Introduction

In the Philippine legal system, the interplay between inheritance, marital property regimes, and spousal rights forms a critical aspect of family law. Inherited property, often acquired through succession, raises questions about ownership, administration, and the distribution of income derived from it, such as rental proceeds. The Family Code of the Philippines (Executive Order No. 209, as amended) primarily governs these matters, supplemented by provisions from the Civil Code (Republic Act No. 386). This article explores the rights of a spouse to collect rental income from property inherited by the other spouse, examining the classification of such property, the impact of marital property regimes, administrative authority, potential disputes, and relevant legal remedies. Understanding these elements is essential for spouses navigating inheritance issues to ensure compliance with the law and protect their interests.

Marital Property Regimes in the Philippines

The rights to rental income from inherited property hinge significantly on the applicable marital property regime. Philippine law recognizes three main regimes:

Absolute Community of Property (ACP): This is the default regime for marriages solemnized on or after August 3, 1988, unless the spouses execute a prenuptial agreement opting for another system (Family Code, Art. 88). Under ACP, all properties owned by the spouses at the time of marriage or acquired thereafter form part of the community, subject to exclusions.
Conjugal Partnership of Gains (CPG): Applicable to marriages before August 3, 1988, or when chosen via prenuptial agreement (Family Code, Art. 105). In this regime, only the gains or income from the spouses' separate properties and acquisitions during marriage are shared.
Complete Separation of Property (CSP): This regime may be adopted through a prenuptial agreement or judicial decree in cases of legal separation or other circumstances (Family Code, Art. 143). Here, each spouse retains full ownership and control over their properties, with no sharing of gains.

The regime determines whether inherited property and its income are considered separate or communal, directly affecting spousal rights.

Classification of Inherited Property

Inherited property is generally classified as the exclusive or separate property of the inheriting spouse under all regimes. This stems from the principle that property acquired by gratuitous title (e.g., inheritance, donation) does not form part of the communal assets unless otherwise specified.

Under ACP (Family Code, Art. 92): Property acquired by either spouse during the marriage by gratuitous title is excluded from the community. This includes the inherited property itself and, crucially, its fruits and income (e.g., rental proceeds), unless the testator or donor expressly provides that the fruits shall form part of the community.
Under CPG (Family Code, Art. 109): Similarly, property acquired by lucrative title (inheritance) is the separate property of the spouse. However, the fruits, natural, industrial, or civil (including rents), due or received during the marriage from such separate property, become part of the conjugal partnership (Family Code, Art. 120), unless stipulated otherwise in the will or by agreement.
Under CSP (Family Code, Art. 145): All properties, including inherited ones, remain entirely separate, and each spouse enjoys the fruits and income exclusively.

Thus, the inherited property's title vests solely in the inheriting spouse, but the treatment of rental income varies by regime.

Rights to Rental Income

Rental income qualifies as "civil fruits" under the Civil Code (Art. 442), representing the periodic yield from the property's use. The non-inheriting spouse's rights to this income depend on the regime and the property's classification.

In ACP: Since both the property and its fruits are excluded from the community (Art. 92), the rental income belongs exclusively to the inheriting spouse. The non-inheriting spouse has no direct right to collect or share in it during the marriage, unless the inheritance document states otherwise. This preserves the intent of the testator to benefit only the heir.
In CPG: The property remains separate, but the rental income forms part of the conjugal partnership (Art. 120). Consequently, the non-inheriting spouse has a co-ownership interest in the income once received. However, this does not grant the non-inheriting spouse the authority to collect the rent independently; it merely entitles them to a share upon liquidation of the partnership (e.g., upon dissolution of marriage). During the marriage, the income is used for conjugal purposes, but administration remains with the owner.
In CSP: The rental income is entirely separate, belonging solely to the inheriting spouse. The non-inheriting spouse has no claim whatsoever.

Exceptions may arise if the inheritance is contested or if the property was improved using communal funds, potentially creating reimbursement claims (Civil Code, Art. 120 for CPG; analogous in ACP). Additionally, if the inheriting spouse uses the rental income for family support, it may be deemed a contribution to communal obligations (Family Code, Art. 70).

Administration and Collection of Rental Income

The right to administer inherited property, including collecting rents, rests primarily with the inheriting spouse.

Ownership and Administration (Family Code, Art. 110 for CPG; analogous in ACP): The spouses retain ownership, possession, administration, and enjoyment of their exclusive properties. The inheriting spouse can enter into lease agreements, collect rents, and manage the property without the other spouse's consent. The non-inheriting spouse cannot interfere unless the administration is abusive or prejudicial to the family (Family Code, Art. 96 for ACP; Art. 124 for CPG).
Joint Administration in Certain Cases: If the inherited property is used as the family home, both spouses must consent to its disposition (Family Code, Art. 101). However, routine collection of rent does not typically require joint action. In cases of disagreement or incapacity, the court may appoint one spouse as administrator (Family Code, Art. 97 for ACP; Art. 125 for CPG).
Delegation or Agency: The inheriting spouse may delegate collection to the other spouse or a third party, creating an agency relationship (Civil Code, Arts. 1868-1932). If done, the non-inheriting spouse acts as an agent, not as a right-holder.

In practice, spouses often handle finances jointly, but legally, the non-inheriting spouse has no inherent right to collect rents from the other's inherited property.

Disputes and Legal Remedies

Disputes over rental income may arise during marriage, separation, or dissolution.

During Marriage: If the inheriting spouse mismanages the property (e.g., fails to collect rents, leading to family prejudice), the non-inheriting spouse can seek judicial intervention for proper administration (Family Code, Art. 98 for ACP; Art. 125 for CPG). However, this does not transfer collection rights.
Legal Separation or Annulment: Upon legal separation, the property regime dissolves, and assets are liquidated. In CPG, the non-inheriting spouse may claim half of the accumulated rental income. In ACP, if fruits were communal by stipulation, similar sharing applies (Family Code, Arts. 102, 129).
Death of Inheriting Spouse: The inherited property passes to the heirs of the deceased, but the surviving spouse may have usufructuary rights or a share if the property was reclassified. Rental income accrued before death follows the regime's rules.
Judicial Remedies: Actions include petitions for accounting (if income is communal), injunctions against mismanagement, or suits for reimbursement if communal funds were used for the property (Civil Code, Art. 114). The Supreme Court has ruled in cases like Ayala Investment & Development Corp. v. Court of Appeals (G.R. No. 118305, 1996) that exclusive properties remain separate, reinforcing limited spousal interference.

Relevant case law, such as Valdes v. Regional Trial Court (G.R. No. 122749, 1996), emphasizes that fruits of separate property in CPG are conjugal, but administration stays with the owner. In Partido v. Court of Appeals (G.R. No. 105286, 1993), the Court clarified that inherited properties are not conjugal unless proven otherwise.

Tax and Practical Considerations

Rental income from inherited property is subject to income tax under the Tax Code (Republic Act No. 8424, as amended), reported by the inheriting spouse. If the income is communal, it may be filed jointly, but collection responsibility lies with the owner.

Practically, spouses should document lease agreements and income use to avoid disputes. Prenuptial agreements can modify default rules, excluding fruits from communal property even in CPG.

Conclusion

In summary, under Philippine law, inherited property is the separate asset of the inheriting spouse, with rental income treated differently across regimes: exclusive in ACP and CSP, but conjugal in CPG. The non-inheriting spouse generally lacks direct rights to collect such income, as administration belongs to the owner. However, in CPG, they share in the income's benefits. Spouses are advised to consult legal counsel for regime-specific advice, especially in drafting wills or agreements to clarify intentions regarding fruits. This framework balances inheritance autonomy with marital equity, ensuring family stability while respecting testamentary wishes.