Succession Finals Reviewer
SUCCESSION FINALS REVIEWER (Prof. Quintos)
IV. INTESTATE SUCCESSION
Takes place by operation of law in the absence of a valid will based on the presumed will of the decedent (Balane)
A. INSTANCES (Art. 960) (1) WILL – None / Void / Subsequently declared invalid / Leaves property undisposed
Loss of validity does not mean a will revoked by a subsequent valid will; in such case there would be no intestate succession (Scaevola and Sanchez Roman) If property is partially disposed, intestate succession will only take place to the part which the testator has not disposed (free portion)
(2) Rule of Equal Division - same degree shall inherit in equal shares except for full and half blood and division between paternal and maternal lines. Except in: (a) division between whole and half blood relatives, (b) division in representation and (c) division in the ascending line o Full blood receives double of half blood o Representatives divide among themselves only the share pertaining to the parent whom they represent o Should a person die w/o descendants and parents but with one paternal grandparent and both maternal grandparents surviving, the former will receive ½ of the inheritance while the latter will receive only ¼ each because there is first division between the lines, and within each line there is further division per capita.
(2) HEIR – None / Predecease / Repudiates (if no substitution) / Incapacity of succeeding Absence of institution of heirs involves
cases where institution is void. Predecease/repudiation – if testator has provided for substitution or when there is right of accretion, intestate succession won’t exist
(3) UNFULFILLED CONDITION
The fulfilment of a suspensive condition gives rise to rights; its non-fulfilment prevents acquisition of such rights by person conditionally instituted.
Expiration of the term/period of the institution, when the heir or devisee or legatee is instituted up to and until a day certain Non-compliance/ impossibility of complying with the will of the testator Preterition (Balane)
B. INTESTATE HEIRS (Art. 961) (1) LC/A (4) Surviving Spouse (2) LP/A (5) Collateral relatives (3) ILC (6) State
Not applicable where right of representation obtains – virtually confers upon representative a degree of relationship superior to that which ordinarily corresponds to them in the succession; the person having the right inherits in place of the person under the same conditions as the latter. The law calls first the descendants, then the ascendants, and finally the collaterals.
Computation of degrees: 1) Direct – no legal limit; 2) Collateral – only to the 5th degree
D. ACCRETION WHEN ACCRETION TAKES PLACE (Art. 968) (1) Several relatives of same degree (2) Unwilling/incapacitated to succeed (3) No right of representation.
Widow is not an intestate heir of a mother-in-law. Intestate heirs are those who inherit (1) by their own right and (2) right of representation. There is no provision of law supporting widow as intestate heir but she can only be heir top the estate of the deceased spouse. (Rosales v. Rosales)
C. BASIC RULES OF INTESTACY (1) Rule of Proximity (Art. 962) – nearest in degree exclude more distant ones (except in case of representation) 1 | LAMUG
Predecease, incapacity, renunciation; representation prevents accretion (Balane) Should be same kind of relationship to decedent following principle of preference of lines Shares that would have pertained to those who repudiated or are incapacitated do not pass not relatives of the next degree, but are retained by the other relatives of the same degree through the right of accretion, with the exception of cases where the right f representation obtains.
SUCCESSION FINALS REVIEWER (Prof. Quintos)
* In case of repudiation, those of the following degree inherits in their own right; no representation takes place (Art. 969). The right of succession should first be passed on the heirs in succeeding degrees before the next line can succeed
E. REPRESENTATION 1. Definition (Art. 970) Representation – right created by legal fiction where the representative is raised to the place and the degree of the person represented, and acquires the rights which the latter would have if he were living or if he could have inherited. (Tumbokon v. Legaspi)
Equivalent to subrogation – person being placed in the position of the person represented for the purpose of enabling the former to succeed in an inheritance in place of the latter by reason of his death, incapacity or disinheritance.
The person representing does not succeed the person represented but some other person
Only takes place in intestacy; if in testamentary succession, only with respect to the legitime. Title in testamentary succession is voluntary and personal in character and destroyed by prior death or incapacity of the heir.
While a legitimate child can always represent, the illegitimate child can represent only when the parent to be represented is himself an illegitimate child of the decedent (permissible when the line is completely illegitimate).
Adopted child cannot represent parent because the legal tie of adoption is personal and exclusive between adopter and the adopted.
2. Effect (Art. 971) The representative is called to the succession by the law and not by the person represented. The representative does not succeed the person represented but the one whom the person represented would have succeeded.
Representative shall not be liable for debts of represented because he/she inherited directly from the person whom the represented would have received the property. Representation is not affected by will; even if in the will he bequeathed unequal portions to children, they will still equally receive portions pertaining to them by representation from a grandparent.
3. Rules (1) Only in direct descending line, never in the ascending. In the collateral line, it takes place only in favor of the children of brothers or sisters, whether they be of the full or half blood (Art. 972).
In the direct descending line, representation is unlimited; in the collateral line, limited in favor only of the children of brothers/sisters (nieces/nephews) but only if it concurs with aunts and uncles. The illegitimate cannot be represented in the collateral line
(2) Representative should be capacitated to inherit (Art. 973). (3) Division is per stirpes; representative shall not inherit more than what the person represented may inherit (Art. 974).
Per capita – estate is divided into as many equal parts are there are persons to succeed (general rule); Per estirpes – one sole descendant/group of descendants represent a person in intestacy. The sole representative/group of representatives counted as one head The person representing a relative step into the place of the person represented therefore should get only what the person represented would have received.
(4) When children of one or more brothers or sisters of the deceased survive, they shall inherit from the latter by representation, if they survive with their uncles or aunts. But if they alone survive, they shall inherit in equal portions (Art. 975). (5) A person may represent him whose inheritance he has renounced (Art. 976). In case person who is to inherit in his own right predeceased the decedent and children renounced inheritance from person; children can still represent person in the succession of the decedent; representative simply takes his place
This includes unworthiness, incapacity and disinheritance
(6) Heirs who repudiate their share may not be represented (Art. 977). F. ORDER OF INTESTATE SUCCESSION 1. Direct Descending Line Does not have precedence over ILC and
2 | LAMUG
surviving spouse (concurring intestate heirs) but only to direct ascending line, collateral relatives and State.
Adopted child is legal heir of adopter by virtue of the FC.
SUCCESSION FINALS REVIEWER (Prof. Quintos)
1. Children of the deceased shall inherit in their own right (Art. 980) but if there are children of the deceased and descendants of other children who are dead, the latter inherit by right of representation (Art. 981)
Grandchildren and other descendants will always inherit by right of representation but if the failure to inherit is due to repudiation, they cannot represent; in such case, grandchildren will inherit in their own right as relatives next in degree.
2. If LC+ILC ½ LC = ILC (Art 983) 3. If adopted child dies with no children or descendants, his parents and relatives by consanguinity and not by adoption shall be his legal heirs (Art. 984)
filiation is duly proved as to both parents, who are both living, they shall inherit from him share and share alike. (944) Art. 994. In default of the father or mother, an illegitimate child shall be succeeded by his or her surviving spouse who shall be entitled to the entire estate. If the widow or widower should survive with brothers and sisters, nephews and nieces, she or he shall inherit one-half of the estate, and the latter the other half. (945a)
Presumption is that man and woman deporting themselves as husband and wife lawfully wedded and child born unto them in lawful wedlock is considered legitimate. (Corpus v. Corpuz)
An alleged grandchild born outside wedlock cannot, by right of representation, claim a share in the estate left by an alleged deceased grandparent. (Leonardo v. CA)
ILC cannot inherit ab intestato from the legitimate children and relatives of his father or mother nor shall such children or relatives inherit in the same manner form the illegitimate child. (Diaz v. IAC, Manuel v. Ferrer)
BUT FC provides that adopter concurs with parents and ascendants and ILC and surviving spouse of the adopted.
2. Direct Ascending Line In default of LC/A, P/A shall inherit to the exclusion of collaterals (Art. 985). In default of parents, ascendants nearest in degree inherit. If in equal degree and same line, inheritance shall be divided per capita; if in equal degree but different line: ½ paternal ascendants, ½ maternal ascendants per capita (Art. 987).
Parents are first to succeed and be equally distributed to each. If only one parent survives, he/she succeeds to entire estate of child because no right of representation in the ascending line Grandparents succeed in their own right. Division of estate is by line and per capita within each line.
3. Illegitimate Children Art. 991. If legitimate ascendants are left, the illegitimate children shall divide the inheritance with them, taking one-half of the estate, whatever be the number of the ascendants or of the illegitimate children. (942-841a) Art. 992. An illegitimate child has no right to inherit ab intestato from the legitimate children and relatives of his father or mother; nor shall such children or relatives inherit in the same manner from the illegitimate child. (943a) Art. 993. If an illegitimate child should die without issue, either legitimate or illegitimate, his father or mother shall succeed to his entire estate; and if the child's
4. Surviving Spouse If no legitimate descendants and ascendants, illegitimate children and their descendants, surviving spouse shall inherit without prejudice to rights of brothers and sisters, nephews and nieces (Art. 995). Widow + LC widow = children (Art. 996). Widow + LA widow = ½ of estate, ascendants = ½ estate (Art. 997) Widow + ILC Widow = ½ of inheritance, ILC = ½ inheritance (Art. 998). Widow + LC + ILC Widow = LC (Art. 999). LA + Widow + ILC LA = ½ of inheritance, Widow = ¼, ILC = ¼ (Art. 1000). Bro/sis + widow Widow = ½ of inheritance, Bro/sis = ½ of inheritance (Art. 1001). No rights is widow caused legal separation (Art. 1002).
3 | LAMUG
SUCCESSION FINALS REVIEWER (Prof. Quintos)
deceased, debts shall be paid following preference of credits (Art. 1059)
Santillon v. Miranda
5. Collateral Relatives If no descendants, ascendants, ILC or widow, collateral relatives shall succeed (Art. 1003). Bro and sis in full blood equal shares (Art. 1004). Bros and sis + nephews and nieces bros/sis = per capita, neph/nie = per stirpes (Art. 1005) b/s full blood + b/s half blood full blood = 2half blood (Art. 1006) b/s half blood = equal shares (Art. 1007) Art. 1008. Children of brothers and sisters of the half blood shall succeed per capita or per stirpes, in accordance with the rules laid down for the brothers and sisters of the full blood. (915) No bro/sis other collateral relatives (w/in 5th degree (Art. 1010)) succeed w/o distinction of lines or preference (Art. 1009) Bicomong v. Almanza Bacayo v. Borromeo Carlos v. Sandoval
6. State State shall inherit if there are no other following rules on Escheat (Art. 1011-1012) Payments of debts and charges shall be assigned to municipality where decedent resided, real estate where it is situated. If non-resident, where property is located. For the benefit of public schools and public charitable institutions and centers. Court may order establishment of permanent trust (Art. 1013). If a person legally entitled to the estate of the deceased appears and files a claim thereto with the court within five years from the date the property was delivered to the State, such person shall be entitled to the possession of the same, or if sold the municipality or city shall be accountable to him for such part of the proceeds as may not have been lawfully spent. (Art. 1014) G. EXECUTORS AND ADMINISTRATORS Governing law shall be the ROC (Art. 1058) If assests insufficient to pay debts of
A corporation or association authorized to conduct the business of a trust company in the Philippines may be appointed as an executor, administrator, guardian of an estate, or trustee, in like manner as an individual; but it shall not be appointed guardian of the person of a ward. (1060) In Re: Estate of Aguinaldo Suntay Ocampo v. Ocampo
H. COLLATION 1. Definition 2. Among Compulsory Heirs Every compulsory heir, who succeeds with other compulsory heirs, must bring into the mass of the estate any property or right which he may have received from the decedent, during the lifetime of the latter, by way of donation, or any other gratuitous title, in order that it may be computed in the determination of the legitime of each heir, and in the account of the partition. (Art. 1061) Collation shall not take place among compulsory heirs if the donor should have so expressly provided, or if the donee should repudiate the inheritance, unless the donation should be reduced as inofficious. (Art. 1062) 3. Property Left by Will Art. 909. Donations given to children shall be charged to their legitime. Donations made to strangers shall be charged to that part of the estate of which the testator could have disposed by his last will. Insofar as they may be inofficious or may exceed the disposable portion, they shall be reduced according to the rules established by this Code. (819a) Art. 910. Donations which an illegitimate child may have received during the lifetime of his father or mother, shall be charged to his legitime. Should they exceed the portion that can be freely disposed of, they shall be reduced in the manner prescribed by this Code. (847a)
4 | LAMUG
SUCCESSION FINALS REVIEWER (Prof. Quintos)
Art. 911. After the legitime has been determined in accordance with the three preceding articles, the reduction shall be made as follows: (1) Donations shall be respected as long as the legitime can be covered, reducing or annulling, if necessary, the devises or legacies made in the will; (2) The reduction of the devises or legacies shall be pro rata, without any distinction whatever. If the testator has directed that a certain devise or legacy be paid in preference to others, it shall not suffer any reduction until the latter have been applied in full to the payment of the legitime. (3) If the devise or legacy consists of a usufruct or life annuity, whose value may be considered greater than that of the disposable portion, the compulsory heirs may choose between complying with the testamentary provision and delivering to the devisee or legatee the part of the inheritance of which the testator could freely dispose. (820a) Art. 912. If the devise subject to reduction should consist of real property, which cannot be conveniently divided, it shall go to the devisee if the reduction does not absorb one-half of its value; and in a contrary case, to the compulsory heirs; but the former and the latter shall reimburse each other in cash for what respectively belongs to them. The devisee who is entitled to a legitime may retain the entire property, provided its value does not exceed that of the disposable portion and of the share pertaining to him as legitime. (821) Art. 913. If the heirs or devisees do not choose to avail themselves of the right granted by the preceding article, any heir or devisee who did not have such right may exercise it; should the latter not make use of it, the property shall be sold at public auction at the instance of any one of the interested parties. (822)
Art. 914. The testator may devise and bequeath the free portion as he may deem fit. (n) De Roma v. CA Gregorio v. Madarang
4. Coverage Art. 1064. When the grandchildren, who survive with their uncles, aunts, or cousins, inherit from their grandparents in representation of their father or mother, they shall bring to collation all that their parents, if alive, would have been obliged to bring, even though such grandchildren have not inherited the property. They shall also bring to collation all that they may have received from the decedent during his lifetime, unless the testator has provided otherwise, in which case his wishes must be respected, if the legitime of the coheirs is not prejudiced. (1038) Art. 1065. Parents are not obliged to bring to collation in the inheritance of their ascendants any property which may have been donated by the latter to their children. (1039) Art. 1066. Neither shall donations to the spouse of the child be brought to collation; but if they have been given by the parent to the spouses jointly, the child shall be obliged to bring to collation one-half of the thing donated. (1040) Art. 1067. Expenses for support, education, medical attendance, even in extraordinary illness, apprenticeship, ordinary equipment, or customary gifts are not subject to collation. (1041) Art. 1068. Expenses incurred by the parents in giving their children a professional, vocational or other career shall not be brought to collation unless the parents so provide, or unless they impair the legitime; but when their collation is required, the sum which the child would have spent if he had lived in the house and company of his parents shall be deducted therefrom. (1042a) Art. 1069. Any sums paid by a parent in satisfaction of the debts of his children, election expenses, fines, and similar
5 | LAMUG
SUCCESSION FINALS REVIEWER (Prof. Quintos)
expenses shall be brought to collation. (1043a) Art. 1070. Wedding gifts by parents and ascendants consisting of jewelry, clothing, and outfit, shall not be reduced as inofficious except insofar as they may exceed one-tenth of the sum which is disposable by will. (1044) Art. 1071. The same things donated are not to be brought to collation and partition, but only their value at the time of the donation, even though their just value may not then have been assessed. Their subsequent increase or deterioration and even their total loss or destruction, be it accidental or culpable, shall be for the benefit or account and risk of the donee. (1045a) Art. 1072. In the collation of a donation made by both parents, one-half shall be brought to the inheritance of the father, and the other half, to that of the mother. That given by one alone shall be brought to collation in his or her inheritance. (1046a) Art. 1073. The donee's share of the estate shall be reduced by an amount equal to that already received by him; and his co-heirs shall receive an equivalent, as much as possible, in property of the same nature, class and quality. (1047) Art. 1074. Should the provisions of the preceding article be impracticable, if the property donated was immovable, the coheirs shall be entitled to receive its equivalent in cash or securities, at the rate of quotation; and should there be neither cash or marketable securities in the estate, so much of the other property as may be necessary shall be sold at public auction. If the property donated was movable, the coheirs shall only have a right to select an equivalent of other personal property of the inheritance at its just price. (1048) Art. 1075. The fruits and interest of the property subject to collation shall not pertain to the estate except from the day on which the succession is opened.
For the purpose of ascertaining their amount, the fruits and interest of the property of the estate of the same kind and quality as that subject to collation shall be made the standard of assessment. (1049) Art. 1076. The co-heirs are bound to reimburse to the donee the necessary expenses which he has incurred for the preservation of the property donated to him, though they may not have augmented its value. The donee who collates in kind an immovable which has been given to him must be reimbursed by his co-heirs for the improvements which have increased the value of the property, and which exist at the time the partition if effected. As to works made on the estate for the mere pleasure of the donee, no reimbursement is due him for them; he has, however, the right to remove them, if he can do so without injuring the estate. (n) Art. 1077. Should any question arise among the co-heirs upon the obligation to bring to collation or as to the things which are subject to collation, the distribution of the estate shall not be interrupted for this reason, provided adequate security is given. (1050) V. PARTITION AND DISTRIBUTION OF ESTATE A. Definition Partition - the separation, division and assignment of a thing held in common among those to whom it may belong. The thing itself may be divided, or its value. (Art. 1079.) Before partition, the entire estate of the deceased is owned in common by such heirs subject to payment of debts of the deceased (Art. 1078) Distribution and Partition The order of distribution, pending intestate or testamentary proceedings, based on a project of partition designates the shares which pertain to the heirs, devisees and legatees. It may merely designate the proportions in residue and may omit to designate particular and specific properties as belonging to each beneficiary. Order of Distribution Who may Effect Partition 1. Heirs themselves (extrajudicial)
6 | LAMUG
SUCCESSION FINALS REVIEWER (Prof. Quintos) 2. 3. 4.
Court (ordinary action for partition) Testator himself Third person designated by testator
From the moment of death, each co-heir becomes co-owners having undivided interest in the property of the deceased subject to the payment of debts of the decedent. Each co-owner may sell such share to a stranger. Maestrado v. CA Hermoso v. CA
B. Inter vivos or by Will Partition made by an act inter vivos or by will shall be respected as long as it does not impair the legitime of the compulsory heirs. If a parent desires to keep any agricultural, industrial or manufacturing enterprise intact, he may order that the legitime of the other children whom the property is not assigned be paid in cash (Art. 1080).
In Re; Will of Santiago Acnog v. CA Alejandrino v. CA
D. Rules Equality shall be observed; the property shall be divided into lots and assigned to each coheirs things of the same nature, quality and kind (Art. 1085). Partition of Real Estate
Valid Will Essential Revocation of Partition Properties not partitioned Enterprise Assigned to Children A person may entrust the power to make the partition after his death to any person apart from the co-heirs. These shall be observed even if one of the co-heirs is a minor is subject to guardianship but the mandatary shall make an inventory of the property after notifying the co-heirs, creditors, legatees and devisees (Art. 1081). Delegation of Partition
If thing is indivisible, it may be adjudicated to one of the heirs who shall pay the excess in cash. If co-heirs demand that thing be sold at public auction and that strangers be allowed to bid, it shall be allowed (Art. 1086). Co-heirs shall reimburse one another for the income and fruits received from any property of the estate, useful and necessary expenses and for damage due to malice or neglect (Art. 1087). The titles of acquisition or ownership of each property shall be delivered to the co-heir to whom said property has been adjudicated. (Art. 1089)
Alsua-Betts v. CA Dizon-Rivera v. Dizon Chavez v. IAC JLT Agro v. Balansag
C. How and When Effected Unless forbidden by the testator, every coheir has the right to demand partition. In any case, indivision shall not exceed 20y. Even though forbidden by the testator, the co-ownership terminates when any of the causes for which partnership is dissolved takes place, or when the court finds for compelling reasons that division should be ordered, upon petition of one of the co-heirs (Art. 1083). Prescription of Right Prohibition of Division
If a condition is imposed on a voluntary heir and has not complied with the condition, he cannot demand partition. The other co-heir may demand partition by giving sufficient security for the rights which the former may have in case the condition should be complied with. Partition shall be understood to be provisional until it is known that condition has not been complied with (Art. 1084)
When title comprises of 2 or more pieces of land assigned to two or more co-heirs, the title shall be delivered to the one having the largest interest. Authentic copies of the title shall be furnished to the other co-heirs at the expense of the estate. If the interest of each co-heir should be the same, the oldest shall have the title (Art. 1090). E. Legal Redemption by Co-heris Should any of the heirs sell his hereditary rights to a stranger before the partition, any or all of the co-heirs may be subrogated to the rights of the purchaser by reimbursing him for the price of the sale, provided they do so within the period of one month from the
7 | LAMUG
SUCCESSION FINALS REVIEWER (Prof. Quintos)
time they were notified in writing of the sale by the vendor. (Art. 1088) Legal Redemption by co-Heir; Requisites 1. Several Heirs to Common Inheritance 2. One sells hereditary rights 3. Sale made on stranger before the partition has been made 4. One or more of co-heirs demand repurchase within one month from notification of sale 5. Buyer is reimbursed of price of sale Who may redeem Period of redemption Right of Redemptioner V. Redemption of Co-owner Hermoso v. CA Mariano v. CA Cua v. Vargas
F. Effects of Partition 1. Confers upon each heir the exclusive ownership of the property adjudicated to him (art. 1091). Judgment in Partition Effect on Third Parties 2. Co-heirs shall be reciprocally bound to warrant the title to and the quality of each property adjudicated (art. 1092) Warranty against eviction Warranty as to quality *Warranty shall be proportionate to the respective hereditary shares of the co-heirs. If any should be insolvent, the co-heirs shall be liable for his part in the same proportion, deducting the part corresponding to the one who should be indemnified but he shall have the right of action against insolvent co-heir for reimbursement if his financial conditions improve (Art. 1093). * An action to enforce warranty must be brought within 10y from the date right of action accrues (Art. 1094) * If a credit should be assigned as collectible, the co-heirs shall not be liable for the subsequent insolvency of the debtor of the estate, but only for his insolvency at the
time the partition is made. The warranty of the solvency of the debtor can only be enforced during the five years following the partition (Art. 1095). *Co-heirs do not warrant bad debts, if so known to, and accepted by, the distributee. But if such debts are not assigned to a coheir, and should be collected, in whole or in part, the amount collected shall be distributed proportionately among the heirs (Art. 1095). Termination of Warranty Among Co-heirs (Art. 1096) (1) When the testator himself has made the partition, unless it appears, or it may be reasonably presumed, that his intention was otherwise, but the legitime shall always remain unimpaired; (2) When it has been so expressly stipulated in the agreement of partition, unless there has been bad faith; (3) When the eviction is due to a cause subsequent to the partition, or has been caused by the fault of the distributee of the property. G. Rescission and Nullity of Partition 1. Causes A partition may be rescinded or annulled for the same causes as contracts (Art. 1097). Recission and Nullity Voluntary partition 2. Existence of lesion Lesion - when any one of the co-heirs received things whose value is less, by at least one-fourth, than the share to which he is entitled, considering the value of the things at the time they were adjudicated (Art. 1098). There should be prejudice to the legitime of the compulsory heir or when it appears or may reasonably be presumed, that the intention of the testator was otherwise (Art. 1099). The action for rescission shall prescribe after 4y from partition (Art 1100). Heir who is sued may indemnify plaintiff (cash or thing of same nature, kind quality) or consent to new partition (Art. 1101). An heir who has alienated the whole or a considerable part of the real property adjudicated to him cannot maintain an
8 | LAMUG
SUCCESSION FINALS REVIEWER (Prof. Quintos)
action for rescission on the ground of lesion, but he shall have a right to be indemnified in cash (Art. 1102). The omission of one or more objects or securities of the inheritance shall not cause the rescission of the partition on the ground of lesion, but the partition shall be completed by the distribution of the objects or securities which have been omitted (Art. 1103). 3. Partition with preterition Partition will only be rescinded if it is proved that there was bad faith or fraud on the part of the other persons interested (will be proportionately obliged to pay to the person immited the share which belongs to him (Art. 1104). Bautista v. Grino-Aquino
9 | LAMUG