said, must file their claims before the probate court rather than independently taking estate assets to settle their claims.