Does a Deed of Donation Expire in the Philippines?

Short answer: A properly executed and accepted deed of donation does not “expire” by the mere passage of time. Once perfected, it transfers ownership (or a lesser real right) and remains effective unless it is invalid from the start, never perfected, notarized/accepted in the required form, not registered and thus vulnerable against third persons, or is later revoked, rescinded, reduced, or resolved under specific grounds provided by Philippine law.

Below is a comprehensive guide in the Philippine context.

1) What is a Deed of Donation?

A donation is an act of liberality whereby a person (the donor) disposes of a thing or right gratuitously in favor of another (the donee), who accepts it. The deed is the instrument that embodies this transfer.

Types

Inter vivos: Takes effect during the donor’s lifetime; generally irrevocable once perfected, subject to legal grounds for revocation/rescission.
Mortis causa: Takes effect upon the donor’s death; it is essentially testamentary and must follow the formalities of a will and is revocable ad nutum before death.

2) Formal Requirements (Form & Acceptance)

Movables (personal property)

Donation must appear in writing if the value exceeds a minimal threshold.
Acceptance by the donee (or authorized representative) is required; best practice is to place acceptance in the same instrument or a separate writing notified to the donor in authentic form.

Immovables (land/real property, real rights over land)

Donation must be in a public instrument (notarized deed) specifying the property and the charges the donee must satisfy.
Acceptance must be made in the same deed or in a separate public instrument; if separate, the donor must be notified in authentic form, and that fact should be noted in both instruments.

If acceptance is not properly made and communicated during the donor’s lifetime, the donation is not perfected and is ineffective.

3) Perfection, Delivery, and Registration

Perfection occurs upon donative intent + proper form + acceptance.
Delivery (tradition):
- For immovables, execution of a public instrument commonly operates as constructive delivery if the donor retains no further control inconsistent with transfer.
- For movables, physical or constructive delivery is required.
Registration (for real property) with the Registry of Deeds is not a requirement for validity between the parties, but it is crucial to bind third persons and protect the donee’s title. Without registration, the donee risks being defeated by subsequent purchasers/mortgagees in good faith and complicates tax/estate processing.

4) “Does It Expire?” — The Core Doctrine

A valid, perfected donation does not expire by time alone. However, its effectivity can be lost or altered if:

It was void or voidable from the beginning, e.g.:
- Donation of future property (as a rule, void).
- Donations between spouses during marriage (generally void, except moderate gifts on family occasions); donations in consideration of marriage (propter nuptias) follow special rules.
- Donations contrary to law, morals, or public policy, e.g., between persons guilty of concubinage/adultery with each other; donations made to defeat creditors; or those that impair the legitime (inofficious).
- Lack of capacity (donor or donee), or vitiated consent (error, fraud, intimidation, undue influence).
- Form defects (e.g., immovable donated by private document; acceptance not in the proper form or not notified to the donor).
It never became effective:
- Inter vivos donation not accepted and notified within the donor’s lifetime.
- Mortis causa donation that fails will formalities or is disallowed in probate.
It is later revoked, rescinded, reduced, or resolved under law:
- Revocation for ingratitude (e.g., serious offense against the donor, refusal of support when legally required, or maltreatment).
- Revocation for non-fulfilment of conditions (resolutory conditions, charges).
- Revocation by supervening family events (birth/adoption/appearance/acknowledgment of a child of the donor under conditions provided by law).
- Rescission for lesion or fraud of creditors (accion pauliana), or rescission under general rules for conditional obligations.
- Reduction for inofficiousness if the donation impairs the legitime of compulsory heirs (applies to both donations inter vivos and mortis causa when computing the estate).
- Resolutory clauses expressly written in the deed (e.g., automatic reversion if a school, chapel, or road is not built/maintained). When the stated event occurs, ownership can revert without “expiration,” strictly speaking; it’s the condition that operates.

In all these, the law sets procedural and prescriptive timelines for bringing actions (see Section 7).

5) Special Substantive Limits

Donor’s retained means of support: A donor cannot give so much as to leave nothing for his/her own support; donations exceeding the disposable free portion (after legitime) are subject to reduction.
Prohibition to donate future property: Except as a mortis causa disposition meeting will formalities.
Donations burdened with charges: If the donee fails to perform a charge (e.g., maintain a scholarship, keep a property as a park), this can be a ground to revoke or resolve the donation.

6) Taxes & Deadlines (Practical, Not Expiratory)

Donor’s Tax: As a rule, 6% donor’s tax on the net gift (TRAIN Law regime), subject to exemptions (e.g., certain dowries, certain gifts to the government/qualified NGOs under stringent rules).
Filing deadline: A Donor’s Tax Return is generally due within 30 days from the date of donation.
Prescriptive periods for tax assessment/collection apply separately (commonly 3 years from the last day prescribed for filing or actual filing, longer in cases of false/fraudulent returns).
Real property taxes and transfer/registration fees are also practical requirements but do not bear on the deed “expiring.”

Missing tax filings or registration does not make the deed “expire,” but it can cause penalties, block transfer-of-title, and create risks against third parties.

7) Timelines & Prescriptions You Should Know

While the deed itself does not expire, actions affecting it may:

Revocation for ingratitude: Must be filed within a short statutory period (classically one year from the donor’s knowledge of the cause and only during the donor’s lifetime).
Revocation for non-fulfilment of conditions/charges: Governed by rescission rules; Filipino jurisprudence often treats these as four years from breach/discovery, depending on the nature of the violation.
Revocation due to supervening family events (birth/adoption/appearance/acknowledgment of a child): Action typically within four years from the event.
Acción pauliana (fraud of creditors): Subject to subsidiary character and prescriptive periods counted from when the creditor could no longer collect through normal means.
Action for reduction (inofficiousness impairing legitime): Asserted in settlement of estate or related proceedings; subject to prescriptive rules triggered by opening of succession.
Actions for declaration of nullity (void donations): Do not prescribe (though laches can still bar stale claims in equity).
Registration-related priorities: Competing transactions are resolved under the race–notice principles of land registration; unregistered donations risk losing priority to subsequent buyers/mortgagees in good faith.

Note: The exact reckoning points can be fact-specific (e.g., date of knowledge, date of breach, date of death), and jurisprudence may nuance counting; precise legal advice should be taken for live disputes.

8) Donations Mortis Causa vs Inter Vivos — “Expiry” Pitfalls

Mortis causa: If it fails will formalities or is revoked before death, it never becomes effective—this can look like “expiration,” but legally it is ineffectivity. It only operates after probate (or allowance in intestacy scenarios where applicable).
Inter vivos: If acceptance was not validly made/notified while the donor lived, the donation never took effect.

9) Common Risk Scenarios (Where People Think It “Expired”)

Unregistered donation of land, donor (or heirs) later sells to a buyer who registers—buyer in good faith may prevail.
Conditional donation for public purpose (e.g., school site) where the donee fails to build within the period—automatic reversion per the deed’s resolutory clause.
Donee’s ingratitude or breach of a charge—donor sues within the legal period to revoke; title reverts.
Inofficious donations discovered at estate settlement—reduction to protect legitimes.
Donation to disqualified persons (e.g., concubine/adulterous partner) – void ab initio; it never acquired legal life; recovery can be sought (subject to defenses/equities).

10) Practical Checklist

Before signing
- Confirm capacity of donor/donee.
- Ensure the donation is of present property (unless mortis causa with will formalities).
- Draft conditions/charges clearly (performance standards, deadlines, reversion clauses).
- Verify donation does not impair legitime.
At execution
- Use the proper form (public instrument for immovables; proper writing for movables).
- Obtain acceptance correctly and notify donor if acceptance is in a separate instrument.
- Arrange delivery (actual or constructive).
After execution
- File Donor’s Tax Return and pay any taxes/fees within 30 days of the donation.
- Register the deed (if real property/right) with the Registry of Deeds; update tax declarations.
- Calendar any conditions and compliance deadlines to avoid revocation.
- Keep evidence of possession/use consistent with ownership.

11) FAQs

Q: My deed of donation of land was signed 12 years ago but never registered. Is it invalid now? A: It does not “expire” between you and the donor if it was validly executed and accepted, but failure to register leaves you exposed to third-party claims. Register as soon as possible and assess if any intervening rights arose.

Q: Can the donor take the property back at will? A: No. Inter vivos donations are not revocable at will; only on legal grounds (ingratitude, breach of charges, supervening family events, inofficiousness, fraud of creditors) and usually within set periods.

Q: The deed says the property reverts if we fail to build within 3 years. We missed it. A: That is a resolutory condition. Upon failure, ownership can revert per the clause, subject to judicial enforcement and defenses.

Q: If the donation impairs legitime, does it vanish? A: Not automatically. It may be reduced to the extent needed to preserve the legitime of compulsory heirs when succession opens.

Q: Do I need acceptance for a mortis causa donation? A: Mortis causa dispositions follow will rules; the key is valid testamentary form and allowance by the court after death, not inter vivos acceptance.

12) Bottom Line

A deed of donation does not expire by time alone.
Its continuing validity depends on proper form, timely acceptance, delivery, registration, and ongoing compliance with any conditions/charges, and on the absence of legal grounds for revocation, rescission, or reduction.
For real property, registration and tax compliance are indispensable to secure your title against third persons and avoid downstream issues.

This article provides a comprehensive overview for general guidance. For any live transaction or dispute, consult a Philippine lawyer to evaluate facts, documents, timelines, and the most current jurisprudence.