Donation

Define donation

Donation is an act of liberality whereby a person disposes gratuitously of a thing or right in favor of another, who accepts it. (Art. 725, CC)

When a person gives to another a thing or right on account of the latter's merits or of the services rendered by him to the donor, provided they do not constitute a demandable debt, or when the gift imposes upon the donee a burden which is less than the value of the thing given, there is also a donation. (Art. 726, CC)

Requisites

1) Decrease or reduction of the patrimony of the donor;

2) Increase of the patrimony of the donee; and

3) Animus dodandi or the intent to make a donation

Different kinds of donation

A. As to their effectivity

1. Donations inter vivos - those which take effect upon independently of the donor's death.

a. Simple donations, or acts of pure liberality a person disposes gratuitously of a thing or right in favor of another, who accepts it. (Art. 725, CC)

b. Remunerative donations, or those which a person gives to another on account of the services rendered by the latter to the former, provided that they do not constitute a demandable debt. (Art. 726, CC)

c. Conditional donations, or those where the donor imposes upon the donee a burden or charge which is less than the value of the thing given. (Art. 726, CC)

d. Onerous donations, or those which a person gives to another in consideration of demandable debts (Art. 733, CC)

2. Donations mortis causa - those which are effective upon the donor's death and must therefore be governed by the rules on testamentary succession.

B. As to their perfection or extinguishment

1. Pure donations - those which are immediately demandable

2. Donations with a condition - those whose effectivity are subordinated to the fulfillment of non-fulfillment of a future and uncertain fact or event

3. Donations with a term - those whose effectivity or extinguishment is subject to the expiration of a term or period.

Distinction between donation inter vivos and donation mortis causa

1. DIV takes effect independently of the donor's death, whereas DMC takes effect upon the death of the donor;

2. In DIV title or ownership is conveyed to the transferee before the death of the transferor, whereas in DMC, such title or ownership is conveyed only upon the death of the transferor;

3. DIV is valid if the transferor should survive the transferee, whereas DMC is void;

4. DIV is, as a general rule, irrevocable during the transferor's lifetime, whereas DMC is always revocable; and

5. DIV must, as a general rule, comply with the formalities prescribed by Arts. 748 and 749 of the Civil Code, whereas DMC must always comply with the formalities required for the the execution of wills.

Why is there a need to distinguish a donation inter vivos from a donation mortis causa

There is a need of distinguishing a donation inter vivos from a donation mortis causa in order to determine:

1. When the donation shall take effect.

2. Whether or not there is a transfer of title or ownership during the lifetime of the donor.

3. Whether or not the donation is revocable.

4. The effect if the donor survives the donee.

5. The formalities which must be complied with in their execution.


(Source: Desiderio P. Jurado, Civil Law Reviewer, 2006 ed.)