05/10/2026
The has ruled that waiving rights to inherited property may be considered a valid donation when it shows intent to donate and meets the legal requirements for a donation.
In a Decision written by Associate Justice Jhosep Y. Lopez, the SCโs Second Division denied the consolidated petitions filed by Felix G. Cruz and affirmed the Court of Appealsโ (CA) rulings upholding the transfer of two inherited properties by Luis and Rosita Cruz to their sons, Robin and Osias.
The case involved two parcels of land left by Judy Cruz, who died single and without a will. She was survived by her parents, Luis and Rosita, and five siblings, including Felix, Robin, and Osias.
After Judyโs death, Luis and Rosita executed separate notarized ๐๐ข๐ช๐ท๐ฆ๐ณ๐ด ๐ฐ๐ง ๐๐ช๐จ๐ฉ๐ต๐ด over the properties in favor of Robin and Osias, who later executed an ๐๐น๐ต๐ณ๐ข๐ซ๐ถ๐ฅ๐ช๐ค๐ช๐ข๐ญ ๐๐ข๐ณ๐ต๐ช๐ต๐ช๐ฐ๐ฏ ๐ข๐ฏ๐ฅ ๐๐ฆ๐ต๐ต๐ญ๐ฆ๐ฎ๐ฆ๐ฏ๐ต ๐ฐ๐ง ๐๐ด๐ต๐ข๐ต๐ฆ and registered the properties in their names.
Felix and his two other siblings, Doris and Henry, also executed waivers giving up any interest in the properties. Felix, who was the family lawyer, prepared these documents.
After their mother died, Felix sought to nullify the transfer of the properties and cancel the titles of Robin and Osias. Felix argued that the transfer was invalid and that the properties should have remained part of their motherโs estate, to which he was entitled to inherit as one of the heirs.
The SC upheld the ruling of the trial court and the CA dismissing Felixโs complaint and holding that the Waivers of Rights executed by Luis and Rosita constituted valid donations in favor of Robin and Osias.
The SC explained that when Judy died, ownership of her properties immediately passed to her parents as her legal heirs. Luis and Rosita therefore had the right to dispose of the properties.
Although the documents they executed were called ๐๐ข๐ช๐ท๐ฆ๐ณ๐ด ๐ฐ๐ง ๐๐ช๐จ๐ฉ๐ต๐ด, the SC found that Luis and Rosita intended to donate the properties to Robin and Osias.
Under Article 749 of the ๐๐ช๐ท๐ช๐ญ ๐๐ฐ๐ฅ๐ฆ, a valid donation of real property requires: (1) a decrease in the donorโs property; (2) a corresponding increase in the doneeโs property; (3) intent to donate; (4) ex*****on of the donation in a public document; and (5) acceptance by the donee. If the acceptance is in a separate document, the donor must be informed.
These requirements were met in this case. Luis and Rosita gave up their ownership of the properties in favor of Robin and Osias through notarized documents that expressly authorized the transfer. Robin and Osias, in turn, accepted the donation by executing the ๐๐น๐ต๐ณ๐ข๐ซ๐ถ๐ฅ๐ช๐ค๐ช๐ข๐ญ ๐๐ข๐ณ๐ต๐ช๐ต๐ช๐ฐ๐ฏ ๐ข๐ฏ๐ฅ ๐๐ฆ๐ต๐ต๐ญ๐ฆ๐ฎ๐ฆ๐ฏ๐ต and registering the properties in their names. Their actions were made known to Luis and Rosita.
Read the full text of the Press Release at https://sc.judiciary.gov.ph/?p=174097.
Read the full text of the Decision at https://sc.judiciary.gov.ph/?p=168026.
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