Donation is a legal act of transferring property or rights from one person, known as the donor, to another, called the donee, without any valuable consideration. In the Philippines, donation plays a significant role in various aspects of life, including family relationships, charitable causes, and business endeavors. This blog will provide a comprehensive guide to understanding the concept of donation under Philippine law, its legal requirements, and its implications for both the donor and the donee.
What is Donation?
Donation, also known as gift, is a voluntary transfer of property or rights from one person to another without any expectation of compensation or payment in return. It is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. [1]
There is also a donation when a person gives to another a thing or right on account of the latter’s merits or of services rendered by him to the donor, provided they do not constitute a demandable debt, or when the gift imposes upon the donee a burden which is less than the value of the thing given[2].
What are the two types of donations?
- Donation Inter Vivos: this type of donation takes effect during the lifetime of the donor and donee. It involves the immediate transfer of ownership and possession to the donee; and
- Donation Mortis Causa: Also known as a donation in contemplation of death. It takes effect only upon the donor’s death. This type of donation is governed by Rules on Succession.
When must acceptance be made?
Acceptance must be made during the lifetime of the donor and of the donee. [3]
When is a donation perfected?
A donation is perfected from the moment the donor knows of the acceptance by the donee. The acceptance must be made during the lifetime of the donor and of the donee. [4]
When does acceptance in donations take effect?
In inter vivos donation, acceptance takes effect during the lifetime of the donor and donee.
In mortis causa donation, acceptance is made only after the donor’s death because they partake of a will and thus governed by the rules on succession. [5]
What are the formalities observed in donations of movable property?
The following are the formalities:
- If donation is oral, simultaneous delivery of property donated is required if the value is Php5,000.00 or less. Acceptance may be oral or written;
- If donation is in writing, simultaneous delivery of property donated is NOT required regardless of value. Acceptance may be oral or written; or
- If the value exceeds Php5,000.00 the donation and acceptance must be in writing. Simultaneous deliver of property donated is not required. [6]
What are the formalities required in donations of immovable property?
The following are the formalities:
- It must be made in a public document, specifying therein the property donated and the value of the charges which the donee must satisfy.
- The acceptance may be made in the same deed of donation or in a separate public document, but it shall not take effect unless it is done during the lifetime of the donor.
- If the acceptance is made in a separate instrument, the donor shall be notified thereof in an authentic form, and this step shall be noted in both instruments[7].
What are the instances of a void donations?
- Those made between persons guilty of adultery or concubinage at the time of donation;
- Those made between persons found guilty of the same criminal offense in consideration thereof;
- Those made to a public officer or his/her spouse, descendant or ascendants in consideration of his/her office;[8]
- Those made to the priest who hear the confession of the donor during the latter’s last illness, or the minister of the gospel who extended spiritual aid to him during the same period;
- Those made to the relatives of such priest or minister of the gospel within the 4th degree, the church, order, chapter, community, organization, or institution to which such priest or minister may belong;
- Those made by a ward to the guardian before the approval of the final accounts of guardianship. Nevertheless, any provision made by the ward in favor of the guardian when the latter is his ascendant, descendant, brother, sister, or spouse, shall be valid.
- Those made to an attesting witness to the execution of a will, the spouse, parents, or children, or any one claiming under such witness, spouse, parents, or children;
- Those made to a physician, surgeon, nurse, health officer or druggist who took care of the donor during his/her last illness;
- Those made to individuals, associations, or corporations not permitted by law to make donations[9]; and
- Those made by spouses to each other during the marriage or to persons of whom the other spouse is a presumptive heir[10].
On what grounds can donation be revoked?
The grounds for revocation are:
- Birth, appearance, or adoption of a child. [11]This requires proof that the legitime of the new child was impaired.
- Ingratitude of the donee. Conviction of donee is not required[12]; and
- Non-fulfillment of resolutory condition.[13]
What are the effects of revocation?
- The donee shall not return the fruits except from the filing of the complaint:
- When the donation is revoked for any of the causes stated in Article 760;
- When the donation is revoked by reasons of ingratitude; and
- When the donation is reduced because it is inofficious.
- The donee shall return not only the property but also the fruits thereof which he may have received after having failed to fulfill the conditions imposed in the donation, if the revocation is based upon non-compliance therewith.[14]
[1] Article 725, The Civil Code of the Philippines.
[2] Article 726, Ibid.
[3] Article 746, Ibid.
[4] Ibid.
[5] Article 728, Ibid.
[6] Article 748, Ibid.
[7] Article 749, Ibid.
[8] Article 739, Ibid.
[9] Article 1027, Ibid.
[10] Articles 87 and 134, The Family Code.
[11] Article 760, the New Civil Code of the Philippines
[12] Article 765, Ibid.
[13] Article 764, Ibid.
[14] Article 768, Ibid.
