My father gave away property that turns out to be inofficious — can the donee keep the income and harvest from that property while my father is still alive?

Reduction happens later, but effectivity happens now

Article 771 separates two things that might seem like they should happen together: the donation taking effect, and any eventual reduction for being inofficious. This reduction shall not prevent the donations from taking effect during the life of the donor, nor shall it bar the donee from appropriating the fruits. Even a donation that will eventually be found inofficious operates fully while your father is alive, and the donee is entitled to the fruits — the income, harvest, or produce — the property generates in the meantime.

Inofficiousness cannot even be measured yet

The reason the reduction waits is built into how inofficiousness itself is determined. Donations which in accordance with the provisions of article 752, are inofficious, bearing in mind the estimated net value of the donor's property at the time of his death, shall be reduced with regard to the excess. Whether the donation exceeds what your father could give and by how much depends on the net value of his estate at the time of his death — a figure that, by definition, does not exist yet while he is still alive.

Only the excess is ever reduced, and only that portion

Even once reduction becomes possible after your father's death, it applies only to the excess over what he was legally allowed to give — not to the whole donation, and not retroactively to fruits the donee already collected while your father was alive. Article 771 draws on the rules for the order of reduction and, where real property is involved, on how an indivisible piece of real property is handled when only part of its value must be returned.

What this means for your family right now

While your father is alive, there is no legal basis under this article to demand that the donee turn over the fruits or income from the donated property, even if you believe the donation will ultimately prove inofficious. That question, and any resulting reduction, is only properly addressed after his death, when his estate's net value can actually be calculated and the extent of the excess, if any, can be determined.

Cases citing this provision

These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.

• Eloy Imperial vs. Court of Appeals & Cesar Villalon, etc., et al, G.R. No. 112483, October 8, 1999 — read the decision on LawPhil →
• Rolando Santos vs. Constancia Santos Alana, G.R. No. 154942, August 16, 2005 — read the decision on LawPhil →

Related provisions

• Civil Code, Article 771 — Reduction Of Inofficious Donations
• Civil Code, Article 752 — Limit On What May Be Donated