SUCCESSION

• Succession is defined as the 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 will (testate) or by operation
of law (intestate).
TERMS TO REMEMBER

 Decedent – the person who died and whose property

is transmitted through succession. It is the general
term applied to the person whose property is
transmitted through succession, whether or not he left
a will.
 Testator – the decedent whose properties are to be
transferred to his successor through a written will. A
transfer of property from a decedent without a will is
call Intestate.
• Estate – refers to the properties or
property rights of the decedent, which is
the subject matter of succession. Also
known as inheritance.
• Succesor – the heir or person to whom
the property or property rights is to be
transferred.
• Executor – the person named in the will by the
testator to carry out its contents.
• Administrator – the person appointed by the
court to administer and distribute the estate of
the decedent if there is no will, or if the
executor named in the will, of if the person
named in the will does not act or execute its
contents.
 Testamentary Succession – results from the
designation of an heir, made in a will and executed in
the form prescribed by law. A person who died
leaving a will is said to have died TESTATE.
 Will – an act whereby a person is permitted , with the
formalities prescribed by law, to control to a certain
degree the disposition of his estate upon his death.
• Codicil – a supplement or an addition to a will,
made after the execution of a will and annexed
to the will and to be taken as part thereof, by
any disposition made in the original will is
explained, added to, or altered.
• Holographic Will – one entirely written, dated
and signed by the testator himself and is subject
to no formalities.
 Notarial Will – a will other than a holographic will
that conform to all the requirements of law.
 Legitime – the portion of the testator’s property
which could not be disposed of freely because the
law has reserved it for the compulsory heirs.
 Free Portion – the part of the estate which the testator
could dispose of freely in the will
 Disinheritance – an act by which an owner of an
estate deprives a person who would otherwise be his
heir , or the right to inherit it.
 Intestate Succession – is a legal succession because it
takes effect through the operation of law because
there is no decedent’s last will and testatement to
dispose the estate. A person who died without leaving
a will is said to have died INTESTATE.
SETTLEMENT OF ESTATE

• Extrajudicial Settlement of Estate By

Agreement Among Heirs

• Adjudication of Sole Heir

• Summary Settlement of Estates of Small Value

(Php10,000.00)
SECTION 4 RULE 74

• What are the liabilities within two years of the distributee in

extrajudicial partition and in Summary Settlement of Estate
of Small Value.
1.) For claims of an heir or other person unduly deprived of
participation in the estate
2.) For claims of an heir or other persons unduly deprived of
participation in the estate payable in money
3.) For debts outstanding against the estate, and not yet paid.
DONATION
• Donation is an act of gratuitously
transferring property or rights
motivated by the liberality of the
giver (donor) in favor of the receiver
(donee) who accepts it.
• A donation is a gift – a voluntary transfer of
property or right from one person to another
for free.

• The transfer of property or rights includes not

only the transfer of ownership or title but also
the passage of control over the economic
benefits of the property.
• Donation Mortis Causa
• This donation takes effect upon the
death of the donor.
• It is governed by the formalities of
testamentary disposition.
• It is subject to Estate Tax.
• Characteristics of Donation Mortis Causa
1.) The transferor retains the ownership and
control of the property before his death.
2.) The transfer is revocable by the transferor at
will, or the donor reserved the power to dispose
of the properties conveyed; and
3.) The transfer should be void if the transferor
should outlive the transferee.
• Donation Inter Vivos
• This donation is gratuitous
transfer of rights and property
that shall take effect during the
lifetime of the donor.
• This is subject to donor’s tax.
• Essentials of Donation
1.) Capacity of the donor
2.) Donative Intent
3.) Delivery of the gift
4.) Acceptance of the donee
 FOR REFERENCE
Donation
• Property is P10M and above; tax is P1,004,000 plus 15% of
the excess over P10M

Succession
* Property is P10M and above; tax is P1,215,000 plus 20% of
the excess over P10M