Special Rules and Proceedings: Rules 94 & 95

 RULE 94


Bonds of Guardians


Section 1. Bond to be given before issuance of letters. Amount. Condition. —

Before a guardian appointed enters upon the execution of his trust, or letters of guardianship issue, he shall give a bond, in such sum as the court directs, conditioned as follows:


To make and return to the court, within three (3) months, a true and complete inventory of all the estate, real and personal, of his ward which shall come to his possession or knowledge of any other person for him;


To faithfully execute the duties of his trust, to manage and dispose of the estate according to these rules for the best interests of the ward, and to provide for the proper care, custody, and education of the ward;


To render a true and just account of all the estate of the ward in his hands, and of all proceeds or interest derived therefrom, and of the management and disposition of the same, at the time designated by these rules and such other times as the courts directs, and at the expiration of his trust to settle his accounts with the court and deliver and pay over all the estate, effects, and moneys remaining in his hands, or due from him on such settlement, to the person lawfully entitled thereto;


To perform all orders of the court by him to be performed.



Bond to be Given Before Issuance of Letters

  • A guardian must post a bond before assuming duties or receiving letters of guardianship.

  • The court determines the bond amount.

  • The bond must be conditioned on the guardian’s fulfillment of duties:

    1. Inventory Submission

      • File a true and complete inventory of the ward’s estate within three (3) months.

    2. Faithful Execution of Duties 

      • Manage and dispose of the estate for the ward’s best interests, ensuring proper care, custody, and education.

    3. Accounting and Reporting 

      • Render accurate accounts of the estate, proceeds, and management at designated times, and deliver all remaining assets upon the expiration of the trust.

    4. Court Compliance 

      • Follow all court orders.


  • The Supreme Court has clarified that the mere fact that the guardian has been removed as such does not relieve him nor her bondsmen from liability to the ward during the time that she was duly acting as guardian. 

  • If during the time of the guardianship she allowed other persons to handle the property of her wards and if any mismanagement or loss occurred thereby, the responsibility must fall upon her.



Section 2. When new bond may be required and old sureties discharged. — 

Whenever it is deemed necessary, the court may require a new bond to be given by the guardian, and may discharge the sureties on the old bond from further liability, after due notice to interested persons, when no injury can result therefrom to those interested in the estate.


When a New Bond May Be Required

  • The court may order a new bond if necessary.

  • Old sureties may be discharged after due notice, provided no harm will result to interested parties.


Section 3. Bonds to be filed. Actions thereon. — 

Every bond given by a guardian shall be filed in the office of the clerk of the court, and, in case of the breach of a condition thereof, may be prosecuted in the same proceeding or in a separate action for the use and benefit of the ward or of any other person legally interested in the estate.


Filing and Actions on Bonds

  • All guardian bonds must be filed with the court clerk.

  • If a condition is breached, the bond may be enforced:

    1. Through the same guardianship proceeding, or

    2. In a separate action for the ward’s benefit or any legally interested party.


Filing of guardianship bond by parent

  • Nario vs. Philippine American Life Insurance Co., G.R. No. L-22796, Jun 26, 1967:

    • It appearing that the minor beneficiary's vested interest or right on the policy exceeds two thousand pesos (P2,000.00); that plaintiffs did not file any guardianship bond to be approved by the court; and as later implemented in the abovequoted Section 7, Rule 93 of the Revised Rules of Court, plaintiffs should have, but, had not, filed a formal application or petition for guardianship, plaintiffs-parents cannot possibly exercise the powers vested on them, as legal administrators of their child's property, under articles 320 and 326 of the Civil Code. As there was no such petition and bond, the consent given by the father-guardian, for and in behalf of the minor son, without prior court authorization, to the policy loan application and the surrender of said policy, was insufficient and ineffective, and defendant-appellee was justified in disapproving the proposed transactions in question.

  • However, the foregoing ruling may be deemed to have been modified by Article 225 of the Family Code, where the parent concerned may be required to put up a bond where the market value of the property or the annual income of the child exceeds P50,000.

  • The bond shall not be less than 10% of the value or property or annual income to be determined by the court in a summary proceeding.




RULE 95


Selling and Encumbering Property of Ward


Section 1. Petition of guardian for leave to sell or encumber estate. — 

When the income of the estate under guardianship is insufficient to maintain the ward and his family, or to maintain and educate the ward when a minor, or when it appears that it is for the benefit of the ward that his real estate or some part thereof be sold, or mortgaged or otherwise encumbered, and the proceeds thereof put out at interest, or invested in some productive security, or in the improvement or security or other real estate of the ward, the guardian may present a verified petition to the court by which he was appointed setting forth such facts, and praying that an order issue authorizing the sale or encumbrance.


Petition for Leave to Sell or Encumber Estate

  • A guardian may seek court approval to sell, mortgage, or encumber the ward’s estate when:

    1. The income is insufficient for the ward and family’s maintenance.

    2. The income is insufficient for the ward’s education (if a minor).

    3. The sale or encumbrance benefits the ward.

  • Proceeds may be:

    1. Put out at interest.

    2. Invested in productive securities.

    3. Used for improving or securing the ward’s real estate.

  • A verified petition must be filed in the appointing court, stating the facts and requesting authorization.


  • It is not necessary for a grant of authority to the guardian to sell the estate of the ward to state that the income "is insufficient to maintain the ward and his family or to maintain or educate the ward when a minor." 

  • It is enough, as the other alternative of the law provides, that "it appears to the satisfaction of the court that it is for the benefit of the ward that his real estate or some part thereof should be sold, and the proceeds thereof put out at interest, or invested in some productive security."



Section 2. Order to show cause thereupon. —

If it seems probable that such sale or encumbrance is necessary, or would be beneficial to the ward, the court shall make an order directing the next of kin of the ward, and all persons interested in the estate, to appear at a reasonable time and place therein specified to show cause why the prayer of the petition should not be granted.


Order to Show Cause

  • If the court finds the request necessary or beneficial, it will issue an order directing:

    1. The ward’s next of kin.

    2. All interested persons.

  • They must appear at a specified time and place to show cause why the request should not be granted.



Section 3. Hearing on return of order. Costs. — 

At the time and place designated in the order to show cause, the court shall hear the proofs and allegations of the petitioner and next of kin, and other persons interested, together with their witnesses, and grant and refuse the prayer of the petition as the best interest of the ward require. The court shall make such order as to cost of the hearing as may be just.


Order for Sale or Encumbrance

  • If the court finds the sale or encumbrance necessary or beneficial, it will:

    • Issue an order detailing the reasons.

    • Specify whether the sale should be public or private.

    • Set conditions for payment and security (if deferred payments are allowed).

  • Bond Requirements:

    • The guardian’s original bond serves as security for the proper use of proceeds.

    • The court may require an additional bond if deemed necessary.

  • Validity of Order:

    • The order remains effective for one (1) year unless a sale is conducted within that period.



Section 4. Contents of order for sale or encumbrance, and how long effective. Bond. — 

If, after full examination, it appears that it is necessary, or would be beneficial to the ward, to sell or encumber the estate, or some portion of it, the court shall order such sale or encumbrance and that the proceeds thereof be expended for the maintenance of the ward and his family, or the education of the ward, if a minor, or for the putting of the same interest, or the investment of the same as the circumstances may require. The order shall specify the causes why the sale or encumbrance is necessary or beneficial, and may direct that estate ordered sold be disposed of at either public or private sale, subject to such conditions as to the time and manner of payment, and security where a part of the payment is deferred as in the discretion of the court are deemed most beneficial to the ward. The original bond of the guardian shall stand as security for the proper appropriation of the proceeds of the sale, but the judge may, if deemed expedient, require an additional bond as a condition for the granting of the order of sale. No order of sale granted in pursuance of this section shall continue in force more than one (1) year after granting the same, without a sale being had.


Order for Sale or Encumbrance

  • If the court finds the sale or encumbrance necessary or beneficial, it will:

    1. Issue an order detailing the reasons.

    2. Specify whether the sale should be public or private.

    3. Set conditions for payment and security (if deferred payments are allowed).

  • Bond Requirements:

    1. The guardian’s original bond serves as security for the proper use of proceeds.

    2. The court may require an additional bond if deemed necessary.

  • Validity of Order:

  • The order remains effective for one (1) year unless a sale is conducted within that period.


Section 5. Court may order investment of proceeds and direct management of estate. —

The court may authorize and require the guardian to invest the proceeds of sales or encumbrances, and any other of his ward's money in his hands, in real estate or otherwise, as shall be for the best interest of all concerned, and may make such other orders for the management, investment, and disposition of the estate and effects, as circumstances may require.


Investment and Management of Proceeds

  • The court may direct the guardian to:

    1. Invest proceeds from sales or encumbrances.

    2. Manage and invest the ward’s other funds.

    3. Follow court orders for the best interest of the ward’s estate.

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