COLLATION

1. Collation as computation- this is a mathematical process whereby the value of all

donations made by the decedent is added to the Net Estate
2. Collation as imputation- the process by which the donations are correspondingly
charged or imputed either to the legitime or to the free portion
A. Donations given to children (or compulsory heirs in general) shall be charged
to their legitime
B. Donations made to strangers shall be charged to the free portion
3. Collation as Return- this is the process whereby the donation is fully or partly
returned to the estate by the done insofar as it is found to be inofficious.
Reduction of Inofficious Donations and Dispositions
- Those exceed the free portion
- Inofficious testamentary dispositions are those which exceed the free portion
Inofficiousness is determined after the legitime has been determined
Effect of Inofficiousness
- Reduction insofar as they exceed the free portion.
Order of Reduction or Abatement
A. 911, NCC
1. The testator is survived by compulsory heirs; and
2. Donations inter vivos given by the testator in his lifetime and or legacies and
devises provided in his will cannot be accommodated after oayment of the
legitime of the compulsory heirs
Summary of order of preference of payment
1. First, calculate the theoretical hereditary estate in accordance with A. 908, NCC
(total value less taxes and liabilities plus collation)
2. From the theoretical hereditary estate, pay the legitime of the primary, secondary
heirs. The collationable donations to them shall be charged to their legitime. The
balance, represents the free portion. From the free portion shall be paid…
3. If the legitime of the concurring compulsory heirs is equal to the free portion or, if
after the payment thereof remains a residual balance, the donations made by the
decedent did not impair the legitimes. All donations shall be honored.
However, if the legitime is greater than the net hereditary estate, the donations
impaired the legitime of the compulsory heirs.
The donations shall be reduced or abated, beginning from the most recent ones.
4. If there is a positive balance comprising the disposable free portion after payment
of the legitime of the concurring compulsory heirs, the same shall be used to pay
the preferred legacies and devises.
5. Pay the ordinary legacies and devises.
Reduction of Specific Types of Devises and Legacies
A. If the devise or legacy subject of reduction consists of usufruct or life annuity,
whose value exceeds the free portion-
1. The compulsory heirs may choose between complying with the testamentary
provision or by delivering to the devisee or legatee the part of the inheritance
of which the testator could freely dispose
B. If the devise subject of reduction should consist of real property, which cannot be
conveniently divided-
1. It shall go to the devisee of the reduction does not absorb ½ of its value
2. It shall go to the compulsory heirs if the reduction absorbs at least ½ of its
value.
3. If the devisee is also a compulsory heir, he may retain the entire property
provided its value does not exceed that of the disposable portion and of the
share pertaining to him as legitime.
4. If the heirs of devisees do not choose to avail themselves of the right, any
heir….
In either casem the devisee and the compulsory heirs shall reimburse each other in
cash for what respectively belongs to them.
Disposable Free Portion
Article 914- the testator may devise or bequeath the free portion as he may deem fit.
XPNS:
1. May not delegate the exercise of testamentary discretion to 3 rd persons
2. The testator who has no compulsory heirs may dispose by will but only in favor of
persons capacitated
3. Fideicommissary substitution must be complied with
4. Cannot declare his estate inalienable for more than 20 years
5. A testator cannot subject a testamentary disposition to an impossible suspensive
condition or to an absolute condition prohibiting first or subsequent marriage
6. Dispocicion captatoria
7. Common law spouse void.