Legacies and Devises in Testamentary Succession

Legacies and devises are essential elements in testamentary succession under civil law. These pertain to specific provisions in a testator's will where certain property, rights, or obligations are designated to particular individuals or entities. Below is a comprehensive explanation of the topic under the Civil Code of the Philippines, including their nature, effects, and associated rules.

1. Definitions

Legacy: Refers to a gift of personal property or a specific sum of money given through a will.
Devise: Refers to a gift of real property through a will.

In legal practice, the terms "legacy" and "devise" are often used interchangeably, but they have distinct technical meanings under the law.

2. Nature of Legacies and Devises

Both legacies and devises are testamentary dispositions, meaning they are effective only after the testator's death and upon probate of the will.
These dispositions may pertain to specific, determinate things, a portion of the estate, or benefits granted to the heir or legatee/devisee.

3. Types of Legacies and Devises

Legacies and devises can be classified into the following categories:

Specific Legacy or Devise:
- Refers to a particular, identifiable piece of property (e.g., "I give my diamond necklace to Maria").
- The property must exist and belong to the testator at the time of death, unless a contrary intention appears in the will.
Demonstrative Legacy or Devise:
- A legacy or devise charged upon a particular source or fund (e.g., "I give ₱500,000 from my savings account at Bank XYZ to Juan").
General Legacy or Devise:
- A gift of property or money that is not specifically designated or charged upon a particular asset (e.g., "I give ₱1,000,000 to my cousin Ana").
Residuary Legacy or Devise:
- Refers to what remains of the testator's estate after all debts, obligations, specific and general legacies or devises, and administrative expenses are settled (e.g., "I give the residue of my estate to my spouse").

4. Governing Provisions in the Civil Code

The Civil Code of the Philippines provides specific rules regarding legacies and devises:

A. Article 924: Right to Accept or Repudiate

Legatees and devisees, like heirs, have the right to accept or repudiate the testamentary gift.

B. Article 925: Precedence

If the same property is bequeathed to multiple individuals, the distribution follows the provisions in the will or, in the absence of such provisions, the rules on co-ownership apply.

C. Article 926: Effect of Predecease

If a legatee or devisee predeceases the testator or is otherwise incapacitated to inherit, the legacy or devise lapses unless a substitution or accretion is expressly or implicitly provided in the will.

D. Article 927: Charges or Obligations

A legacy or devise may be subject to conditions, charges, or encumbrances imposed by the testator, which must be fulfilled by the beneficiary unless the law or the will provides otherwise.

5. Accretion (Article 1015 - 1017)

Accretion applies to legacies and devises when:

The legatee or devisee predeceases the testator or is incapacitated to inherit.
The will does not provide for a substitute or alternate beneficiary.
The testamentary disposition is indivisible.

The share of the deceased or incapacitated beneficiary passes to the co-beneficiaries, if any, unless expressly provided otherwise.

6. Lapse of Legacies and Devises

A legacy or devise lapses under the following circumstances:

Predecease or Incapacity: The legatee or devisee dies before the testator or is legally disqualified to inherit.
Invalidity: The subject matter of the legacy or devise is illegal, impossible, or contrary to public policy.
Nonexistence: The specific property no longer exists or belongs to the testator at the time of death, and no intent to replace it is expressed.
Repudiation: The legatee or devisee renounces the benefit.

When a legacy or devise lapses, it typically becomes part of the residuary estate unless otherwise directed by the will.

7. Priority of Legacies and Devises

Legacies and devises are honored in the following order of priority:

Specific legacies or devises.
Demonstrative legacies or devises.
General legacies or devises.
Residuary legacies or devises.

Should the estate be insufficient to fulfill all dispositions, specific legacies or devises are satisfied first, followed by demonstrative, general, and finally residuary dispositions.

8. Conditions and Modalities

A legacy or devise may be conditioned upon the occurrence or non-occurrence of an event.
Suspensive and resolutory conditions may affect the enjoyment of the legacy or devise.
Modalities, such as the obligation to perform an act (e.g., maintaining a family grave), are binding on the beneficiary.

9. Revocation and Reduction

A legacy or devise may be:

Revoked by the testator during their lifetime through express or implied acts (e.g., sale or destruction of the specific property).
Reduced if the legitimes of compulsory heirs are impaired, ensuring compliance with the provisions on legitimate succession.

10. Rights of Creditors

Creditors of the estate have a prior right over legacies and devises. The executor or administrator must settle the estate's debts before fulfilling testamentary dispositions. If insufficient assets remain, legacies and devises are abated or reduced proportionally, following the priority outlined above.

11. Tax Implications

Legacies and devises are subject to estate taxes under Philippine tax law. The executor or administrator is responsible for paying the estate tax before distributing the property to the beneficiaries.

Practical Considerations

Clarity in Drafting: The testator must clearly identify the legacies and devises, specifying properties, conditions, and intended beneficiaries to avoid disputes.
Substitution: Testators should provide substitute beneficiaries to prevent lapses.
Consultation with a Lawyer: Proper legal advice ensures that testamentary dispositions comply with the Civil Code and tax regulations.

By adhering to these rules, legacies and devises ensure the orderly disposition of a testator's estate in accordance with their wishes and the law.