Special Rules and Proceedings: Rule 96

RULE 96


General Powers and Duties of Guardians


Section 1. To what guardianship shall extend. — 

A guardian appointed shall have the care and custody of the person of his ward, and the management of his estate, or the manangement of the estate only, as the case may be. The guardian of the estate of a non-resident shall have the management of all the estate of the ward within the Philippines, and no court other than that in which such guardian was appointed shall have jurisdiction over the guardianship.


Scope of Guardianship

  • A guardian may be appointed for:

    1. Both the care and custody of the ward and management of the estate.

    2. Only the management of the estate, if specified.

  • For non-resident wards:

    1. The guardian manages only the ward’s estate within the Philippines.

    2. No other court, except the appointing court, has jurisdiction over the guardianship.



Section 2. Guardian to pay debts of ward. — 

Every guardian must pay the ward's just debts out of his personal estate and the income of his real estate, if sufficient; if not, then out of his real estate upon obtaining an order for the sale or encumbrance thereof.


Duty to Pay Ward’s Debts

  • The guardian must pay the ward’s just debts using:

    1. The ward’s personal estate and income from real estate (if sufficient).

    2. If insufficient, the guardian must seek a court order to sell or encumber the ward’s real estate for debt payment.



Section 3. Guardian to settle accounts, collect debts, and appear in actions for ward. — 

A guardian must settle all accounts of his ward, and demand, sue for, and receive all debts due him, or may, with the approval of the court, compound for the same and give discharges to the debtor, on receiving a fair and just dividend of the estate and effects; and he shall appear for and represent his ward in all actions and special proceedings, unless another person be appointed for that purpose.


Duty to Settle Accounts and Represent the Ward

  • The guardian must:

    1. Settle all accounts of the ward.

    2. Collect debts owed to the ward by demanding, suing, or compromising (with court approval).

    3. Give discharges to debtors upon receiving a fair settlement.

    4. Appear and represent the ward in all legal actions and proceedings, unless another representative is appointed.



Section 4. Estate to be managed frugally, and proceeds applied to maintenance of ward. — 

A guardian must manage the estate of his ward frugally and without the waste, and apply the income and profits thereof, so far as may be necessary, to the comfortable and suitable maintenance of the ward and his family, if there be any; and if such income and profits be insufficient for that purpose, the guardian may sell or encumber the real estate, upon being authorized by order so to do, and apply to such of the proceeds as may be necessary to such maintenance.


Duty to Manage the Estate Prudently

  • The guardian must:

    1. Manage the estate frugally, avoiding wasteful spending.

    2. Use the estate’s income and profits for the comfortable and suitable maintenance of the ward and their family.

  • If income is insufficient, the guardian may:

    1. Seek a court order to sell or encumber the real estate.

    2. Apply the proceeds to the ward’s maintenance.


Guardian's Duty to Manage Estate of the Ward

  • The guardian's duty to manage the estate and attend to the comfort and suitable maintenance of the ward was explained in CaΓ±iza v. Court of Appeals, as follows:

    • The Estradas insist that the devise of the house to them by CaΓ±iza clearly denotes her intention that they remain in possession thereof, and legally incapacitated her judicial guardian, Amparo Evangelista, from evicting them therefrom, since their ouster would be inconsistent with the ward's will.

    • A will is essentially ambulatory; at any time prior to the testator's death, it may be changed or revoked; and until admitted to probate, it has no effect whatever and no right can be claimed thereunder, the law being quite explicit: "No will shall pass either real or personal property unless it is proved and allowed in accordance with the Rules of Court" (ART. 838, id.). 

    • An owner's intention to confer title in the future to persons possessing property by his tolerance, is not inconsistent with the former's taking back possession in the meantime for any reason deemed sufficient. And that in this case there was sufficient cause for the owner's resumption of possession is apparent: she needed to generate income from the house on account of the physical infirmities afflicting her, arising from her extreme age.

    • Amparo Evangelista was appointed by a competent court the general guardian of both the person and the estate of her aunt, Carmen CaΓ±iza. Her Letters of Guardianship dated December 19, 1989 clearly installed her as the "guardian over the person and properties of the incompetent CARMEN CANIZA with full authority to take possession of the property of said incompetent in any province or provinces in which it may be situated and to perform all other acts necessary for the management of her properties . . " 

    • Actually, in bringing the action of desahucio, Evangelista was merely discharging the duty to attend to "the comfortable and suitable maintenance of the ward" explicitly imposed on her by Section 4, Rule 96 of the Rules of Court, viz.:

      • Sec. 4. Estate to be managed frugally, and proceeds applied to maintenance of ward. — A guardian must manage the estate of his ward frugally and without waste, and apply the income and profits thereof, so far as maybe necessary, to the comfortable and suitable maintenance of the ward and his family, if there be any; and if such income and profits be insufficient for that purpose, the guardian may sell or encumber the real estate, upon being authorized by order to do so, and apply to such of the proceeds as may be necessary to such maintenance.



Section 5. Guardian may be authorized to join in partition proceedings after hearing. — 

The court may authorized the guardian to join in an assent to a partition of real or personal estate held by the ward jointly or in common with others, but such authority shall only be granted after hearing, upon such notice to relatives of the ward as the court may direct, and a careful investigation as to the necessity and propriety of the proposed action.


Guardian’s Authority to Join Partition Proceedings

  • The court may authorize a guardian to join in a partition of real or personal property held jointly or in common with others.

  • Such authority is granted only after a hearing, with notice to the ward’s relatives and a thorough investigation into the necessity and propriety of the partition.



Section 6. Proceedings when the person suspected of embezzling or concealing property of ward. — 

Upon complaint of the guardian or ward, or of any person having actual or prospective interest in the estate of the ward as creditor, heir, or otherwise, that anyone is suspected of having embezzled, concealed, or conveyed away any money, goods, or interest, or a written instrument, belonging to the ward or his estate, the court may cite the suspected person to appear for examination touching such money, goods, interest, or instrument, and make such orders as will secure the estate against such embezzlement, concealment or conveyance.


Actions Against Suspected Embezzlement of Ward’s Property

  • Upon complaint by the guardian, ward, creditor, heir, or other interested persons, the court may investigate anyone suspected of:

    1. Embezzling or concealing the ward’s property.

    2. Conveying away money, goods, or written instruments belonging to the ward.

  • The court may summon the suspected person for examination and issue protective orders to secure the ward’s estate.


  • As a general rule, a guardianship court has no power to order the person suspected of embezzling or concealing property of the ward to deliver the same to the court. 

  • A guardianship court only has the power to cite such person to obtain information on the property:

  • Cui vs. Piccio:

    • The Court held that the jurisdiction of the court in guardianship proceedings, ordinarily, is to cite persons suspected of having embezzled, concealed, or conveyed the property belonging to the ward for the purpose of obtaining information which may be used in an action later to be instituted by the guardian to protect the right of the ward.

    • Generally, the guardianship court exercising special and limited jurisdiction cannot actually order the delivery of the property of the ward found to be embezzled, concealed, or conveyed. In categorical language, this Court stated that only in extreme cases, where property clearly belongs to the ward or where his title thereto has been already judicially decided, may the court direct its delivery to the guardian.

    • In effect, there can only be delivery or return of the embezzled, concealed, or conveyed property of the ward where the right or title of said ward is clear and undisputable. However, where title to any property said to be embezzled, concealed, or conveyed is in dispute, under the Cui case, the determination of said title or right—whether in favor of the person said to have embezzled, concealed, or conveyed the property—must be determined in a separate ordinary action and not in guardianship proceedings."


Section 7. Inventories and accounts of guardians, and appraisement of estates. — 

A guardian must render to the court an inventory of the estate of his ward within three (3) months after his appointment, and annually after such appointment an inventory and account, the rendition of any of which may be compelled upon the application of an interested person. Such inventories and accounts shall be sworn to by the guardian. All the estate of the ward described in the first inventory shall be appraised. In the appraisement the court may request the assistance of one or more of the inheritance tax appraisers. And whenever any property of the ward not included in an inventory already rendered is discovered, or suceeded to, or acquired by the ward, like proceedings shall be had for securing an inventory and appraisement thereof within three (3) months after such discovery, succession, or acquisition.


Inventories, Accounts, and Appraisement of the Ward’s Estate

  • A guardian must submit an inventory of the ward’s estate:

    1. Within 3 months of appointment.

    2. Annually thereafter, unless compelled sooner by an interested person.

  • Inventories and accounts must be sworn to by the guardian.

  • The estate described in the first inventory must be appraised, with possible assistance from inheritance tax appraisers.

  • If new property is discovered, inherited, or acquired, the guardian must submit a new inventory and appraisement within 3 months.



Section 8. When guardian's accounts presented for settlement. Expenses and compensation allowed. —

Upon the expiration of a year from the time of his appointment, and as often thereafter as may be required, a guardian must present his account to the court for settlement and allowance. In the settlement of the account, the guardian, other than a parent, shall be allowed the amount of his reasonable expenses incurred in the execution of his trust and also such compensation for his services as the court deems just, not exceeding fifteen per centum of the net income of the ward.


Settlement of Guardian’s Accounts & Compensation

  • After one year from appointment, and periodically as required, the guardian must present an account for settlement and approval by the court.

  • The guardian (except a parent) may receive:

    1. Reimbursement for reasonable expenses incurred.

    2. Compensation as deemed just by the court, but not exceeding 15% of the net income of the ward.


General Powers and Duties of Guardians

  • A guardian has the following main duties:

    1. Care and custody of the person of the ward

    2. Management of the ward’s estate

    3. If the ward is a non-resident, the guardian shall have the management of the ward’s estate within the Philippines, and no other court than that in which such guardian was appointed shall have jurisdiction over the guardianship.

  • To summarize, a guardian has the following powers and duties:

    1. Care and custody of the ward, the management of his estate, or both.

    2. Payment of the ward's just debts out of his personal estate and the income of his real estate, if sufficient.

    3. Settling accounts, collecting debts, and appearing in actions on behalf of the ward.

    4. Managing the estate frugally and applying proceeds to the ward's maintenance.

    5. Joining in partition proceedings after a hearing.

    6. Rendering to the court an inventory within three months after appointment and annually thereafter, which must be under oath.

    7. Rendering accounts to the court one year after appointment and as often thereafter as may be required.


Cui vs. Piccio, et. al. (91 PHIL 712)

  • Don Mariano Cui, a widower, owned three commercial lots in Cebu.

  • On March 8, 1946, he sold the lots pro indiviso to his children, Rosario, Mercedes, and Antonio, for ₱64,000.

  • Rosario was unable to pay her share, so the sale to her was canceled, making Don Mariano, Mercedes, and Antonio co-owners of the lots in equal portions. Don Mariano retained usufruct over the property, allowing him to collect rents while his children could build on the land.

  • A building was later constructed and rented out for ₱600 per month.

  • Mercedes and Antonio secured a ₱130,000 loan from RFC to build a 12-door commercial building; Don Mariano authorized them to mortgage his share.

  • A partition agreement assigned Don Mariano the portion fronting Calderon Street.

  • Jesus and Jorge, Don Mariano’s other children, filed Civil Case No. 59-R to annul the sale, claiming the lots were conjugal property.

  • Rosario later filed Special Proceeding No. 481-R to declare Don Mariano incompetent, leading to the appointment of Victorino Reynes as his guardian.

  • The guardian sought control over the rental income from the commercial building.

  • RTC: Upheld the sale to Mercedes and Antonio. Despite this, Judge Piccio later ordered Antonio and Mercedes to turn over rental income to the guardian, which they contested via certiorari.

  • Whether the trial court in the guardianship proceedings have jurisdiction to order the turnover of rental income to Don Mariano’s guardian.

  • The Supreme Court held that the trial court lacked jurisdiction to order the delivery of the rental income to the guardian.

  • Rule 97, Section 6 of the Rules of Court only allows courts in guardianship proceedings to investigate suspected embezzlement or concealment of property, not to determine ownership or order its turnover.

  • Since title to the rental income was disputed, it should be resolved in a separate civil action.

  • The order of September 5, 1951, and the denial of reconsideration on October 1, 1951, were set aside.

  • The writ of preliminary injunction was made permanent.

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