Different Modes of Acquiring Ownership

1) Those prohibited under Art 1027

2) Those prohibited under Art 739 from giving and receiving donation

from each other

3) Those incapable of succeeding by reason of unworthiness

REQUISITES FOR A VALID REPUDIATION

1) Heir repudiating must be certain of two things before repudiating:

a. Death of the person from whom he is to inherit;

b. Right to the inheritance.

2) WHO MAY REPUDIATE? Any person having the free disposal of his property.

3) HOW IS REPUDIATION MADE? The repudiation of the inheritance shall be made in a

public or authentic instrument, or by a petition presented to the court having

jurisdiction over the testamentary or intestate proceedings.

WHO MAY PARTITION

1) Decedent himself during his lifetime by an act inter vivos or

by will

2) Heir themselves

3) Competent court; 3rd person designated by the decedent.

Book III

Different Modes of

Acquiring Ownership

MODE is the specific cause which gives rise to ownership, as the result of the presence of a special condition of things, of the aptitude and intent of persons, and of compliance with the conditions established by law.

Ownership maybe acquired by Occupation and by Intellectual Creation

Ownership and other real rights over property are acquired by Donation, by Testate and Intestate Succession. And in consequence of certain contracts, by Tradition.

They may also be acquired by means of Prescription.

Title IV

SUCCESSION

Title II

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 (Art. 774)

Kinds of Succession:

As to effectivity

(a) succession inter vivos (example: donation)

(b) succession mortis causa (this is succession in the specific sense meant

in Art. 774)

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 in a will)

SUCCESSION vs. INHERITANCE

Succession

Inheritance

Elements of Succession:

Refers to the legal mode by which inheritance is transmitted to the persons entitled to it

Refers to the universality or entirety of the property, rights and obligations of a person who died

Chapter 3. Legal or Intestate Succession

INTELLECTUAL

CREATION

Kinds of Succession:

1. Testamentary

– that which results from thedesignation of an heir, made in a will executed inthe form prescribed by law

2. Legal or Intestate

– that which takes place byoperation of law in the absence of a valid will

3. Mixed

– that which is effected partly by will andpartly by operation of law

1. Decedent

2. Successors

a. Heirs - those who are called to the whole or to an aliquot portion of the inheritance either

by will or by operation on law

Kinds of heirs

i. Compulsory

- those who succeed by force of law to some portion of the inheritance, in an amount predetermined by

law, of which they cannot be deprived by the testator, except by a valid disinheritance

- known as LEGITIME.

ii. Voluntary or Testamentary - those who are instituted by the testator in his will, to succeed to the portion of

the inheritance of which the testator can freely dispose

iii. Legal or Ditestate - those who succeed to the estate of the decedent who dies without a valid will, or to the

portion of such estate not disposed of by will

b. Devisees or Legatees - persons to whom gifts of real or personal property are respectively given by virtue of a will.

3. Death of the Person

4. Inheritance - is the subject matter of Succession. It includes: properly and transmissible rights and obligations existing

at the time of his death AND those which have accrued thereto since the opening of succession.

Causes of Intestate Succession:

Chapter 2. Testamentary Succession

1. In the absence of applicable valid will

• Annulment of institution of heirs
• When will losses its validity
• Testator did not make any will
• Will not probated
• Revocation
• Pretension

Representation

Is a right created by fiction of law, by virtue of which the representative is raised to the place and degree of the person represented, and acquires the rights which the latter would have if he were living or if he could have inherited.

Instances when representation occurs:

1. Predecease

2. Incapacity or Unworthiness

3. Disinheritance

In what kinds of succession representation operates:

1. Legitimes

2. Intestate Succession

HOW REPRESENTATION OPERATES

Factual Situation

Division

All grandchildren still inherit per stirpes

Nephews and nieces inherit per capita

If all the children are disqualified

If all the brothers/sisters are disqualified

WILLS

SUBSTITUTION OF HEIRS

It is an act whereby a person is permitted, with the formalities prescribed by law to control to a certain degree the disposition of his estate to take effect after death (Art. 783).

Is the appointment of another heir so that he may enter into the inheritance in default of the heir originally instituted. (Art. 857)

2. In the absence of qualified heirs

• Ineffective disinheritance (a portion)
• Repudiation
• Incapacity
• Disinheritance
• Institution subject to conditions

May be substituted in case the heir or heirs:

a. die before him (Predecease)

b. should not wish (Renounce)

c. should be incapacitated (Incapacitated)

Requisites for a Fideicommissary Substitution:

The State

• A fiduciary or first heir instituted entrusted with the obligation to preserve and to transmit to a fideicommissary substitute or second heir the whole or part of the inheritance.
• Such substitution must not go beyond one degree from the heir originally instituted.
• The fiduciary or first heir and the second heir are living at the time of the death of the testator.
• The fideicommissary substitution must be expressly made.
• The fideicommissary substitution is imposed on the free portion of the estate and never on the legitime.

Classes of Substitution:

1. Simple or Common - the testator may designate one or more

persons to substitute the heir or heirs.

2. Brief or Compendious - two or more persons may be substituted

for one; and one person for two or more heirs.

3. Reciprocal - if heirs instituted in unequal shares should be

reciprocally substituted, the substitute shall acquire the share of

the heir; If more than one substitute, they shall have the same share as

in the institution

4. Fideicommissary - the testator institutes a fiduciary heir with an

obligation to deliver to a second heir (fideicommisary) the property so

inherited.

Order of Intestate Succession

Intestate Heirs

1. Legitimate children/descendants

2. Illegitimate children/descendants

3. Legitimate parents/ascendants

4. Illegitimate parents

5. Surviving spouse

6. Brothers, sisters, nephews, nieces

7. Other collateral – to the 5th degree

8. State

WHEN DECEDENT HAS NO HEIRS

1) Assignment and Disposition of Assets

a. If decedent is a resident of the Philippines at any time

i. PERSONAL PROPERTY- to the municipality of last resident

ii. REAL PROPERTY- where situated

b. If decedent was never a resident of the Philippines

i. PERSONAL AND REAL PROPERTY-where respectfully situated.

2) How Property is to be Used

a. For the benefit of public educational and charitable institutions in the respective municipalities/cities.

b. At the instance of an interested party, or motu propio, the court may order the permanent trust for the benefit of the institutions concerned.

CONDITIONAL TESTAMENTARY DISPOSITIONS and TESTAMENTARY DISPOSITIONS WITH TERM

Impossible

The following persons acquire ownership:

Condition

and those contrary to law or good customs which shall be considered as not imposed.

Future or uncertain event, or a past event unknown to the parties, upon which the performance of an obligation depends.

When decedent have no heirs:

1. Assignment and disposition of assets

• If decedent is a resident of the Philippines

To the municipality of last residence (Personal Property)

Where situated (Real Property)

• If decedent was never a resident of the Philippines

Where respectfully situated (Real and Personal Properties)

2. How property is to be used

• For public educational and charitable institutions
• At the instance of an interested party

KINDS OF WILLS:

1. Notarial - an ordinary or attested will

2. Holographic - a handwritten will

COMMON REQUISITES BETWEEN THE TWO WILLS:

1. must be in writing and

2. in a language or dialect known to the testator

CHARACTERISTICS OF A WILL:

1. Unilateral

2. Strictly Personal act

3. Free and voluntary act

4. Formal and solemn act

5. Act mortis causa

6. Ambulatory and revocable during the testator's lifetime

7. Individual act

INTERPRETATION OF WILLS

1. Animus Testandi - The testator’s intent (ani'mus testandi), as well as giving effect to such intent is primordial. EXCEPT: when the intention of the testator is contrary to law, morals or public policy.

2. In case of doubt, the interpretation by which the disposition is to be operative or will sustain and uphold the will in all its parts shall be adopted, provided that it can be done consistently with the established rules of law

KINDS OF AMBIGUITIES

1. Latent or intrinsic ambiguities – that which do not appear on the face of the will and is discovered only by extrinsic evidence

2. Patent or extrinsic ambiguities – that which appears on the face of the will itself

TESTAMENTARY CAPACITY – refers to the ability as well as the power to make a will

1. All persons who are not expressly prohibited by law

2. 18 years old and above

3. Of sound mind, at the time of the execution;

WHO MAY BE A WITNESS TO A WILL - Any person may be a witness provided he is:

a. Of sound mind

b. Of the age of 18 years or more

c. Not blind, deaf or dumb

d. Able to read and write

e. Domiciled in the Philippines

f. Have not been convicted of falsification of a document, perjury or false testimony

Term

The day or time when an obligation either becomes demandable or terminates.

Disposicion Captatoria - condition that the heir shall make some provision in his will in favor of the testator or of any other person (prohibited because it will make the making of the will a contractual act)

Potestative Condition - one the fulfillment of which depends purely on heir

Casual Condition - condition is casual if it depends upon chance and/or upon the will of a third person.

Mixed Condition - if it depends both partly upon the will of the heir himself and upon chance and/or the will of a third person.

Suspensive Condition or Term - one that merely suspends the demandability of a right

Have the ownership of their creation even before publication. Once their creation is published, rights are governed by copyright laws

The state shall be placed under administration:

• the condition is fulfilled
• becomes certain that it cannot be fulfilled
• the arrival of the term

LEGITIME

What is the formula for application of inheritance?

That portion of the decedent's estate reserved by law.

The heirs for whom the law reserves such portion are called Compulsory Heirs

Shares of Compulsory Heirs:

The order of hereditary or intestate succession:

• One legitimate child is entitled to ½ of the hereditary estate. Two or more legitimate children are entitled to distribute ½ of the hereditary estate equally among themselves.

Classes:

Testator is an Illegitimate Person

Testator is a Legitimate Person

1. Primary - those who have precedence over and exclude other compulsory heirs.

• Legitimate children and descendants, with respect to their legitimate parents and ascendants

• The surviving spouse is entitled to ¼ of the hereditary estate if there is only one legitimate child. With 2 or more legitimate children, the surviving spouse is entitled to a portion equal to the legitime of a legitimate child. The legitime of the surviving spouse is taken from the free portion of the hereditary estate.

Legitimate children and descendant

Legitimate parents and ascendants

Surviving spouse

Illegitimate children and descendant

Legitimate children and descendant

Illegitimate parents and ascendants

Illegitimate parents only

Surviving spouse

2. Secondary - those who succeed only in the absence of the primary heirs.

• Legitimate parents and ascendants, with respect to their legitimate children and descendants

1. Institution of an heir (Bequest, in case of legacies or devises)

• The legitime of illegitimate children are taken from the free portion of the hereditary estate, provided that they do not exceed the free portion. The Family Code of the Philippines provides that the legitime of each illegitimate child consists of ½ of that of a legitimate child.

3. Concurring - those who succeed together with the primary or the secondary compulsory heirs.

• Widow or widower (legitimate) - the surviving spouse referred to is the spouse of the decedent.
• Illegitimate children and descendants (legitimate or illegitimate)

• In the absence of legitimate children and descendants, the legitime of legitimate parents or ascendants consists of ½ of the hereditary estate of their children and descendants. The testator may freely dispose of the other half, subject to the rights of illegitimate children and the surviving spouse

CAUSES OF VACANCY IN SUCCESSION

• Disinheritance
• Repudiation
• Incapacity/Predecease

2. Substitution, if proper

3. Representation, if applicable

DISINHERITANCE

4. Accretion, if applicable

A compulsory heir may, in consequence of disinheritance, be deprived of his legitime, for causes expressly stated by law. (Art 915)

Have the ownership of their creation even before publication. Once their creation is published, rights are governed by copyright laws.

GROUNDS FOR DISINHERITANCE

5. Intestacy, if all of The above are not applicable

Grounds for disinheritance common to all compulsory heirs:

• Attempt on the life of testator, spouse, ascendant, descendant
• Accusation of a crime with penalty of six years or more
• Induce testator to make or change the will
• Support unjustifiably not given

Requirements for valid disinheritance:

• Effected only through a valid will
• For a cause expressly stated by law
• Cause must be expressly state in the will itself
• Cause must be certain and true
• Must be proved in case disinherited heir should deny
• The heir disinherited must be designated in such a manner that there can be no doubt as to his identity

Grounds for disinheritance common between ascendants and descendants

• Adultery and concubinage

Grounds for disinheritance common to ascendant and spouse (additional)

• Loss of parental authority

Imperfect Disinheritance

Disinheritance which does not have one or more of the essential requisites for its validity.

Grounds for disinheritance only against descendant

• Maltreatment of testator
• Leading a disgraceful life (or dishonest)
• Commission of crime which carries with it the penalty of civil interdiction

Revocation of Disinheritance:

• Reconciliation
• Subsequent institution of the disinherited heir
• Nullity of the will which contains the disinheritance

Grounds for disinheritance only against ascendants (parents)

• Abandonment by parents
• Attempt on the life of one parent against another parent

Revocation

Grounds for disinheritance only against spouse (refers to legal spouses only

• Giving cause for legal separation
• Support

INSTITUTION OF HEIR

an act of the mind terminating the potential capacity of the will to operate at the death of the testator, manifested by some outward or visible act or sign, symbolic thereof. Such a right to waive a will cannot be waived or restricted

Is an act by virtue of which a testator designates in his will the person or persons who are to succeed him in his property and transmissible rights and obligation (Art. 840)

Have dominion even before it is copyrighted

LEGACIES AND DEVISES

a. Author

b. Composer

c. Painter, sculptor, other artist with respect to the product of his art.

d. Scientist or technologist or any other person with regard to his discovery or invention

All things and rights which are within the commerce of man may be bequeathed or devised. (Art. 924)

Persons charged with Legacies and Devises:

• Compulsory heir
• Voluntary heir
• Legatees or devisee
• Estate

When Legacy and Devise can be revoked by Operation of Law:

• Transformation of the thing bequeathed or devised in such a manner that it does not retain its form and denomination.
• Alienation of the thing bequeathed or devised or any part thereof.
• The thing bequeathed or devised is totally lost during the lifetime of the testator, or after his death without the heir's fault.
• The legacy is a credit against a third person or the remission of a debt.

Have the ownership of his discovery or invention even before it is patented

Chapter 4. Provisions Common to Testate and Intestate Successions

Section 1 - Right of Accretion

1) In Testamentary Succession

a. Predecease

b. Incapacity

c. Repudiation

d. Non-fulfillment of suspension condition imposed upon instituted heir

e. Ineffective testamentary disposition

2) In Intestate Succession

a. Predecease of a legal heir(only when representation does not apply)

b. Incapacity of legal heir ( only when representation does not apply)

c. Repudiation by a legal heir

Title III

ELEMENTS OF ACCRETION IN TESTAMENTARY SUCCESSION

1.) Two or more persons are called to the same inheritance, or to the same portion thereof, pro indiviso.

2.) Renunciation, predecease or incapacity of one (or more but less than all) of the instituted heirs.

Section 6.- Partition and Distribution of the Estate

PARTITION

Is 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.

Section 2 - Capacity to Succeed by Will or by Intestacy

The following are capable of succeeding:

1. NATURAL PERSONS

a. General rule-must be living when succession opens.

b. If institution subject to a suspensive condition-successor must be living both when decedent dies

and when the condition happens.

c. If institution subject to a suspensive term- must be alive only at the moment of decedent's death,

successor need not be alive when the term alives.

2.) JURIDICAL PERSONS

- Organizations or associations which juridical personality.

WHO CAN DEMAND PARTITION

1) Compulsory heir

2) Voluntary heir

3) Legatee or devisee

4) Any person who has acquired interest in the estate

WHO ARE INCAPABLE OF SUCCEEDING

Section 5 - Collation

is the act by virtue of which, the persons who concur in the inheritance bring back to the common hereditary mass the property which they have received from him, so that a division may be effected according to law and the will of the testator.

Section 3 - Acceptance and Repudiation of the Inheritance

CHARACTERISTICS OF REPUDIATION

1) Free and Voluntary Act

2) Irrevocable once made and cannot be impugned, except in cases vitiating

consent

3) Retroactive

PERSONS OBLIGED TO COLLATE

GENERAL RULE: Compulsory heir

EXCEPT: a. When the testator should have so expressly

provided; and

b. When the compulsory heir should have

repudiate his inheritance

DONATION

Section 4 - Executors and Administrators

All matters relating to the appointment, powers and duties of executors and administrators and concerning the administration of estates of deceased persons shall be governed by the Rules of Court.

act of liberality whereby a person disposes gratuitously a thing right in favour of another, who accepts it.

Kinds of Donation:

Donor’s capacity shall be determined as of the time of the making of the donation. (Art. 737)

The following donations are prohibited by law, among others:

1. Those made by 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. (Art. 739)

AS TO EFFECTIVITY

1. Donation inter vivos are those which take effect independently of the donor’s death.

2. Donation mortis causa are those which are effective upon the donor’s death and must therefore be

governed by the rules of testamentary succession. (Art. 728)

Characteristics of a donation mortis causa:

a. Convey no title or ownership to the transferee before the death of the transferor.

b. That before his death, the transfer should be revocable by the transferor at will, ad nutum.

c. The transfer should be void if the transferor should survive the transferee.

In order that a person can accept a donation, only one requirement is necessary, that, he must not be prohibited or disqualified by law from accepting the donation.

AS TO PERFECTION OR EXTINGUISHMENT

1. Pure donations are those which are immediately demandable.

2. Donation with a condition are those whose effectivity are subordinated to the fulfillment or non-

fulfillment of a future and uncertain fact or event.

3. Donation with a term are those whose effectivity or extinguishment is subject to the expiration of

a term or period.

In order that a person can make a donation, 3 requisites are necessary. They are:

1. Capacity to enter into contracts.

2. Able to dispose of his property.

3. Not be prohibited or disqualified by law from making the donation.

The donation inter vivos is perfected from the moment the donor knows of the acceptance by the donee. (Art. 734)

Title I

Title V

OCCUPATION

PRESCRIPTION

thing appropriable by nature which are without an owners, i.e. animals that are object of hunting and fishing, hidden treasure and abandoned movables

PRESCRIPTION OF ACTIONS

~ Actions prescribe by the mere lapse of time fixed by law.

~ Actions to recover movables shall prescribe eight(8) years from the time the possession thereof is lost, umless the possessor has acquired the ownership by prescription for a less period.

~ Real actions over immovables prescribe after thirty(30) years.

~ All other actions whose periods are not fixed in this code or in other laws must be brought within five(5) years from the time the right of action accrues.

PRESCRIPTION OF OWNERSHIP AND OTHER REAL RIGHTS

~ Acquisitive prescription of dominion and other real rights may be ordinary or extra-ordinary.

ORDINARY ACQUISITIVE prescription requires possession of things in good faith and with just title for the time fixed by law.

GENERAL PROVISIONS

~By prescription, one acquires ownership and other real rights through the lapse of time in the manner and under the conditions laid down by law. In the same way, rights and actions are lost by prescription.

~ Persons who are capable of acquiring property or rights by the other legal modes may acquire the same by means of prescription. Minors and other incapacitated persons may acquire property or rights by prescription, either personally or through their parents, guardians or legal representatives.

Presentation by Group 2 (Section 1)