6. Legacies and Devises

Interpretation Of Legacy and Devise

General Rule: In a legacy or devise, the testator gives exactly the interest he has in the thing. (Art. 794)

Disqualification of a Witness to Succeed to a Legacy or Devise (Art. 823)

If a person attests to the execution of a will, to whom or to whose spouse, or parent, or child, a devise or legacy is given by such will, such devise or legacy shall, so far only as concerns such person, or spouse, or parent, or child of such person, or any one claiming under such person or spouse, or parent, or child, be void, unless there are three other competent witnesses to such will. However, the person attesting shall be admitted as a witness if such devise or legacy had not been made or given.

Principles on Devises or Legacies of Usufruct or Life Annuities or Pensions

• If, upon being capitalized according to actuarial standards, the value of the grant may exceed the free portion, the compulsory heirs may choose between complying with the testamentary provision and delivering to the devisee or legatee the part of the inheritance of which the testator could freely dispose. (Art. 911)
• The testator cannot impose a usufruct or other burden or encumbrance on the legitime. (Civil Code, Art. 904)
• Subject to the two rules stated above, the compulsory heirs may elect between ceding to the devisee/legatee the free portion, or the proportional part thereof corresponding to the said legacy/devise, and complying with the terms of the usufruct or life annuity or pension. (Art. 911; Balane, p. 435)

When Devise Subject to Reduction Consists of Indivisible Real Property

In either case, there should be pecuniary reimbursement to the party who did not get his physical portion of the thing devised. (Art. 912)

The devisee who is entitled to a legitime may retain the entire property, provided its value does not exceed that of the disposable portion and of the share pertaining to him as legitime. (Art. 912) If the heirs or devisees do not choose to avail themselves of the right granted in Art. 912, the thing devised should be disposed of by:

• Any other heir or devisee, who elects to do so, may acquire the thing and pay the parties their respective shares in money;
• If no heir or devisee elects to acquire it, it shall be sold at public auction and the net proceeds accordingly divided between the parties concerned. (Art. 913)

Disinheritance – Civil Code, arts. 915-923

SECTION 6

Disinheritance

Article 915. A compulsory heir may, in consequence of disinheritance, be deprived of his legitime, for causes expressly stated by law. (848a)

Article 916. Disinheritance can be effected only through a will wherein the legal cause therefor shall be specified. (849)

Article 917. The burden of proving the truth of the cause for disinheritance shall rest upon the other heirs of the testator, if the disinherited heir should deny it. (850)

Article 918. Disinheritance without a specification of the cause, or for a cause the truth of which, if contradicted, is not proved, or which is not one of those set forth in this Code, shall annul the institution of heirs insofar as it may prejudice the person disinherited; but the devises and legacies and other testamentary dispositions shall be valid to such extent as will not impair the legitime. (851a)

Article 919. The following shall be sufficient causes for the disinheritance of children and descendants, legitimate as well as illegitimate:

(1) When a child or descendant has been found guilty of an attempt against the life of the testator, his or her spouse, descendants, or ascendants;

(2) When a child or descendant has accused the testator of a crime for which the law prescribes imprisonment for six years or more, if the accusation has been found groundless;

(3) When a child or descendant has been convicted of adultery or concubinage with the spouse of the testator;

(4) When a child or descendant by fraud, violence, intimidation, or undue influence causes the testator to make a will or to change one already made;

(5) A refusal without justifiable cause to support the parent or ascendant who disinherits such child or descendant;

(6) Maltreatment of the testator by word or deed, by the child or descendant;

(7) When a child or descendant leads a dishonorable or disgraceful life;

(8) Conviction of a crime which carries with it the penalty of civil interdiction. (756, 853, 674a)

Article 920. The following shall be sufficient causes for the disinheritance of parents or ascendants, whether legitimate or illegitimate:

(1) When the parents have abandoned their children or induced their daughters to live a corrupt or immoral life, or attempted against their virtue;

(2) When the parent or ascendant has been convicted of an attempt against the life of the testator, his or her spouse, descendants, or ascendants;

(3) When the parent or ascendant has accused the testator of a crime for which the law prescribes imprisonment for six years or more, if the accusation has been found to be false;

(4) When the parent or ascendant has been convicted of adultery or concubinage with the spouse of the testator;

(5) When the parent or ascendant by fraud, violence, intimidation, or undue influence causes the testator to make a will or to change one already made;

(6) The loss of parental authority for causes specified in this Code;

(7) The refusal to support the children or descendants without justifiable cause;

(8) An attempt by one of the parents against the life of the other, unless there has been a reconciliation between them. (756, 854, 674a)

Article 921. The following shall be sufficient causes for disinheriting a spouse:

(1) When the spouse has been convicted of an attempt against the life of the testator, his or her descendants, or ascendants;

(2) When the spouse has accused the testator of a crime for which the law prescribes imprisonment of six years or more, and the accusation has been found to be false;

(3) When the spouse by fraud, violence, intimidation, or undue influence cause the testator to make a will or to change one already made;

(4) When the spouse has given cause for legal separation;

(5) When the spouse has given grounds for the loss of parental authority;

(6) Unjustifiable refusal to support the children or the other spouse. (756, 855, 674a)

Article 922. A subsequent reconciliation between the offender and the offended person deprives the latter of the right to disinherit, and renders ineffectual any disinheritance that may have been made. (856)

Article 923. The children and descendants of the person disinherited shall take his or her place and shall preserve the rights of compulsory heirs with respect to the legitime; but the disinherited parent shall not have the usufruct or administration of the property which constitutes the legitime. (857)

Persons Who May Be Charged With Legacies And Devises

A testator may charge with legacies and devises not only his compulsory heirs but also the legatees and devisees. (Art. 925)

General Rule: Estate is charged with the legacy or devise.

Exception: Subsidiary legacy or devise (Paras, Civil Code of the Philippines Annotated, 2016)

Subsidiary legacy or devise – When the testator imposes the burden on an heir or a legatee or devisee; the heir, legatee, or devisee charged will be bound to deliver the legacy or devise to the person specified. As far as the heir, legatee, or devisee charged is concerned, it will be a mode. (Balane, supra)

Where the will is silent as to who shall pay or deliver the legacy/devise:

• If there is an administration proceeding, there is a presumption that such legacy or devise constitutes a charge against the decedent’s estate (Paras, supra, 2016)
• If there are no administration proceedings, it is a charge upon the heirs, in the same proportion in which they may inherit. (Art. 926, par. 2)

NOTE: Since legacies and devises are to be taken from the disposable free portion of the estate, the provisions on institution of heirs are generally applicable to them.

Liability for Eviction

General Rule: The estate is liable for eviction

Exception: In case of a subsidiary legacy or devise, the heir, legatee or devise charged shall be liable in case of eviction, if the thing is indeterminate and is indicated only by its kind. (Art. 928)

Thing Owned In Part By Testator

General Rule: Conveys only interest or part owned by testator (Art. 929)

Exception: If testator otherwise provides

• He may convey more than what he owns and the estate should try to acquire the part or interest owned by other parties. If other parties are unwilling to alienate, the estate should give the legatee/devise the monetary equivalent. (by analogy with Art. 931)
• He may convey less than what he owns. (Art. 794)

Thing Owned by Another (Arts. 930-931)

• If the testator orders acquisition of the thing – The order should be complied with. If the owner is unwilling to part with the thing, the legatee/devisee should be given the monetary equivalent. (Art. 931)
• If the testator erroneously believed that the thing belonged to him –The legacy/devise is void.

Exception: If subsequent to the making of the disposition, the thing is acquired by the testator onerously or gratuitously, the disposition is validated. (Art. 930)

• If the testator knew that the thing did not belong to him but did not order its acquisition – The disposition should be considered valid. There is an implied order to acquire the property.

Thing Already Owned by the Legatee/Devisee (Arts. 932-933)

• If thing already belonged to the legatee/devisee at time of execution of will – The legacy/devise is void even if the legatee/devisee alienates the property subsequently unless the acquirer is the testator himself. (Balane, supra citing Manresa)
• If thing was owned by another person at time of making the will and thereafter it is acquired by legatee/devisee:
• If testator erroneously believed that he owned the thing – The legacy/devise is void.
• If testator knew that he did not own the thing:
• If thing was acquired onerously by legatee/devisee – The legatee/devisee is entitled to reimbursement.
• If thing was acquired gratuitously by legatee/ devisee – Nothing more is due.
• If thing was owned by testator at time will was made and the legatee/devisee acquired the thing from the testator —The legacy/devise should be deemed revoked

Legacy / Devise to Remove an Encumbrance Over a Thing Belonging to the Testator (Art. 932, par. 2)

Legacy or Devise to Free a Thing Belonging to the Legatee or Devisee from Another Person’s Interest or Encumbrance (Art. 932)

If the testator expressly orders that the thing be freed from such interest or encumbrance, the legacy or devise shall be valid to that extent.

NOTE: The legacy / devise is valid, if the encumbrance can be removed for a consideration.

Legacy / Devise of a Thing Pledged or Mortgaged (Art. 934)

If the testator should bequeath or devise something pledged or mortgaged to secure a recoverable debt before the execution of the will, the estate is obliged to pay the debt, unless the contrary intention appears.

The same rule applies when the thing is pledged or mortgaged after the execution of the will. (Art. 934, par. 2)

Any other charge, perpetual or temporary, with which the thing bequeathed is burdened, passes with it to the legatee or devisee. (Art. 934, par. 3)

Legacy / Devise to a Creditor (Art. 938)

A legacy or devise made to a creditor shall not be applied to his credit, unless the testator so expressly declares.

If the testator provides that the devise or legacy will be imputed to the debt, and if the debt exceeds the legacy or devise, the excess may be demanded as an obligation of the estate.

Testamentary Instruction to Pay a Debt (Art. 939) INS

Alternative Legacies or Devises – One which provides that among several things mentioned, only one is to be given

General Rule: The choice is left to the:

• Direct legacy or devise – Estate, through the executor or administrator;
• Subsidiary legacy or devise – Heir, legatee, devisee charged (Tolentino, supra)

Exception: If the testator provides that the legatee or devisee himself may choose, or that a third party may choose. (Art. 942)

If the person who shall make the choice dies before the choice is made: (Art. 940, par. 2)

• If the choice belonged to the executor or administrator – The right is transmissible to his successor in office;
• If the choice belongs to an heir, legatee, or devisee – The right is transmitted to his own heirs

NOTE: The choice is irrevocable. (Art. 940, par. 3)

Generic Legacies or Devises

Right of Choice in Generic Legacies or Devises (Art. 941-943)

General Rule: The executor or administrator, acting for the estate.

Exception: When the testator expressly leaves the right of choice to the heir, or the legatee or devisee, on whom the obligation to give is imposed. (Subsidiary legacy or devise).

Limitation on choice

The persons who have the right of choice shall comply with the legacy by the delivery of a thing which is neither of inferior nor of superior quality. (Art. 941)

If the person who shall make the choice cannot do so:

• If the choice belonged to the executor or administrator – The right is transmissible to his successor in office;
• If the choice belongs to an heir, legatee, or devisee – The right is transmitted to his own heirs.

NOTE: The choice is irrevocable. (Art. 940)

If the person to whom the testator has expressly given the right to choose does not exercise his right, it shall be understood that he has renounced it and the person obliged to pay the legacy or devise may deliver any of the things designated, provided it is not of the lowest or of the highest quality. (Tolentino, supra)

Legacy for Education (Art. 944)

Duration – Age of majority or the completion of a professional, vocational, or general course whichever comes later. In the latter instance, only if the legatee pursues his studies diligently.

Obligation to Deliver the Thing Bequeathed

The thing bequeathed shall be delivered with all its accessories and in the condition in which it may be upon the death of the testator. (Art. 951)

The heir, charged with a legacy or devise, or the executor or administrator of the estate, must deliver the very thing bequeathed if he is able to do so and cannot discharge this obligation by paying its value. (Art. 952, par. 1)

Legacies of Money Paid in Cash

Legacies of money must be paid in cash, even though the heir or the estate may not have any. (Art. 952, par. 2)

Possession of the Thing Bequeathed

The legatee or devisee cannot take possession of the thing bequeathed upon his own authority, but shall request its delivery and possession of the heir charged with the legacy or devise, or of the executor or administrator of the estate should he be authorized by the court to deliver it. (Art. 953)

Order of Preference in Case Estate is Insufficient to Cover all Legacies and Devices

Order of Preference in Case Estate is Insufficient to Cover all Legacies and Devises

If the estate should not be sufficient to cover all the legacies or devises, their payment shall be made in the following order:

• Remuneratory legacies or devises;
• Legacies or devises declared by the testator to be preferential;
• Legacies for support;
• Legacies for education;
• Legacies or devises of a specific, determinate thing which forms a part of the estate;
• All others, pro-rata

When Legacy/Devise can be Revoked by Operation of Law

• Transformation: If the testator transforms the thing bequeathed or devised in such a manner that it does not retain its form and denomination. (Art. 957)
• Alienation: If the testator, by any title or for any cause, alienates the thing bequeathed or devised or any part thereof. (Art. 957

NOTE: The alienation revokes the legacy or devise even if for any reason the thing reverts to the testator (e.g. nullity of the contract), unless the testator reacquires it through the exercise of the right of repurchase. (Art. 957(2))

Exceptions:

• If the reversion is caused by the annulment of the alienation and the cause for annulment was vitiation of consent on the grantor’s part, either by reason of incapacity or of duress. (Fernandez v. Dimagiba, G.R. No. L-23638, 1967)
• If the reversion is by virtue of redemption in a sale with pacto de retro.
• Total Loss: If the thing bequeathed or devised is totally lost during the lifetime of the testator, or after his death without the heir’s fault. (Art. 957)
• If the legacy remits a debt, it lapses if the testator, after making the will, brings an action against the debtor for payment, even if payment has not been made at the testator’s death. (Art. 936)