Heir’s Right to Demand Partition and Accounting of Estate in the Philippines

Overview

When a person dies, their property forms an estate that is co-owned by their heirs until it is divided. Any heir—compulsory or voluntary, legitimate or illegitimate (so long as heirship is recognized under Philippine law)—may demand (1) partition of the estate to receive their specific share, and (2) accounting of how the estate, its fruits, and its expenses have been handled. This article explains the sources of the right, when and how to assert it, available procedures, defenses, and practical pitfalls.

Legal Foundations

Civil Code (Succession & Co-ownership).
- Co-heirs are co-owners of the hereditary estate before partition. Each has a right to their ideal or undivided share and to the fruits and accessions proportional to that share, subject to reimbursement of necessary/ useful expenses.
- Partition is the separation and assignment of determinate portions to each heir; it may be done by the testator, by agreement of the heirs, or judicially.
- Testamentary partition must respect legitimes and may validly prohibit partition for a limited time (commonly up to 20 years).
- Rescission for lesion is available when a co-heir suffers a loss exceeding a significant threshold compared to true value (classic rule: more than one-fourth).
- Collation and reduction principles ensure equality among heirs and protection of legitimes by bringing certain lifetime donations into the mass or reducing inofficious dispositions.
Rules of Court.
- Special proceedings for settlement of estate (with or without will): claims, payment of debts, appointment and supervision of executor/administrator, project of partition, and accounting obligations of personal representatives.
- Rule on Partition (ordinary civil action): a co-owner may sue for partition and allied relief (including accounting, determination of shares, appointment of commissioners, and owelty/ equalizing payments).
- Co-ownership provisions (applied by courts in partition/accounting): rights to possession, management, contribution, reimbursement, and accounting among co-owners.
Property, Land Registration, and Tax rules.
- Transfers pursuant to partition require estate tax clearance and registration to protect third persons.
- Extrajudicial Settlement (EJS) and Affidavit of Self-Adjudication (single heir) are allowed if statutory conditions are met (e.g., no will, no debts, all heirs of age or represented, publication, and the two-year lien for claims).

Who May Demand Partition and Accounting

Any heir (compulsory or testamentary) whose status is established or can be established in the same proceeding. Courts can determine heirship incidentally in partition actions when no separate estate proceeding is pending, but if a formal settlement is open, heirship and shares are typically threshed out there.
Substituted heirs, legatees/devisees may demand delivery of their specific legacies once estate obligations and legitimes are respected.
Creditors of an heir may, in certain cases, impugn simulated partitions or attach the heir’s transmissible rights.

When the Right Arises and Its Limits

The right accrues upon death; prior to partition, the estate is in co-ownership.
Imprescriptibility (general rule): The action to demand partition, as an incident of co-ownership, does not prescribe so long as the co-ownership is acknowledged.
Prescription and laches (exceptions): If a co-owner repudiates the co-ownership clearly and adversely, and such repudiation is communicated and accompanied by exclusive possession, prescription (and laches) may run.
Accounting claims (e.g., for fruits/rents) may be subject to prescriptive periods distinct from partition (e.g., 4 or 10 years depending on the nature—quasi-contract/ implied trust/ written contracts).
Creditor protection: Partition cannot prejudice estate creditors; payment or bonding for debts is prerequisite in formal settlements and advisable even in EJS.

Modes of Partition

1) Testamentary Partition

The testator may direct the division of the estate in the will.
Must respect legitimes and mandatory rights; any impairment is subject to reduction.
The testator may temporarily forbid partition (commonly up to 20 years). Heirs can still seek accounting of administration during the prohibition.

2) Extrajudicial Settlement (EJS)

Allowed only if: no will, no debts (or debts are settled/assumed), all heirs are of legal age or duly represented, and publication requirements are met.
Form: Deed of Extrajudicial Settlement and Partition; publication for 3 consecutive weeks in a widely circulated newspaper; two-year lien for claims remains.
Add-ons: Waivers/ quitclaims, owelty (cash equalization), and specific allocations.
Tax & registration: File estate tax return, pay estate tax, secure CAR (BIR clearance), and register titles to reflect the partition.

3) Judicial Partition (Ordinary Civil Action)

Rule 69 framework:
1. Court determines who the co-owners/heirs are and their proportionate shares.
2. Court may order accounting of fruits and expenses, and settle reimbursements/ contributions.
3. If physical division is feasible, the court appoints commissioners to propose a fair division; otherwise orders sale and distribution of proceeds.
4. Court resolves lesion claims and owelty to equalize values.
5. Judgment and writ of partition issue; transfer documents follow.

4) Partition within Special Proceedings (Estate Settlement)

In testate/ intestate proceedings, the project of partition is submitted (by executor/ administrator or heirs), considering debts, legacies, legitimes, collation, and reduction.
The court approves the project and orders distribution; the personal representative is accountable for all receipts and disbursements.

The Heir’s Right to an Accounting

What can be demanded

From a personal representative (executor/administrator):
- Inventory and periodic accounts (traditionally an initial account within one year, and further accounts as required).
- Accounting for income, rents, dividends, sale proceeds, and management acts; disclosure of contracts, fees, and distributions.
From a co-owner in possession or management:
- Fruits and profits proportional to shares (net of necessary expenses).
- Reimbursement for necessary and useful expenses; improvements may be credited but do not generally alter ownership proportions unless agreed.
- Interest/ damages for bad-faith withholding or self-dealing.

Standards and remedies

Fiduciary-like duties apply to executors/ administrators; co-owners owe good-faith duties and must avoid acts that prejudice others.
Remedies include motion to compel accounting in special proceedings, independent civil actions for accounting/ damages, removal of an errant administrator, and surcharge or contempt in appropriate cases.

Procedure at a Glance

A) If there is an ongoing estate case

Appear/intervene as heir; prove status.
Move for inventory and accounting; oppose improper disbursements.
After debts/ taxes: submit or contest the project of partition (with collation/ reduction computations).
Secure approval, then process CAR and transfer/ registration.

B) If there is no estate case and EJS is viable

Verify no will and that all heirs are of age or represented; identify/ settle debts.
Prepare Deed of EJS and Partition, stipulating allocations, reimbursements, owelty, and warranties (including publication & two-year lien).
Publish notice; pay estate taxes; secure CAR; register instruments and titles.

C) If EJS is not viable or there is dispute

File civil action for partition (and accounting) in the proper court (see Venue below).
Seek interim relief (e.g., deposit of rents, injunction vs. waste, appointment of receiver/ administrator).
Proceed through determination of shares → accounting → commissioners/ sale → judgment → transfer.

Venue and Jurisdiction

Real property involved: venue may lie where any property is located.
By amount: Regional Trial Courts generally hear partition when the assessed or market value exceeds lower-court thresholds (common in estate cases).
Special proceedings: filed where the decedent resided at death; if non-resident, where property is located.

Key Doctrines and Practical Rules

No partiality for possession: Possession by one co-heir is generally the possession of all; it does not become exclusive unless there is a clear, public repudiation.
Imprescriptible partition vs. prescriptive accounting: Courts often allow partition anytime, but money claims for past fruits/ rentals can be time-barred if not asserted timely.
Lesion beyond substantial threshold: Partition may be rescinded if a co-heir receives less than a defined proportion of true value; otherwise owelty (cash equalization) is used.
Collation and reduction first: Before final partition, bring lifetime donations into account and reduce inofficious dispositions to protect legitimes.
Creditors and taxes come first: Partition cannot defeat estate creditors or the BIR; settle or adequately secure debts; pay estate tax and obtain the CAR before title transfers.
Publication & 2-year lien (EJS): Publication is mandatory; the settlement remains subject to claims for two years.
Heirship can be resolved in partition suits when no settlement case is pending and parties are fully heard on status and shares.
Bad-faith management: Possessors in bad faith may owe fruits plus damages; self-dealing by administrators can be undone.
Improvements: Necessary/ useful improvements are reimbursable; luxury expenses typically are not.
Prohibition of partition: A valid testamentary prohibition delays but does not destroy the right; heirs retain accounting rights during the prohibition.

Common Defenses Against Partition/Accounting

Pending or required settlement proceeding (forum/ process arguments).
Prohibition of partition in a will (within the allowable period).
Failure to include indispensable parties (all heirs/ co-owners/ indispensable transferees must be joined).
Prescription/ laches as to accounting and money claims; repudiation of co-ownership.
Infeasibility of physical partition (leading to sale and division of proceeds instead).
Non-payment of estate tax or prejudice to creditors.

Evidence & Valuation

Heirship: birth/ marriage/ recognition documents; will and probate orders; prior judgments.
Assets & debts: inventories, titles, bank/ brokerage records, tax declarations, loan contracts.
Fruits & expenses: leases, rent receipts, utility/ repair invoices, management contracts.
Valuation: recent appraisals or market evidence; courts may appoint commissioners or rely on BIR zonal/ FMV benchmarks as starting points.

Step-by-Step Checklist (Quick Reference)

Confirm heirship and identify all heirs and assets/ debts.
Decide on path: EJS (if eligible) vs. judicial route.
Secure accounting: demand inventories, rents, and expense ledgers; if refused, move or sue.
Compute shares: apply legitimes, collation, and reduction; plan owelty if needed.
Prepare instruments: EJS deed/ project of partition; include warranties, reimbursements, timelines.
Settle debts & taxes: pay estate tax, obtain CAR.
Register the partition and transfers; update tax declarations.
Implement accounting outcomes: settle reimbursements/ fruits; enforce with writs if needed.

FAQs

Is court always necessary? No. If there’s no will, no debts, and all heirs agree, use EJS. Otherwise, go to court—either by special proceeding (estate settlement) or civil action for partition.

Can I ask for past rents from a sibling in possession? Yes. You may demand an accounting of fruits and a settlement of your share, subject to possible prescription for older claims.

What if the properties cannot be divided physically? Courts may order a sale and divide the proceeds, with owelty to equalize if needed.

What if one heir refuses to sign an EJS? You cannot force EJS; file a judicial partition (and accounting) instead.

Can heirship be decided in a partition suit? Often yes, if no estate case is pending and the court can fully hear and resolve status and shares; otherwise, raise/transfer issues to the estate court.

Practical Drafting Notes

In EJS, include:
- Recitals (decedent, date of death, heirs, no will, no debts).
- Property schedule and allocations.
- Assumption of liabilities (if any), owelty, and reimbursements.
- Publication clause, two-year lien acknowledgment, indemnity among heirs.
In judicial pleadings, pair partition with accounting, injunctive relief (to preserve assets), and receiver/ administrator requests when mismanagement is alleged.

Bottom Line

An heir in the Philippines may demand partition at any time while the co-ownership subsists and may compel an accounting from administrators and co-heirs in possession. Choose the simplest lawful route (EJS if eligible), ensure creditors and taxes are satisfied, insist on transparent accounting, and use the courts to resolve disputes over shares, fruits, and fair division.