CIVIL LAW Title IV Succession in General

SUCCESSION

From Latin sub and cedere meaning placing one person in the place of another is defined as the transmission of rights and properties from one person to another. It may be either be inter vivos or mortis causa

Kinds of Succession 1. As to effectivity a. Succession inter vivos during the lifetime of the giver (e.g. ordinary donation) b. Succession mortis causa- after the death of the giver (this is what is discussed in this Title); in specific sense meant in Art. 774 2. As to extent of rights involved a. Universal--this is very catchy-it involves the entire estate or fractional or aliquot or undivided part of the estate, e.g., I give you 1/2 of my estate; covers ALL juridical relations involving the deceased b. Particular/ partial--succession to specific items Aliquot means a. legacy--specific personal prop., e.g., I give you my car portion of a b. devise--specific real prop., e.g., I give to G my fishpond in Laguna
larger whole

3. As to whether a will exists or not a. Testamentary succession there is a will b. Intestate or legal succession there is no will c. Mixed succession part of the property has been disposed of through a will; combination of the above 4. As to the transferees of the property a. Compulsory succession- that effected by operation of law to forced heirs even if not in a will; succession to the reserved portion/ legitime b. Voluntary refers to the free disposal 5. Special kind Contractual--E.g., donation propter nuptias by one to another of future property which takes effect after death; future husband and future wife give to each other future property, effective mortis causa, by means of marriage settlement. Why contractual? Because the transfer of property is not by virtue of a will but by contract. So it is governed by the law on contracts. Hence, it must be governed by the Statute of Frauds. It must be in writing to be enforceable.

Additional notes from other authors: 6. As to parties to succession a. Decedent, transferor, causante, acutor, de cuius b. Successor, transferee, causa habiente 7. As to terms a. Testator--decedent left a will b. Intestate--decedent did not leave a will c. Heir--one who succeeds by universal title or to a share of the estate d. Devisee--one who succeeds by particular title to real prop. Elements of Succession (Manresa.) 1. Change of subject (cambio de suheto.)--ownership is transferred from deceased to heir (subjective change.) 2. Identity of Object (identidad de objecto)--same prop. is involved, only the owner is changed. The right is the same (objective identity.) Important Principles of Succession (which permeates the entirety of Succession): 1. Mortis Causa.--Succession can not take place while the owner is alive.The heir/successor has a mere expectancy right to the prop. of the decedent, during the lifetime of the latter. 2. Interest of the family may override the will of the decedent bec. of compulsory heirs. There is a legitime reserved for the family.A will cannot impair the legitime. 3. The estate passes or devolves to the family unless the decedent expressly orders otherwise in a will.Family covers spouse, ascendants, descendants, and collateral relatives. 4. The family can not be entirely deprived of the estate bec. of the system of legitime. 5. Within the family, heirs of equal degree/ proximity inherit in equal shares. Presumption of equality.This is only the general rule.There are exceptions. 6. The State has a share in the inheritance through taxes. 7. The heirs are not liable for the debts of the estate beyond their share in the inheritance.Estate is liable for the debts left by the decedent.Debts are to be deducted before the heirs canget their shares.Procedure:Collect all assets, deduct debts, then partition the shares.Up to whatextent?Up to all its assets.If the estate is zero balance, the heirs get nothing. Under the modern civil law, if the decedent left more debts than assets, it will not change or affect your status anyway, but not w/ the decedent's creditors-- they have to beware--caveat creditor.

Basis of the Law on Succession.--Some say it is the law on property w/c seems to be the basic

attitude of the Code.Others say succession is a law on persons bec. of the compulsory heirs.How can you explain that?Is there some link bet. the law on succession and property?There is.Castan said that law on succession is both law on persons and property.However, in a puretestamentary succession, the law on persons do not come to play.Say, a will giving UP aproperty.This is more on the law of property.This is the ecclectic theory of Castan. Major Changes in the New Civil Code on Succession: 1. Allowance of holographic wills (Art. 810.)It gives greater freedom to the decedent to choose in what form he can dispose by will his estate. Holographic will is not a novelty but a revival. This was allowed in the Spanish times but was abrogated during the American regime. It was only restored under the NCC. 2. Improvement in the successional position of the surviving spouse. Under the OCC, the surviving spouse had a right of usufruct only. Under the NCC, the surviving spouse is given full ownership and is a compulsory heir. The share is variable that it is so bewildering. 3. Abolition of the right of mejora or betterment (the right of the parent to give a child more than the other.)This is basically a portion of the legitime, 1/3.Freedom is given to the testator as to who among his children he will give the 1/3.This system was never utilized because. It was never understood by the people. 4. Abolition of the reservas and reversiones. The NCC restored reserva troncal, reversion adoptiva (under PD 603.) 5. Granting successional rights to/ for spurious children-- illegitimate other than natural. This is one of the revolutionary changes in the NCC. Under the OCC only legitimate children have successional rights. NCC liberalized it by granting successional rights to spurious children. 6. Greater facility in the probate of wills. Why? Because of the allowance of ante mortem probate, that is, during the lifetime of the testator. Now, probate may be postmortem or antemortem.

7. The application of the prohibition outlined in Art. 739 to succession. This is by virtue of Art. 1038. Art. 739 provides that:

Article 739.The following donations shall be void: (1) Those made between persons who were guilty of adultery or concubinage at the time of the donation; (2) Those made between persons found guilty of the same criminal offense, in consideration thereof; (3) Those made to a public officer or his wife, descendants and ascendants, by reason of his office. In the case referred to in No. 1, the action for declaration of nullity may bebrought by the spouse of the donor or donee; and the guilt of the donor and doneemay be proved by preponderance of evidence in the same action. 8. Increase of the free portion--corollary to the abolition of the mejor 9. Limitation of the fidei commisary substitution to one degree (before, two degrees) 10. Intestate succession is narrowed from sixth degree to fifth degree. 11. Abolition of the institution under pupilar and ejemplar (substitution.) 12. Allowance of lifetime probate. Areas in Succession Affected by the American Code: 1.Rules in interpretation.--Arts. 788-792 2.Rules on formal requirements of a will.--Arts. 804-809 3.Rules governing witnesses to wills.--Arts. 820-824 4.Rules on republication and revival of wills.--Arts. 835-836 5.Rules on revocation.--Arts. 829-831 6.Rules on allowance and disallowance of wills.--Arts. 838-839 7.Rules on Testamentary capacity. Chapter 1 GENERAL PROVISIONS Article 774. 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. (n) This defines succession mortis causa Important elements of definition 1. Mode of acquisition ( or ownership) 2. Transfer of property, rights and obligation to the extent of the value of the inheritance of a person (called grantor or transferor, decedent, testator, or intestate) 3. Transmission through death (not during life) 4. Transmission to another ( called grantee, or transferee, heir, legatee, or devisee) 5. By will or by operation of law (testamentary or legal succession)

Bases for succession 1. Natural law- which obliges a person to provide for those he would leave behind; a consequence of family relation; recognition of consanguinity 2. Socio-economic postulate which would prevent wealth from becoming inactive or stagnant 3. 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; a consequence of rights to property

Article 775. In this Title, "decedent" is the general term applied to the person whose property is transmitted through succession, whether or not he left a will. If he left a will, he is also called the testator. (n) Decedent is the person whose estate is to be distributed. He is also called: a. Testator if he left a will b. Intestate- if he left no will Article 776. The inheritance includes all the property, rights and obligations of a person which are not extinguished by his death. (659) Inheritance includes: (PRO)

1. Property 2. Rights 3. Obligation not extinguished by death (to the extent of the value of the inheritance) INHERITANCE - is the property or right acquired SUCCESSION - is the manner by virtue of which the property or right is acquired - also referred as descent in American law SUCCESSION - the transferring to its beneficiary.

ADMINISTRATION - means dealing with a deceased persons property according to law Inheritance : PROPERTIES

Include real as well as personal properties Transferee will also own accessions to the property accruing thereto

Human corpse is not a property therefore not part of the estate WOP to RA 349 as amended by RA 1056 allowing the grant of a persons organs after death Issue of ownership of property should be decided first, conjugal properties liquidated before any sale by special administrator RTC has no jurisdiction to pass finally and definitely upon the ownership of properties involved in probate proceedings or in the summary settlement of estate. Such questions must be submitted to RTC in the exercise of its general jurisdiction to try and determine ordinary actions. PC may do so only for the purpose of determining WON a property should be included in the inventory of the estate of the deceased but such determination is not conclusive is still subject to final determination in a separate action. PC may determine questions of title to property, if parties voluntary submitted to its jurisdiction Inheritance : RIGHTS Some rights are extinguished by death some are not.

RIGHTS EXTINGUISHED BY DEATH 1. Intransmissible personal rights because of their nature e.g. family rights, marital and parental authority, support, action for legal separation, partnership, agency, life annuity. 2. Right to claim acknowledgment or recognition as a natural child. 3. Right to hold public or private office or job

RIGHTS NOT EXTINGUISHED BY DEATH 1. Right to bring or continue an action for forcible entry or unlawful detainer. 2. Right to compel the execution of a document necessary for convenience, provided that the contract is valid and enforceable under the Statute of Fraud. 3. Right to continue a lease contract either as a lessor or lessee, unless otherwise provided for in the contract. 4. Property right in an insurance policy ( for irrevocable beneficiary), unless otherwise provided in the terms of the policy.

Inheritance: OBLIGATION NOT EXTINGUISHED BY DEATH An heir still pays for the obligation of his deceased father, but only if the same can be covered by the inheritance. Illustration: father has Php 100M asset and Php 20M debts heir only collects Php 80M father has Php 100M asset and Php 120 M debts

heir is not required to pay the balance of Php 20M Children who were substituted as defendants in a civil case against their father cannot be held personally liable with their own individual properties. Remedy of creditor is to proceed against the estate of the deceased father. When judicial administration is not essential When decedent left NO pending obligations; the law allows the partition of the estate extrajudicially or thru an ordinary action for partition without filing of special proceeding

Article 777. The rights to the succession are transmitted from the moment of the death of the decedent. (657a) Conditions for transmission of successional rights 1. That indeed there has been death (actual or presumed) 2. That the rights or properties are indeed transmissible or descendible 3. That the transferee is still alive (no predecease), willing (no repudiation), is capacitated to inherit. Death Actual Death---It is not tradition (delivery) that transfers ownership but succession; the effects of an acceptance retroact to the moment of death. e.g. A died July 5, 2002, property is delivered August 4,2002---the heir becomes the owner and possessor of the property beginning July 5,2002. Presumed Death---2 kinds under the law

ORDINARY PRESUMPTION - Because of ordinary absence; Absentee disappears under normal

EXTRAORDINARY PRESUMPTION - Because of extraordinary or qualified absence; there is great probability of death

condition, there being no danger or idea of death shall be presumed dead for the purpose of opening his succession: ---at the end of 10 YEARS ---at the end of 5 YEARS in case he disappeared at the age of 75

Presumed dead for ALL purposes including division of estate: 1. A person on board a lost vessel or missing airplane who has not been heard for 4 YEARS since the loss 2. A person in the armed forces who has taken part in a war and has been missing for 4 YEARS 3. A person who has been in danger of death under other circumstances and his existence has not been known for 4 YEARS Person is presumed to have died at the time of the disappearance and NOT at the end of 4 years; which means succession really took place 4 years before or on the day of disappearance but actual division of the estate will only be at the end of 4 years

Effect of Absentees return or appearance Absentee shall RECOVER his property in the condition in which it maybe found, and the price of any property that may have been alienated or the property acquired therewith, but he CANNOT claim either fruits or rent NO obligation to reimburse, if consumption by the heir was made in good faith NO recovery if property is acquired through prescription (extraordinary prescription in view of the lack of title there being no true succession) Problem on transition provision Under NCC, spurious children are entitled to inherit if recognized voluntarily or by judicial decree Some effects of transmission of rights from death Prior to a persons death, his heirs merely have an inchoate right to his property Heir may sell his share in the estate pending its liquidation, in this case inheritance is present no longer future

Future inheritance is any property or right not inexistence or capable of determination at the time of the contract, that a person may in the future acquire by succession. Administration of the estate Generally there is no necessity to appoint an administrator if all the heirs are of legal age and there are no debts to be settled, heirs themselves may enter upon administration.