Elements of Succession | Succession | WILLS AND SUCCESSION

CIVIL LAW – VI. WILLS AND SUCCESSION – A. Succession – 2. Elements of Succession

In the Philippine Civil Code, succession is the legal process by which the rights and obligations to a deceased person’s estate are transferred to his or her heirs or beneficiaries. Succession, under the law, is governed by a well-defined structure, encompassing specific elements necessary to determine how the transfer of rights occurs. The primary legal provisions can be found in the Civil Code of the Philippines, particularly in Book III, Title VIII, covering “Succession” (Articles 774–1105).

The Elements of Succession

Succession in Philippine law has several essential elements, each required for the orderly transfer of the deceased’s assets and liabilities. These elements are as follows:

1. Decedent (Causante):

   • The decedent is the person who passes away, causing the succession to take place. The decedent’s death activates the transfer of rights, duties, and assets to their heirs. This transfer occurs upon death, as defined in Article 777 of the Civil Code: "The rights to the succession are transmitted from the moment of the death of the decedent."

2. Inheritance (Herencia):

   • Inheritance refers to the entire estate or body of property, rights, and obligations that the decedent leaves behind. This includes both the assets and liabilities of the deceased, which are then transferred to the successors. In legal terms, the inheritance is known as the "herencia" and may include tangible assets (like real property, cash, and personal belongings) and intangible assets (like intellectual property or shares in a business).

3. Heirs or Successors (Herederos y Legatarios):

   • Heirs and successors are the individuals or entities who inherit from the decedent. They may be designated either by the decedent in a will or by law in cases of intestate succession. The Civil Code distinguishes between different types of heirs:
     • Compulsory Heirs (Article 887): Individuals who cannot be deprived of their legitime (a portion of the estate that must be reserved for them by law), such as legitimate children, parents, and the surviving spouse.
     • Voluntary Heirs: Those designated by the decedent through a will but who do not fall under the category of compulsory heirs.
     • Intestate Heirs: Individuals entitled to inherit under the rules of intestate succession, applicable when the decedent leaves no will or the will is void.

4. Estate (Caudal Relicto):

   • The estate refers to the net value of the decedent’s assets after deducting debts and obligations. This net estate, or "caudal relicto," is what is ultimately divided among the heirs after settlement of liabilities. The estate includes all properties and rights left by the decedent, provided these are not extinguished by the decedent’s death or by law.

5. Will or Testament (Testamento):

   • A will is a formal declaration by the decedent, made in accordance with legal requirements, specifying how his or her estate should be distributed after death. If a valid will exists, the decedent’s wishes are followed, provided these do not violate the legitime of compulsory heirs. The will is the fundamental document in testate succession and must meet legal formalities (Article 805-814).
   • Types of wills recognized in the Philippines include:
     • Notarial Will: Executed in the presence of witnesses and notarized.
     • Holographic Will: Entirely handwritten, dated, and signed by the decedent, without witnesses.
   • The will specifies heirs and legatees, as well as any conditions or limitations the decedent desires.

Types of Succession

There are two primary forms of succession under Philippine law: testate and intestate.

• Testate Succession:

  • This occurs when the decedent leaves a valid will. Testate succession enables the decedent to exercise a degree of autonomy over the distribution of his or her estate, as long as it complies with legal limits, particularly the legitime reserved for compulsory heirs.

• Intestate Succession:

  • When a person dies without a valid will, or if the will is void, intestate succession rules apply. In intestate succession, distribution of the estate follows a prescribed legal order, prioritizing compulsory heirs and direct descendants or ascendants before more distant relatives or collateral relatives.
  • Order of Intestate Succession: The Civil Code prescribes a specific order, favoring descendants (children, grandchildren) first, then ascendants (parents, grandparents), and finally collateral relatives if no direct lineal heirs exist.

Sub-elements of Succession

In addition to the main elements, succession involves several additional components and rules that govern the transfer process:

1. Partition:

   • Partition is the division of the estate among heirs. It may be performed by the decedent in the will or by agreement among the heirs after death. If heirs cannot agree, judicial partition may be necessary, as provided by law (Article 1081).

2. Legitime (Legítima):

   • The legitime is the portion of the estate legally reserved for compulsory heirs, which the testator cannot infringe upon through a will. The computation of the legitime varies depending on the status and number of compulsory heirs and is considered a matter of public policy.

3. Collation (Collación):

   • Collation is the process by which certain gifts or advancements given to compulsory heirs are added back to the estate for the purpose of equitable distribution. Article 1061 of the Civil Code outlines collation procedures.

4. Disinheritance:

   • Disinheritance occurs when a testator expressly excludes a compulsory heir from inheriting. Disinheritance must be done for valid, legal grounds as outlined in the Civil Code (Article 919) and must be specified in a will to take effect.

5. Acceptance and Repudiation of Inheritance:

   • Heirs have the option to accept or repudiate their inheritance. Acceptance can be express or implied, while repudiation must be express. Acceptance or repudiation is a voluntary act and must be exercised after the decedent’s death.

6. Concurrence with Debts and Charges:

   • The estate of the decedent is first liable for any debts and charges left by the decedent, before any distribution to heirs. Heirs inherit the net estate, which is the remainder after debts are settled.

Important Doctrines and Legal Principles in Succession

1. Doctrine of Transmission:

   • This doctrine states that the rights to inheritance pass from the decedent to the heirs at the exact moment of death (Article 777). This concept is essential for understanding how rights are immediately transferred.

2. Doctrine of Representation:

   • This allows the descendants of a deceased heir to inherit in the place of their predecessor, applicable primarily in intestate succession. This principle ensures continuity in the line of inheritance.

3. Free Portion:

   • After the legitime is satisfied, the remaining part of the estate is the free portion, which the decedent may distribute according to his or her wishes, including bequests to voluntary heirs or legatees.

4. Prohibition Against Substitution of Heirs:

   • Substitution refers to naming a replacement heir if the primary heir cannot inherit. While simple substitution is allowed, fideicommissary substitution (a second inheritance conditionally requiring the heir to pass the inheritance to another upon their death) is heavily regulated.

5. Escheat:

   • If no heirs exist or all heirs renounce the inheritance, the estate “escheats” or reverts to the State, per Article 1011. This prevents estates from remaining ownerless.

Procedural Aspects

1. Probate Proceedings:

   • Probate is a judicial process to validate a will. If the decedent leaves a will, probate proceedings are required to confirm its legality before estate distribution. Probate courts ensure the will meets legal standards.

2. Settlement of the Estate:

   • Estate settlement involves liquidating the assets, paying debts, and distributing the remaining assets to heirs. This process can be judicial or extrajudicial, depending on the estate's complexity and the heirs' agreement.

In sum, succession under Philippine civil law involves a comprehensive framework that ensures the orderly transfer of the decedent's estate while safeguarding the rights of heirs and adhering to public policy on inheritance.