F

This is an example of Art. 887 T- testator Fand M- are his parents A - is Ts legitimate child B Ts illegitimate child S Ts surviving spouse W - the wife of A

Rules: 1. A, B, and S are entitled to their legitimes even if all of them are present. 2. F and M are entitled to their legitimes in default of A. 3. If only F, M, S and B are present, they are all entitled to their legitimes. 4. If only F and A are present, A is entitled to his legitime but not F, who is only Gross Estate secondary compulsory heir. Relate this to Article 962 of the NCC. The principle nearer excludes the - ofDebts and Charges farther. 5.___________________________ W who is As wife is not compulsory heir of T but is a compulsory heir of A. Net Estate + Collationable Donation (if any) ___________________________ Page 1 of 43 Net Distributable Estate

This is the formula on how to compute the Net Distributable Estate of the testator. Ex. Gross Estate = P 1, 000, 000.00 Donation inter vivos = P 800,000.00 Debts/Charges/ Liabilities = P 200, 000.00 Apply the formula: Net Estate = P 1,000, 000.00 P 200,000.00 = P 800,000.00

Net Distributable Estate = Net estate + Collationable Donation = P 800,000.00 + P 800,000.00 = P 1, 600, 00.00

Art. 888 application Legitime of the legitimate children and decendants

F Page 2 of 43

F = father A and B = legitimate children A and B (legitime) = of the net hereditary estate Ex. Net Hereditary Estate = P 1, 000, 000.00 A and B (legitime) = (P1, 000, 000.00) = P 500, 000.00

Free Disposable Portion

of 1M = P 500K

of P1 M=P 500K

A and B legitime

A and Bs legitime = P500, 000.00/ 2 As legitime = P250, 000.00 Bs legitime = P 250, 000.00

Application of Article 889. Legitime of the legitimate parents and ascendants

Page 3 of 43

C M = mother (legitimate parent) F = father (legitimate parent) C = child (testator)

Cs Estate = P 1,000, 000.00 Survived by his father and mother only, F and M Surviving parents are entitled to of the hereditary estate of C F and Ms legitime = of P 1,000,000.00 = P 500, 000.00

FDP

of 1 M = P 500K

F and Ms legitime of P 1 M = P 500K

F and Ms legitime = P 500k/2 Fs legitime = P250, 000.00 Ms legitme = P250, 000.00

Application of Article 890.

GM

GF

GG

PP

M Page 4 of 43

GM and GF = maternal grandparents GG and PP = paternal grandparents F = father M = mother T = testator Estate = P 1 M Rules: If all survive except T, the grand parents get nothing, they are excluded. Legitime of M and F = of the estate which is P500, 000.00, so each M and F are entitled to P250, 000.00. The other of P 1 M which is P 500, 000.00 shall belong to the FDP.

If M predeceased T , F gets the entire P500, 000.00 as legitime. The remaining P500,000.00 is the FDP. Gm and GF cannot represent because there is no representation in the ascending line and also the relative nearest in degree excludes more distant ones. If and M predeceased T, and the others are still alive, the maternal line shall get of the legitime and to the paternal line. To illustrate this: Cs estate = P1M Surivived by the following: GM and GF - maternal grandparents GG and PP paternal grandparents GM, GF, GG and PPs legitime = of the P1M = P 500, 000.00 FDP = of 1 M = P500,000.00 GM and GF = P250,000.00/2 GG and PP = P250, 000.00/2 GM= P125, 000.00 Page 5 of 43

GF = P125,000.00 GG= P125, 000.00 PP = P125, 000.00 P 125 K for GM

P 125 K for GF FD P 0f P1M = P500K

P 125 K for GG

P 125 K for PP If the only survivors are ascendants of different degrees, as when only GM and the mother of PP survived.

To illustrate: GGMP

GM

GF

GG

PP

As to GM and GGMP who can inherit from T which is the case of the grand parent and the great grand parent The legitime shall pertain entirely to the ones nearest in degree of either line, that is GM the grandmother eing nearer on degree than the great grand mother GGMP, gets the entire legitime. Page 6 of 43

Article 891. Reserva Troncal. Requisites first:

Chua v. CFI.-- 1. The property was acquired by a person from an ascendant of from a brother or sister by gratuitous title. 2. Said person died without legitimate issue. 3. The property is inherited by another ascendant by gratuitous title: like donation, remission or succession either through testamentary succession or by operation of law. 4. There are relatives w/in the third degree belonging to the line from w/c said property came. Purpose: The purpose of reserva troncal is to return the property to where it originated and from where it strayed due to the accident of marriage. "Accident" here means unforeseen development.

(Called the origin) M

Third degree relatives

Transmissi on through gratuitous title: succession , donation or remission

F is called the reservoir or reservista; exercised the usufructuary right

Called the propositus; it is from him the degree is counted

Page 7 of 43

F after his death shall return the property to the relatives of M within the 3rd degree of consangunity

Tran smis sion is by oper ation of law (lega l succ essio n; or legiti me in testa ment ary succ essio n

M and F are the parents of C. M died leaving a will, giving a parcel of land to C. C died one month later without any descendant and without any will. The father of F then inherited the land. This land is subject to what is known as reserve troncal or also known as reserve lenial. This means that F owns it until he dies, at his death it should NOT go to anybody whom he desires, but is reserved by the law in favor of the relatives of M. In favor of the line which the property came. F has only the usufructuary rights over the land he cannot dispose it nor pass to his heirs. Lets have the figures applying the reserve troncal, wherein the transmission from the propositus to the reservista is not though intestate succession but testate succession.

Third degree

Return the legitime P500K to the 3rd degree relatives M (origin) F (reservista) FB (brother) Parcel of land worth 1M

Page 8 of 43

Transmissio n through gratuitous title: donation, succession, remission

Transmissio n is through a will

Fs legitime =P 500K F as voluntary heir = P500K

C (propositus)

A parcel land worth P1M is transmitted to C from M through succession. Upon death of C, C makes a will named F as his general heir. So Fs legitime is = of P1M = P500,000.00 FDP is also P500, 000.00 which will go to F as a voluntary heir So the subject of reserve troncal is only the P500,000.00 legitime of F which should be given back to the third degree relatives of the blood line of M. The other P500,000.00 which he inherited as a voluntary heir shall go to his brother FB as the legal heir of F. Question: as to whom the 3rd degree relatives covered by reserve troncal? Who are those within the 3rd degree relatives by blood counted from the prositus in maternal line in the problem above?

GGM 1

GGP1

GGM 2 G

GGP2

Other brothers and sisters of M

M (deceased

C (propositus) Page 9 of 43

Other brothers and sisters of the propositus

Nephews and nieces of the propositus

Art. 892. One legitimate child and surviving spouse legitimate child (1/2); surviving spouse (1/4)
If there are 2 or more legitimate children, the spouse is entitled to the portion equal to the legitimates. In both cases the legitime of the spouse can be taken in the free disposable portion.

Lets apply the formula. Ts estate =1M Surviving relatives are: B = legitimate child W = surviving spouse T W (surviving spouse) of the Estate

B (legitimate child) of the estate Bs legitime = of P1M = (P 1,000,000.00) = P 500, 000.00 Ws legitime =1/4 of 1M = (P1, 000, 000.00) = P250, 000.00 FDP = P 250, 000.00 Lets have the pie presentation Page 10 of 43 Ws legitime= P250,00

Bs legitim e= P500K

of 1M

of 1M of 1M

FDP

Lets have an example of the second paragraph: T died testate leaving an estate worth P 1M. Ts estate = 1M Survived by the following: A =legitimate child B= legitimate child C = legitimate child D = legitimate child W = surviving spouse To illustrate: T W surviving spouse (equal share with her legitimate children)

(legitimate children of T and W) In this case, we have to apply par. 2 which stated that the legitime of the surviving spouse shall be equal to the legitime of the legitimate children. Since there are 4 legitimate children in our example, A, B, C, and D shall be entitled to of the estate as their legitime: A, B, C, and Ds legitime = of P1M = P 500,000.00/4 A = P500,000/4 = P125,000 B = P 500, 000.00/4 = P125, 000.00 Page 11 of 43

C = P500,000/4 = P125,000.00 D = P500,000.00/4 = P125, 000.00

A, B, C, and Ds legitime =1/2 0f 1M =P500K

A=P12 5K B=P12 5K C=P125 K D=P12 5K

FDP= 0f 1M =P500K

FDP- thats where we get the legitme of the surviving spouse W

Ws legitime should be P125,000.00 too equal to the legitime of his/her legitimate children which shall be deducted from FDP which is the P500, 000.00 P125, 000.00. The remaining FDP = P500, 000.00 P 125,000.00 = P325, 000.00 So lets have the pie so we have a thorough imagination of how the shares look like:

A= P125K

Legitime of A, B, C and D = of P1M = P500K

B= P125K C= P125K D= P125K

FDP = P375K

Page 12 of 43

W= P125K

Ws legitime which is eual to her childrens legitime P125,000 deducted from the FDP.

Art. 893 example

Legitimate parents and surviving spouse legitimate parents (1/2); surviving spouse (1/4) Testator T leaves an estate worth 1M Survived by the following: W = surviving spouse

M = legitimate mother F = legitimate father To illustrate: of

T So les make use of the formula: M and Fs legitime = of 1M = (P1,000,000.00) = P500,000.00 Ms legitime = P500,000.00/2 = P250, 000.00 Fs legitime = P500,000.00/2 = P 250, 000.00 Page 13 of 43

W (surviving spouse) of

Ws legitime = of P 1,000,000.00 = ( P1,000,000.00) = P 250, 000.00 FDP = P250, 000.00 Lets have the pie presentation: Ws legitime = of 1M = P250K F and Ms legitime= of 1M = P 500k F s legitme = P250K M s legitme = P250K W s legitme = P250K FDP =P 250K

Art. 894. Surviving spouse (1/3) and the illegitimate children (1/3)
Ex. Ts estate = P1M Survived by the following: X = recognized natural child (illegitimate) Y = acknowledge illegitimate child W = surviving spouse Note: Broken line is a symbole for illegitimacy for purposes of succession

W (surviving spouse) Ws legitime 1/3 of 1M

Recognized illegitimate children of T = 1/3 of 1M Page 14 of 43

So lets apply the formula: X and Ys legitime = 1/3 of P 1M = 1/3 (P 1,000, 000.00) = P 333,333.33 repeating decimal Xs legitime = P 333, 333.33/2 = P 166, 666.66 repeating decimal Ys legitime = P333,333.33 /2 = P 166, 666.66 repeating decimal Ws legitime = 1/3 of P1, 000,000.00 = 1/3 (P1,000,000.00) = P333, 333.33 repeating decimal FDP = 1/3 of P1,000,000.00 = P 333, 333.33 repeating decimal

Lets present this in pie form:

Ws legitime = 1/3 of !M = P333,333.33

W = P333,

333.33
X= P166K Y= P166K

Legitime of X and Y = 1/3 of 1M = P 333, 333.33 Page 15 of 43

FDP = P 333, 333.33

Art. 895 as amended by the Family Code, deleting the distinction between natural acknowledge child and spurious child which are considered all illegitimate as long as they are acknowledge during the lifetime of the testator. Legitimate children and illegitimate children legitimate children (1/2); illegitimate children (1/2 of the share of each legitimate child) Lets go to the example: Ts estate =1M Survived by the following: A= legitimate child of T B = legitimate child of T C = legitimate child of T D = legitimate child of T Q = illegitimate child of T R = spurious child of T (acknowledge) S = natural child (acknowledge) U = illegitimate child V = illegitimate child X = illegitimate child Y= illegitimate child Z= illegitimate child In short T leaves 4 legitimate children A, B, C, and D T also leaves 10 illegitimate children O, P, Q, R, S, U, V, X, Y and Z So lets make use of the formula: A, B, C and Ds legitime = of 1M = (P1,000,000.00) = P 500,000.00/4

Page 16 of 43

As legitime Bs legitime Cs legitime Ds legitime

= P125, 000.00 = P125, 000.00 = P125, 000.00 = P125, 000.00

Lets determine now the share of the illegitmates which is of the share of the legitimate: O, P, Q, R, S, U,V, X, Y and Zs legitime = of P 125,000.00 = P62, 500.00 Supposed to be: Os legitime = P 62, 500.00 Ps legitime = P62, 500.00 Qs legitime = P 62, 500.00 Rs legitime = P 62, 500.00 Ss legitime = P62, 500.00 Us legitime = P 62, 500.00 Vs legitime =P 62, 500.00 Xs legitime = P62, 500.00 Ys legitime = P62, 500.00 Zs legitime = P 62, 500.00 Total = P 625, 000.00

FDP is only = of 1M = P500, 000.00 So in this case the deficiency shall be shouldered by the illegitimates. So the correct computation shall be: The remaining FDP which is P500, 000.00 / 10 in order to get the respective shares of the 10 illegitimate children: Os legitime = P 500, 000.00/10 - P 50, 000.00 Ps legitime = P 500, 000.00/10 - P 50, 000.00 Qs legitime = P 500, 000.00/10 P 50, 000.00

Page 17 of 43

Rs legitime = P 500, 000.00/10 P 50, 000.00 Ss legitime = P 500, 000.00/10 P 50, 000.00 Us legitime = P 500, 000.00/10 P 50, 000.00 Vs legitime = P 500, 000.00/10 P 50, 000.00 Xs legitime = P 500,000.00/10 P 50, 000.00 Ys legitime = P 500,000.00/10 P 50, 000.00 Zs legitime = P 500,000.00/10 P 50, 000.00 Total = P 500,000.00

Legitime of A, B, C and D = of P 1M -> P500K

Bs legitime = P125 K

Cs legitime = P125 K

As legitime = P125 K

Ds legitime = P125 K

Os legitime = P50K Ps legitime = P50K Qs legitime = P50K

Zs legitime = P50K Ys legitime = P50K Xs legitime = P50K

Rs legitime = P50K

Ss legitime = P50K

Us legitime = P50K

Vs legitime = P50K

So lets have the pie presentation:

Page 18 of 43

Legitime of the illegitimates which is supposed to be of P125K which is P62, 500.00 reduced to FDP/10 = P500K/10= P50,000.00 due to defiency in the FDP to ver the full legitime of illegitimate children

Lets have another scenario when: the legitimate children, the surviving spouse, and the illegitimate children concur T died, survived by the following: A= legitimate child Page 19 of 43

B= legitimate child C= legitimate child D= legitimate child W= the surviving spouse V= illegitimate child X= illegitimate child Y=illegitimate child Z=acknowledge natural child Estate= P1,000,000.00 The sharing should be in accordance with article 898, so lets traverse a little, lets jump to article 898 for purposes of comparison: With reference to article 898 we come up with this sharing: of P1M= legitime of the legitimate children (A, B, C, and D) Ws legitime shall be equal to 1 share of the legitimate child of the legitime of the legitimate child for illegitimate children (V,X, Y, and Z) Legitime of A, B, C and D= P500,000.00/4 As legitime = P125,000.00 Bs legitime = P125,000.00 Cs legitme = P125,000.00 Ds legitime =P125,000.00 Ws share should also be P125,000.00 to be deducted from the FDP which is P500,000.00 The remaining FDP is equals to P375,000.00 Then we will determine the shares of the 4 illegitmate children after satisfying the legitime of the legitmate children and the surviving spouse. V, X, Y and Zs legitime = ( of the legitime of the legitimate children) or of the legitme of 1 legitmate child = (P500,000.00/2) = P250,000.00/4 Page 20 of 43

Vs legitime=P62,500.00 Xs legitime =P62,500.00 Ys legitime = P62,500.00 Zs legitime =P62, 500.00 Remaining FDP =P375,000.00 P250,000.00 FDP= P125,000.00

Legitime of the illegitimate children V,X,Y an Z

Legitim e of So lets have the illustration: B= legitim P125K ate childre n A, B, C, and D C= of P1M Page 21 of 43 P125K

A= P125K

A= P125K

A= P125K A= P125K A= P125K

FDP= P125K D= P125K Ws legitime (surviving spouse) = P125K

Art. 896.
Legitimate parents and illegitimate children - legitimate parents (1/2); illegitimate children (1/4) So here we go lets have an example using the formula: Ts estate = P1M Survived by the following: X = acknowledge natural child Y = illegitimated (acknowledge) Z = recognized illegitimate

Page 22 of 43

M = mother of T F = father of T To illustrate:

M and Fs legitime = of 1M

X, Y and Zs legitime ( illegitimate children) = of 1M M and Fs legitime = of P1, 000,000.00 = ( P1,000, 000.00) = P500, 000.00/ 2 Ms legitime = P 250, 000.00 Fs legitime = P250, 000.00 X, Y and Zs legitime = of P 1, 000, 000.00 = (P1,000,000.00) = P 250,000.00/3 Xs legitime = P 83, 333.33 repeating decimal Ys legitime = P 83, 333.33 repeating decimal Zs legitime = P 83, 333.33 repeating decimal

Page 23 of 43

Lets present this one in pie form: M and Fs legitime = of P1M= P500K

F= P250 K X, Y and Zs legitim e+ of P1M =PP25 0K/3 = P83,88 8.33 X= P83, 333.3 3 Y= P83, 333.3 3

M= P250 K FDP =P 250K

Z= P83, 333.3 3

Art. 897. Surviving spouse concurring with legitimate children. The share of surviving spouse shall be equal to the share of 1 legitimate child. So let us go to example: Ts estate = 1M Survived by the following: A= legitimate child B = legitimate child C = legitimate child D = legitimate child E = legitimate child Page 24 of 43

F = legitimate child W = surviving spouse So lets illustrate applying the rules on legitime:

W ( surviving spouse) equal share with one legitimate child

They are all entitled to of P1M as their legitime

So lets distribute estate using the formula: AB, C, D, E, and Fs legitime = of P1, 000,000.00 = ( P1,000,000.00) = P500, 000.00 / 6 As legitime = P 83, 333. 33 repeating decimal Bs legitime = P 83, 333. 33 repeating decimal Cs legitime = P 83, 333. 33 repeating decimal Ds legitime = P 83, 333. 33 repeating decimal Es legitime = P 83, 333. 33 repeating decimal Fs legitime = P 83, 333. 33 repeating decimal Ws legitime then should also P 83, 333.33 equal to 1 share of the legitimate child FDP = P416, 666. 66 repeating decimal Lets makes a pie diagram for this:

Page 25 of 43

A= P83K B= P83K

A, B, C, D, E C = P83K and Fs legitime of P1M = P500K

FDP = P 416,666.66

D= P83K

E= P83K

F= P83K

W= P83K

Ws legitime which is equal to 1 share to her legitimate child

Art. 898. Legitimate children, illegitimate children, and surviving spouse legitimate children (1/2); illegitimate children (1/2 of the share of each legitimate child); surviving spouse (equal to share of one child; the share of the illegitimate children shall be reduced if necessary)
Lets have an example: Ts estate = 1M Survived by the following: A= legitimate child B= legitimate child C= legitimate child W= surviving spouse Q =illegitimate (acknowledge) R= illegitimate acknowledge child S = illegitimate child (recognized) U = natural acknowledge child V = recognized illegitimate

Page 26 of 43

Lets illustrate:

W (surviving spouse) equal to 1 legitmate child

Q R S U V

of the share of one legitimate child

of 1 M

So lets apply the formula: A, B, and Cs legitime = of P1,000,000.00 = P500, 000.00/3 As legitime = P 166, 666. 66 repeating decimal Bs legitime = P 166, 666. 66 repeating decimal Cs legitime = P 166, 666. 66 repeating decimal Ws legitime = P 166, 666.66 repeating decimal So the remaining FDP = P 333, 333.33 repeating decimal Suppose to be the illegitimate is entitled to the share of of the legitimate child, that is supposedly P 83, 333.33 each however, there are 5 of those illegitimates in order for them to be given of the share of the legitimate each, the total amount needed is P 416, 666. 66 which exceeded the FDP left which is P 333, 333.33. So the legitimates shall suffer the deficiency, their shares shall be reduced. Since the FDP left is P 333, 333.33 this should be divided by 5 illegitimates. Q, R, S, U, Vs legitime (illegitimate) = P333, 333.33/5 = P 66, 666. 66 Qs legitime = P 66, 666.66 repeating decimal Rs legitime = P 66, 666.66 repeating decimal Ss legitime = P 66, 666.66 repeating decimal Page 27 of 43

Us legitime = P 66, 666.66 repeating decimal Vs legitime = P 66, 666.66 repeating decimal

Lets have the pie:

W s legitime = 1 share of the legitimate child A, B, and Cs legitim e= of 1M

A= P166 K B= P166 K C= P166 K

W= P166 K

Q=P 66K

R=P 66K S=P 66K U=P 66K V=P 66K

Page 28 of 43

Art. 899. Legitimate parents, illegitimate children, and surviving spouse legitimate parents (1/2); illegitimate children (1/4); surviving spouse (1/8)
Ex. Ts estate = 1M Survived by the following: M = Ts mother F = Ts father W = surviving spouse O = illegitimate child (acknowledge) P = illegitimate child acknowledge Q = natural child acknowledge Lets illustrate:

Entitled to of the 1M

W surviving spouse (1/8 of 1M)

Entitled to of 1M share of the illegitimate children Lets apply the formula: M and F s legitime = of P 1, 000, 000.00 = P 500, 000.00/2 Page 29 of 43

Ms legitime = P 250, 000.00 Fs legitime = P 250, 000.00 Ws legitime = 1/8 of P1, 000, 000.00 = P 125, 000.00 O, P, and Qs legitime = of P 1, 000, 000.00 = P 250, 000.00/3 Os legitime = P 83, 333.33 repeating decimal Ps legitime = P 83, 333. 33 repeating decimal Qs legitime = P 83, 333. 33 repeating decimal FDP = P 125, 000.00

Lets present the pie:

O, P, and Qs legitime = of the 1M

O=P 83K

O=P 83K

Ms legitime = P250K

O=P 83K

M and Fs legitime = of 1M

FDP = P 125K

Legitime of the surviving spouse 1/8 or 1M = P 125K Art. 900 application. Ex.

Fs legitime = P250K

Surviving spouse alone (1/2); if in articulo mortis and not cohabiting for more than five years (1/3)

Ts estate = 1M Surviving heir: Page 30 of 43

W= Ts wife T Ws legitime =1/2 of 1M = (P 1,000,000.00) = P 500, 000.00 FDP = P 500, 000.00 If died within 3months from marriage share of the spouse is reduced to 1/3 of the 1M Ws legitime = 1/3 of 1M = P 333, 333. 33 repeating decimal If cohabiting within 5 years, died within 3 months after marriage: go back to the general rule: surviving spouse is agan entitled to of the 1M. W ( surviving spouse) of 1M

Pie: general Rule:

FDP = P500k

of 1M legitime of W = P500K

Pie : exemption:

1/3 legitime of the spouse if in articulo mortis = P 333, 333.33

FDP = P 666 K

Page 31 of 43

Art 901. If only the illegitimate survived and no compulsory heir the illegitimate children is entitled to of the estate. Ex. T s estate =P1M Survived only by illegitimate children: X and Y T

X X and Ys legitime = of 1M = ( P1,000,000.00) = P 500,000.00/2 Xs legitime = P 250, 000.00 Ys legitime = P 250, 000.00

Art. 902. Right of illegitimate children vis a vis Art 990.on right of representation. T (legitimate)

O (illegitimate)

P (illegitimate) Ts estate = 1M X (stranger) legacy = P500, 000.00 O predeceased T Page 32 of 43

Question: Can P represent his illegitimate father O? Answer: Yes Question: How much if any can P get? Answer: P can inherit the P500, 000.00 Os share in Ts estate by right of representation. X can get her legacy worth = P500, 000.00 from the FDP Question: can the illegitimate descendants of legitimate children inherit by right of representation? Answer: No, because of the barrier between the legitimate family. Ex. T (legitimate)

B predecease T Question: can C represent B? Answer: yes because legitimate ascendants always can represent legitimate ascendants. Question : can Y represent B? Answer : No because of the barrier between the legitimate family. But what if we B who predeceases is an illegitimate? T

B B predeceased T C Page 33 of 43 y

Question: Can C represent B? Answer: Yes because Under art. 902 Question: can Y represent B? Answer : Yes Under art. 902. Art. 903. -- Illeg. parents (1/4) and SS (1/4) FDP Ex: Illegitimate testator s estate T = P 1M Survived by: M and F = parents of T W = surviving spouse Distribute Ts estate: Mand Fs legitime = of 1M = ( P1,000,000.00) = P250,000.00/2 Ms legitime = P125,000.00 Fs legitime = P125,000.00 Ws legitime = of 1M = (P1,000,000.00) = P 250,000.00 FDP = of 1M = (P1,000,000.00) = P500,000.00 Art 906. Art. 906. Any compulsory heir to whom the testator has left by any title less than the legitime belonging to him may demand that the same be fully satisfied. (815) A. This article says left by any title. It means left by gratuitous title. This is because donations inter vivos are considered advances on the legitime. B. This article should be read with Articles 855, 909, and 910

Page 34 of 43

C. Exceptions: 1. Donations inter vivos where the donor stipulates that it shall not form part of the legitime. (Article 1062) 2. Testamentary dispositions, unless it is provided that it shall form part of the legitime. (Article 1063)

Lets have one example using Art. 855.

A T only instituted A and C in the will Ts estate = 1M

B = has donation intervivos = P200, 000.00 A = C = 1/4 X legacy = P 100,000.00 Net hereditary estate = Net estate + donation intervivos = P 1,000,000.00 + P 200,000.00 = P 1, 200, 000.00 A, B, and Cs legitime = of P1 200 000.00 = (P1, 200, 000.00) = P 600, 000.00 FDP= P600,000.00 legacy X P100,000.00 = P500,000.00 Legitime A B P300,000.00 (1x) Voluntary heir (P500K) = P375K

(P300,000.00 P 200,000.00 {donation intervivos} = P100,000.00)

Page 35 of 43

P300, 000.00

(1x)

(P500K) = P125K

Legacy X = P100k (1/3x) How do we get the P100,000.00 remaining legitime for B? B gets less than his legitime, he is still entitled to P100,000.00. lets go back to our algebra long time ago. Ratio and proportion: Let x be the value of each contribution to satisfy Bs share as compulsory heir x + x + 1/3x = P100,000 3/3x+3/3x+1/3x =P100,000.00 X = P42, 857.14 X = P42, 857.14 As proportionate contribution = 1 x P42, 857.14 = P 42, 857.14 Cs proportionate contribution = 1 x P 42, 857.14 = P42, 857.14 X legacys contribution = 1/3 x P42, 857.14 = P 14, 285.71 The legitime and the corresponding legacy has the following reduction: legitime voluntary heir P375,000.00 P0.00 P125,000.00 Total inheritance P632, 142.27 P100,000.00 P382, 142.27

A P300, 000.00 P 42,857.73 = P257, 142. 27 B P100,000.00 C P300,000.00 P 42, 857,73 = P257, 142.27 X legacy P100,000.00 P14, 285.91 = P85, 714. 09

Art 908. Art. 908. To determine the legitime, the value of the property left at the death of the Page 36 of 43

testator shall be considered, deducting all debts and charges, which shall not include those imposed in the will. To the net value of the hereditary estate, shall be added the value of all donations by the testator that are subject to collation, at the time he made them. How to compute the net estate: 1. Inventory all gross assets. 2. Deduct unpaid debts from the gross assets since the debts of the decedent are to be paid by his estate. Gross assets - Debts = Available assets. 3. Add donations inter vivos made by the decedent to anyone. The value of the donated property is to be ascertained at the time the donation was made. Any change in the value is for the account of the donee-owner. Net Estate = Gross estate debts/charges/ liabilities Net Estate + Donations = Net Hereditary Estate. | The basis for computing the legitime Gross Assets P2,500,000 Outstanding debts 500,000 Available assets 2,000,000 Donation to eldest son + 300,000 !991 stock to brother + 500,000 Donation to daughter + 200,000 Net Estate P3,000,000 Net Estate = P2,500,000.00 P500,000.00 = P2,000,000.00 Net Hereditary Estate = Net Estate + collationable donations = P2,000,000.00 + [ P300,000.00+P500,000.00+P200,000.00] = P 2,000,000.00 +P 1,000,000.00 = P 3,000,000.00

If there are 3 children - legitime = of P3,000,000.00 = 1,500,000/3 500,000 each. Spouse - legitime = 500,000. FDP = P1,000,000.00

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Art. 910. Donations which an illegitimate child* may have received during the lifetime of his father or mother, shall be charged to his legitime. Should they exceed the portion that can be freely disposed of, they shall be reduced in the manner prescribed by this Code. Articles 909 and 910 are taken together. A. 1. Donation to child, whether legitimate or illegitimate Donation to parents or ascendants (Art. 1062.) General rule: Charged to the legitime Exception: If the testator provides otherwise. (Art. 1062.) 2. Donation to spouse General rule: Not allowed. Exception: Gifts of moderate value; treat the same as a donation to a compulsory heir. 3. Donation to a stranger -- charged to the free portion. B. Collation (Art. 1061.) 1. Three senses a. Computation.-- Art. 908, par. 2 b. Imputation.-- Articles 909 and 910. c. Reduction/ return.-- Articles 911 to 913. T

T instituted A, B, C, D and E as heir. Ts estate = P100,000.00 A donation = P15,000.00 M stranger donation = P30,000.00 E donation illegitimate child = P60,000.00 Debts = P35,000.00 Net estate = Gross estate debts = P100,000.00 P35,000.00 = P65,000.00 Page 38 of 43

Net hereditary estate = Net estate + collationable donations intervivos = P65,000.00 + [ P15,000.00+P60,000.00] = P65,000.00 + 75,000.00 = P140,000.00 A,B, C, Ds legitime = 1/2 of P170,000.00 = (P170,000.00) = P70,000.00/4

Legitime

Donations advance to legitime P15,000.00 0 0 0 P60,000.00 P2,500.00 P17,500.00 P17,500.00 P17,500.00 (- P51, 250.00)

As legitime = P 17, 500.00 Bs legitime = P 17, 500.00 Cs legitime = P 17, 500.00 Ds legitime = P 17, 500.00 Es legitime = P 8, 750.00 FDP = P70,000.00

Remaining FDP = P70,000.00 P8, 750.00 = P61, 250.00 Ms donation intervivos = P30,000.00 All deductibles to the FDP = Ms donation +Es donations = P81, 250.00 FDP deductible donations = P61, 250.00 P81, 250.00 = -P20,000.00 (both shall be reduced proportionately by 20,000 Ms donation= P30, 000.00/ P90,000.00 = P30,000.00P30,000.00 = P90,000.00 P30,000.00 3 1

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Es donation = P60,000.00/P90,000.00 =P60,000.00 P30,000.00 = P90,000.00 P30,000.00 3

So, consequently we will no longer solve the value for x because we already have the corresponding fractions of the proportionate donations of M an E. By application: Ms donation shall be computed in this manner P30,000.00 (1/3 of P20,000.00) P30,000.00 P6, 666.67 = P 23,333.33 Es donation shall be computed as follows P60,000.00 (2/3 of P20,000.00) P60,000.00 P40,000.00/3 P60,000.00 P13, 333.33 = P46,666.67

Or it can be computed in another way around based on algebraic expression: P30,000.00 as donation for M and P60,000.00 as donation for E. Basing the our reference to P60,000.00 So the donation for M is P30,000/60,000 =1/2 The donation of E is 60,000/60,000 =1 or 2/2 So the algebraic expression comes into play: Let x be the variable representing the value of the amount for reduction of excess donation So, x +x = 20, 000 x +2/2x =20,000 3/2x = 20,000 3x=20,000 x 2 3x= 40,000 X= 40,000/3 X = 13, 333.33 Ms donation shall be reduced to: P30,000.00 (1/2x) P30,000.00 (13,333.33/2) Page 40 of 43

P30,000.00 P6,666.67 = P23,333.33 Es donation shall be reduced to: P60,000.00 - x P60,000.00 P13,333.33 = P46,666.67 So we arrived at the same answer. You can use either formula whichever you feel convenient.

Art. 911. After the legitime has been determined in accordance with the three preceding articles, the reduction shall be made as follows: (1) Donations shall be respected as long as the legitime can be covered, reducing or annulling, if necessary, the devise or legacies made in the will; (2) The reduction of the devises or legacies shall be pro rata, without any distinction whatever. If the testator has directed that a certain devise or legacy be paid in preference to others, it shall not suffer any reduction until the latter have been applied in full to the payment of the legitime. (3) If the devise or legacy consists of a usufruct or life annuity, whose value may be considered greater than that of the disposable portion, the compulsory heirs may choose between complying with the testamentary provision and delivering to the devisee or legatee the part of the inheritance of which the testator could freely dispose. Balane: Order of reduction 1. Legacies and devises. (Art. 907.) General rule: Pro-rata. Exception: Preferred ones as stated by the testator will be the last to be reduced among the devises and legacies if still needed. 2. Reduce donations to strangers. Rule: Most recent donation to be reduced first (earlier donations are preferred.) See Art. 773, NCC. Note: 1 and 2 will be reduced even up to 0 as long as needed. 3. Reduce the share of illegitimate children.
Art. 950. If the estate should not be sufficient to cover all the legacies or devises, their payment shall be made in the following order: (1) Remuneratory legacies or devises; (2) Legacies or devises declared by the testator to be preferential; (3) Legacies for support; (4) Legacies for education; (5) Legacies or devises of a specific, determinate thing which forms part of the estate; (6) All others pro rata.

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T died instituting B as legitimate child as his heir. T

B A =preferred legacy P300,000.00 Dlegacy= P150,000.00 Elegacy =P100,000.00 Adding all legacies: C = P300,000.00 D = P150,000.00 E = P100,000.00 Total = P550,000.00 Bs legitime =P500,000.00 C gets the preferred legacy =P300,000.00 FDP is P200,000.00 to be given to D and E proportionately. D = 150 000/200 000 or E =100 000/200 000 or 3x/4 +1x/2 = 200 000

200 000 =

3x 4

= 3x 4(less common denominator) 1x = 2X

Supposed to be D P150,000.00 x3 E P100,000.00 x2

2 4(less common denominator)

200 000 = 3X+2X 3x+2x= 200,000 5x = 200,000/5 Page 42 of 43

x= 40,0000 D = 3 (40,000) = P120,000.00 E = 2 (40,000) =P80,000.00 The legacy of D had been reduced to P30,000.00 The legacy of E had been reduced to P20,000.00

T dies without any compulsory heir. Ts estate = P500,000.00 C- preferred legacy = P300,000.00 Dlegacy support = P150,000.00 E legacy for education = P100,000.00 Total of the legacies =P550,000.00 Legacies that should be reduced : C= P300,000.00 preferred D= P150,000.00 support E = P50,000.00 education Es legacy should be reduced because the others cannot be reduced because they ranked higher in the order of preference under Art. 950 of the Civil Code

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