Capacity to Inherit under Philippine Law: Provisions Common to Testate and Intestate Succession

The capacity to inherit refers to a person's legal ability to receive property, rights, or interests from a decedent through succession, whether testate (by will) or intestate (by operation of law). Under Philippine law, capacity to inherit is governed by the Civil Code of the Philippines, particularly Articles 1024 to 1032. Below is a meticulous discussion of all pertinent rules, exceptions, and interpretations relating to this subject.

I. General Rule: Presumption of Capacity

Who May Inherit:
- Natural Persons: All natural persons who are alive at the time of the decedent's death.
- Juridical Persons: Corporations or entities allowed by law to acquire property through succession (e.g., charitable organizations named in a will).
Requirements:
- The heir, legatee, or devisee must have a juridical personality, meaning they must be legally recognized as capable of possessing rights and obligations.
Conception Rule:
- A conceived child is deemed born for purposes of succession, provided the child is later born alive (Article 1025, Civil Code). This applies to both testate and intestate succession.
- Example: An unborn child at the time of the decedent’s death can inherit, but if the child is subsequently stillborn, it is deemed to have never acquired any rights to the estate.

II. Grounds for Incapacity to Inherit

While the general rule is that all persons have the capacity to inherit, the law enumerates several instances where a person is disqualified. These are provided under Articles 1027 to 1028 of the Civil Code.

A. Specific Grounds for Disqualification

Unworthiness (Article 1032): An heir, devisee, or legatee may be deemed unworthy and thus incapable of inheriting if they:
- Are convicted of having committed an attempt against the life of the testator, his/her spouse, descendants, or ascendants.
- Have accused the testator of a crime punishable by imprisonment for six years or more, and the accusation is found to be false.
- Have been convicted of adultery or concubinage with the testator's spouse.
- Have caused the testator to make or change a will through violence, intimidation, fraud, or undue influence.
- Have forged, concealed, or altered the testator’s will.
- Have been convicted of causing the death of the testator's spouse, descendants, or ascendants without justifiable cause.
Failure to Comply with Conditions Imposed in a Will: If the testator imposes lawful conditions in the will and these conditions are not fulfilled by the heir, legatee, or devisee, they may lose their capacity to inherit.
Prohibited Substitutions: Any person who receives a prohibited substitution under Article 867 of the Civil Code (e.g., fideicommissary substitutions beyond the second degree) may be disqualified from inheriting.
Juridical Persons Not Authorized by Law: Certain entities are prohibited from acquiring property by inheritance, especially if they are not legally empowered to do so (e.g., foreign corporations that violate nationalization laws).

B. Timing of Incapacity

The cause for incapacity must exist at the time of the decedent's death, unless otherwise provided by law.
If the incapacity arises after the decedent’s death, it does not retroactively disqualify the heir, legatee, or devisee.

III. Special Rules on Capacity

A. Conditional or Modal Institutions

An heir may be declared conditionally or modally instituted by the testator. For instance, a person may inherit provided they complete certain tasks, such as caring for the decedent's pets or maintaining the family business.
Failure to comply with these conditions may result in disinheritance.

B. Representation

A person who is incapacitated to inherit cannot be represented in the estate of the deceased.
- Example: A disqualified parent cannot be represented by their child in claiming an inheritance from the deceased grandparent.

C. Effects of Pardoning the Unworthy

The testator may expressly pardon an heir deemed unworthy, thereby restoring their capacity to inherit. The pardon must be in a valid and enforceable will.

IV. Institutions with Special Restrictions

A. Heirs in Testate Succession

Spouses: A spouse may be disqualified if they are found guilty of acts such as adultery or causing harm to the decedent.
Adopted Children: Adopted children inherit as legitimate children but are subject to restrictions regarding representation of the adopting parents’ collateral relatives.

B. Restrictions on Foreigners and Corporations

Foreigners: Foreign individuals may inherit property in the Philippines subject to limitations imposed by constitutional and statutory restrictions on land ownership.
Corporations: Only Philippine corporations allowed by law can inherit.

V. Procedural Aspects

A. Determination of Incapacity

Incapacity may be judicially determined, especially in cases involving unworthiness or disputes over the validity of a will.

B. Claims of Incapacity

A person alleging that another heir is disqualified to inherit must prove the cause of incapacity.

C. Waiver of Rights

An heir with capacity may waive their rights to inheritance in favor of another, provided such waiver does not contravene the law or public policy.

VI. Miscellaneous Provisions

Acceptance and Repudiation:
- A capable heir must formally accept or repudiate the inheritance. Failure to act within a reasonable time may be deemed a waiver.
Escheat:
- If no one has the capacity to inherit, the estate reverts to the State through escheat proceedings.
Right to Provisional Remedies:
- Even incapacitated individuals may be granted provisional remedies to preserve their rights pending determination of capacity.

VII. Case Law Interpretations

Philippine courts have consistently upheld the rules of capacity and incapacity in accordance with public policy and the principles of equity. Some notable cases include:

San Luis v. San Luis (2012): On the application of Article 1025 regarding unborn heirs.
Reyes v. Court of Appeals (1998): On the doctrine of unworthiness and procedural safeguards in alleging disqualification.

This comprehensive analysis captures the essential rules and interpretations of the capacity to inherit under Philippine civil law, ensuring clarity for both theoretical understanding and practical application.