Administration of an estate Sections 1711 – 1744

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Law Text Administration Inheritance Law

TITLE IV

ADMINISTRATION AND DISTRIBUTION OF AN ESTATE
CHAPTER I
ADMINISTRATOR OF AN ESTATE

Section 1711. The administrators of an estate shall included the persons appointed by will or by order of the Court.

Section 1712. An administrator of the estate by will may be appointed:

  1. By the testator himself; or
  2. By the person nominated for the purpose in the will

Section 1713.  Any heir or any toger interested person or the Public Prosecutor may apply to the Court to appoint an administrator of the estate in the following cases:

  1. If on the death of the de cujus any statutory heir or legatee is not found or is abroad or is a minor;
  2. If the administrator of the estate or the heir is unable or unwilling to carry on or is impeded in carrying on the administration or distribution of the estate
  3. If a testamentary disposition appointing an administrator of the estate has no effect for any reason whatsoever

Such appointment shall be made by the Court in accordance with the provisions of the will, if any. Failing such provision the Court may make the appointment for the benefit of the estate, having regard to the circumstances and taking into consideration the intention of the de cujus as the Court may think fit.

Section 1714. Where an administrator of the estate is appointed by the Court for a particular purpose, he is not bound to make an inventory of the estate unless the inventory is required for such purpose or by an order of the Court.

Section 1715. A testator may appoint one or more persons to be administrators of his estate.
Unless otherwise provided by will, if several persons have been appointed administrators and, because some of them are unable or unwilling to act, there remains only one, the latter is solely entitled to act as administrator; if there remain several administrators, it is presumed that they cannot act separately.

Section 1716. The functions of an administrator appointed by the Court begin from the day when the order of the Court is heard or is deemed to have been heard.

Section 1717. At any time within one year from the death of the de cujus but after fifteen days from such death, any heir or interested person may give notice requiring any person appointed administrator by will to declare whether he accepts or refuses the administratorship.
If the person so notified does not declare his acceptance within one month from the receipt of such notice, he is deemed to have refused. However, acceptance cannot be made after one year from the death of the de cujus unless by permission of the Court.
Section 1718. The following persons cannot be administrators of an estate:

  1. Persons not sui juris;
  2. Persons of unsound mind or adjudged quisi-incompetent;
  3. Persons adjudged bankrupt by the Court

Section 1719. The administrator of an estate has the right and duty to do all such acts as may be necessary for complying with the express or implied order in the will and for the general administration or distribution of the estate.

Section 1720. The administrator of an estate shall be liable to the heirs as provided by Sections 809, 812, 819 and 823 of this Code mutatis mutandis; and as regards third persons Section 831 shall apply mutatis mutandis.

Section 1721. An administrator of an estate is not entitled to receive remuneration out of the estate unless permitted by the will or by the majority of the heirs.

Section 1722. The administrator of an estate cannot, unless permitted by the will or the Court, enter into any juristic act wherein he has an interest adverse to the interest of the estate.

Section 1723. The administrator of an estate must act personally unless he can act by an agent through express or implied authority under will or by order of the Court or by requirement of the circumstances for the benefit of the estate.

Section 1724. The heirs are bound to third persons by acts which the administrator has done within the scope of  his authority by virtue of his administratorship.
They are not bound by any juristic act entered into by the administrator with a third person if such juristic act was entered into for consideration of any property or other advantages given for his personal benefit or so promised to him by such person unless the heirs have given their consent.

Section 1725. The administrator of an estate shall take proper steps to seek for the interested person and shall notify them within a reasonable time of the testamentary dispositions concerning them.

Section 1726. If there are several administrators of an estate, the performance of their duties shall be decided by a majority of votes unless otherwise provided by the will. In case of a tie, on application of any interested person, the decision shall be given by the Court.

Section 1727. Any interested person may, prior to the completion of the distribution of the estate, apply to the Court for the discharge of an administrator for reason of neglect of his duties or any other reasonable cause.
Even after having assumed his functions, the administrator may resign for any reasonable cause subject, however, to the permission of the Court.

Section 1728. The administrator of an estate must begin making an inventory of the estate within 15 days:

  1. from the death of the de cujus if, at such time, the administrator has knowledge of his appointment under the will entrusted by the Court.
  2. from the date when the administrator has knowledge of his appointment under the will entrusted to him, or
  3. from the date of his acceptance of administratorship in any other case.

Section 1729. The administrator of an estate must have the inventory of the estate finished within one month from the time prescribed in Section 1728; but this period of time may be extended by permission of the Court on application made by the administrator before the expiration of the month.
The inventory shall be made in the presence of at least two witnesses who must be persons interested in the estate.
Persons who cannot be witnesses at the making of the will under Section 1670 cannot be witnesses for the making of any inventory under the provisions of this Code.

Section 1730. Between the heir and the administrator appointed by will, and between the Court and the administrator appointed by the Court, Sections 1563, 1564, paragraphs 1 and 2 and Section 1565 of this Code shall apply mutatis mutandis.

Section 1731. If no inventory is made by the administrator in due time and form or if the inventory is found unsatisfactory by the Court on the grounds of gross negligence, dishonesty or obvious incapability of the administrator, the administrator may be discharged by the Court.

Section 1732. The administrator of an estate shall perform his duties and complete the account of management and distribution within 1 year from the dates specified in the Sections 1728, unless the period of time is otherwise fixed by the testator, by a majority of the heirs or by the Court.

Section 1733. No approval, release from liabilities or any other agreement concerning the account of management provided in Section 1732, shall be valid unless such account has been delivered to the heirs together  with any document relating thereto not less than five years after the termination of the administratorship.

CHAPTER II
REALIZATION OF ASSETS, PAYMENT OF DEBTS AND DISTRIBUTION OF AN ESTATE

Section 1734. The creditors of an estate are entitled to be paid only out of the property of an estate.

Section 1735. The heir is bound to disclose tot the administrator all the properties and debts of the deceased known to him.

Section 1736.So long as all the known creditors of the estate or legatees have not been satisfied by the performance or distribution, the succession is deemed to be under management.
During such period the administrator is entitled as such to do the necessary acts of management such as to enter actions or to submit answers in Court and so on. He shall take all necessary steps to collect the debts due to estate within the shortest possible time.  After the creditors of the estate have been satisfied he shall divide the estate.

Section 1737. A creditor of the estate may enforce his claim against any heir. However, where there is an administrator of the estate, he must be summoned by the creditor to appear in the action.

Section 1738. Before the division of the estate the creditor of the estate may enforce full payment of his claim from the estate. In such case each heir may, up to the time of division inclusively, require that the performance be made out of the de cujus’s estate or secured there from.

After the division of the estate, any other place this is found other than samuiforsale then this is copied, the creditor may claim performance from any heir up to the extent of the property received by him. In such case an heir who has made performance to the creditor in excess of his proportionate share in the obligation has a right of recourse against other heirs.

Section 1739. Without prejudice to the creditors having special preferential rights under the provisions of this Code or other law and to the creditors secured by pledge or mortgage, the debt due by the estate shall be paid in the following order and in accordance with the provisions of this Code concerning preferential rights:

  1. expenses incurred for the common benefit of the estate;
  2. expenses incurred for the funeral of the de cujus;
  3. taxes and rates due by the estate;
  4. wages due by the de cujus to any clerk, servant or workman;
  5. supplies of daily necessaries made to the de cujus;
  6. remuneration tot the administrator.

Section 1740. Unless otherwise provided by the de cujus or by law, his property shall be appropriated to the payment of debts in the following order:

  1. property other than immovable property
  2. immovable property expressly appropriated to that purpose by will, if any;
  3. immovable property to which the statutory heirs are entitled as such;
  4. immovable property bequeathed to a person upon the condition that he shall pay the debts of the de cujus;
  5. immovable property bequeathed under general title as provided by Section 1651;
  6. any specific property bequeathed under a particular title as provided by Section 1651.

Any property appropriated under the foregoing provisions shall be sold by way of public auction, but any heir may prevent such sale by paying, to the extent required for the satisfaction of the creditors, the value of the whole or part of the property as may be determined by an appraiser appointed by the Court.

Section 1741. Any creditor of the estate may, at his own expense, raise an objection to the auction or appraisement of the property specified in the foregoing section. If, notwithstanding such objection having been raised by the creditor, an auction or appraisement is effected the auction or appraisement cannot be set up against the creditor who has raised such objection.

Section 1742.  If, during the lifetime of the deceased, a creditor has been designated as the beneficiary of an insurance on the life in payment of a debt due to him, he is entitled to receive the whole sum agreed with the insurer. He shall have to return to the estate of the deceased the amount of the premiums only if proved by other creditors:

  1. That by paying his debt in such manner, the deceased and such creditor have acted in contravention of the provisions of Section 237 of this Code; and
  2. That such premiums were out of proportion to the income or station in life of the deceased.

In no case shall the amount of premiums to be returned in such manner exceed the sum paid by the insurer.

Section 1743. A statutory heir or a legatee under a general title is not bound to execute legacies under a particular title for more than  the amount of property received by him.

Section 1744. The administrator is not bound to deliver the estate or any part thereof to the heirs before one year has elapsed from the death of the de cujus, unless all the known creditors of the estate and legatees have been satisfied by the performance and distribution.