PUIG v. PENAFLORIDA- Donation Mortis Causa or Inter Vivos

The reservation by the donor of the right to dispose of the property during her lifetime in the deed does not indicate that title had passed to the donee in her lifetime but that the donor merely reserves power to destroy the donation at any time.

FACTS:

Carmen Ubalde Vda. de Parcon died in the City of Iloilo, without forced heirs, leaving certain properties in the City and province of Iloilo. She left a will and was survived by nephews and nieces, children of her predeceased brother, Catalino Ubalde, and sister, Luisa Ubalde, married to Ariston Magbanua. Besides her will, the deceased had executed two notarial deeds of donation. One, entitled DONACION MORTIS CAUSA, was executed on November 24, 1948, in favor of her niece, Estela Magbanua. The deceased executed another deed of donation, also entitled "ESCRITURA DE DONACION MORTIS CAUSA" in favor of the same donee, Estela Magbanua Peñaflorida, conveying to her three parcels of land.

Defendants-appellants Estela Magbanua Peñaflorida, et al., insist that the reservation by the donor of the right to dispose of the property during her lifetime in the deed of December 28, 1949 indicates that title had passed to the donee in her lifetime, otherwise, it is argued, the reservation would be superfluous.

ISSUE:

Is the donation mortis causa or inter vivos?

HELD:

The Court in its decision took to account not only the foregoing circumstance but also the fact that the deceased expressly and consistently declared her conveyance to be one of donation mortis causa, and further forbade the registration of the deed until after her death.

The power, as reserved in the deed, was a power to destroy the donation at any time, and that it meant that the transfer is not binding on the grantor until her death made it impossible to channel the property elsewhere.