SC: Waiving rights of inherited property can be a valid donation

The Supreme Court (SC) in a ruling stated that waiving rights to inherited property can be considered a valid donation when it shows intent to donate and meets the legal requirements for a donation.

In a 19 February 2026 decision written by Associate Justice Jhosep Y. Lopez, the SC’s Second

Division denied the consolidated petitions filed by Felix G. Cruz and affirmed the Court of Appeals’ (CA) rulings upholding the transfer of two inherited properties by Luis and Rosita Cruz to their sons, Robin and Osias.

This involved two parcels of land left by Judy Cruz, who died single and without a will and was survived by her parents, Luis and Rosita, and five

siblings, including Felix, Robin, and Osias.

After her death, Luis and Rosita executed separate notarized Waivers of

Rights over the properties in favor of Robin and Osias and later the two executed an Extrajudicial Partition and Settlement of Estate and registered the properties in their names.

Felix and two other siblings, Doris and Henry, also executed waivers giving up any interest in the properties, while Felix, who was the family lawyer, prepared these documents.

But after their mother, Rosita, died, Felix sought to nullify the transfer of the properties and cancel the titles of Robin and Osias, arguing that the transfer was invalid and that the properties should have remained part of Rosita’s estate, to which he was entitled to inherit as one of the heirs.

The complaint of Felix was dismissed by the Regional Trial Court which was upheld by the CA and ruled that the Waivers of Rights executed by Luis and Rosita constituted valid donations in favor of Robin and Osias.

The SC agreed, and explained that when Judy died, ownership of her properties immediately passed to her parents as her legal heirs.

Thus, Luis and Rosita had the right to dispose of the properties.

Although the documents they executed were called Waivers of Rights, the SC found that Luis and Rosita intended to donate the properties to Robin and Osias.

Under Article 749 of the Civil Code, a valid donation of real property

requires: a decrease in the donor’s property; a corresponding increase in the donee’s property; intent to donate; execution of the donation in a public document; and 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.

In turn, Robin and Osias accepted the donation by executing the Extrajudicial Partition and Settlement and registering the properties in their names.

Their actions were made known to Luis and Rosita, thus the SC ruled that the donation was valid. As a result, the properties no longer formed part of Rosita’s estate when she died.

Also, the high bench noted that Felix, Doris, and Henry had separately waived any interest they might have had in the properties.

Felix himself prepared these waivers and could not later question their legal effect.