I.

Concept of Succession
1. Definition and Concept

Art. 774: Succession is a mode of acquisition by virtue of which the property, rights and obligations to
the extent of the value of the inheritance, of a person are transmitted through his death to another or
others either by his will or by operation of law. (n)

 The Code has simplified the concept of succession and treats it simply as a mode of acquiring
ownership.
 It is one of the seven legally recognized modes of acquiring ownership. Hence, Article 774 is to
be correlated with Article 712.
 A careful reading of this article and of Article 776 will show an overlap of the two provisions.
Article 774 talks of “property, rights and obligations to the extent of the value of the
inheritance.” Article 776, on the other hand, talks of the “inheritance” as including “all the
property, rights and obligations of a person which are not extinguished by his death.”
 Only transmissible rights (property here falls under the rubric rights) and obligations pass by
succession.
 It is not possible to make a complete enumeration of what these transmissible rights and
obligations are but the criterion is simple and may be laid down as a general rule:
o if the right or obligation is strictly personal (intuitu personae), it is intransmissible;
otherwise, it is transmissible.
 Literally construed, money obligations of the deceased would, under Article 774, pass to the
heirs, to the extent that they inherit from him.
 Seemingly, therefore, this article mandates that the heirs receive the estate, and then pay off
creditors.
 Philippine procedural law, however, influenced by the common-law system, has laid down a
different method for the payment of money debts, which is found in Rules 88 to 90 of the Rules
of Court.
 It is only after the debts are paid that the residue of the estate is distributed among the
successors.
 In our system, therefore, money debts are, properly speaking, not transmitted to the heirs nor
paid by them. The estate pays them; it is only what is left after the debts are paid that are
transmitted to the heirs.
 Consequence of these divergent rules (as JBL puts it) is that creditors have to pursue their claims
in the settlement proceedings and not against the heirs.
 Only the payment of money debts has been affected by the Rules of Court. The transmission of
other obligations not by nature purely personal follows the rule laid down in Article 774.

Art. 712: Ownership is acquired by occupation and by intellectual creation

Ownership and other real rights over property are acquired and transmitted by law, by
donation, by estate and intestate succession, and in consequence of certain contracts, by tradition.

They may also be acquired by means of prescription.

2. Elements of Succession
 a. Mode of Acquisition
b. Transfer of property, rights and obligations to the extent of the value of the
inheritance of a person
c. Transmission through death
d. Transmission to another
e. By will or by operation of law
3. Kinds of Succession
 Article 778 enumerates three kinds of succession; the first and the third are defined in the two
succeeding articles (testamentary in Article 779, and mixed in Article 780); legal or intestate
succession is inexplicably not defined.
 Curiously, the draft Code contained a definition of this kind of succession, which, however,
seems to have gotten lost in the legislative mill.
 The lost definition: “Intestate or legal succession takes place by operation of law in the absence
of a valid will.”
 The enumeration cannot satisfactorily accommodate the system of legitimes.
 It is best, therefore, for clarity, to classify succession to the legitime as a separate and distinct
kind of succession, which, for want of a better term, can be denominated compulsory
succession.
a. Testamentary

Art. 779: Testamentary succession is that which results from the designation of an heir, made in a will
executed in the form prescribed by law.

b. Intestate

Art. 960: Legal or intestate succession takes place:

(1) If a person dies without a will, or with a void will, or one which has subsequently lost its validity;

(2) When the will does not institute an heir to, or dispose of all the property belonging to the testator. In
such case, legal succession shall take place only with respect to the property of which the testator has
not disposed;

(3) If the suspensive condition attached to the institution of heir does not happen or is not fulfilled, or if
the heir dies before the testator, or repudiates the inheritance, there being no substitution, and no right
of accretion takes place;

(4) When the heir instituted is incapable of succeeding, except in cases provided in this Code.

 The Code curiously omits to define this kind of succession, although testamentary succession
(Article 779, supra) and mixed succession (Article 780, supra) are both defined
 The draft Code—as did the Spanish Code—contained such a definition:
o The draft Code: “Intestate or legal succession takes place by operation of law in the
absence of a valid will.” [This draft provision was, inexplicably, deleted.]
o The Spanish Code: “Art. 658. La sucesion se defiere por la voluntad del hombre
manifestada en testamento y, afalta de este, por disposicion de la ley
 Instances when legal or intestate succession operates:
 o (1) If a person dies without a will, or with a void will, or one which has subsequently lost
its validity;
o (2) When the will does not institute an heir to, or dispose of all the property belonging
to the testator. In such case, legal succession shall take place only with respect to the
property of which the testator has not disposed;
o (3) If the suspensive condition attached to the institution of heir does not happen or is
not fulfilled, or if the heir dies before the testator, or repudiates the inheritance, there
being no substitution, and no right of accretion takes place;
o (4) When the heir instituted is incapable of succeeding, except in cases provided in this
Code.
o (1) There are three instances contained in this paragraph although, legally, the result is
the same in each instance, i.e., there is no will.
o will that has subsequently lost its validity is one that has been revoked (Vide Articles
830-837, supra) without a later one taking its place. “Validity” should read “efficacy.”
o (2) In these instances, intestacy may be total or partial.
o (3) Intestacy here may also be total or partial, depending on the extent of the
disposition that turns out to be inoperative.
o (4) Incapacity to succeed is found in Articles 1027, 1028, and 1032 [infra). Intestacy here
may be total or partial.
o Other causes of intestacy:
o (5) happening of resolutory condition;
o (6) expiration of resolutory term;
o (7) preterition.

c. Mixed

Art. 780: Mixed succession is that effected partly by will and partly by operation of law.

d. Contractual

Art. 130: The future spouses may give each other in their marriage settlements as much as one-fifth of
their present property, and with respect to their future property, only in the event of death, to the
extent laid down by the provisions of this Code referring to testamentary succession.

Art. 1347: All things which are not outside the commerce of men, including future things, may be the
object of a contract. All rights which are not intransmissible may also be the object of contracts.

No contract may be entered into upon future inheritance except in cases expressly authorized by law.

All services which are not contrary to law, morals, good customs, public order or public policy may
likewise be the object of a contract.

Art. 752: The provisions of Article 750 notwithstanding, no person may give or receive, by way of
donation, more than he may give or receive by will.

The donation shall be inofficious in all that it may exceed this limitation.
Art. 1080: Should a person make partition of his estate by an act inter vivos, or by will, such partition
shall be respected, insofar as it does not prejudice the legitime of the compulsory heirs.

A parent who, in the interest of his or her family, desires to keep any agricultural, industrial, or
manufacturing enterprise intact, may avail himself of the right granted him in this article, by ordering
that the legitime of the other children to whom the property is not assigned, be paid in cash.

Art. 84, FC: If the future spouses agree upon a regime other than the absolute community of property,
they cannot donate to each other in their marriage settlements more than one-fifth of their present
property. Any excess shall be considered void.

Donations of future property shall be governed by the provisions on testamentary succession

and the formalities of wills.

Art. 86, FC: A donation by reason of marriage may be revoked by the donor in the following cases:

(1) If the marriage is not celebrated or judicially declared void ab initio except donations made in the
marriage settlements, which shall be governed by Article 81;

(2) When the marriage takes place without the consent of the parents or guardian, as required by law;

(3) When the marriage is annulled, and the donee acted in bad faith;

(4) Upon legal separation, the donee being the guilty spouse;

(5) If it is with a resolutory condition and the condition is complied with;

(6) When the donee has committed an act of ingratitude as specified by the provisions of the Civil Code
on donations in general.

4. Parties
a. Decedent – Testator or Intestate
b. Heirs – Compulsory, Voluntary, Intestate
5. Basis for Succession
a. Natural Affection for relatives
b. Preventing wealth from being stagnant
c. Attribute of ownership
II. General Provisions
1. Transfer of property, rights and obligations

Art. 774: Succession is a mode of acquisition by virtue of which the property, rights and obligations to
the extent of the value of the inheritance, of a person are transmitted through his death to another or
others either by his will or by operation of law.

Art. 776: The inheritance includes all the property, rights and obligations of a person which are not
extinguished by his death.

Art. 728: Donations which are to take effect upon the death of the donor partake of the nature of
testamentary provisions, and shall be governed by the rules established in the Title on Succession

Union Bank v. Santibanez

Estate of Hemady v. Luzon Surety

Butte v. Manuel Uy and Sons

Maglasang v. Cabatingan

Lee v RTC of QC

2. Obligations limited to value of inheritance

Art. 774: Succession is a mode of acquisition by virtue of which the property, rights and obligations to
the extent of the value of the inheritance, of a person are transmitted through his death to another or
others either by his will or by operation of law.

Alvarez v IAC

Ledesma v. McLachlin

Genato v. Bayhon

3. Rights and Obligations not extinguished by death

Bonilla v Barcena

Conde v. Abaya

Cruz v. Cruz

NHA v. Almeida