Short answer. Yes, if the deposit is gratuitous (free of charge). Article 1995 of the Civil Code states that a gratuitous deposit is extinguished upon the death of either the depositor or the depositary. You are no longer bound by the original deposit contract, but the property must be turned over to the depositor's heirs or estate.
What the law says
In case of a gratuitous deposit, upon the death of either the depositor or the depositary.
Civil Code, Article 1995 — Extinguishment of Deposit. Read the full provision →
The two grounds for extinguishment
Article 1995 lists two ways a deposit ends by operation of law. First, upon the loss or destruction of the thing deposited — there is no longer anything to return, so the contract is necessarily over. Second, for a gratuitous deposit, upon the death of either the depositor or the depositary. This second ground only applies when the keeping arrangement was free of charge. A paid deposit does not automatically end this way; death of a party in a commercial warehousing or custodianship arrangement is governed by the contract itself and the general rules on succession of obligations.
What 'gratuitous' means here
A deposit is gratuitous when the depositary receives no compensation for keeping the item. The personal and friendly nature of this arrangement is precisely why the law ties its continuation to the life of both parties. When you agreed to keep a neighbour's belongings for free, you extended a personal favour that the law treats as ending when either of you dies. If instead you were paid a storage fee, a warehouse fee, or any agreed compensation, the deposit is onerous, and the death of the depositor alone does not extinguish it — the contract would continue with the depositor's heirs.
What you must do now
The fact that the contract is extinguished does not mean you can simply keep the property or dispose of it. The property still belongs to the depositor's estate, and you must return it to whoever is entitled to receive it — the depositor's heirs, the administrator of the estate, or the executor named in the will. If you are unsure who that person is, it is prudent to hold the property until the proper administrator or heir identifies themselves and presents appropriate authority. Turning the property over to the wrong person exposes you to a separate liability.
If you are the one who dies while holding deposited property
Article 1995 works both ways: if you as the depositary die, the gratuitous deposit is also extinguished. Your heirs or estate administrator would then be responsible for returning the deposited property to the original depositor. They do not inherit a duty to continue keeping the property for free — they inherit only the obligation to ensure the item is returned to its owner in whatever condition it is in. If the item was lost or damaged before your death through your own negligence, that liability would form part of your estate's obligations.