In this blog, we shall be focusing on one of the few derivative modes of acquiring ownership: succession, including donation mortis causa.
What is ownership?
Ownership is defined as the exclusive right of the possession, enjoyment, and disposing of a property.
Under Article 712 of the New Civil Code:
“Ownership is acquired by occupation and by intellectual creation.
Ownership and other real rights over property are acquired and transmitted by law, by donation, by testate and intestate succession, and in consequence of certain contracts, by tradition.
They may also be acquired by means of prescription (609a)”
What is Succession?
Under Article 774 of the New Civil Code, succession is a mode of acquisition by virtue of which the property, rights and obligations to the extent of the value of the inheritance of a person are transmitted through his death to another or others either by his will or by operation of law.
What are the Types of Succession?
- Testate or Testamentary Succession
This type of succession is a result from the designation of an heir and is made in a will executed in the form prescribed by law.
However, please take note that testamentary succession is not absolute, as it is subject to the right of the compulsory heirs to their legitime.
- Legal or Intestate Succession
A legal or intestate succession is when a decedent dies without a will or with an invalid will. Distribution of the property shall be made in accordance with the Civil Code.
- Mixed
A mixed type of succession is when the transmission is made partly by will and partly by the operation of law.
What are the Elements of Succession?
- Death of a Decedent
The person who died owns the property to be transmitted through succession.
- Inheritance
Properties, rights, obligations of the decedent not extinguished by death
- Successors
A person called to the succession.
- Acceptance
The acceptance of an inheritance may be either express or tacit. A tacit acceptance is one where actions imply the intention of the successor. An express acceptance is made in a public or a private document.
What else is covered by the Rules on Succession?
Donation mortis causa is also covered by the Rules on Succession. With the direct translation of “Awareness that death is approaching”, it simply means that a donation is made in contemplation of the donor’s death. The ownership of the donated properties, be it full or naked ownership, will only pass to the donee because of the donor’s death. A donation mortis causa must be in the form of a will, with all the formalities for the validity of wills, otherwise it is void and cannot transfer ownership.
Donation mortis causa has the following distinguishing characteristics:
- No title or ownership is conveyed unto the donee before the death of the donor. Ownership and control of the property shall remain with the donor while he is still alive.
- Transfer is revocable before the donor’s death.
- Transfer shall be considered void if the donor survives the donee.
