Short answer. It splits in two. Under Article 1029, when a testator leaves property for prayers and pious works in general terms without specifying how it is to be used, half goes to the church or religious denomination the testator belonged to, and the other half goes to the State for public schools and charitable institutions.
What the law says
the executor, with the court's approval shall deliver one-half thereof or its proceeds to the church or denomination to which the testator may belong, to be used for such prayers and pious works, and the other half to the State
Civil Code, Article 1029 — Dispositions for Prayers and Pious Works. Read the full provision →
When this rule applies
Article 1029 applies specifically when the testator leaves property in general terms and without specifying its application. A bequest of "money for prayers for my soul" with no further direction is the classic example. The key elements are: a religious or pious purpose, and a failure to name any particular recipient, institution, or use beyond the general intention. If the will had named a specific parish, a novena, or a particular charitable work, the executor would follow those instructions instead, and this article would not come into play.
The fifty-fifty split and who receives each half
The executor, acting with the court's approval, divides the amount or its proceeds equally. The first half goes to the church or denomination to which the testator belonged — to be used for the prayers and pious works the testator had in mind. The second half goes to the State. Under Article 1013, that State share is directed to the municipality or city where the testator last resided (for personal property) or where the real estate is located. Those local governments are required to use it for public schools and public charitable institutions.
The executor's role and the court's oversight
This transfer does not happen automatically. The executor must act, and the court must approve the delivery. This protects all interested parties — it ensures the right church receives the funds, that the testator's religious affiliation is correctly identified, and that the State share reaches the right municipality. If there is any dispute about which denomination the testator belonged to, or about whether the estate has sufficient assets after meeting legitimes and debts, those questions are resolved in the settlement proceedings.
What this means if you are an heir
This disposition comes out of the estate before the remaining assets are distributed to heirs, but only to the extent it falls within the testator's free portion — the part he was allowed to dispose of freely. If the pious bequest would cut into the legitime of compulsory heirs, it can be reduced to protect those reserved shares. If you are a compulsory heir and believe the bequest leaves your legitime short, that concern should be raised in the estate proceedings.