Among the inescapable facts in life, something which everyone shares regardless of status, race, sex or creed, is death. A person may leave properties (or liabilities) upon death, so a discussion on the basic concepts on estate proceedings is in order.
Inheritance – Inheritance includes all the property, rights and obligations of a person which are not extinguished by his death. (Civil Code, Art. 776)
Testate Estate – An estate of a deceased person which is settled or to be settled with a valid last will and testament.
Intestate Estate – An estate of a deceased person without a will.
Will – An act whereby a person is permitted, with the formalities prescribed by law, to control to a certain degree the disposition of his estate. (Civil Code, Art. 783)
Testator – The deceased person who made a last will and testament. (Civil Code, Art. 775)
Probate – A special proceeding to establish the validity of a will. Probate is mandatory, which means that no will passes either real or personal property unless it is proved and allowed in a proper court.
Reprobate – A special proceeding to establish the validity of a will previously proved in a foreign country.
Legatee – One who is given personal property through a will. (Civil Code, Art. 782)
Devisee – One who is given real property in a will. (Civil Code, Art. 782)
Executor – The person named in the will who is entrusted to implement its provisions. (Rules of Court, Rule 78)
Executrix – A female executor.
Administrator – The person entrusted with the care, custody and management of the estate of a decedent until the estate is partitioned and distributed to the heirs, legatees and devisees, if any. (Rules of Court, Rule 78)
Administratrix – A female administrator.
Special proceedings – A remedy by which a party seeks to establish a status, a right, or a particular fact. (Rules of Court, Rule 1, Sec. 3 [c]). Among the subject matters of special proceedings are escheat and settlement of estate of deceased persons. (Rules of Court, Rule 72, Sec. 1)
Escheat – A proceeding whereby the state, by virtue of its sovereignty, steps in and claims the real or personal property of a person who dies intestate leaving no heir. In the absence of a lawful owner, a property is claimed by the state to forestall an open “invitation to self-service by the first comers”. (Republic vs. CA, G.R. No. 143483)
Estate tax – A tax on the transfer of the net estate of the decedent. (Tax Reform Act of 1997, Sec. 84)
Gross estate – The total value of all property belonging to the decedent at the time of death, wherever situated. (Tax Reform Act of 1997, Secs. 85, 104)
Net estate – Gross estate less allowable deductions and exemptions. (Tax Reform Act of 1997, Secs. 84, 85 and 86)