• ART.

902 DOES NOT APPLY TO ILLEGITIMATE DESCENDANTS OF LEGITIMATE CHILDREN OF THE DECEDENT
- the illegitimate descendants of legitimate children cannot inherit by representation because of Article 992, known as the
“Iron Curtain Rule”.

Ø There is a barrier between the legitimate family, and the illegitimate family where the illegitimate children cannot
inherit from legitimate relatives by representation. Even if it appears unfair, Art. 992 must be applied.

• RULE IF ILLEGITIMATE CHILD HAS BOTH ILLEGITIMATE & LEGITIMATE DESCENDANTS

- When his representatives are both legitimate, and illegitimate, they inherit in the same proportions provided under
Article 895, because representation is succession by operation of law so the rules of legal succession apply

Ø The legiHmate one receives double the share of the illegiHmate one. 2 is to 1 means — one gets twice the share of the
other.

Ø Example
• T = Grandfather If the share to be divided is ₱300,000:
• A = T’s illegitimate child Step 1: Add the parts
• B = A’s legitimate child 2 + 1 = 3 parts
• C = A’s illegitimate child Step 2: Divide the total by 3
If A dies before T: ₱300,000 ÷ 3 = ₱100,000 per part
✔ B and C will inherit from T. They inherit by Step 3: Multiply by their parts
representing A. • B gets 2 parts → ₱200,000
• C gets 1 part → ₱100,000

ART. 903
• LEGITIME OF ILLEGITIMATE PARENTS IF THEY ARE THE ONLY COMPULSORY HEIR
- this only applies to the estate of an illegiHmate child where the illegiHmate parents are secondary compulsory heirs
because they inherit only in the absence of the decedent’s children or descendants. The parents receive ½ of the
hereditary estate but only if the illegiHmate child leaves:
a. No legiHmate descendants
b. No illegiHmate children
c. No surviving spouse

• ART. 903 DOES NOT APPLY IF ILLEGITIMATE CHILD LEAVES CHILDREN

- the parents receive NO legiHme at all if their illegiHmate child le[ a legiHmate or illegiHmate children. Presence of any
child excludes the parents.

• EFFECT IF ILLEGITIMATE CHILD ONLY LEAVES A SURVIVING SPOUSE ALONG WITH THE ILLEGITIMATE PARENTS
- then the parents receive ¼ of the estate while the surviving spouse also receives ¼ of the estate. The remaining ½ is the
free porHon

• ART. 903 DOES NOT EXTEND TO OTHER ASCENDANTS

- The arHcle refers only to illegiHmate parents, it does NOT include other ascendants (e.g., grandparents of the illegiHmate
child).
ART. 904
• BASIC RULES FOR LEGITIME
1. Testator cannot deprive compulsory heirs of their legiHme, except in cases expressly allowed by law; and
2. Testator cannot impose any burden, condiHon, subsHtuHon, or encumbrance on the legiHme.

• RATIONALE
- The legiHme is a porHon of the estate reserved by law exclusively for compulsory (forced) heirs. It is untouchable by the
testator’s personal wishes. It exists to protect family members enHtled by law.
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• EFFECT IF TESTATOR IMPOSES A BURDEN ON THE LEGITIME
- They are considered not imposed (Art. 872), and are treated as not wriden.

Ø ExcepTon
- Under Art. 1083, the testator may prohibit parHHon of the inheritance (including the legiHme) for a period not exceeding
20 years.

• INSTANCE WHEN COMPULSORY HEIR CAN BE VALIDLY DEPRIVED OF HIS LEGITIME

- Only through valid disinheritance.

Ø Requisites of Valid Disinheritance:

a. Must be expressly stated in a will.
b. Must specify a legal cause under the Civil Code (Arts. 916–917).

NOTE: If these are absent → the deprivaHon is invalid.

ART. 905
• RENUNCIATION OR COMPROMISE OF FUTURE LEGITIME IS VOD
- Any renunciaHon or compromise regarding a future legiHme between the person who owes it (future decedent), and his
compulsory heirs is VOID. The compulsory heir may sHll claim his legiHme upon the death of the decedent.

Ø LimitaTon
- If the compulsory heir received property during the decedent’s lifeHme, and agreed not to claim legiHme, although he may
sHll claim his legiHme upon death, he must collate (deduct or bring back) the value of what he already received by virtue
of the void agreement.

Ø Example At father’s death:

Father gives son a car worth ₱800,000. • Son’s legitime = ₱1.5 Million
Son agrees not to claim legitime. • He must collate ₱800,000
• He receives only ₱700,000 more.

• RATIONALE
- It is against public policy since future legiHme is only a mere expectancy (an inchoate right). It is not yet a vested right, and
under ArHcle 1347, contracts upon future inheritance are void (except when expressly allowed by law).

• COMPROMISE AMONG COMPULSORY HEIRS DURING TESTATOR’S LIFETIME IS ALSO VOID

- Even if it is the valid if compulsory heirs who agree among themselves to divide future inheritance because under ArHcle
1347, contracts on future inheritance are void, and a compromise is treated as a contract.

• RENUNCIATION/COMPROMISE OF PRESENT LEGITIME IS ALLOWED

- A compulsory heir can validly renounce legiHme a[er succession has opened (a[er death) since the inheritance is no longer
future. It is already a present right and under ArHcle 1044, a person may accept or repudiate an inheritance.

ART. 906
• COMPLETION/SATISFACTION OF LEGITIME
- If a compulsory heir receives less than his legiHme, he may demand that it to be completed. The heir is enHtled to the
balance needed to saHsfy his full legiHme.

• HEIR IS NOT CONSIDERED PRETERITED

- If he is given something but less than what the law guarantees, he is not preterited. The remedy is compleTon, not
annulment of the will.

Ø Example
- A’s legiHme = ₱1,000,000 Given in the will = ₱800,000 A may demand = ₱200,000 (to complete the legiHme) The insHtuHon
of other heirs remains valid. There will be no annulment of the will.
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 ART. 907
• REDUCTION OF INOFFICIOUS TESTATMENTARY DISPOSITIONS
- If a will contains disposiHons that impair or reduce the legiHme of compulsory heirs, those disposiHons shall be reduced
upon peHHon of the compulsory heirs, insofar as they are inofficious or excessive.

Ø NOTE
- The reducHon happens only if the compulsory heirs file a peHHon and this only applies to testamentary disposiHons
(provisions in a will) and not to DonaHons made during lifeHme because reducHon of inofficious donaHons is governed by
ArHcles 771 and 772.

• WHO CAN ASK FOR REDUCTION

- Only compulsory heirs can ask for reducHon, voluntary heirs, legatees, or strangers cannot invoke it.

• EFFECT OF REDUCTION
- The excessive porHon is cut down. The excess is given to the compulsory heirs to complete their legiHme.

• WHEN TESTATMENTARY DISPOSITIONS ARE CONSIDERED INOFFICIOUS

- A disposiHon is inofficious when it:
a. Exceeds the free porHon, or
b. Diminishes the legiHme of compulsory heirs.

• Example
Estate = 1,000,000
Compulsory heir’s supposed legiHme = 500,000
Testator gives 800,000 to a friend in the will.
Only 500,000 (free porHon) can go to the friend. The excess 300,000 must be reduced and given to the compulsory heir.

ART. 908
• FORMULA FOR COMPUTATION OF THE NET HEREDITARY ESTATE
- Property Le[ at Death – Debts and Charges + Value of CollaHonable DonaHons = Net Hereditary Estate

Example:
Estate at death = ₱1,000,000 Step 3: Apply Donation to B
Debts = ₱300,000 B already received ₱500,000
Donation to B = ₱500,000 His legitime = ₱300,000
Heirs: B and C (2 legitimate children) Excess = ₱200,000
This excess is charged to the free portion
Step 1: Compute Net Hereditary Estate
₱1,000,000− ₱300,000 + ₱500,000 = ₱1,200,000 (NHE) Step 4: Determine Free Portion
Total free portion = ₱600,000
Step 2: Compute Legitime Less excess donation (₱200,000)
Legitimate children’s legitime = ½ of NHE Remaining free portion = ₱400,000
₱1,200,000 ÷ 2 = ₱600,000
Since there are 2 children: Step 5: Actual Distribution of Remaining Estate
Each gets ₱300,000 legitime Actual remaining estate after debts = ₱700,000
C receives ₱300,000 (legitime)
B receives ₱0 (already received it in form of donation
P500,000)
Free portion left = ₱400,000
Total = Legitime + Free Portion (₱700,000)

Ø Property Lee at Death

- The total value of the estate at the Hme of the testator’s death.

Ø Debts and Charges (to be deducted)

- ObligaHons demandable even without the will or the valid debts of the decedent
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 - Charges or legacies imposed only by the will DonaHons or gi[s ordered in the will are NOT DEDUCTED because if it were
to be deducted, the testator could reduce or defeat the legiHme of compulsory heirs.

Ø Example (Charges Not Deducted)

A leaves: This is not allowed.
• Estate: ₱1,000,000
• Orders heir to give ₱900,000 to a friend
If ₱900,000 were deducted: Correct computation:
• Net estate would be ₱100,000 • Net estate = ₱1,000,000
• Legitimate child’s legitime would be • Legitimate child’s legitime = ₱500,000
reduced • Friend can receive only from the free
portion (₱500,000)

• COLLATIONABLE DONATIONS
- These are donations given during lifetime to compulsory heirs and they are added back to compute the theoretical
estate. The value added is the value at the time of donation, NOT at the time of death.

- Necessary to check if donations are inofficious (exceeding free portion) or impairing legitime. Failure to collate makes
legitime computation impossible.

Ø Rationale
- Ownership was already transferred at the time of donation. If property increased in value then the benefit goes to done,
and if there is a decreased or lost then the loss is borne by done in accordance to Res perit domino (the thing perishes
for the owner)

• WHEN DEBTS EXCEEDS THE AMOUNT OF THE ESTATE

- The donation should not be used to pay the debts, the debts should only be taken from the remaining estate

Ø Example Step 1:
Estate = ₱1,000,000 ₱1M − ₱1.2M = 0 (estate exhausted)
Debts = ₱1,200,000
Donations = ₱500,000 Step 2:
0 + ₱500k = ₱500,000 NHE

• DETERMINATION OF THE VALUE OF THE ESTATE AT THE TIME OF DEATH OF THE TESTATOR
1. If There Are Judicial Settlement Proceedings
- The administrator/executor determines the value of the estate assisted by a tax appraiser.

Basis: Market value.

Legal basis: Rule 83, Sec. 1, Rules of Court.

2. If There Are No Judicial Proceedings

- The heirs themselves determine the value. Must comply with the Internal Revenue Code.

Basis: Market value.

Presumption: Assessed value = Market value (This presumption is rebuttable.)

• CONJUGAL PROPERTY MUST BE FIRST LIQUIDATED

- Because only the decedent’s share forms part of his estate. So before partitioning or distributing the inheritance, it must
first be determined which properties belong to first marriage, or second marriage.

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 ART. 909
• WHERE DONATIONS ARE CHARGED
1. DonaTons to Children of the Testator
- Charged against their legiHmes. DonaHons inter vivos to children are considered advances on their inheritance. They are
first deducted from their legiHme.

Ø If legiTme is Insufficient
- The excess is charged against the free porHon.

Ø If donaTon is Excessive
- The donaHon is reduced to protect other compulsory heirs.

2. DonaTons to Strangers
- Charged against the free porHon of the estate. They are reducible if the donaHon is inofficious such as if;
a. They exceed the free porHon, or
b. They impair the legiHmes of compulsory heirs.

• DONATION TO STRANGERS ARE COLLATIONABLE

- Because although they are not advances of legiHme (they are not compulsory heirs), they are considered as advances of
the FREE PORTION.

Ø Example (Under the Falcon’s View as followed by

the SC) Step 2: Compute Legitime & Free Portion
Legitime (½) = ₱1,250,000
Free portion = ₱1,250,000
Step 1: Compute Net Estate
Remaining estate = ₱1,000,000
Step 3: Compare C’s Donation
Add: Donation to B (Child) = ₱500,000
Donation to C (Friend) = ₱1,000,000
Add: Donation to C (Friend)= ₱1,000,000
Free portion = ₱1,250,000
Total net estate = ₱2,500,000
✔ Does NOT exceed free portion
✔ Therefore, NO reduction

ART. 910
• DONATIONS TO ILLEGITIMATE CHILDREN
- They are charged against his legiHme, and subject to reducHon if they exceed what the law allows. It is treated as an
advance on his legiHme.

• DONATION TO ILLEGITIMATE CHILDREN ARE COLLATIONABLE

- The donaHon must be brought back to the computaHon of the estate when determining legiHmes as it must not impair
the legiHme of legiHmate children. LegiHmate children’s legiHme has priority protecHon under the law.

• IF DONATION EXCEEDS THE ILLEGITIMATE CHILD’S LEGITIME

- The excess is charged to the free porHon. If it sHll exceeds the free porHon, it will be reduced. The excess is treated like a
donaHon to a stranger.

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