CIVIL LAW: Donations Mortis Causa as Testamentary Dispositions
Donations mortis causa (DMC) are a legal mechanism under Philippine law that allows a person to transfer property ownership upon their death. Governed by the Civil Code of the Philippines and subject to the rules on wills, these dispositions bridge the principles of property law and succession.
Definition
A donation mortis causa is a donation made in contemplation of the donor’s death, which will take effect only upon the donor's demise and can be revoked by the donor at any time before death.
Characteristics
- Post-Mortem Effect: The transfer of ownership does not take place immediately but only upon the donor’s death.
- Revocability: The donor retains the right to revoke the donation during their lifetime.
- Subject to Formalities of a Will: Donations mortis causa must follow the formalities required for wills, as specified under Articles 728 and 749 of the Civil Code.
- Integration with Succession Law: The donation must not impair the legitime of compulsory heirs.
Requisites of Donations Mortis Causa
- Donor’s Intention: The donor must intend the donation to take effect only upon death.
- Formalities: The donation must comply with the formalities of a will:
- If notarial: Must be executed in writing and signed by the testator in the presence of three credible witnesses.
- If holographic: Must be entirely handwritten, dated, and signed by the testator.
- Capacity: The donor must have testamentary capacity at the time of execution.
- No Immediate Effect: The donee cannot take possession or ownership of the property during the donor’s lifetime.
- Compliance with Laws on Succession: The donation must respect the legitime of compulsory heirs, as determined under Articles 887 and 904 of the Civil Code.
Distinction Between Donations Mortis Causa and Inter Vivos
| Aspect | Mortis Causa | Inter Vivos |
|---|---|---|
| Effectivity | Takes effect upon donor’s death | Takes effect during donor’s lifetime |
| Revocability | Always revocable | Generally irrevocable unless expressly reserved |
| Formalities | Follows rules on wills | Follows rules on donations |
| Possession/Ownership | Donee cannot take possession during donor’s lifetime | Donee acquires possession/ownership immediately |
| Tax Implication | Subject to estate tax | Subject to donor’s tax |
Formalities and Requirements
- Compliance with Testamentary Formalities:
Donations mortis causa must adhere strictly to the formal requirements for wills to avoid nullity:- Notarial Will: Written, signed by the testator and three witnesses, and notarized.
- Holographic Will: Entirely handwritten, dated, and signed by the donor.
- Express Revocability:
The donation must explicitly state that it is revocable during the donor’s lifetime. - Prohibition Against Preemption:
The donee cannot acquire rights over the donated property until the death of the donor.
Effects of Non-Compliance
- Nullity: A donation mortis causa executed without compliance with the formalities of a will is null and void.
- Reduction for Inofficiousness: If the donation impairs the legitime of compulsory heirs, it may be reduced to the extent of the impairment.
Revocation of Donations Mortis Causa
- At the Donor’s Will: Donations mortis causa can be revoked unilaterally by the donor at any time before death without the need for just cause.
- Modes of Revocation:
- Express revocation through a subsequent will or codicil.
- Tacit revocation through acts inconsistent with the intent to donate (e.g., alienation of the property during the donor's lifetime).
Limitations and Prohibitions
- Legitime Protection: Donations mortis causa cannot diminish the legitime of compulsory heirs. Any excess donation is subject to reduction.
- Public Policy: Donations mortis causa must not contravene public policy or legal prohibitions (e.g., donations to disqualified persons under Articles 739 and 1027 of the Civil Code).
Tax Implications
Donations mortis causa are included in the gross estate of the donor and are subject to estate tax. They are not subject to donor's tax as they are considered part of the succession process.
Case Law Interpretations
Philippine jurisprudence has clarified various aspects of donations mortis causa:
- Distinction from Conditional Donations Inter Vivos: The Supreme Court has emphasized that a donation mortis causa transfers no rights during the donor’s lifetime and is conditional upon death (e.g., Ramos v. Ramos).
- Formalities: Courts strictly enforce compliance with testamentary formalities, declaring void those donations that fail to meet these requirements.
- Revocability: Even if the donation is labeled as irrevocable, if it takes effect upon death, it is considered mortis causa and revocable by law.
Conclusion
Donations mortis causa are testamentary dispositions that blend the principles of donations and wills. Compliance with the rules on testamentary formalities, respect for the legitime of heirs, and the donor's clear intention to transfer ownership only upon death are essential for their validity. Understanding the legal intricacies ensures proper drafting and avoids disputes during estate settlement.