G.R. No. 134577 - Defensor-Santiago vs. Guingona, Jr.

Epifanio R. Tupas died on August 20, 1978, in Bacolod City, leaving no children and only one compulsory heir, his widow, Partenza Lucerna.
Tupas executed a will dated May 18, 1976, admitted to probate on September 30, 1980, listing among his assets lots Nos. 837, 838, and 839 of the Sagay Cadastre as private capital.

Prior to his death, on August 2, 1977, Epifanio Tupas donated these lots to the Tupas Foundation, Inc., which thereafter obtained titles to said lots.
At the time of his death, these lots were no longer part of his hereditary estate due to the donation.

Claiming that the donation virtually deprived her of her legitime, Partenza Lucerna instituted a case against the Tupas Foundation, Inc. (Civil Case No. 16089) to declare the donation inofficious to the extent that it prejudiced her legitime.
She sought reduction of the donation by one-half or an equitable proportion and the restoration or delivery of the resulting deduction to her.
The complaint also prayed for attorney’s fees and other proper relief.

Article 900 (on inofficious donations) was not applicable as the donated lots were no longer part of the deceased's estate at death.
The donated lots were Epifanio Tupas’s capital or separate estate.
The Tupas Foundation, Inc. was a stranger (not a compulsory heir) and thus the donation was not subject to collation under Article 1061 of the Civil Code.

Whether a donation inter vivos made by a donor before death, which is not part of the estate at death, can be considered inofficious and thus subject to reduction by a compulsory heir.
Whether donations of properties considered as the donor’s capital or separate estate are exempt from the rules on inofficious donations and collation.
Whether donations to strangers (non-compulsory heirs) are subject to collation for purposes of protecting compulsory heirs’ legitime.