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What are the instances when a donation may be reduced?

Photo from Unsplash | Josh Appel

 

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 


AT A GLANCE

  • The donation shall be revoked or reduced insofar as it exceeds the portion that may be freely disposed of by will.
  • The revocation or reduction of donation shall take into account the whole estate of the donor at the time of the birth, appearance or adoption of a child.
  • The revocation or reduction is authorized only if the amount or value of the property donated exceeds the disposable free portion.

 

Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. (Article 725, New Civil Code)

 

What are the grounds for revocation of donation?

The law says:

Art. 760. Every donation inter vivos, made by a person having no children or descendants, legitimate or legitimated by subsequent marriage, or illegitimate, may be revoked or reduced as provided in the next article, by the happening of any of these events:

(1)   If the donor, after the donation, should have legitimate or legitimated or illegitimate children, even though they be posthumous;

(2)   If the child of the donor, whom the latter believed to be dead when he made the donation, should turn out to be living;

(3)   If the donor subsequently adopt a minor child. (Article 760, New Civil Code)

 

When the done fails to comply with any of the conditions which the donor imposed upon the donee, the donation shall likewise be revoked.

The law says:

Art. 764. The donation shall be revoked at the instance of the donor, when the donee fails to comply with any of the conditions which the former imposed upon the latter.

In this case, the property donated shall be returned to the donor, the alienations made by the donee and the mortgages imposed thereon by him being void, with the limitations established, with regard to third persons, by the Mortgage Law and the Land Registration Laws.

This action shall prescribe after four years from the noncompliance with the condition, may be transmitted to the heirs of the donor, and may be exercised against the donee’s heirs. (Article 764, New Civil Code)

 

Moreover, the donation may also be revoked by reason of ingratitude.

The law says:

Art. 765. The donation may also be revoked at the instance of the donor, by reason of ingratitude in the following cases:

(1)   If the donee should commit some offense against the person, the honor or the property of the donor, or of his wife or children under his parental authority;

(2)   If the donee imputes to the donor any criminal offense, or any act involving moral turpitude, even though he should prove it, unless the crime or the act has been committed against the donee himself, his wife or children under his authority;

(3)   If he unduly refuses him support when the donee is legally or morally bound to give support to the donor. (Article 765, New Civil Code)

 

What are the grounds for reduction of donation?

The same grounds for revocation under Article 760 of the New Civil Code are the grounds for reduction of donation. The donation shall be reduced insofar as it exceeds the portion that may be freely disposed of by will.

The law says:

Art. 761. In the cases referred to in the preceding article, the donation shall be revoked or reduced insofar as it exceeds the portion that may be freely disposed of by will, taking into account the whole estate of the donor at the time of the birth, appearance or adoption of a child. (Article 761, New Civil Code)

 

Is the revocation or reduction of a donation automatic?

No. The revocation or reduction is authorized only if the amount or value of the property donated exceeds the disposable free portion.

Jurisprudence says:

Certainly, in order that a donation may be reduced for being inofficious, there must be proof that the value of the donated property exceeds that of the disposable free portion plus the donee’s share as legitime in the properties of the donor. (Bonifacia Mateo, et al., vs. Gervasio Lagua, et al., G.R. No. L-26270, October 30, 1969)

 

Related article: Are employers liable for non-payment of 13th month pay?


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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