ANA RIVERA V.

PEOPLE’S BANK AND TRUST COMPANY

G.R. No. L-47757, April 7, 1942, OZAETA J.,
RA 6426 aka "Foreign Currency Deposit Act of the Philippines"

Edgar Stephenson and Ana Rivera executed a Survivorship Agreement. Under the Survivorship Agreement,
they agreed that the money they will put into their savings account would be owned by the surviving party
upon the death of the other. The bank account was in the name of Edgar Stephenson “and/or” Ana Rivera.

1. Ana Rivera was the housekeeper of Edgar Stephenson, from 1920 until Edgar’s death in 1939.
2. Edgar opened an account, in his name, with People’s Bank in 1929. He deposited P1,000. The balance
grew to P2,072 in 1931.
3. Edgar then executed the survivorship agreement and the bank account was transferred to the name of
“Edgar Stephenson and/or Ana Rivera.”
4. When Edgar died, the account balance was P701.43, which Ana tried to claim.
5. However, the bank refused to pay Ana. The Bank’s attorneys said the Survivorship Agreement between
Edgar and Ana was of doubtful validity.
6. Hence, Ana sued the bank.
7. Minnie Stephenson, administratrix of Edgar’s estate, sought to intervene in the action and claim the
amount for the estate. Minnie says the money in the account is the exclusive property of the deceased.

Trial Court: Ana is not entitled to the money.

1. The Survivorship agreement must be viewed from its effect during the lives of the parties and its effect
after the death of one of the parties.
2. During the lives of the parties, the agreement was a mere power of attorney allowing Ana Rivera to
withdraw the deposit. Such power terminated upon the death of the principal, Edgar.
3. However, after the death of one of the parties, the agreement was a donation mortis causa with respect
to the balance remaining.
4. As a donation mortis causa that was not executed with the formalities of a will, the survivorship
agreement was of no effect.

Issue: Was the Survivorship Agreement valid? YES.

● The Survivorship Agreement was neither a power of attorney nor a donation mortis causa.
● This is because the funds in the account were not the exclusive property of Edgar. Rather, the funds in
the account jointly belonged to both Edgar and Ana.
● As such, either of them could withdraw any part or the whole of the account during the lifetime of
both, and the balance, if any, upon the death of either, belonged to the survivor.
● Furthermore, it is well established that a bank account may be so created that two persons shall be joint
owners thereof during their mutual lives, and the survivor take the whole on the death of the other.
The right to make such joint deposits has generally been held not to be done away with by statutes
abolishing joint tenancy and survivorship generally as they existed at common law.

Issue: Can a survivorship agreement be contrary to law? YES.

● Generally, a survivorship agreement is per se not contrary to law.
● However, its operation or effect may be violative of the law if, for instance, it is shown in a given case
that such agreement is a mere cloak to hide an inofficious donation, to transfer property in fraud of
creditors, or to defeat the legitime of a forced heir, it may be assailed and annulled upon such grounds.
● No such vice has been imputed and established against the agreement involved in this case.