file:spcpro_part7.htm

VII.   ESCHEATS

1. Escheats, Meaning of

Escheat, a term of French or Norman derivation meaning chance or accident,
is the reversion of property to the State when the title thereto fails from defect
of an heir. It is the falling of a decedent’s estate into the general property
of the State.

2.  Procedure

1. When filed

A petition to escheat property is filed when a
person dies intestate, leaving behind real or personal property but without an
heir. 206

2. Who files petition

The petitioner is the Solicitor General or his
representative in behalf of the Republic of the Philippines. 207

3. Where filed

The petition is filed in the Regional Trial Court
where the deceased last resided or in which he had property if he resided out
of the Philippines. 208

4. Contents of petition

The petition shall set forth the facts and pray
that the estate of the deceased be declared escheated. 209

5. Order of Hearing

The court shall fix a date and place for the
hearing of the petition, which date shall not be more than six months after the
rendition of the order. 210

6. Publication

The order shall also direct that a copy thereof
shall be published at least once a week for six (6) successive weeks in some
newspaper of general circulation in the province as the court deems best. 211

7. Judgment

After hearing, the court shall adjudge the
properties escheated after payment of just debts and charges, and the
properties shall be assigned pursuant to law as follows:

7.1 The personal estate shall be assigned to the
municipality or city where the deceased last resided in the Philippines.

7.2 The real estate shall be assigned to the
municipalities or cities, respectively, in which the same is situated.

7.3 If the deceased never resided in the
Philippines, the whole estate may be assigned to the respective municipalities
or cities where the same is located.

7.4 Such estate shall be for the benefit of
public schools, and public charitable institutions and centers in said
municipalities or cities. 212

3.  Permanent Trust

The court may order the establishment of a permanent trust so that only the
income from the property shall be used. 213

4. Claim Within Five Years

If a person entitled to the estate escheated appears and files a claim with
the court within five (5) years from the date of the judgment, he shall obtain
possession and title to the property. If it has already been sold, the
municipality or city shall be accountable to him for the proceeds, after
deducting expenses for the care of the estate, but a claim not made with said
time shall be forever barred.

5.  Other actions for escheat

Actions for reversion or escheat of properties alienated in violation of the
Constitution or of any statute shall be governed also by Rule 91, except that
the action shall be instituted in the province where the land lies in whole or
in part.