The
#SupremeCourtPH has ruled that waiving rights to inherited property may be considered a valid donation when it shows intent to donate and meets the legal requirements for a donation.
In a Decision written by Associate Justice Jhosep Y. Lopez, the SC’s Second Division denied the consolidated petitions filed by Felix G. Cruz and affirmed the Court of Appeals’ (CA) rulings upholding the transfer of two inherited properties by Luis and Rosita Cruz to their sons, Robin and Osias.
The case involved two parcels of land left by Judy Cruz, who died single and without a will. She was survived by her parents, Luis and Rosita, and five siblings, including Felix, Robin, and Osias.
After Judy’s death, Luis and Rosita executed separate notarized 𝘞𝘢𝘪𝘷𝘦𝘳𝘴 𝘰𝘧 𝘙𝘪𝘨𝘩𝘵𝘴 over the properties in favor of Robin and Osias, who later executed an 𝘌𝘹𝘵𝘳𝘢𝘫𝘶𝘥𝘪𝘤𝘪𝘢𝘭 𝘗𝘢𝘳𝘵𝘪𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘚𝘦𝘵𝘵𝘭𝘦𝘮𝘦𝘯𝘵 𝘰𝘧 𝘌𝘴𝘵𝘢𝘵𝘦 and registered the properties in their names.
Felix and his two other siblings, Doris and Henry, also executed waivers giving up any interest in the properties. Felix, who was the family lawyer, prepared these documents.
After their mother died, Felix sought to nullify the transfer of the properties and cancel the titles of Robin and Osias. Felix argued that the transfer was invalid and that the properties should have remained part of their mother’s estate, to which he was entitled to inherit as one of the heirs.
The SC upheld the ruling of the trial court and the CA dismissing Felix’s complaint and holding that the Waivers of Rights executed by Luis and Rosita constituted valid donations in favor of Robin and Osias.
The SC explained that when Judy died, ownership of her properties immediately passed to her parents as her legal heirs. Luis and Rosita therefore had the right to dispose of the properties.
Although the documents they executed were called 𝘞𝘢𝘪𝘷𝘦𝘳𝘴 𝘰𝘧 𝘙𝘪𝘨𝘩𝘵𝘴, the SC found that Luis and Rosita intended to donate the properties to Robin and Osias.
Under Article 749 of the 𝘊𝘪𝘷𝘪𝘭 𝘊𝘰𝘥𝘦, a valid donation of real property requires: (1) a decrease in the donor’s property; (2) a corresponding increase in the donee’s property; (3) intent to donate; (4) execution of the donation in a public document; and (5) acceptance by the donee. If the acceptance is in a separate document, the donor must be informed.
These requirements were met in this case. Luis and Rosita gave up their ownership of the properties in favor of Robin and Osias through notarized documents that expressly authorized the transfer. Robin and Osias, in turn, accepted the donation by executing the 𝘌𝘹𝘵𝘳𝘢𝘫𝘶𝘥𝘪𝘤𝘪𝘢𝘭 𝘗𝘢𝘳𝘵𝘪𝘵𝘪𝘰𝘯 𝘢𝘯𝘥 𝘚𝘦𝘵𝘵𝘭𝘦𝘮𝘦𝘯𝘵 and registering the properties in their names. Their actions were made known to Luis and Rosita.
Read the full text of the Press Release at
sc.judiciary.gov.ph/?p=17409….
Read the full text of the Decision at
sc.judiciary.gov.ph/?p=16802….
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