Stipulating Sale of Land Effective After Death: Relevance to Succession Laws in the Philippines

Question: Is it possible to stipulate the sale of land to a third person on the condition that the sale shall take effect after death, with prejudice to the provisions of succession?

Answer:

Nature of Contracts Affecting Succession:
- Under Philippine law, contracts that are intended to take effect upon the death of a party, which can affect the rights of heirs as established by succession laws, are generally seen as prohibited. Article 1347 of the Civil Code of the Philippines states that no contract may be entered into upon the inheritance of a future inheritance.
Pacto de Retro Sale:
- While not a direct sale that takes effect upon death, there's a form of sale in Philippine law known as a "pacto de retro" sale. In this sale, the seller sells the property with a reservation of the right to buy it back within a stipulated period. If the seller fails to repurchase the property within the specified period, the sale becomes absolute. However, if the seller dies within the period, the heirs can exercise the right to repurchase.
Testamentary Dispositions and Succession:
- If a person wishes to ensure that a particular person receives a specific property after their death, they can use a last will and testament. However, even this is subject to the rules on legitime or the reserved portion of the estate that the law sets aside for compulsory heirs. One cannot simply disinherit compulsory heirs without valid legal grounds, and any testamentary disposition that infringes on the legitime of compulsory heirs can be reduced or adjusted by the court to comply with legal requirements.
Donation Mortis Causa:
- Another mechanism that can be explored is the "donation mortis causa." It is a kind of donation that takes effect upon the death of the donor. However, it should follow the formalities of a will, and thus, it's revocable by the donor at any time before death. Like a testamentary disposition, it's also subject to the rules of legitime.

Recommendation: If you're considering entering into a contract that concerns property disposition effective upon death, it's essential to consult with a lawyer knowledgeable in Philippine succession and property laws. They can guide you on the legality and implications of such arrangements and help you navigate the complexities of succession rights.

Conclusion: While the direct stipulation of a sale of land to take effect after death with prejudice to succession laws is problematic under Philippine law, there are alternative mechanisms to achieve similar objectives. However, these alternatives also have limitations and requirements, underscoring the importance of seeking legal counsel for such transactions.