Understanding Donation Types and Elements

Hi everyone, welcome back to my YouTube channel, ThisTraz. And in this video, we will discuss about the concept of donation. So if you're ready, let's start! So as we have mentioned in our previous video lecture, we have said that there are two types of transfers. This could be gratuitous or onerous and for gratuitous, there are also two kinds of gratuitous transfers. This could be mortis causa or inter vivos so when we say mortis causa this means that the donation takes effect only upon death of the donor and that is subject to estate tax and this mortis causa donation is actually called the in here The second type of gratuitous transfers is the donation inter vivos or the gift. This donation happens during the lifetime of the donor. And we have discussed already the inheritance, the mortis causa transfer, the estate tax, and we are done with that. So today, we will discuss about the donation inter vivos and the corresponding donor's tax. So donation takes place only when there is a deconcurrence of the following elements. And these... are four elements. So the first element is the capacity of the donor, the second is the donative intent, and the third is the delivery of the gift, and the fourth is the acceptance by the donnie. So these are the four elements that should be considered or are required to have a donation. When any of these elements is missing, then there is no donation. So we'll discuss this element one by one, and we will start. with the capacity of the donor. So what do we mean by capacity of the donor? It is said that when the donor donates something, he must be capacitated to do so at a time of donation. And the capacity of the donor is reflected through, first, he has the right to transfer or dispose the property, meaning he owns the property donated. Of course, you cannot donate something which is not yours, right? So at the time of donation, at the time of donation, of gift the donor should have the right to transfer the property otherwise the donation is void the second is that the donor must be mentally capable of entering into the nation being a real contract the nation as a real contract involves delivery of the thing promised to be donated so the donor must be capacitated to enter into a donation which he has to give to give up the ownership of the property donated or gifted so there must be a delivery okay so when you say mentally capable meaning he is capable of entering into contract he can legally consent the donation and there is no undue influence on the part of the donnie or any other persons therefore the the donation should be voluntary on the part of the donor he must be himself percent that he would give or donate the property okay so the third is he does not deprive his legal heirs so of course a donor especially when a married donor wants to give something to someone he can do that okay he can give anything to any person as long as number one if he donates a conjugal property there must be consent of the wife and or the husband if that is the wife giving or donating the couple must agree that they should donate their conjugal property. Otherwise, when the donor donates something, it must be presumed to have been donated or taken from his exclusive property and not from the conjugal property because a donation of conjugal properties requires the consent of the husband and the wife. And of course, the donor should have not deprived his legal heirs to the properties. That property... being donated should not be the only property that the donor has otherwise he would deprive these legal heirs for example if the donor has the has only one real property and he wants to donate that to someone and he has heirs he has children he has spouse so he would naturally deprive those persons from his act of donation okay and it is not necessary that the donny is capacitated at a time of the donation as long as the guardian in favor of the donnie is capacitated so the requirement is the donor should be capacitated and the three of the above should be there okay he is he has the right to transfer he's mentally capable he's capacitated and he does not deprive his legal air so when those three items above are actually present then the donor can do so the donor can donate he is capacitated and it is not required for a donation to be valid that the donnie the receiver of the gift should also be capacitated because if you want to give a gift to a child that is actually valid okay as long as the donor i mean the guardian of that donnie is capacitated in favor of the donnie so the second element of donation is the donative intent so donation must be construed strictly and is not presumed when you say donative intent it means that there is actually an intention to donate okay donation is not presumed When someone gives you something, it doesn't necessarily mean that it is a gift or a donation. There must be a clear consent. There must be an intention to give you that thing. Because it could have been that that someone is just or just wants you to use that thing. Okay? So, that intent should be clear. So, The donative intent is evidence that complying certain legal requirements. So for donation, there are certain requirements. And for donation of real properties, that must be in public instrument, which means that that should be in writing and that should be notarized and registered in the Registry of Deeds. There must be a deed of donation for that donation to take effect. Otherwise, when someone gives real properties to another and then fails to comply this public instrument requirement, then the donation is void because there is no compliance with the requirement of the law that the donation should be in public instrument, especially for real properties. And for personal properties, when there is a donation of personal properties, If the amount or value of the property being donated is not more than 5,000 pesos, that can be done orally. The donor can just say directly to the donnie that he wants to give something like this. But there should be a concurrent delivery of the thing. Otherwise, that is just a promise. And promise cannot be legally enforced. For example, if I would say that I would give you 1,000 pesos today, and you said yes but i did not give the 1 000 pesos there's no donation okay that was just actually a promise to give 1 000 pesos because if i really intend to give you 1 000 pesos today then i should have given that 1 000 pesos already to you today concurrently as of the time that i said i will give you this amount i'll also give you the actual one thousand pesos but there's none so there is actually no intention of donation it's just a mere promise blah okay so again for donation of personal properties which is valued only for five thousand or below then it could be done orally but there should be a concurrent delivery of the thing otherwise when the value of the property being donated or is the subject matter of the nation is more than five thousand there should be or the donation should be in writing okay there must be a written uh contract of donation and the writing should be in public or in private instrument okay so when you say in public instrument it means that instrument that writing is notarized by a public attorney okay so those are some requisites of a donation for a donation to be valid and to have a donative intent clear okay there should be compliance with these requirements and the intent is only necessary for direct gifts when we say direct gift this means that a would give something to be direct gifts so for example juan gave pedro a brand new car for the latter's 35th birthday so that is considered as a direct gift meaning juan gave pedro that's basic okay you But for indirect gifts, the native intent is not necessary. For example, in the creation of trust, like A wants to give B a certain amount for the benefit of C. So that is actually an indirect gift. A is not really giving something to B, but to C, so that's indirect. Or in case of inadequate consideration, it's in the case of sale transaction. When the selling price or the fair value of the thing... being sold is higher than the actual consideration received from the buyer to the seller so there is an inadequate consideration received so in those case they are considered as indirect gifts and the intent is not necessary okay so again the native intent is only necessary for direct gifts so the other element the third one is the delivery of the gift as a real contract there must be a delivery of the gift so that the donation is completed on the part of the donor when we say real contract real contract is actually a special contract because it is um it involves a delivery of the thing unlike any other contract The basic elements of contract is the cost, object, and consideration. So those are just the three requisites to have a valid contract. But for a donation as a real contract, apart from those cost, object, and consideration, there should be a delivery. The delivery makes the donation a real contract. So delivery of the gifts completes the donation. Hence, the imposition of the tax shall occur. So, So when the donor actually gives, delivers the thing, the being donated or is the subject matter of donation, then on the donor's part, the donation is already completed. Okay. So at that time, when there is already a completion of the gift or donation, the donor's tax will now start to accrue. And upon delivery, and as I have said, the donor's tax will accrue as of the time of delivery of the thing. donated so delivery may be done through any of the following modes number one the actual delivery when we say actual delivery this means the delivery or transfer of the thing from hand to hand if it is movable so if you promise to give someone cell phone or a mobile phone and then you give you actually handed to someone the phone then that is considered as an actual delivery or if you want to give some someone a cash and you actually handed him the cash then that is the actual delivery however there are also some um delivery which is actually constructive so when you say constructive delivery there is no actual um hand-to-hand giving or transfer of the thing being donated so number one you have traditio symbolica or symbolic delivery this means that a delivery of symbols such as the key of a house or so if you donated your house and then you deliver the key or the title of the house then that is actually a symbolic delivery you can't remove the house from the land and then give that to someone okay it's not possible but what you will do is that you will just give the key or the title of the house in the land okay so just that so what you're actually doing is when you handed to someone to your donny the title or the key of the house that is symbolic those are the symbols of the house okay the other constructive delivery is traditio longamano or delivery with long hand so when i say traditio longamano or delivery of long hand you're actually pointing out the thing for example i will say i will give you my brand new car over there so that is a traditio longamano by just pointing out that thing and then handing over the the key so that already is a delivery and that is a traditio longamano okay the other constructive delivery is traditio previmano or delivery with shorthand in this case the property is already in the hands of the donny and it is only at the time of donation that the donny assumes ownership of that thing or property for example you borrow my car yeah yesterday and then today i decided that oh don't return the car to me i will just give you the car because i have an extra car as of today the property the car is already in your hands as just a borrower yesterday but today i decided to give you the car itself because i have an extra car and i'm serious okay so that constitutes already a traditio brevi mano because the property is already in your hands And it is only my donation today that affirms your ownership to that property okay and the other delivery or constructive delivery is and in this kind of delivery the donor alienate a thing belonging to him but continues the possession of such property for example i have this car and i am buying a new car but that new car will only arrive a month from now okay and i decided today that I will give you this car. So hey, today I will give you this car. It is already yours. But I'm still using this car because my new car will just arrive in a month from now. So what will I do is I will just rent this car from you. So I will give you rent because from now on, you will be the owner. But since I will be using this for a month until my new car will arrive. So I will just give you a rent for a month. for this car and then after that once the new car will arrive i will give you this very card that i promised to give you today okay in that instance the donor gives the donnie the car today but continues to use the or possess the property being donated because a new car will only arrive a month after so the donor from being the owner of the car now becomes a lessee of the car because he only to transfer the ownership of the car to the doni while maintaining the possession of the car as the lessee for a month okay so that is traditio constitutum possessorium so those are the four constructive delivery and actually those are the five modes of delivery which could be done in delivery of the gift okay so that is a third element now the fourth element is the acceptance of the gift the donation is perfected once the gift is accepted by the doni so when the doni accepts the property donated so there is already a perfection of the gift perfection because the donor already gives the property and the doni accepts property if the donation is in writing the acceptance may be made in the same instrument of donation or in a separate paper so under donative intent i have mentioned some compliance requirements that the donor Donor should have considered like for real properties it should be in public instrument and for personal properties whose values is more than 5,000 I have mentioned that it should be in writing. So when a donation is made in writing the acceptance of the doni could be in that same paper or it could also be in a separate sheet of paper and the acceptance by a guardian in favor of the doni which is a minor by the way and or incapacitated that could also be done as again as i have said the donny is not necessarily to be capacitated at time of donation it is enough that the guardian is capacitated to accept the donation and the donation is only perfected upon the knowledge of the donor of the acceptance of the donny so when the acceptance is made through email or post mail and it takes a while to be read okay or to come into knowledge of the donor then the perfection of the contract happens only when the donor knows that there is really an acceptance from the donny okay and of course the donny cannot be compelled to accept gifts the donny has the right to reject or refuse to accept the gifts you cannot compel someone to receive your your gifts okay he has the right to say no if he doesn't want your gift then he could say no in that case there's no donation okay so those are the four elements of the nation so now let's discuss about the void in ineffective the nation what are these so number one those not perfected in accordance with the forms and solemnities of the law like what I said when the donation involves a real property it should be in public instrument Otherwise, the donation is void. And when it is a personal property and the value is more than $5,000, that should be in writing, whether in public or in private instrument. But if the value is not more than $5,000, then there should be concurrent delivery of the thing promised to be donated. Another void and ineffective donation are those made with property outside of the commerce of men. So we can say, I will give you the... the moon. I will give you the stars the universe that is void so ladies and gentlemen do not trust your girlfriend or boyfriend saying to you that they will give you the universe because obviously they cannot do that I mean that is void ineffective outside the commerce of men of I so anything that is beyond or outside the commerce of men as the subject of the nation is void okay the other is are those made with future property except those provided marriage settlements you cannot give something which is yet or not yet in present okay so you cannot give something which is not yet in your hands for example if you'd say i will give you a 1 million pesos out of my lotto winning if i win the lotto winning then that is void because the 1 million pesos is subject to future condition because the property is yet to be achieved or to be gained in the future subject to many probabilities and conditions essentially it's just a promise to give you 1 million if i win but the donation is void okay the other those donations made to persons who are especially disqualified like a donation between the husband and the wife we will discuss that in a short one okay so the other is the reason of possible undue influence so of course there is no consent there is no clear donative intent because there is already an undue influence when the donor or the person is being influenced and you influence to give something then that donation is the point okay so now let's talk about the donation by the husband and the wife okay it's donation by the husband and the wife so donation made by the husband and the wife from communal or conjugal properties valid provided they concur to the basic elements of the nation so the husband and the wife can actually give or or give up or donate their conjugal property or communal property. In such case, the gift is taxable one half to each donor spouse. So, if the property is conjugal or communal, and we will just divide the value of that property by two, and then it will be taxable by half to both the husband and the wife. Okay? But in the case when a donated property is a conjugal property, and only the husband consents to that donation and not the wife, then it is valid as for the share of the husband. But as for the share of the spouse or the wife, it's not valid. Neither spouse can donate a conjugal or communal property without consent of the other. As I have said, when the husband and the wife gives a conjugal property, there should be concurrence and agreement. a consent from the other that they will agree to that donation otherwise no one or none of them can donate the property especially if it is a conjugal or communal property but if you'll be asking what if the property donated is actually an exclusive property an exclusive of the wife or this the husband can the husband donate his exclusive property of course he can do so as long as again he does not deprive his legal heirs even without the consent of the wife because after all it is an exclusive property of the husband okay any of the spouse may donate properties from his or her exclusive properties without depriving the rights of the legal heirs now let's go to the donation between the husband and the wife so donation between the husband and the wife is declared void by law when we say donation between the husband and the wife the husband and the wife are giving donations to each other okay so that is void as declared by our law it is said that every donation or grant of gratuitous advantage direct or indirect between the spouses during the marriage shall be void except moderate gifts which the spouses may give to each other on the occasion of any family rejoicing The prohibition shall also apply to persons living together as husband and wife without a valid marriage. So donation, especially of large amounts to the husband and the wife between them. it's void but moderate gifts given by the husband or the wife to each other vice versa could be valid especially if it is for the occasion a special occasion of the family for example during christmas of course the husband and the wife can give to each other a gift or if it is their anniversary so the husband and wife can give to each other a gift moderate gifts only but for large amount gifts like real properties especially real properties the husband and the wife cannot donate that to each other okay also this law according to article 87 of the family code this also applies to those persons who are not married who are not legally married but living together as husband and wife so what is the reason why this law provide this line or this rule So to prevent the weaker spouse being influenced by the stronger spouse. Okay, so that's one thing. It's a public policy. It is avoided by public policy. And then also to protect creditors. Because if a husband owes large amounts from creditors and gives or donates his properties to his wife to defraud the creditors, then... that's the reason why donation between them is void okay however the spouses are allowed to give moderate gifts to to one another during family rejoicing such as birthdays anniversaries christmas and the like so again they can give gifts moderate gifts especially during special occasions like birthdays anniversaries christmas and so on okay but for large gifts especially real properties that is void okay so i hope you learned a lot from this video and i hope that you will watch our other videos about donation especially the computation of donor stacks so if you love this video give me a thumbs up and if you are new to this channel please subscribe click the bell so you will be notified whenever i will upload new videos thank you and see you next video bye

This could be gratuitous or onerous and for gratuitous, there are also two kinds of gratuitous transfers. This could be mortis causa or inter vivos so when we say mortis causa this means that the donation takes effect only upon death of the donor and that is subject to estate tax and this mortis causa donation is actually called the in here The second type of gratuitous transfers is the donation inter vivos or the gift. This donation happens during the lifetime of the donor. And we have discussed already the inheritance, the mortis causa transfer, the estate tax, and we are done with that. So today, we will discuss about the donation inter vivos and the corresponding donor's tax.

So donation takes place only when there is a deconcurrence of the following elements. And these... are four elements. So the first element is the capacity of the donor, the second is the donative intent, and the third is the delivery of the gift, and the fourth is the acceptance by the donnie.

So these are the four elements that should be considered or are required to have a donation. When any of these elements is missing, then there is no donation. So we'll discuss this element one by one, and we will start. with the capacity of the donor. So what do we mean by capacity of the donor?

It is said that when the donor donates something, he must be capacitated to do so at a time of donation. And the capacity of the donor is reflected through, first, he has the right to transfer or dispose the property, meaning he owns the property donated. Of course, you cannot donate something which is not yours, right?

So at the time of donation, at the time of donation, of gift the donor should have the right to transfer the property otherwise the donation is void the second is that the donor must be mentally capable of entering into the nation being a real contract the nation as a real contract involves delivery of the thing promised to be donated so the donor must be capacitated to enter into a donation which he has to give to give up the ownership of the property donated or gifted so there must be a delivery okay so when you say mentally capable meaning he is capable of entering into contract he can legally consent the donation and there is no undue influence on the part of the donnie or any other persons therefore the the donation should be voluntary on the part of the donor he must be himself percent that he would give or donate the property okay so the third is he does not deprive his legal heirs so of course a donor especially when a married donor wants to give something to someone he can do that okay he can give anything to any person as long as number one if he donates a conjugal property there must be consent of the wife and or the husband if that is the wife giving or donating the couple must agree that they should donate their conjugal property. Otherwise, when the donor donates something, it must be presumed to have been donated or taken from his exclusive property and not from the conjugal property because a donation of conjugal properties requires the consent of the husband and the wife. And of course, the donor should have not deprived his legal heirs to the properties. That property...

being donated should not be the only property that the donor has otherwise he would deprive these legal heirs for example if the donor has the has only one real property and he wants to donate that to someone and he has heirs he has children he has spouse so he would naturally deprive those persons from his act of donation okay and it is not necessary that the donny is capacitated at a time of the donation as long as the guardian in favor of the donnie is capacitated so the requirement is the donor should be capacitated and the three of the above should be there okay he is he has the right to transfer he's mentally capable he's capacitated and he does not deprive his legal air so when those three items above are actually present then the donor can do so the donor can donate he is capacitated and it is not required for a donation to be valid that the donnie the receiver of the gift should also be capacitated because if you want to give a gift to a child that is actually valid okay as long as the donor i mean the guardian of that donnie is capacitated in favor of the donnie so the second element of donation is the donative intent so donation must be construed strictly and is not presumed when you say donative intent it means that there is actually an intention to donate okay donation is not presumed When someone gives you something, it doesn't necessarily mean that it is a gift or a donation. There must be a clear consent. There must be an intention to give you that thing. Because it could have been that that someone is just or just wants you to use that thing. Okay?

So, that intent should be clear. So, The donative intent is evidence that complying certain legal requirements. So for donation, there are certain requirements. And for donation of real properties, that must be in public instrument, which means that that should be in writing and that should be notarized and registered in the Registry of Deeds.

There must be a deed of donation for that donation to take effect. Otherwise, when someone gives real properties to another and then fails to comply this public instrument requirement, then the donation is void because there is no compliance with the requirement of the law that the donation should be in public instrument, especially for real properties. And for personal properties, when there is a donation of personal properties, If the amount or value of the property being donated is not more than 5,000 pesos, that can be done orally. The donor can just say directly to the donnie that he wants to give something like this. But there should be a concurrent delivery of the thing.

Otherwise, that is just a promise. And promise cannot be legally enforced. For example, if I would say that I would give you 1,000 pesos today, and you said yes but i did not give the 1 000 pesos there's no donation okay that was just actually a promise to give 1 000 pesos because if i really intend to give you 1 000 pesos today then i should have given that 1 000 pesos already to you today concurrently as of the time that i said i will give you this amount i'll also give you the actual one thousand pesos but there's none so there is actually no intention of donation it's just a mere promise blah okay so again for donation of personal properties which is valued only for five thousand or below then it could be done orally but there should be a concurrent delivery of the thing otherwise when the value of the property being donated or is the subject matter of the nation is more than five thousand there should be or the donation should be in writing okay there must be a written uh contract of donation and the writing should be in public or in private instrument okay so when you say in public instrument it means that instrument that writing is notarized by a public attorney okay so those are some requisites of a donation for a donation to be valid and to have a donative intent clear okay there should be compliance with these requirements and the intent is only necessary for direct gifts when we say direct gift this means that a would give something to be direct gifts so for example juan gave pedro a brand new car for the latter's 35th birthday so that is considered as a direct gift meaning juan gave pedro that's basic okay you But for indirect gifts, the native intent is not necessary. For example, in the creation of trust, like A wants to give B a certain amount for the benefit of C. So that is actually an indirect gift.

A is not really giving something to B, but to C, so that's indirect. Or in case of inadequate consideration, it's in the case of sale transaction. When the selling price or the fair value of the thing... being sold is higher than the actual consideration received from the buyer to the seller so there is an inadequate consideration received so in those case they are considered as indirect gifts and the intent is not necessary okay so again the native intent is only necessary for direct gifts so the other element the third one is the delivery of the gift as a real contract there must be a delivery of the gift so that the donation is completed on the part of the donor when we say real contract real contract is actually a special contract because it is um it involves a delivery of the thing unlike any other contract The basic elements of contract is the cost, object, and consideration.

So those are just the three requisites to have a valid contract. But for a donation as a real contract, apart from those cost, object, and consideration, there should be a delivery. The delivery makes the donation a real contract. So delivery of the gifts completes the donation.

Hence, the imposition of the tax shall occur. So, So when the donor actually gives, delivers the thing, the being donated or is the subject matter of donation, then on the donor's part, the donation is already completed. Okay.

So at that time, when there is already a completion of the gift or donation, the donor's tax will now start to accrue. And upon delivery, and as I have said, the donor's tax will accrue as of the time of delivery of the thing. donated so delivery may be done through any of the following modes number one the actual delivery when we say actual delivery this means the delivery or transfer of the thing from hand to hand if it is movable so if you promise to give someone cell phone or a mobile phone and then you give you actually handed to someone the phone then that is considered as an actual delivery or if you want to give some someone a cash and you actually handed him the cash then that is the actual delivery however there are also some um delivery which is actually constructive so when you say constructive delivery there is no actual um hand-to-hand giving or transfer of the thing being donated so number one you have traditio symbolica or symbolic delivery this means that a delivery of symbols such as the key of a house or so if you donated your house and then you deliver the key or the title of the house then that is actually a symbolic delivery you can't remove the house from the land and then give that to someone okay it's not possible but what you will do is that you will just give the key or the title of the house in the land okay so just that so what you're actually doing is when you handed to someone to your donny the title or the key of the house that is symbolic those are the symbols of the house okay the other constructive delivery is traditio longamano or delivery with long hand so when i say traditio longamano or delivery of long hand you're actually pointing out the thing for example i will say i will give you my brand new car over there so that is a traditio longamano by just pointing out that thing and then handing over the the key so that already is a delivery and that is a traditio longamano okay the other constructive delivery is traditio previmano or delivery with shorthand in this case the property is already in the hands of the donny and it is only at the time of donation that the donny assumes ownership of that thing or property for example you borrow my car yeah yesterday and then today i decided that oh don't return the car to me i will just give you the car because i have an extra car as of today the property the car is already in your hands as just a borrower yesterday but today i decided to give you the car itself because i have an extra car and i'm serious okay so that constitutes already a traditio brevi mano because the property is already in your hands And it is only my donation today that affirms your ownership to that property okay and the other delivery or constructive delivery is and in this kind of delivery the donor alienate a thing belonging to him but continues the possession of such property for example i have this car and i am buying a new car but that new car will only arrive a month from now okay and i decided today that I will give you this car.

So hey, today I will give you this car. It is already yours. But I'm still using this car because my new car will just arrive in a month from now.

So what will I do is I will just rent this car from you. So I will give you rent because from now on, you will be the owner. But since I will be using this for a month until my new car will arrive.

So I will just give you a rent for a month. for this car and then after that once the new car will arrive i will give you this very card that i promised to give you today okay in that instance the donor gives the donnie the car today but continues to use the or possess the property being donated because a new car will only arrive a month after so the donor from being the owner of the car now becomes a lessee of the car because he only to transfer the ownership of the car to the doni while maintaining the possession of the car as the lessee for a month okay so that is traditio constitutum possessorium so those are the four constructive delivery and actually those are the five modes of delivery which could be done in delivery of the gift okay so that is a third element now the fourth element is the acceptance of the gift the donation is perfected once the gift is accepted by the doni so when the doni accepts the property donated so there is already a perfection of the gift perfection because the donor already gives the property and the doni accepts property if the donation is in writing the acceptance may be made in the same instrument of donation or in a separate paper so under donative intent i have mentioned some compliance requirements that the donor Donor should have considered like for real properties it should be in public instrument and for personal properties whose values is more than 5,000 I have mentioned that it should be in writing. So when a donation is made in writing the acceptance of the doni could be in that same paper or it could also be in a separate sheet of paper and the acceptance by a guardian in favor of the doni which is a minor by the way and or incapacitated that could also be done as again as i have said the donny is not necessarily to be capacitated at time of donation it is enough that the guardian is capacitated to accept the donation and the donation is only perfected upon the knowledge of the donor of the acceptance of the donny so when the acceptance is made through email or post mail and it takes a while to be read okay or to come into knowledge of the donor then the perfection of the contract happens only when the donor knows that there is really an acceptance from the donny okay and of course the donny cannot be compelled to accept gifts the donny has the right to reject or refuse to accept the gifts you cannot compel someone to receive your your gifts okay he has the right to say no if he doesn't want your gift then he could say no in that case there's no donation okay so those are the four elements of the nation so now let's discuss about the void in ineffective the nation what are these so number one those not perfected in accordance with the forms and solemnities of the law like what I said when the donation involves a real property it should be in public instrument Otherwise, the donation is void.

And when it is a personal property and the value is more than $5,000, that should be in writing, whether in public or in private instrument. But if the value is not more than $5,000, then there should be concurrent delivery of the thing promised to be donated. Another void and ineffective donation are those made with property outside of the commerce of men. So we can say, I will give you the... the moon.

I will give you the stars the universe that is void so ladies and gentlemen do not trust your girlfriend or boyfriend saying to you that they will give you the universe because obviously they cannot do that I mean that is void ineffective outside the commerce of men of I so anything that is beyond or outside the commerce of men as the subject of the nation is void okay the other is are those made with future property except those provided marriage settlements you cannot give something which is yet or not yet in present okay so you cannot give something which is not yet in your hands for example if you'd say i will give you a 1 million pesos out of my lotto winning if i win the lotto winning then that is void because the 1 million pesos is subject to future condition because the property is yet to be achieved or to be gained in the future subject to many probabilities and conditions essentially it's just a promise to give you 1 million if i win but the donation is void okay the other those donations made to persons who are especially disqualified like a donation between the husband and the wife we will discuss that in a short one okay so the other is the reason of possible undue influence so of course there is no consent there is no clear donative intent because there is already an undue influence when the donor or the person is being influenced and you influence to give something then that donation is the point okay so now let's talk about the donation by the husband and the wife okay it's donation by the husband and the wife so donation made by the husband and the wife from communal or conjugal properties valid provided they concur to the basic elements of the nation so the husband and the wife can actually give or or give up or donate their conjugal property or communal property. In such case, the gift is taxable one half to each donor spouse. So, if the property is conjugal or communal, and we will just divide the value of that property by two, and then it will be taxable by half to both the husband and the wife. Okay? But in the case when a donated property is a conjugal property, and only the husband consents to that donation and not the wife, then it is valid as for the share of the husband.

But as for the share of the spouse or the wife, it's not valid. Neither spouse can donate a conjugal or communal property without consent of the other. As I have said, when the husband and the wife gives a conjugal property, there should be concurrence and agreement. a consent from the other that they will agree to that donation otherwise no one or none of them can donate the property especially if it is a conjugal or communal property but if you'll be asking what if the property donated is actually an exclusive property an exclusive of the wife or this the husband can the husband donate his exclusive property of course he can do so as long as again he does not deprive his legal heirs even without the consent of the wife because after all it is an exclusive property of the husband okay any of the spouse may donate properties from his or her exclusive properties without depriving the rights of the legal heirs now let's go to the donation between the husband and the wife so donation between the husband and the wife is declared void by law when we say donation between the husband and the wife the husband and the wife are giving donations to each other okay so that is void as declared by our law it is said that every donation or grant of gratuitous advantage direct or indirect between the spouses during the marriage shall be void except moderate gifts which the spouses may give to each other on the occasion of any family rejoicing The prohibition shall also apply to persons living together as husband and wife without a valid marriage. So donation, especially of large amounts to the husband and the wife between them.

it's void but moderate gifts given by the husband or the wife to each other vice versa could be valid especially if it is for the occasion a special occasion of the family for example during christmas of course the husband and the wife can give to each other a gift or if it is their anniversary so the husband and wife can give to each other a gift moderate gifts only but for large amount gifts like real properties especially real properties the husband and the wife cannot donate that to each other okay also this law according to article 87 of the family code this also applies to those persons who are not married who are not legally married but living together as husband and wife so what is the reason why this law provide this line or this rule So to prevent the weaker spouse being influenced by the stronger spouse. Okay, so that's one thing. It's a public policy. It is avoided by public policy.

And then also to protect creditors. Because if a husband owes large amounts from creditors and gives or donates his properties to his wife to defraud the creditors, then... that's the reason why donation between them is void okay however the spouses are allowed to give moderate gifts to to one another during family rejoicing such as birthdays anniversaries christmas and the like so again they can give gifts moderate gifts especially during special occasions like birthdays anniversaries christmas and so on okay but for large gifts especially real properties that is void okay so i hope you learned a lot from this video and i hope that you will watch our other videos about donation especially the computation of donor stacks so if you love this video give me a thumbs up and if you are new to this channel please subscribe click the bell so you will be notified whenever i will upload new videos thank you and see you next video bye

Transcript for:Understanding Donation Types and Elements

Transcript for:
Understanding Donation Types and Elements