Short answer. Under Article 729 of the Civil Code, when the donee accepts a donation inter vivos, the fruits of the donated property belong to the donee from the time of acceptance — not from delivery. The donor may provide otherwise, but absent such a stipulation, the donee is entitled to all fruits produced after acceptance.
What the law says
The fruits of the property from the time of the acceptance of the donation, shall pertain to the donee, unless the donor provides otherwise.
Civil Code, Article 729 — Donation Inter Vivos Despite Delayed Delivery. Read the full provision →
Donation inter vivos despite deferred delivery
Article 729 addresses a specific type of donation: the donor intends the donation to take effect during the donor's lifetime, but the property itself will not be handed over until after the donor dies. This arrangement is a donation inter vivos — not a donation mortis causa — because the donative intent and the agreement both operate while the donor is alive. The delayed delivery does not change the character of the donation from inter vivos to mortis causa. What matters is when the donor intends the donation to take legal effect, not when the property physically changes hands.
Fruits belong to the donee from the moment of acceptance
Once the donation is accepted by the donee, Article 729 provides that the fruits of the property from the time of the acceptance of the donation, shall pertain to the donee. The donee does not have to wait for physical delivery to start enjoying the economic benefits of the donated property. Rents from a building, harvests from farmland, dividends or income produced by the donated asset — all of these belong to the donee as of the date acceptance was made and communicated to the donor. The property's productive output follows the donation agreement, not the physical transfer.
The donor may stipulate otherwise
Article 729 is a default rule, not an absolute one. The article adds that the fruits belong to the donee unless the donor provides otherwise. A donor who wishes to retain the fruits during their lifetime — while still making a present, irrevocable donation of the capital — may do so by including a clear stipulation in the donation instrument. The stipulation must be express; absent any reservation, the default rule applies and the fruits go to the donee from acceptance. This flexibility allows donors to structure donations that give the donee future ownership of property while preserving the income stream for the donor until delivery or death.
Why the acceptance date is the key moment
The rule that fruits follow from acceptance rather than from delivery is consistent with the principle that a donation is perfected when the donor knows of the acceptance. From that moment the donation agreement is complete and binding. Tying the donee's right to fruits to that same moment — rather than to some later physical event — reflects the legal completion of the donation. The donee who has accepted acquires a present right over the property, and the fruits that the property generates after that point are a natural extension of that right. Holding back the fruits until delivery would give the donor an unearned benefit from property that, in law, already belongs to the donee.
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.
- Ursulina Ganuelas, et al. vs. Hon. Robert T. Cawed, et al, G.R. No. 123968, April 24, 2003 — read the decision on LawPhil →
- Ernesto Sicad, et al. vs. Court of Appeals, et al, G.R. No. 125888, August 13, 1998 — read the decision on LawPhil →