Introduction

In the Philippines, a deed of donation serves as a formal instrument through which a donor transfers ownership of property to a donee without any monetary consideration, embodying an act of liberality. Governed primarily by the Civil Code of the Philippines (Republic Act No. 386), donations are a key aspect of property law, facilitating the gratuitous transfer of assets for personal, charitable, or familial purposes. A common question that arises in legal discussions is whether such a deed expires over time. This article explores the concept comprehensively within the Philippine legal framework, examining the nature of donations, their formal requirements, perfection, revocability, and any temporal limitations. It concludes that, under Philippine law, a properly executed deed of donation does not inherently expire, but certain conditions, revocations, or legal actions may affect its enforceability.

The Legal Nature of a Deed of Donation

A donation, as defined under Article 725 of the Civil Code, is an act whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. The deed of donation is the written document that evidences this transaction, outlining the terms, the property involved, and the parties' intentions. Philippine law distinguishes between two main types of donations:

Donation Inter Vivos: This takes effect during the lifetime of the donor and is irrevocable except under specific circumstances. It is the most common form and is treated as a contract of donation.
Donation Mortis Causa: This is essentially testamentary in nature, taking effect only upon the donor's death, and must comply with the formalities of a will under Articles 728 and 805 of the Civil Code. If it fails to meet will requirements, it may be void.

The deed itself is not a standalone entity but a manifestation of the donation contract. Once perfected, the transfer of ownership is immediate for inter vivos donations, subject to acceptance and formalities.

Importantly, the Civil Code does not impose an automatic expiration period on a deed of donation. Unlike contracts with built-in terms (e.g., leases or loans), donations are designed to be permanent transfers unless explicitly conditioned or revoked. This permanence aligns with the principle of liberality, ensuring that gratuitous acts endure unless legally challenged.

Formal Requirements and Perfection of the Donation

For a deed of donation to be valid and effective, it must adhere to specific formalities based on the value and nature of the property:

Movable Property: Under Article 748, donations of movable property may be oral if the value does not exceed PHP 5,000, accompanied by simultaneous delivery. For values exceeding PHP 5,000, the donation must be in writing, either public or private, and accepted in the same form.
Immovable Property: Article 749 requires that donations of immovable property (e.g., land or buildings) be made in a public instrument (notarized deed) specifying the property and any charges. Acceptance must also be in a public instrument, either in the same deed or a separate one, notified to the donor during their lifetime.

Perfection occurs upon the donor's knowledge of the donee's acceptance (Article 734). Once perfected, ownership transfers to the donee, and the deed serves as evidence of this transfer. Registration with the Registry of Deeds is not required for validity between parties but is necessary for enforceability against third persons (Article 709 and Republic Act No. 11573, the Property Registration Decree).

Since there is no provision in the Civil Code or related laws stipulating an expiration date for the deed, it remains valid indefinitely once these formalities are met. However, if the donation includes conditions or modes (e.g., the donee must use the property for a specific purpose), non-fulfillment may lead to revocation, not expiration.

Revocability of Donations: Grounds and Time Limits

While a deed of donation does not expire automatically, it can be revoked under certain grounds outlined in Articles 760 to 769 of the Civil Code. Revocation does not equate to expiration but rather to the legal nullification of the donation. The grounds include:

Birth, Appearance, or Adoption of a Child: If the donor, after making the donation, has a child (including legitimation or adoption), the donation may be revoked or reduced to the extent it impairs the child's legitime (Article 760). This applies even if the donor believed they were childless at the time.
Non-Fulfillment of Charges or Conditions: If the donee fails to comply with any charges imposed (e.g., building a school on donated land), the donor may revoke the donation (Article 764).
Ingratitude of the Donee: Revocation is possible if the donee commits an offense against the donor's person, honor, or property, such as attempting to kill the donor or unjustly accusing them of a crime (Article 765). This action must be brought within one year from the donor's knowledge of the act of ingratitude.
Reduction Due to Inofficiousness: Donations that exceed the donor's free disposal portion (impairing legitimes of compulsory heirs) may be reduced upon the donor's death (Article 771).

Revocation actions have prescriptive periods under the Civil Code and the general rules on prescription (Articles 1139–1155). For instance:

Actions based on ingratitude prescribe in one year.
Revocation for subsequent birth of a child must be exercised within five years from the birth or relevant event (Article 763).
General actions to annul or rescind contracts prescribe in four years from discovery of fraud or mistake (Article 1391), though donations are rarely annulled on these grounds.

If not revoked within these periods, the donation becomes irrevocable and endures perpetually. The deed, as evidence, does not lose validity over time.

Tax Implications and Their Temporal Aspects

Donations are subject to donor's tax under the National Internal Revenue Code (Republic Act No. 8424, as amended by the TRAIN Law and CREATE Act). The donor must file a return and pay the tax within 30 days after the donation. While tax obligations have deadlines, failure to pay does not cause the deed to expire; it merely incurs penalties. The Bureau of Internal Revenue (BIR) may question the donation if it appears simulated to evade taxes, but this pertains to validity, not expiration.

For donees, if the property is sold later, capital gains tax applies, but this does not affect the original deed's longevity.

Judicial and Practical Considerations

In practice, Philippine courts have consistently upheld that valid donations do not expire. For example, in cases like Heirs of Sevilla v. Sevilla (G.R. No. 150179, 2003), the Supreme Court emphasized that once accepted, inter vivos donations are irrevocable except on statutory grounds. Challenges to a deed's validity (e.g., due to lack of capacity or vitiated consent) must be raised within the prescriptive periods for annulment actions.

If the deed is lost or destroyed, it can be reconstituted through judicial proceedings under Republic Act No. 26, but this does not imply expiration. For unregistered deeds involving real property, while they bind the parties, unregistered transfers may not prevail against innocent third parties, yet the deed itself remains effective inter partes.

In charitable donations, such as those to non-profit organizations, additional regulations under the Corporation Code or special laws (e.g., for educational institutions) may apply, but no expiration is inherent.

Special Cases: Conditional, Remuneratory, and Onerous Donations

Conditional Donations: If the deed includes a suspensive condition, the donation takes effect only upon fulfillment; a resolutory condition may cause reversion if triggered. However, unmet time-bound conditions do not make the deed expire but may allow revocation.
Remuneratory Donations: These reward past services and are treated similarly to inter vivos donations, with no expiration.
Onerous Donations: Involving burdens equivalent to the value donated, these follow rules on contracts rather than pure donations but still lack an expiration mechanism.

Conclusion

Under Philippine law, a deed of donation does not expire as a matter of course. Once perfected through proper formalities and acceptance, it effectuates a permanent transfer of ownership, subject only to revocation on limited grounds within specified prescriptive periods. This enduring nature underscores the Civil Code's intent to protect acts of generosity while providing safeguards against abuse. Individuals contemplating donations should consult legal professionals to ensure compliance with formalities and to address any potential conditions or tax implications, thereby securing the deed's lasting validity.