G.R. No. 27486 , November 18, 1927
In the matter of the estate of J. H. Ankrom, deceased. HEIRS OF RAFAEL GREGOIRE, claimants-appellants, vs. ALBERT L. BAKER, administrator-appellee.

FACTS

J.H. Ankrom died in 1922. His administrator, Albert L. Baker, initially included a 930-hectare land in the estate’s inventory. The appellants, heirs of Rafael Gregoire, had a substantial claim against the estate based on a foreign judgment, which was allowed. The estate appeared solvent based on the initial inventory.

Subsequently, the administrator discovered that before his death, Ankrom had mortgaged the land to the Philippine Trust Company and, two days later, assigned all his interest in it to J.G. Jung for a nominal consideration. The administrator then filed an amended inventory excluding this property, which would render the estate insolvent. The probate court initially ordered the property restored to the inventory but later reversed itself and authorized its exclusion. The creditors (appellants) appealed this latter order, arguing the assignment was fraudulent and that the earlier order for inclusion had become final.

ISSUE

Whether the probate court’s order authorizing the administrator to exclude the property from the inventory is a final and appealable order.

RULING

No, the order is not final and appealable. The Supreme Court dismissed the appeal.

Orders concerning the inclusion or exclusion of property in an estate inventory are provisional, interlocutory, and discretionary. They are subject to modification at any time during the administration proceedings and do not constitute a final adjudication of ownership rights. Therefore, such orders are not appealable.

The proper remedy for a creditor who believes a decedent made a fraudulent conveyance is provided under Section 713 of the Code of Civil Procedure (now Section 10, Rule 87 of the Rules of Court). The creditor may, upon giving a bond to indemnify the administrator and by leave of court, institute an action in the name of the administrator to set aside the conveyance for the benefit of the creditors. The appealed order was expressly issued without prejudice to the creditors pursuing this remedy.