Short answer. Yes. Article 771 states that reduction for being inofficious does not prevent the donation from taking effect during the donor's life. The donee's ownership stands while the donor lives; only later, measured against the donor's net estate at death, can the excess portion be reduced.
What the law says
but this reduction shall not prevent the donations from taking effect during the life of the donor
Civil Code, Article 771 — Reduction Of Inofficious Donations. Read the full provision →
What the law says
no person may give or receive, by way of donation, more than he may give or receive by will. The donation shall be inofficious in all that it may exceed this limitation.
Civil Code, Article 752 — Limit On What May Be Donated. Read the full provision →
The donation stands as effective now, excess or not
Article 771 is clear that being inofficious does not undo the donation's effectiveness while the donor is alive. But this reduction shall not prevent the donations from taking effect during the life of the donor. The donee's ownership of the property is not suspended, conditional, or provisional simply because the donation might later be found to exceed what the donor could freely give. The transfer takes full legal effect now, and whatever excess exists is dealt with separately, later.
Why 'inofficious' does not mean 'invalid'
The limit that makes a donation inofficious comes from a separate rule: no person may give or receive, by way of donation, more than he may give or receive by will. The donation shall be inofficious in all that it may exceed this limitation. Notice the donation is inofficious only in all that it may exceed the limit — meaning the excess is the problem, not the entire donation. That distinction is exactly why full ownership can pass now while only a portion is ever subject to being reduced.
Reduction is measured at death, not before
Whether there is even an excess to reduce, and how much, depends on the donor's estimated net estate value at the time of death — a calculation that cannot be performed while the donor is still alive. Until that measurement can actually be made, there is nothing concrete to reduce, which is part of why the article lets the donation operate fully in the meantime rather than placing ownership in limbo pending a computation that has not yet become possible.
What eventual reduction would mean for the donee
If, after the donor's death, the donation is found to exceed what could be freely given, only the excess is reduced — the donee does not lose the entire property merely because part of it turns out to be inofficious. Until that determination is actually made and the excess identified, the donee's ownership during the donor's lifetime remains intact under this article, unaffected by the mere possibility that a future reduction may apply to part of it.
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