Collation

Meaning of Collation

Collation is the process of adding value to the heredity mass of net estate the value of things or rights disposed of by the decedent during his lifetime by way of donation or gratuitous title.

This is only applicable when there is at least one compulsory heir because there will be a legitime to be considered (first sentence of Art. 1061) and the purpose of collation is “to determine the legitime of each heir.

Only a few are completely not subject to collation, these are in Article 1067.

The law considers such donations as advances to the inheritance. Collation applies to both donations to compulsory heirs and donations to strangers.

Purpose of Collation

To compute the value of the legitime of each heir, and to consider advances to the legitime or free disposable portion.

Components of Collation

(1) Collation by Addition

The value of all properties which the testator gratuitously disposed of during his lifetime shall be added to his estate. This is a mathematical process of determining the values and adding them.

Collationable properties and considered advances to the inheritance

1. Properties donated to compulsory heirs during the lifetime of the decedent (Art. 1061)
2. Sums paid by the parent in satisfaction of the debts of his children, election expenses, fines, and similar expenses. (Article 1069)
3. Gratuitous donations of property/rights during the testator’s lifetime, unless otherwise provided.
4. Expenses incurred after the death of a compulsory heir to liquidate estate shall be considered an advance to his legitime. (Case: Lesaca vs. Lesaca)
5. Properties left by will without the express provision by the decedent that they will be collated. (Articles 1062, 1063)
6. Donations received by grandchildren either directly from the decedent or by right of representation. Art. 1064.
7. Donations even though the decedent has designated them to be irrevocable.

Non-collationable properties or expenses

1. Donated properties to compulsory heirs if the donor so provided that they won’t be collated (Art. 1062) This clarifies the idea that
2. Repudiated properties – once repudiated, an heir receives nothing. Hence, there is nothing from which the donations are to be charged against.
3. Properties left by will if the donor expressly provided so and legitimes are not impaired(Art. 1063). Only donated properties are generally subject to collation;
4. Non-collatable expenses by way of moral social legal obligation (Art. 1067)
5. Donations to grandchildren that are inofficious and expressly indicated to be non-collationable by the decedent

(2) Collation by charging or imputation

The second meaning of collation is charging or imputation. Once added to the net hereditary estate, the collated property should then be charged either to these two: (1) Charged against legitime; or (2) Charged against a free disposable portion.