3. Acceptance and Repudiation of the Inheritance

6. Acceptance and Repudiation of Inheritance

a. Form of Repudiation b. No right of representation when there is repudiation

Elements of a valid acceptance

• Unequivocal
• Unconditional

How is possession acquired through succession?

Possession of hereditary property:

• If accepted – deemed transmitted without interruption from moment of death
• If the heir validly renounces the inheritance – deemed never to have possessed the same. (Art. 533)

Characteristics of Acceptance and Repudiation

• Free and Voluntary (Art. 1041)
• Irrevocable once made and cannot be impugned, except in cases vitiating consent or when an unknown will appear; (Art. 1056)
• Retroactive (Art. 777)

Requirements to Accept or Repudiate and Inheritance

A person may only accept or repudiate an inheritance once he or she is certain of:

• The death of the person from whom he is to inherit; and
• His right to the inheritance. (Art. 1043)

Time for Acceptance or Repudiation

Within 30 days after the court has issued an order for the distribution of the estate the heir, devisee, or legatee shall signify to the court having jurisdiction whether they accept or repudiate the inheritance. If they do not do so within that time, they are deemed to have accepted the inheritance. (Art. 1057)

Principle: No one should be forced to accept the generosity of others.

Who May Accept or Repudiate

General Rule: Any person having the free disposal of his property may accept or repudiate an inheritance. (Art. 1044)

Exceptions:

• Minors or incapacitated persons

Acceptance – By their parents or guardians.

Repudiation – By their parents or guardians with judicial authorization (Art. 1044)

• Inheritance left to the poor – The right to accept the inheritance shall belong to the persons designated by the testator to determine the beneficiaries and distribute the property, or in their default, to those mentioned in Article 1030. (Art. 1044)
• Corporation, association, institution, or entity as beneficiary (Art. 1045)

Acceptance – May be made by the lawful representatives

Repudiation – May be made by the lawful representatives with judicial authority

• Literate Deaf-Mutes

Acceptance and Repudiation –Personally or through an agent (Art. 1048)

• Illiterate Deaf-Mutes (Balane, supra)

Acceptance – Guardians

Repudiation – Guardians with judicial approval

If the Beneficiary is a Married Woman (Art 1047)

She may either accept or repudiate the inheritance without her husband’s consent.

Manner of Acceptance of Inheritance (Art. 1049)

• Express Acceptance
• Public Document
• Private Writing
• Tacit Acceptance – one resulting from acts by which the intention to accept is necessarily implied or which one would have no right to do except in the capacity of an heir. It can be presumed from certain acts of the heir such as:
• If the heir sells, donates, or assigns his right to a stranger, or to his co-heirs, or to any of them
• If the heir renounces the same, even though gratuitously, for the benefit of one or more of his co-heirs
• If he renounces it for a price in favor of all his co-heirs indiscriminately; but if this renunciation should be gratuitous, and the co-heirs in whose favor it is made are those upon whom the portion renounced should devolve by virtue of accretion, the inheritance shall not be deemed as accepted
• Implied Acceptance - This is acceptance by inaction. Under Art 1057, to signify acceptance or repudiation within 30 days after an order of distribution by the probate court.

Manner of Repudiation (Art. 1051)

The repudiation of the inheritance shall be made in:

• A public document signed before a notary public, or
• Authentic instrument – equivalent to an indubitable writing or a writing whose authenticity is admitted or proved, or
• By a petition presented to the court having jurisdiction over the testamentary or intestate proceedings.
• The law considers that the act of repudiation is more solemn than the act of acceptance and that repudiation produces more violent and disturbing consequences.
• If the heir repudiates the inheritance to the prejudice of his own creditors, the latter may petition the court to authorize them to accept it in the name of the heir.
• If an heir is both a testate and legal heir, repudiation of the inheritance as a testate heir, he is understood to have repudiated in both capacities. However, should he repudiate as a legal heir, without knowledge of being a testate heir, he may still accept the inheritance as a testate heir.

If renounced in favor of other heirs, does it mean acceptance? (Balane, supra)

It depends:

• If specific heir – whether or not renouncing heir receives anything, considered as acceptance on the part of the heir. There are two transfers.

My analysis: Say there are 2 heirs, one heir renounces but his inheritance shall be given in favor of the second heir. Here, the renouncement of the first heir is actually considered an acceptance of the inheritance. Basically, there are 2 transactions, (1) the passing of the inheritance to the first heir, which (2) eventually passes to the second heir.

• If gratuitous –
• In favor of all his co heirs indiscriminately - there is repudiation because the heir deemed to have not accepted. Hence, accretion takes place.
• In favor of all co-heirs but in proportion different from those they would receive by accretion: considered as tacit acceptance.
• If gratuitous in favor of one or some of his co-heirs – deemed conveyance in favor of the co-heirs specified, hence there is acceptance.
• If onerously:
• There is no repudiation
• Transfer considered to be with consideration

There are also tax implications because there are two transfers.

Rules on Acceptance and Repudiation of Devices or Legacies

General Rule: A legatee or devisee cannot accept part of a legacy or devise and repudiate another part if the repudiated part is onerous. (Art. 954)

Acceptance or Repudiation by Heirs of Legatee or Devisee (Art. 954, par. 2)

If the legatee or devisee dies before accepting or renouncing the devise or legacy, his heirs shall exercise such right as to their pro-indiviso share, applying the rules in Article 954.

THEREFORE: If a legatee or devisee dies after the testator but before accepting the legacy or devise, the legatee’s or devisee’s heirs may each accept or repudiate the share belonging to them.

Legacy or Devise to a Compulsory Heir

Any compulsory heir who is at the same time a legatee or devisee may waive the inheritance and accept the legacy or devise, or renounce the latter and accept the former, or waive or accept both. (Art. 955 par. 2)

NOTE: For acceptance and repudiation of devices or legacies, the testator’s wishes are supreme. All the rules apply in the absence of stipulation providing otherwise. (Balane, supra)

Repudiation by or Incapacity of Legatee or Devisee (Art. 956)

If the legatee or devisee cannot or is unwilling to accept the legacy or devise, or if the legacy or devise for any reason should become ineffective, the following steps apply:

• Follow substitution, if any
• Then accretion,
• If neither applies, the legacy or devise is merged into the mass of the estate and distributed under the applicable testamentary provisions or, if none applies, by intestacy.