On January, 2008, my mother(Mamang) passed away. She passed away intestate. On February, 2008, an Estate Lawyer was hired to draw an extra-judicial settlement document(EJS) to allocate assets among 6 legal heirs. We are now going on the 8th month of the settlement.
There is disagreement on how to proceed with the settlement. The properties in question are my mother’s Mitsubishi SUV and her PNB accounts. To expedite the settlement, and/or use proceeds from sale and/or withdrawal of monies from said accounts to pay for settlement expenses, the lawyer had proposed for all heirs to donate the SUV to heirs residing in the Philippines. He also proposed that all heirs sign a waiver to make no claims on my mother’s accounts and give them to Manuel(Nonoy), the oldest sibling.
I do not agree with the estate lawyers proposals!The SUV.The original owner’s registration of the Mitsubishi was lost. In a conversation with my bother Elpidio(Niniboy), he told me that Nonoy had at some point offered to give the SUV to our sister Liwayway. That Nonoy also proposed to keep it under his care for other siblings to use should they come home to visit in Manila. Nonoy also expressed interest in the Sta Ana house, not to sell it, but instead keep it in the family under his management.
According to Niniboy, he objected to this idea, saying that the SUV is not Nonoy's to give, and that properties left by our parents belong to all heirs, equally.
Through his own initiative, Niniboy tried to obtain a replacement registration. He claims fowl when what he thought was a sincere offer of assistance from Nonoy's driver, Jun Mayor, fizzled out. Unable to secure the car replacement registration himself, Niniboy confers the issue to the estate lawyer to resolve.
The PNB Accounts.When the estate lawyer started to work on the EJS, he noted that our mother’s PNB bank accounts can not be included in the EJS since according to him the Bank Certificate of ownership shows that the accounts are solely in Nonoy's name! Below is part of
April 3, 2008 e-mail from Atty. Portugal to Niniboy as follows:
Please note that I did not include the PNB peso and dollar accounts, details of which were provided by Nonoy, since according to the Bank Certification dated February 26, 2008, it appears that the said accounts are both in the name of Manuel M. Gamboa, and not in the name of your late mother.
Bank Certificate of ownership(BCO), at least the ones I saw, have the name of the owner in big bold letters. Anyone, even an idiot, can not mistake reading it. Portugal e-mailed me a number of times urging me to sign the waiver. It took him three weeks to obtain another BCO when I asked him for proof that the PNB accounts are still in Mamangs’ name.
The owners name on the face of the document are in big bold letters. How can one mistake reading such a document? Besides, even if the document is true, which is doubtful, it indicates “Or” joint ownership. This means that Nonoy already has full, if not total control over the accounts!
Extra-Judicial Settlement process.Excerpts from Niniboy’s e-mail dated Feb 8, 2008:
The title to the Sta. Ana home, the car owners registration certificate, and the certificate of stocks of Papang are in the safekeeping of Nonoy. Nonoy told us that the title to the Sibuyan property is about to be released, and that the title will be in the name of us, the children.
There is the legal requirement and process, called extra-judicial estate settlement, to transfer the title of the Sta Ana home, Mamang's car, and the shares of stocks, the Sibuyan property (assuming it will not be in the names of all of us) from the names of Papang and Mamang to us, the heirs. In brief summary, Extra-judicial settlement of the estate requires the accomplishment of certain documents, placing an estimate on the value of the properties left behind, deducting funeral and hospitalization expenses , payment of estate tax ( and possibly payment of penalties because the estate of Papang should have been settled 10 years ago), publication in the newspaper of extra-judicial settlement. After this process is completed, all of the documents mentioned here will be submitted to the Register of Deeds of Manila , for the issuance of a new title to the Sta. Ana property to us the heirs; to the LTO, for the issuance of a new owner's certificate of ownership in the names of us the heirs; to the corporate secretary of FEU and PICOP for the issuance of stocks certificates to us the heirs, and to the Register of Deeds with respect the to Sibuyan property, for the issuance of title to us, the heirs.
For your assurance, there will be no distribution now of any of the properties left behind by Mamang and Papang .
When new titles, car registration certificate , and certificate of stocks reflecting a co-ownership of the mentioned [rp[ertoes are already in our names, we can decide on how to dispose of our respective shares in the co-ownership.
We will need to hire the services of an expert lawyer. I can do it myself , but I would rather not because I am a party and an heir. But I will supervise the lawyer and keep his fees low.
The Estate settlement process as related in this e-mail is clear enough. Transfer of ownership and eventual partition of estate to all heirs. That is what should be done, no shortcuts, no creative fixes.
There is also talk of conflict of Interest, of supervising the lawyer, and of keeping lawyer fees low. All talk! Meanwhile, the Lawyer's retainer of 15,000/month keep running, like a taxi cab stranded in traffic somewhere.
Nonoy and Liwayway behind the scenes.Not to be outdone, below is Nonoy’s response. The following is part of an April 26,2008 e-mail that also covers the Sibuyan property. It shows Nonoy’s bullying and controlling nature. It also addresses Niniboy’s points about hiring a lawyer and who’s the "big boss!"
I skipped some of Nonoy's self-serving statements but,
the letter in full is now available to view:
The reason we agreed to hire an outside lawyer is because as you said sarcastically to me and Lily at that meeting in Serendra that " I am a corporate lawyer and this ( estate settlement ) is not my expertise. Besides , I have to earn a living ". Now, with the expertise of an outside lawyer therefor we can maximize the value of the estate and avail of all the tax priviledges within specified deadlines...
I also hope you realize that your suggestions in the email are not automatically the accepted direction . Lily and I only appointed you to coordinate with the lawyer to see to it that all heirs are equally and fairly recognized and all deadlines are met to favorably to our satisfaction. It didnt mean that I was relinquishing my leadership in the settlement...
With regards to Sibuyan I will be taking the lead... You have unecessarily alarmed the people that you have talked to regarding this matter with your seemingly distrusting and legalistic tone. They also learned that you were already inviting outsiders to buy the place which they have tried to keep intact all this time. They have called me and asked me why you are doing this and why you are the one doing all this when you are not the eldest son and never showed any interest in Sibuyan in the past.( In their culture they respect the pecking order without the necessity of written documents) Your last visit to Sibuyan was during your daughter's wedding in Manila .
I am scheduled to go to Romblon on the 28th to finalise the eviction of my tenant in Logbon. I will make a side trip to Sibuyan to look into the matter of titling and make a report on the result. I will at the same time inspect the much needed roof repair job that I instructed Jun to do on Mamangs House. I will finalize the eviction of Nenet ( Mamangs caretaker ) from the property and settle the dispute between her and Donoy, the real tenant. Perhaps that will spare you the trouble of going to Sibuyan for this purpose alone.
All the keys are with me for safekeeping. I will take full responsibility for any loss or damage to these properties but at the same time expect that no duplicates be made surreptitiously without my permission. If and when anyone wants to use it, they only have to tell me directly. The same goes for the Sta Ana House and the Mitsubishi car.
If you need to know anything regarding Sta Ana or the Mitsubishi car or Sibuyan, you just have to call me. Your round-about ways are causing all these people you talk to nervous and suspect that something wrong is afoot. By doing that -You make me look like the bad guy.
This guy talks about evicting his own mother's caretaker from a land he does not even own and he's worried about looking like the bad guy.
Other properties.There is also the question about the contents of the house in Sta Ana. I had asked the estate lawyer about this, saying that all heirs are entitled to know about it. On Sept. 1, 2008, Jaime Portugal's response:
As to the contents of the Sta Ana property, please be advised that in such matters, I no longer consider it part of my engagement to make such an inventory.
Well, whatever is in the Sta Ana house is part of the estate, is it not? If the estate lawyer is not going to make or manage an accounting of properties there then who is supposed to do it?
There is also Mamang’s personal effects. They must also be accounted for, made known, and their manner of disposition consulted or divided among all heirs.
The Estate Lawyer.Jaime Portugal is Nonoy’s fraternity brother. Niniboy had expressed conflict of interest with him as our lawyer from the beginning. Ironically, it is Niniboy himself who recommended for me to agree to hire this lawyer – to do so ASAP to take advantage of a govt. tax amnesty program. It turned out that we never had a chance to make the tax amnesty from the get go. When I asked Niniboy why he agreed and recommended to hire this lawyer, he said he wanted to give Nonoy a chance to prove himself.
It becomes more apparent that Niniboy's fondness of Portugal grows over time. In response to my numerous unanswered queries on the status of the settlement to the lawyer,
Niniboy writes on May 18, 2008:
Atty JJ Portugal and I are pleasantly working well together. My personal feeling is that if he quits as our lawyer now , the process will even take longer to complete, and will be giving Nonoy the opportunity to blame the two of us for the delay in his usual manner.
Kaya konting pasensya na lang tayo. Meron ng liwanag. Huwag na nating bigyan ng dahilan para magresign ang lawyer.
The properties to be included are roughly the Sta. Ana home, the car, the bank accounts of Mamang, the shares of Papang in FEU. The PICOP shares look like of little value to bother with.
It is unfortunate that Niniboy seems more interested in his personal relationship with Portugal - how he appears to him. He now answers questions meant for the estate lawyer.
Nevertheless, Niniboy is right about conflict of interest. What is needed is someone who can work impartially and independently. Someone who can take to task all estate matters, including the contents of the house in Sta Ana and Mamang's personal effects.
Where I stand.There is no need for shortcuts and "creative" machinations. Why this urge to speed-up a process that in reality can only be completed through it's own course? The title of ownership of the house in Sta Ana needs to be transferred in the name of all heirs and the house may take time to sell. The same process apply for the SUV and the PNB accounts.
I am not donating the SUV to anyone and I am not signing any waiver! An inventory of the contents on the house in Sta Ana and of Mamang's personal effects must be made and made known to all heirs!
There have been a lot of talk about transparency. Well, why not walk the talk, as the saying goes? Lets have transparency in the estate settlement.
What Next?I will be covering other issues relating to the Estate Settlement in the following posts. I will also post correspondence letters in their entirety.