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TITLE IV SUCCESSION CHAP 1 GENERAL PROVISIONS

succession

Latin: sub and cedere placing of one person in the place of another

General sense transmission of rights and properties from one person to another

Inter vivos succession succession where in the transfer is effective during the life time of the giver (ex. ordinary donation)

Mortis causa succession where in the transfer is effective after the givers death

SUCCESSION technical definition

Technically restricted to succession mortis causa

Transfer of title to property under the laws of descent and distribution, taking place only on the death of the person

kinds of successionas to effectivity

Succession inter vivos (ex. Donation)

Succession mortis causa

Existence of a will

Testamentary succession - there is a will

Intestate or legal succession there is no will

Mixed succession part of the property has been disposed of in a will

As to transferees of property

Compulsory succession refers to the legitime

Voluntary succession refers to the free disposal

as to extent of rights and obligations involved

Universal succession covering all juridical relations involving the deceased

Particular succession covering only certain items or properties

special kind

Contractual succession kind where the future husband and future wife give to each other future property, effective mortis causa, by means of marriage settlement

law on succession is animated by a uniform general intent

No part should be rendered inoperative by, but must be construed in relation to any other part as to produce a harmonious whole

774 . Succession

- Mode of acquisition

- By virtue of Succession:

- property, rights and obligations are transmitted

-to the extent of the value of inheritance of a person

- through his death to another or others, either by

- his will or

-by operation of law.

succession mortis causa defined

Art 774 succession mortis causa

important elements of the definition

Mode of acquisition (or ownership)

Transfer of property, rights, and obligations to the extent of the value of the inheritance of a person (Grantor/Transferor/Decedent/Testator/Intestate)

Transmission through death (not during lifetime)

Transmission to another (Grantee/Transferee/Heir/Legatee/Devisee

By will or by operation of law (Testamentary or Legal succession)

bases for succession consequence of family relations

Natural law which obliges a person to provide for those he would leave behind

Recognition of natural law of consanguinity, or of blood, and the natural affection of person toward those nearest him in relationship

economic standpoint

Socio economic postulate which would prevent wealth from becoming inactive or stagnant

Enables social economy to be firm

consequence of rights to property

Implicit attributes of ownership which would be imperfect, if a person is not allowed to dispose of his property, such disposal to take effect when he is already dead.

775.

Decedent general term applied to

- the person whose property is transmitted through succession

- whether or not he left a will

Testator

- If he (decedent) left a will

decedent defined

Person whose estate is to be distributed

Testator

If he left a will

intestate

If he left no will

776 Inheritance includes

- all property, rights and obligations of a person

- which are not extinguished by his death

inheritance, succession, administrationInheritancesuccession

Property or right acquired

Manner by virtue of which property or right is acquired

Title by descent title by which one person on the death of another, acquires the estate of the latter as his heir at law

Referred to as descent

administrationsuccession

Dealing with a deceased persons property according to law

Transferring a deceased persons property to it beneficially

inheritance root words

Hereditas - Latin

Herencia - Spanish

what inheritance includes

Property

Rights not extinguished by death

Obligations not extinguished by death (to the extent of the value of inheritance)

nacar v. nistal

Person has no obligation to pay for the debts of his step-father

properties

Real and Personal properties

Accessions[footnoteRef:1] to the property accruing thereto, from the moment of the death to time of actual receipt by said transferee [1: The right pertaining to the owner of a thing over everything produced thereby and the right pertaining to the owner of a thing over everything that is incorporated or attached thereto either naturally or artificially. And ]

Ownership is transferred at the moment of death

Human corpse is not property and not part of the estate

Without prejudice to RA 349, amended by RA 1056 which allows under certain conditions, the granting to certain entites of a persons organs after death

Properties not belonging to the estate must be excluded

Not part of the inheritance

Important to determine ownership of the properties involved

anderson v. perkins

Before perishable and other property of the estate of the deceased are sold by the special administrator, proceedings must first be taken to segregate the alleged exclusive property of the surviving spouse. Issue of ownership should be decided first, and conjugal properties liquidated, or surviving spouse should agree as to which properties he or she does not mind to be sold.

Any sale done without this requirement should be premature and court must not grant permission.

magallanes v. kayanan

Question of ownership of properties involved in probate proceedings should be submitted to the RTC in the exercise of its general jurisdiction to try and determine ordinary actions for final determination.

Probate court may only determine whether or not given property should be included in the inventory of the estate of the deceased. Such determination is not conclusive and is subject to a final decision in a separate action to be instituted between the parties .

Probate court may also determine questions of title to property, if the parties voluntarily submitted to its jurisdiction and introduced evidence to prove ownership.

rights

Rights extinguished by death NOT part of the estate

Rights not extinguished by death part of the estate

ex of rights extinguished by death No inheritability; not transmissible mortis causa

Intransmissble personal rights because of their nature

Ex. Family rights, marital and parental authority, support, action for legal separation, partnership, agency, life annuity

Right to claim acknowledgement or recognition as a natural child

Right to hold public or private office or job

Ex of rights not extinguished by death part of the estate

Right to continue or bring an action for forcible entry or unlawful detainer

Right to compel the execution of a document necessary for convenience

Provided the contract is valid and enforceable under the Statute of Frauds

Right to continue a lease contract either as lessor or lessee

Unless otherwise provided for in the contract

If lessee-heir continues as lessee, he should still pay the rents as they fall due from time to time, even if inheritance has already disappeared because it is not the lessee-heirs obligation, no longer the decedents.

Property right in an insurance policy [footnoteRef:2] is a vested interest provided the designation of the beneficiary is irrevocable and is as such transmissible by hereditary succession [2: Interest of a beneficiary in a life insurance policy ]

Unless by the terms of the policy, it is provided otherwise

Generally, the life insurance policy or right to indemnity belongs to the beneficiary, transmissible to the beneficiarys heirs, not the insured or insureds own heirs.

mabalot v. madela

Unlawful detainer suit One issue was whether or not lessees of the apartment could continue the lease as a result of inheritance. Due to this issue, MTCs jurisdiction was put into question since the case is not capable of pecuniary estimation, therefor jurisdiction should be with the RTC.

MTC has jurisdiction because legal question about the inheritance is only incidental in determining whether lessees are entitled to the possession of the apartment or not.

noel v. ca

Rights to inheritance of a person who died, with or without a will, before effectivity of OCC were governed primarily by the provisions of the Spanish Civil Code of 1889.

Spouse survived by brothers/sisters/children of brothers or sisters of decedent, was entitled to receive in usufruct the part of inheritance pertaining to said heirs. Surviving spouse, as administrator and liquidator of the conjugal estate, occupies the position of a trustee of the highest order and was not permitted by the law to hold that estate or any portion thereof adversely to those for whose benefit the law imposed upon him the duty of administration and liquidation.

Illegitimate children who were not natural were disqualified to inherit under the SCC.

Buyer of parcel of land at a public auction to satisfy a judgment against a widow acquires only interest on the land corresponding to the share of the widow and the other half belonging to the heirs of her husband becomes impressed with a constructive trust of said heirs

Prescriptive period within which collateral heirs could file an action to recover their share in the property sold to a 3rd person accrued from the date of registration of deed of sale with the RoD, not from moment of death of decedent.

obligations not extinguished by death

Generally, all obligations are transmissible

Unless purely personal or non transferable by law or contract

Ex. of a purely personal obligation: Obligation to support

Heir still pays for the debts of the deceased father, but only if the debts can be covered by the inheritance.

Ex. Father leaves 100M as assets and 20M as debts. Heir can only collect 80M. However if the debt was 120M, heir is not required to pay the balance of 20M.

Correct to say that money debts are not inherited at all. Only the balance is left for distribution among the heirs.

While the debts of the deceased still remain unpaid, no residue may be divided among the heirs, legatees and devisees. Court may order sale of sufficient property for the satisfaction of the debt. No residue may also be divided among creditors of said heirs without first settling the debts of the deceased.

Creditor/obligee of an heir (who is not the creditor/obligee of the deceased) who intervenes in the estate proceedings, cannot ask the court to sell the properties which the heir-debtor expects to receive.

Debts of deceased must first be paid. Then and only then can it be determined if there is sufficient residue left for the heirs or the heirs creditors.

casesviardo v. belmonte

Dad was a defendant in a civil case. During pendency, he died and children were substituted as defendants.

Children cannot be held personally liable, despite the substitution. Remedy of plaintiff, the creditor/obligee is to proceed against the estate of the deceased father.

pamplona v. moreto

Dad sold parcel of land to buyer, but had not yet delivered parcel upon death.

Heirs are required to make delivery because heirs also inherit obligations of the deceased, which are not extinguished by death.

ledesma v. mclachlin

A has a child B, who has a child C. B (dad) is indebted to S (stranger) but dies before he pays the same. A (grandfather) died, leaving C (grandchild) as the heir. In As intestate proceedings, the S presents his claim for the credit against B.

Neither As estate, nor C is liable for neither contracted the debt, nor may it be said that C is inheriting from B because C is inheriting only from A. Stranger must shoulder the loss himself.

montesa v. ca

If parties say that the properties involved in the case were inherited by them from their deceased parents and grandparents, we can assume that the properties were the conjugal lots of said grandparents.

rabadilla v. ca

Whatever rights deceased had were transmitted to forced heirs at time of death.

Since obligations not extinguished by death also form part of the estate of the decedent, obligations imposed by the codicil were likewise transmitted to his compulsory heirs upon death.

when judicial administration is not essential

Judicial administration is not essential when the deceased left no pending obligations.

To compel the submission is unnecessary or superfluous

Heirs inherit the property subject to the decedent liabilities. Such liabilities, if not monetary can be threshed out in an ordinary action, despite the lapse of the estate proceedings.

guico v. bautista

Law allows the partition of the estate of a deceased person by the heirs, extra-judicially or through an ordinary action for partition, without the filing of a special proceeding and appointment of an administrator for the purpose of settlement of said state only if the decedent left no debts and heirs and legatees are all of age, or the minors are represented by their judicial guardians.

Where the deceased dies without pending obligations, there is no necessity for the appointment of an administrator to administer the estate for them, and to deprive real owners of their possession to which they are immediately entitled.

However, if the deceased left pending obligations, the obligations must be first paid before the estate can be divided.

Unless heirs reach an amicable settlement as to how such obligations should be settled, the estate would inevitably be submitted to administration for the payment of such debts.

777 Rights of succession are transmitted from the moment of death of the decdent.

Law says are transmitted, but proper wording should be are made effective

Otherwise, it may be interpreted to mean that it is the decedents right to succeed that is transmitted. It is the right to inheritance that is transmitted.

conditions for TRANSMISSION of successional rights

There has been a death (actual or presumed)

Rights or properties are indeed transmissible or descendible

Transferee is still alive (no predecease), willing (no repudiation), is capacitated to inherit. Requisites for Succession Mortis Causa)

gabil v. perez

Rights to succession are transmitted to heirs from the moment of death of their predecessor

maria vda. de reyes v. ca

Estate of decedent are held in co-ownership by the heirs.

Co-heir or co-owner may validly dispose of his share or interest in the property subject to the condition that the portion disposed of is eventually allotted to him in the division upon termination of the co-ownership.

danio suarez v. ca

Petitioners are siblings. Father died in 1955 and his estate, several parcels of land has not been liquidated or partitioned.

In 1977, the widowed mother and Rizal Realty Corp lost in the consolidated cases for recission of contract and for damages and were ordered by RTC to pay, jointly and severally, respondents aggregate principal amount of 70K as damages. 5 valuable parcels of land were levied and sold on execution in favor of respondents as the highest bidder. Respondents were issued a certificate of sale which was registered on Aug 1 1983.

On June 1984, before the expiration of the redemption period, petitioners filed a reivindicatory action and filed a case for the annulment of auction sale and recovery of the ownership of the levied pieces of property. They alleged that being strangers to the case decided against their mother, they cannot be held liable therefor and that the 5 parcels of land, of which they are co-owners, can neither be lieved nor sold on execution.

Court held that only of the 5 parcels of land should have been levied.

The legitime of a surviving spouse is equal to the legitime of each child

Article 888. The legitime of legitimate children and descendants consists of one-half of the hereditary estate of the father and of the mother. The latter may freely dispose of the remaining half, subject to the rights of illegitimate children and of the surviving spouse as hereinafter provided.

Article 892 par. 2. If there are two or more legitimate children or descendants, the surviving spouse shall be entitled to a portion equal to the legitime of each of the legitimate children or descendants. In both cases, the legitime of the surviving spouse shall be taken from the portion that can be freely disposed of by the testator.

. The proprietary interest of petitioners in the levied and auctioned property is different from and adverse to that of their mother.

Petitioners became co-owners of the property not because of their mother, but through their own right as children of their deceased father. They are not barred from instituting the action to annul the auction sale to protect their own interest

Court must determine that portion which belongs to petitioner and to annul the sale with regard to said potion.

nufable v. generosa

E Nufable died on Aug 9 1965. When entire property was mortgaged on March 15 1966, by his son Angel Custodio with DBP, the other heirs of E had already acquired successional rights over the property because rights to the succession are transmitted from the moment of the death of the decedent.

Does not matter for the transmission of rights whether the last will and testament was admitted on March 30 1966 or thereafter or that the Settlement of Estate was approved on Jun 6 1966 or months later.

actual death

Heir becomes owner and possessor of property upon death of the decedent, not upon actual delivery.

It is not tradition/delivery that transfers ownership, but succession.

Effects of an acceptance of inheritance retroact to the moment of death [footnoteRef:3]. [3: Article 1042. The effects of the acceptance or repudiation shall always retroact to the moment of the death of the decedent. ]

If there is repudiation, it is as if the heir never owned, never possessed the property, also because of the retroactive effect of repudiation. [footnoteRef:4] [4: id. ]

In absence of any other heir, the State inherits the property and it will be considered patrimonial.

presumed death

Succession is only provisional character.

Presumptions regard time of death are rebuttable. Proof may be presented as to when death actually occurred.

ordinary presumption because of ordinary absence

Absentee (who disappears under normal conditions, there being no danger or idea of death) shall be presumed dead for the purpose of opening his succession at the end of 10 YRS

5YRS in case he disappeared after the age of 75 [footnoteRef:5] [5: Article 390. After an absence of seven years, it being unknown whether or not the absentee still lives, he shall be presumed dead for all purposes, except for those of succession. The absentee shall not be presumed dead for the purpose of opening his succession till after an absence of ten years. If he disappeared after the age of seventy-five years, an absence of five years shall be sufficient in order that his succession may be opened. (n)]

Death is presumed to have occurred at the end of the period as the case may be

extraordinary presumption because of extraordinary or qualified absence

Qualified absence [footnoteRef:6] - qualified or extraordinary because of the great probability of death [6: Article 391. The following shall be presumed dead for all purposes, including the division of the estate among the heirs:(1) A person on board a vessel lost during a sea voyage, or an aeroplane which is missing, who has not been heard of for four years since the loss of the vessel or aeroplane;(2) A person in the armed forces who has taken part in war, and has been missing for four years; (3) A person who has been in danger of death under other circumstances and his existence has not been known for four years. (n)]

Presumed for all purposes including the division of estate among heirs.

Person on board a vessel lost during a sea voyage or an airplane which is missing or has not been heard of for 4 years since loss of vessel or airplane

Person in armed forces who has taken part in a war and has been missing for 4 years

Person who has been in danger of death under other circumstances and his existence has not been known for 4 years.

Presumed to have died at time of disappearance, not at the end of 4 years. At the end of 4 years, the presumption will arise that the death occurred 4 years before

Law says division of estate will be made at the end of 4 years succession really took place on the day of disappearance but the actual division will only be at the end of 4 years. From the beginning of said 4 years, the heir shall be considered owner and possessor of the property.

effect of absentees return or appearance

If absentee appears, or without appearing his existence is proved, he shall recover his property in condition in which it may be found, and the price of any property that may have been alienated or property acquired therewith.

However, absentee cannot claim fruits or rent.

If heir has already spent the money, it is submitted that there is no obligation to reimburse the value, since the consumption has been made in good faith.

Recovery may not be made if the heir, devisee, or legatee has acquired the property through prescription (extraordinary prescription in view of the lack of a just tile, there being no true succession)

problem on transitional provisions

Old CC : spurious children were not entitled to inherit even if filiation has been judicially declared

New CC (Aug 30 1950) : spurious children if recognized voluntarily or by judicial decree are entitled to inherit

If a spurious child was born when the OCC was in effect, but the father died when the NCC took effect, the spurious child will inherit as long as he can prove his filiation because the rights to the succession are transmitted or effected only from the moment of death.

It is the fathers death that gave rise to the succession, and since the death occurred when the NCC was already effective.

Spurious child should inherit, despite his being born under the old Code there being no vested right of the legitimate children that would be prejudiced.

If the father died before the effectivity of the NCC, then the spurious child would not have been entitled because this time, vested rights of the legitimate children would be prejudiced.

Applies even if there are settlement proceedings in court, resulting in the delivery of property to the theirs only after the NCC had become effective

Transfer of ownership takes place from the moment of death, not after delivery.

Succession by itself is a mode of acquiring ownership, without the necessity of delivery

Rights to inheritance of a person who died before the effectivty of the NCC shall be governed by the CC of 1899, previous laws and Rules of Court.

barles v. enrile

CC does not specify the period within which the action to investigate spurious paternity should be brought. However, the action is similar to the action for compulsory recognition of natural children. Same time limitation, in absence of express legal provision to the contrary should apply to both actions.

Child may prove that the defendant is the parent of the plaintiff, notwithstanding the refusal of the parent to admit the generative link.

Investigation should take place during the lifetime of the putative parent because only the parent is in a position to reveal the true facts surrounding the claimants conception

jayme v. gamboa

Acknowledged natural child was allowed the right to inherit under the OCC contrary to prior rulings.

Before OCC took effect, deceased had 2 legitimate children and an acknowledged natural child. After OCC took effect, 2 more legitimate children were born. Deceased died under the OCC.

Acknowledged natural child should be allowed to inherit. No vested rights of the legitimate children to the inheritance were impaired because successional rights begin only from the moment of death. Before death, no rights had accrued.

Natural and spurious children

No more distinction between natural and spurious children under the NCC.

Natural children those born outside wedlock with parents capacitated to marry each other at time of conception of the child

Spurious children- those born outside wedlock with parents not capacitated to marry each other at time of conception. Also referred to as illegitimate child

some effects of TRANSMISSION of rights from death

Prior to a persons death, his heirs merely have an inchoate right to his property.

During his lifetime, heirs have no right of disposition or alienation over said properties

After death, heirs own the property, subject to decedents liabilities.

Heirs may dispose or sell whatever interest, interest right or participation he may have in the property, even if the property is under administration.

Under the jurisdiction of the probate court.

In case seller-heir should die pending probate proceedings, validity of sale should be threshed out in the same action, not a separate action.

Declaration of heirs may be made even before all debts, expenses and taxes have been paid.

What is prohibited prior to such payment is the assignment or distribution of the residue of the deceaseds estate.

Pending litigation, heirs are entitled to certain allowances for their support, which are chargeable against the estate.

Valid for an heir, after testators death, to sell his share in the estate even pending litigation

Inheritance is already present, no longer future.

Future inheritance cannot be sold

Future inheritance inheritance, which may eventually be received form a person still alive. Any property or right not yet in existence or not yet capable of determination at the time a contract is made which a person in the future may acquire by succession

Donation of property after predecessors death, but before a judicial declaration of heirship is NOT a donation of future property.

felipe v. heirs of aldon

If wife sells conjugal land without husbands consent, heirs may question the transaction only after the death of the husband. It is only upon the death that their right to property becomes choate.

Heirs may question only insofar as their inherited share of the land is concerned.

blas v. santos

Inheritance that has accrued already may be the subject of sale, but not future inheritance.

Future inheritance property or right not in existence or capable of determination at time of the contract, that a person may in the future acquire by succession.

Wife may properly dispose of her share of the conjugal properties, since this is her own share or own existing property, not future inheritance, nor is it accrued inheritance. It is her own existing property.

saturino v. paulino

A and B inherit an estate. A sells the whole to C without Bs consent.

B may ask for the cancellation of the sale insofar as his share is concerned even if there are administration proceedings because he became owner of his share upon the decedents death. There is no need to wait for the result of the administration proceedings.

ibarle v. po

Widows sale of conjugal property (owned after husbands death by herself and her children), is not valid insofar as childrens share is concerned.

Even if there is no formal juridical declaration of ownership of children. Their rights accrued from moment of death.

gayon v. gayon

Heirs may be sued, after testators death, not as representatives of the decedent, but in their own right as owners of aliquot interest in the property in question.

Even if precise extent of their interest may still be undetermined and even if there is no pending special proceeding whereby the estate of the deceased is to be settled.

Heirs may also be sued without a previous declaration of heirship.

when there is no necessity of prior declaration of heirship

If there are no pending settlement proceedings for the distribution of an estate, there is no necessity for a prior declaration of heirship before heirs are allowed to begin an action arising from any right of the deceased. Ex. Action to annul a deed of sale

administration of the estate

When heirs are all of legal age and there are no debts to be settled

Generally no necessity to appoint an administrator and the heirs themselves may enter upon the administration of the property.

Heirs may even decide to have joint administration or

Heirs may, by mutual agreement, partition the property among themselves.

Even though the heirs, legatees or devisees have taken possession of the estate, possession should be surrendered to the judicial administrator, in case court appoints one.

Administrator will be subject to orders from the Court, unless he allows the heirs to remain in possession.

Even if administrator is appointed, heirs still have the right to intervene in judicial proceedings, if they have reasons to believe administrators actuations are detrimental to their rights.

Ex. Administrator is sued as defendant in a claim against the estate based on a Promissory Note. Failure to present available defenses will make it possible for heirs to intervene.

Suit may be brought against a special administratrix in a suit against the state

Otherwise, creditors would find the adverse effects of the statute of limitations running against them in cases where appointment of regular administrator is delayed.

Administrator must render an accounting

In determining whether or not the items of expenditures presented, whether supported by receipts or not, are correct, court may take into account the probability and reasonableness of each and every item.

Duty to render an account is not a mere incident of administration proceedings, which can be waived or disregarded when terminated.

Expenses of administration shall be borne by properties under administration or income therefrom.

Includes attys fees

If heirs had already been given their shares, they should be liable proportionately.

Administrator can be held personally liable only for any malfeasance, maladministration or violation of any of his duties as administrator.

palcite v. ramolete

At the moment of decedents death, heirs start to own the property, subject to decedents liabilities. They may dispose of the property even while under administration.

Heirs may also redeem redeemable properties despite the presence of an administrator.

yaptinchay v. del rosario

Declaration of heirship must be made in an administration proceeding, not an independent civil action.

Declaration of heirship can be made only in a special proceeding because it involves the establishment of a status or right.

silverio v. ca

Order of preference in appointment of an administrator depends on attendant facts and circumstances.

Probate court may, in the exercise of its discretion, disregard the order of preference to administration set forth in RoC.

Probate court is not vested with the power to order special administrator to sell real properties of the estate pending determination of validity of the regular administrators appointments.

possession of property both by administrator and by heirs

Executor or administrator shall have the right to take possession of properties of deceased, so long as it is necessary for the payment of the debt and expenses of administration. Where there are no debts to be paid, estate should pass to the heirs.

While hereditary property is materially possessed by the administrator as holder or administrator, it is also possessed by the heir as owners possessor through another, the administrator.

Ownership and possession of property are transmitted to the heir from the moment of death, as long as the heir accepts [footnoteRef:7] [7: Article 533. The possession of hereditary property is deemed transmitted to the heir without interruption and from the moment of the death of the decedent, in case the inheritance is accepted. One who validly renounces an inheritance is deemed never to have possessed the same]

Thus, for purposes of prescription (when deceased really did not own the property), time during which the property was being administered should be counted in favor of the heir, for then such heir would be a possessor in concept of owner.

Sale by administrator is really a sale of heirs rights and properties, and heirs cannot be deemed strangers to the sale.

inherent duty of trial court re administrators inventory

See to it that the inventory of the administrator lists all properties, rights and credits, which the law requires the administrator to include in his inventory.

Inherent power to determine what properties, rights and credits of the deceased the administrator should include or exclude in the inventory

However, court has no authority to decide whether the properties belong to the estate or to the persons examined.

If after such examination, there is good reason to believe that the person examined is keeping properties belonging to the estate, the administrator should file an ordinary action in court to recover.

In case of fraudulent conveyances, separate action is necessary to recover these assets

effect of fraudulent intestate proceedings

If heirs conceal the existence of other heirs, and as a result of such concealment, intestate proceedings award them property Prejudiced heirs can file an action to recover their shares, not withstanding the termination of settlement proceedings.

Reason: ownership of their shares accrued to them automatically upon decedents death

carreon v. agcaoili

Right of an heir or other persons unduly deprived of his lawful participation in the estate to compel the settlement of estate in the courts for the purpose of satisfying such lawful participation is effective only for a period of 2 years.

when no transmission occurs

If heir instituted is

Incapacitated,

Repudiates the inheritance or

Predeceases the testator

Or if heir is ready, willing and able but the right is not transmissible or descendible (ex. right to support)

Effect: Heir inherits nothing.

accrual of estate tax

NIRC Eliminated inheritance taxes and donees taxes

Inheritance (estate) tax is a tax on the transmission (transfer or devolution) of the property

Not on the property itself

Date the inheritance (estate) tax accrues is distinct from the date on which it must be paid

Estate Tax

Inheritance Tax (Now changed to Estate tax)

Virtual charge on the giver (deceased) for the transmission of property

Charge on the recipient (heirs, devisees and legatees)

Paid on what is left after the estate tax has been deducted from the residuary estate.

Estate and Inheritance taxes are complements of income tax.

Usual remedies available to citizens against creditors do not operate to the prejudice of tax collections. Taxes are not considered debts and a person may be imprisoned for failure to pay taxes. Reason: imperative needs of government for revenue

Administrator may not be required to pay the taxes where the government in turn in indebted to the same taxpayer for an amount greater than the amount of the tax

Compensation of the concurrent debts may take place by operation of law, so long as the requisites for legal compensation are present.

Lorenzo v. posadas

T died, providing in his will that 10 years after his death, H would become owner of his properties.

Inheritance tax should be computed at the death of T, not 10 years after when H becomes owner. Value of estate should be computed at death. Death is the generating source from which the power of state to impose taxes takes it being.

Upon death of decedent, succession takes place and right of state to tax vests instantly, tax should be measured by value of estate as it stood at time of decedents death, regardless of any subsequent contingency affecting value or any subsequent increase or decrease in value.

bar question

When and how is the right to succeed a deceased person acquired?

Right to succession is transmitted from the moment of the death of the decedent [footnoteRef:8] through testamentary, intestate or mixed succession [footnoteRef:9] [8: Article 777. The rights to the succession are transmitted from the moment of the death of the decedent. (657a)] [9: Article 778. Succession may be: (1) Testamentary;(2) Legal or intestate; or (3) Mixed.]

order of adjudication

Made by the court towards the end of testate proceedings

Distributes properties of the estate to those entitled thereto.

Judicial recognition that in appointing persons as heirs, legatees or devisees, the testator did not contravene the law and the recipients were in no way disqualified to inherit

Similar to a final order admitting a will to probate excludes the entire world from contending that the statutory formal requisites have not been observed in executing the will.

case of aruego

Action brought by private respondent for compulsory recognition and enforcement of successional rights was filed prior to the advent of the Family Code on Aug. 3 1988. Art 285 of the CC, not Art. 175 of the Family Code governs such action.

Family Code cannot be given retroactive effect insofar as the instant case is concerned. Application in this case will prejudice the vested right of private respondent to have her case decided under Art. 285 of the Civil Code. Such right vested to her by the fact that she filed her action under the regime of the Civil Code.

Action was not yet barred, notwithstanding the fact that it was brought when the putative father was already deceased, since private respondent was then still a minor when it was filed, an exception to the general rule under Art. 285.

Hence, the trial court, which acquired jurisdiction over the case by the filing of the complaint, never lost jurisdiction over the same despite the passing of the Family Code.

Jurisdiction of a court, whether in criminal or civil cases, once attached cannot be ousted by subsequent happening or events, although of a character which would have prevented jurisdiction from attaching in the first instance, and it retain jurisdiction until it finally disposes of the same.

where waiver is deemed validsanchez v. ca

Parties waived a known and existing interest their hereditary right, which was already vested in them by reason of the death of their father

There is no legal obstacle to an heirs waiver of his/her hereditary share even if the actual extent of such share is not determined until the subsequent liquidation of the estate.

Intent and letter of the law advocating compromise as a vehicle for the settlement of civil disputes.

effect where both parents deaths occurred before the enactment of the new civil code in 1950 social security system v. aguas

Where both parents deaths occurred before the enactment of the CC in 1950, the sharing arrangement involving children of the first marriage and the children of the second marriage shall share equally in the subject property in accordance with the old CC.

778. Succession may be

- Testamentary

- Legal or intestate

- Mixed

mixed successionparish priest of roman catholic church of victoria v. rigor

Decedent may have died partly testate and partly intestate.

Insofar as the will disposes certain properties, this is generally the law that should govern.

other kinds of succession compulsory (or necessary or forced) succession

Succession to the legitime

Compulsory for testator to give his compulsory heirs their legitimes

Not compulsory for heirs to receive or accept said legitimes.

No one is compelled to accept an economic advantage or benefit from another.

contractual succession

When a future husband and future wife give to each other in their marriage settlement as much of their future property, in the event of death, as they may validly dispose of in a will [footnoteRef:10] [10: Article 130. The future spouses may give each other in their marriage settlements as much as one-fifth of their present property, and with respect to their future property, only in the event of death, to the extent laid down by the provisions of this Code referring to testamentary succession. ]

Does not need the formalities of a will. Marriage settlement is sufficient.

Must comply with Statute of Frauds as to form (in writing)

779

Testamentary succession

- results from the designation of an heir

- made in a will executed in the form prescribed by law

some rules for testamentary succession

May be done through a will or through a codicil[footnoteRef:11] [11: an addition or supplement that explains, modifies, or revokes a will or part of one.]

Will or codicil[footnoteRef:12] may be [12: Article 791. The words of a will are to receive an interpretation which will give to every expression some effect, rather than one which will render any of the expressions inoperative; and of two modes of interpreting a will, that is to be preferred which will prevent intestacy. (n)]

Notarial ordinary, attested or acknowledged

Holographic handwritten by testator from beginning to end, complete with date and signature

In case of doubt, testamentary succession is preferred to legal or intestate succession

Art. 780. Mixed succession

-Effected partly by will and partly by operation of law

mixed succession

Prohibited under Roman law but allowed under the Civil Code

A made a will disposing half of his properties. Will is later on declared null and void. Succession becomes legal since the entire estate will descend to the heirs by operation of law.

781. Inheritance of a person

- includes not only the property and transmissible rights and obligations existing at the time of his death,

- but also those which have accrued thereto since the opening of the succession

what inheritance includes

Property, transmissible rights, and obligations (to the extent of the value of the inheritance)

As well as those which have accrued thereto since the opening of the succession (such as alluvium)

Accretions or accessions are strictly not inherited because they form part of the estate only after the heirs become owners. They are acquired by accretion (as an incident of ownership under the law), not by succession.

after acquired properties

Property acquired by testator between the time the will is made and the time he dies is NOT given to the designated heir

Unless contrary has been expressly provided [footnoteRef:13] [13: Article 793. Property acquired after the making of a will shall only pass thereby, as if the testator had possessed it at the time of making the will, should it expressly appear by the will that such was his intention.]

Property acquired between time will is made and time of death is acquired PRIOR to death, not after.

782.

Heir

- person called to the succession either by

- provision of a will or

- by operation of law

Devisees

- persons to whom gifts of real property are give by virtue of a will

Legatee

- persons to whom gifts of personal property are give by virtue of a will

transferees (causahabientes) in testamentary successionheirs

If they succeed by universal title - to all or fraction or aliquot part of properties, rights and obligations

Instituted to the whole or to an aliquot portion thereof, i.e., to the whole or to a fraction of the whole

Ex. T institutes Y as an heir. T gives Y 1/3 of his property.

Exists in testate, legal or mixed succession

compulsory heirs

If entitled to a legitime

voluntary heirs

ex. a friend

legatees and devisees

If they succeed by particular title to cash or to a particular or specified item or thing in the inheritance

Given individualized items of property

Exists only in testamentary succession

legatees

If they succeed to particular personal properties (legacies)

Ex. T gives L this Lexus car. T gives 5 million

devisees

If they succeed to particular real properties (devises)

Ex. T gives D this piece of land

importance of distinction between heirs on one vs legatees and devisees

In general, there is no difference in capacity, effect and solemnities

However, in PRETERITION [footnoteRef:14] (omission of compulsory heir) [14: Article 854. The preterition or omission of one, some, or all of the compulsory heirs in the direct line, whether living at the time of the execution of the will or born after the death of the testator, shall annul the institution of heir; but the devises and legacies shall be valid insofar as they are not inofficious. If the omitted compulsory heirs should die before the testator, the institution shall be effectual, without prejudice to the right of representation. (814a)]

Instituted voluntary heir gets nothing

Legatee or devisee still gets property given as long as the legitime is not impaired.

Also important for disinheritance x[footnoteRef:15] [15: Article 918. Disinheritance without a specification of the cause, or for a cause the truth of which, if contradicted, is not proved, or which is not one of those set forth in this Code, shall annul the institution of heirs insofar as it may prejudice the person disinherited; but the devises and legacies and other testamentary dispositions shall be valid to such extent as will not impair the legitime.]

transferees (causahabientes) in legal succession

In legal succession, transferees are called legal or intestate heirs

possibility of dual status

Happens when a compulsory heir is given more than his legitime

Insofar as his legitime is concerned compulsory heir

Insofar as the excess voluntary heir

Importance of distinction [footnoteRef:16] [16: Article 856. A voluntary heir who dies before the testator transmits nothing to his heirs.A compulsory heir who dies before the testator, a person incapacitated to succeed, and one who renounces the inheritance, shall transmit no right to his own heirs except in cases expressly provided for in this Code.]

If compulsory heir dies ahead of testator legitime is inherited by compulsory heirs child

If voluntary heir dies ahead of testator child of voluntary heir does not get anything

difference between sale and waiver of hereditary rightsacap v. ca

Contract of sale

One of the contracting parties obligates himself to transfer ownership of and to deliver a determinate thing, and the other party to pay a price certain in money or its equivalent

Presumes the existence of contract or deed of sale

Declaration of heirship and waiver of rights

Operates as a public instrument when filed with the RoD whereby the intestate heirs adjudicate and divide the estate left by decedent among themselves

In effect, it is an extrajudicial settlement between the heirs under Rule 74

Mode of extinction of ownership where there is an abdication or intentional relinquishment of a known right with knowledge of its existence and intention to relinquish it, in favor of other persons who are co-heirs in the succession.

case of josefa torres who died intestate (constatino v. ca)

Josefa Torres died intestate. Her heirs are Aurora Roque, Priscilla Luna and Josefina Torres.

Heirs of JT, as vendors and petitioner N Constantino entered into a contract to sell a parcel of land with a total of 250 square meters. The lot, owned in common by Torres heirs is being occupied by N Constantinos mother and sister. An adjoining lot, also co owned by the heirs is occupied by Lim spouses. Pursuant to agreement, heirs authorized petitioner to prepare the necessary Deed of Extrajudicial Settlement of Estate with Sale.

Petitioner asked heirs to affix their signatures on the documents.

Document drafted had several spaces left blank, including the specification as to the metes and bounds of the land.

Heirs signed, with the understanding that Aurora Roque ould be present when the latter would seek permission from Bureua of lands and have the land surveyed.

However, without the participation of any of the Torres heirs, property was subsequently surveyed, subdivided and covered by TCTs. Constantino did not furnish heirs with copies of the Deed of Extrajudicial Settlement of Estate with Sale, nor of the subdivision plan and certificates of title. Upon securing the deed from the RoD, Torres heirs discovered that the area of the property sold to Constantino was bigger than that agreed upon. It already included the portion occupied by the Lims.

Action for annulment of deed and cancellation of certification of title was filed.

Heirs claim that they signed the document before the land was surveyed and subdivided, hence there was as yet no definite area to be sold that could be indicated in the deed at the time of signing. They also claimed that they were not notified about the survey and the subdivision of the lot and could not have agreed on the area sold. They could not have agreed to the extent of the area actually reflected in the deed because it included the portion being occupied by the Lims, which was already subject of a previous agreement to sell.

Court held that there was no meeting of the minds on the land area to be sold since private respondents were still awaiting the survey to be conducted on the premises. Deed was notarized in Manila, when it could have been notarized in Bulacan. This additional detail cases doubt on the procedural regularity on the preparation, execution and signing of the deed.

When respondents affixed their signatures on the deed, it was still incomplete since petitioner who caused it to be prepared left several spaces blank, more particularly as regards the dimensions of the property to be sold. Heirs were persuaded to sign only upon assurance that Roque would be present when property would be surveyed. Supposed understanding was merely a ruse to induce heirs to sign the deed. Additionally handwritten figures on the subdivision plan leads us to the conclusion that the figures were not available were not available at the time document was formalized.

All elements of fraud vitiating consent for purposes of annulling a contract concur

Employed by a contracting party upon the other

Induced the other party to enter into the contract

Serious

Resulted in damages and injury to the party seeking annulment.

situation where heirs did not inherit any property right

Where an applicant for homestead did not acquire any vested rights over the land and fully owning it at the time of his death, his heirs did not inherit any property right from him

lopez v. ca

Failure on part of Bureau of Lands to act on application from time of death of applicant prevented his heirs to be subrogated in all his rights and obligations with respect to the land applied for.

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