Institution and Substitution of Heirs

Institution and Substitution of Heirs | Testamentary Succession | Different Kinds of Succession | WILLS AND SUCCESSION

CIVIL LAW > WILLS AND SUCCESSION > TESTAMENTARY SUCCESSION > INSTITUTION AND SUBSTITUTION OF HEIRS

I. Institution of Heirs

Definition:
The institution of heirs is the act by which a testator designates in their will the person or persons who are to succeed to the whole or a portion of their property and transmissible rights upon their death.

Governing Laws:

  • Articles 834 to 838 of the Civil Code of the Philippines.

A. General Rules on Institution of Heirs

  1. Designation of Heirs:

    • An heir may be designated to inherit either:
      • Universally (entire estate or a fractional share); or
      • Singly (specific or particular properties).
    • Designation of heirs can be conditional, resolutory, or in a specific timeframe, provided it does not contravene the law or good morals (Art. 873).

  2. Freedom of Testation:

    • Subject to the rules on legitime, the testator may freely designate heirs and allocate the estate as desired.

  3. Conditions Attached to Institution:

    • Potestative conditions imposed on the heir must depend on the will of the heir for validity.
    • Impossible or contrary-to-law conditions are void but do not affect the validity of the institution itself (Art. 873).

  4. Efficacy of Institution:

    • Valid institution depends on the capacity of the heir to succeed at the time of the testator's death (Art. 1025).
    • If an institution of heir is void, intestacy applies with respect to the affected portion of the estate.

  5. Partial vs. Total Institutions:

    • A universal heir succeeds to the totality of the estate (except those expressly bequeathed).
    • Partial institution applies to specified portions or properties and does not preclude universal succession for the residue.

B. Interpretation of Institution

  1. Favorable Construction:

    • In cases of doubt, the testator’s intent should be upheld and interpreted to preserve the validity of the institution.

  2. Resolution of Ambiguities:

    • When the terms of the will are unclear, extrinsic evidence may be utilized.
    • If the wording of the will admits different interpretations, the one more aligned with the presumed intention of the testator prevails.

II. Substitution of Heirs

Definition:
Substitution occurs when a testator designates another heir to take the place of the one originally instituted in the event the latter cannot or does not want to inherit.

Types of Substitution (Articles 857 to 860):

A. Simple or Common Substitution

  1. Definition:

    • One heir is designated to replace another who cannot inherit due to predecease, incapacity, repudiation, or disqualification.

  2. Characteristics:

    • The substitute only inherits in the absence of the first heir.
    • The substitute receives the same share intended for the first heir.

  3. Example:

    • "I institute A as my heir; should A not inherit, B shall be my heir."

B. Fideicommissary Substitution

  1. Definition:

    • The testator institutes an heir (fiduciary) who is charged with preserving the property and delivering it later to a second heir (fideicommissary).

  2. Requirements for Validity:

    • Substitution must not exceed two degrees (Art. 863).
    • The fiduciary must be instituted unconditionally.
    • The fideicommissary must be expressly designated.

  3. Key Rules:

    • The property is reserved by the fiduciary for the fideicommissary, and no encumbrances are permitted.
    • Violations by the fiduciary may lead to legal claims by the fideicommissary.

  4. Example:

    • "I leave my estate to A, with the obligation to deliver it to B upon A’s death."

C. Reciprocal Substitution

  1. Definition:

    • Two or more heirs are reciprocally instituted to substitute each other in case of incapacity or repudiation of any.

  2. Example:

    • "I institute A and B as my heirs, with the stipulation that if either of them cannot inherit, the other shall receive their share."

D. Substitution by Representation

  1. Definition:
    • Occurs by operation of law and not necessarily by the will of the testator.
    • Descendants of a predeceased heir inherit in their stead under rules of intestacy (Art. 970).

III. Invalid Substitution

  1. Non-Compliance with Legal Requisites:

    • Substitution that contravenes the rules on fideicommissary substitution or violates public policy will be declared void.
    • If substitution fails, the inheritance is distributed through intestacy or in accordance with residual testamentary clauses.

  2. Effects of Nullity:

    • The portion designated for the substituted heir will pass to other heirs according to the terms of the will, or intestacy applies.

IV. Jurisprudence on Institution and Substitution

  1. Testator’s Intent:

    • The Supreme Court emphasizes the paramount importance of the testator’s intent. Strict formalities in wills are interpreted liberally if the intent is clear.

  2. Doctrine of Substantial Compliance:

    • Courts favor substantial compliance in cases of technical errors that do not affect the core testamentary dispositions.

  3. Void Conditions and Dispositions:

    • Clauses imposing impossible or illegal conditions on the heir’s capacity or use of inheritance are severed without affecting the rest of the will.

This framework ensures a meticulous understanding of the institution and substitution of heirs under testamentary succession, balancing legal principles with the testator's freedom of disposition.

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