Distinctions Between Mortis Causa and Inter Vivos Donations

Donations are one of the modes of acquiring ownership under civil law. They are voluntary acts whereby one person disposes of a thing in favor of another, who accepts it. In Philippine law, donations are classified as either inter vivos or mortis causa, and these two types differ fundamentally in form, effects, and legal implications. Below is a meticulous exposition of their distinctions:

1. Nature and Timing of Effectivity

Donation Inter Vivos:
- Takes effect during the lifetime of the donor.
- Ownership is transferred upon acceptance by the donee, unless there is a stipulation of a suspensive condition.
- It is irrevocable once perfected, except in cases allowed by law (e.g., ingratitude, non-fulfillment of conditions).
Donation Mortis Causa:
- Takes effect only upon the death of the donor.
- The donor retains ownership and control of the property during their lifetime.
- It is revocable at any time prior to the donor's death, as it is considered in the nature of a testamentary disposition.

2. Legal Form

Donation Inter Vivos:
- Governed by the general rules on contracts and donations under the Civil Code.
- Must comply with formalities based on the value of the donation:
  - If the property is movable and the value exceeds PHP 5,000, the donation must be in writing.
  - If the property is immovable, the donation must be in a public instrument, and acceptance must also be in writing or in the same public document.
Donation Mortis Causa:
- Governed by the rules on wills and succession.
- Must comply with the formalities of a will:
  - For a notarial will, it must be in writing, signed by the testator, and attested by at least three witnesses.
  - For a holographic will, it must be entirely written, dated, and signed by the testator.
- If these formalities are not followed, the donation is void.

3. Cause or Motive

Donation Inter Vivos:
- The primary cause is gratuitousness and the intent to benefit the donee while the donor is alive.
- The donor relinquishes control and ownership for the immediate advantage of the donee.
Donation Mortis Causa:
- The primary cause is the donor's intent to distribute their estate upon death, often as part of estate planning.
- It is motivated by a desire to arrange the donor's property in contemplation of death.

4. Ownership and Possession

Donation Inter Vivos:
- Ownership and possession are transferred to the donee upon delivery (actual or constructive) and acceptance.
- The donor loses all rights to the property unless explicitly reserved.
Donation Mortis Causa:
- Ownership and possession remain with the donor during their lifetime.
- The donee acquires ownership and possession only upon the donor’s death, subject to probate and the rules on succession.

5. Revocability

Donation Inter Vivos:
- Generally irrevocable, except under specific grounds:
  1. Ingratitude of the donee.
  2. Non-fulfillment of conditions imposed in the donation.
  3. Legal reasons such as the subsequent birth of children (Article 760, Civil Code).
Donation Mortis Causa:
- Always revocable by the donor during their lifetime. The donor may modify or cancel it unilaterally at any time before death.

6. Subject to Succession Laws

Donation Inter Vivos:
- Not subject to the rules on legitime (compulsory shares of heirs) unless it impairs the legitime of compulsory heirs. If it does, the donation may be reduced or considered inofficious.
Donation Mortis Causa:
- Always subject to succession laws, including legitime and probate. It cannot defeat the compulsory shares of heirs and is treated as an advance testamentary disposition.

7. Delivery and Acceptance

Donation Inter Vivos:
- Requires acceptance by the donee, which must be either in the same document or a separate document duly communicated to the donor.
Donation Mortis Causa:
- No delivery or acceptance is required during the donor’s lifetime.
- Acceptance occurs only after the donor’s death, subject to the donee's right to disclaim or renounce the donation.

8. Tax Implications

Donation Inter Vivos:
- Subject to donor’s tax, which must be paid during the donor’s lifetime.
- Exemptions and deductions apply depending on the law.
Donation Mortis Causa:
- Part of the donor’s estate and subject to estate tax upon death.

9. Form of Instrument

Donation Inter Vivos:
- Document is titled as a Deed of Donation and executed in accordance with the rules on contracts.
Donation Mortis Causa:
- Document is part of a will or testamentary instrument and governed by rules of succession.

10. Example Scenarios

Donation Inter Vivos:
- A parent donates a parcel of land to their child, and the donation is immediately registered in the child’s name.
Donation Mortis Causa:
- A parent stipulates in a will that a specific property will be given to their child upon their death.

Summary Chart

Aspect	Inter Vivos Donation	Mortis Causa Donation
Effectivity	During donor’s lifetime	Upon donor’s death
Legal Form	Governed by rules on donations	Governed by rules on wills
Ownership	Transferred upon acceptance	Retained by donor until death
Revocability	Irrevocable (with exceptions)	Always revocable
Subject to Succession	Generally not, unless inofficious	Always subject to succession laws
Tax Implications	Subject to donor’s tax	Subject to estate tax

This detailed exposition provides a clear distinction between donation inter vivos and donation mortis causa, highlighting their fundamental differences and guiding individuals in choosing the appropriate legal instrument for transferring property.